People around the world are living longer and the number of retirees is growing. By 2050, the global retirement population will almost triple to 2 billion, growing at twice the rate of the population at large. Longevity should be a blessing, but many investors are worried they will outlive their savings.
Living Longer Around the World1
Average Expectancy at Birth 1950-1955 and 2005-2010
"So what do I do with my money?"
Not only should investors consider saving for retirement as early as possible, but also think about how to invest along the way. Because they can use their longevity to ride out market cycles, investors today have the potential to generate income and even build capital throughout all phases of their lives. With retirements likely to span twenty years (or more), investors could consider lengthening their investment horizons and investing across a range of asset classes to generate long-term returns and retain the lifestyle they want.
No matter where you are on your life path to retirement, talk to your financial advisor about how to plan for – and invest – so that you can achieve the lifestyle that you want.
Some investing ideas to consider
iShares Diversified Monthly Income Fund (XTR)
A diversified portfolio of income-bearing iShares ETFs that seeks to provide a consistent monthly cash distribution, with the potential for modest long-term capital growth. Access dividend paying equities, fixed income including high yield bonds, real estate and preferred shares in a single trade.
iShares Dow Jones Canada Select Dividend Index Fund (XDV)
Designed to provide exposure to high-quality, income-producing securities. Index is comprised of 30 stocks that have met various screening criteria such as dividend growth, yield and average payout ratio.
iShares DEX HYBrid Bond Index Fund (XHB)
Seeks investment results that correspond generally to the price and yield of the DEX HYBrid Bond Index by investing in a regularly rebalanced portfolio of over 150 high yield and BBB-rated corporate bonds.
iShares U.S. High Dividend Equity Index Fund (CAD-Hedged) (XHD)
The fund seeks to provide long-term capital growth by replicating, to the extent possible, the performance of the Morningstar Dividend Yield Focus Index- CAD Hedged, net of expenses.