Canadians are living longer, increasing their chances of outliving their money during retirement. Today, there is a one-in-three chance that a 65-year-old man will live to age 85; for women, the odds are about one-in-two.*
Market risk
In the real world, you can't control investment returns. When you're an investor in your 30's or 40's, you may not be concerned about market volatility. But things change in the years leading up to your retirement and the first five or six years after you retire. A significant market downturn near, or during the early years of retirement can significantly reduce your retirement portfolio and the income it produces.Inflation risk
Even at the currently low level of about 2%, inflation can have a severe effect on your income over time. Many people will face a retirement of at least 20 years, so it's important to keep your savings growing.*Asset Allocation and the Transition to Income, Milevsky & Salisbury, September 2006
