In my role as a financial planner this is a question I answer for many retirees. There is a need to keep clients focused on their finances in retirement, I also know that it is necessary to make sure they remain engaged with their investments. In my parents time, retirees were likely to place their money in a conservative investment, such as a guaranteed investment certificate (GIC) or a money market fund, make their 8% interest and then forget about them.
That approach won’t work in today’s new retirement reality. Interest rates are at a 60 year low and can’t produce enough interest income to even keep up with the low inflation that we have.
Another retirement reality is we are living longer; in fact a lot longer than our parents did at retirement.
With these two factors; low interest rates and longevity; those already retired or those approaching retirement need much more comprehensive financial plans and they need the expertise of a CFP to compile them.
There’s a very strong risk that clients may outlive their money if they don’t remain engaged in the process in retirement. Thus, retirees need their money to continue to grow, keep up with the cost of living and to make sure that those funds are available for a retirement that may last 30 to 40 years!
The way a client invests in order to make sure their money lasts will vary, depending on their risk tolerance. Needless to say some exposure to equities is necessary over the long-term.
So the simple answer is -Yes you need a financial planner and you need to review your financial plan even after you retire. You don’t want to outlive your money.