Preparing clients for retirement, and the identity crisis that can come with it
Reconciling retirement realities
As an advisor, Hirani’s approach begins with an understanding of client cash flow and tax planning. He’ll outline what the client needs to live within their chosen budget, working with them to make sure they have the greatest room possible to absorb potential unexpected shocks or the risks that come with a longer lifespan. He helps them outline when they will draw from each retirement income stream, and how that may line up with what they want to do in their earlier and later years of retirement.
There will be instances where Hirani and his clients have to have a conversation about extending their working years or returning to work. In those conversations he tries to present them with a series of options around budgeting and expense that could be exercised instead of a return to work. However, there can be instances where returning to some form of work is beneficial from their a financial or a psychological perspective.
Canadians, on the whole, are finding themselves working after retirement. According to Statistics Canada, 10 per cent of Canadians in 2023 were working after they had retired, up from seven per cent in 2019. Some of that comes down to financial necessity, but for others there was a degree of purpose and fulfillment that motivated the decision to return to work.
For Hirani, any positioning of a return to work occurs in the context of a holistic retirement plan, one that accounts for needs at age 90 as much as it does for desires at age 60. The conversation can sometimes be challenging, but a clear focus on financial realities can help create the necessary clarity.
Advisors’ role in retirement preparation
Just as he works to ensure his clients are ready to retire financially, Hirani pulls from his cross-section of client-facing experience to educate those clients on how they can prepare themselves. He likens the approach to teaching someone how to swim. He begins with theory and stories that can help them reconcile their idea of retirement with the reality they might encounter. From there he recommends trial periods, longer leaves, and even full-year sabbaticals where possible to give a client a sense of what they might be stepping into.
