This is the fourth and final article in a series examining the decumulation product landscape in Canada and how advisors can explain the options to clients. Read Part 1 here, Part 2 here and Part 3 here.

In a few years, we’ve gone from one option for mortality risk hedging when decumulation planning to four or five (given the different types of tontines). They all have some value proposition worth considering for clients who face the prospect of running out of money in retirement.

That said, the end solution for each client will depend on a combination of the facts of their case and financial plan, their personal preferences and, in some cases, their willingness to accept their estate being smaller if they pass away early. While few like that idea, the prospect of ruin in advanced age should scare them – and their advisors – even more.

Why modelling decumulation products for clients is so challenging
For people at risk of running out of money, the products could be essential
The Globe and MailJason Pereira