Retirement Planning

Financing retirement is a growing challenge

Canadian retirees and pre-retirees face a complex financial picture. The end of private pension plans has created a $1.5 trillion shortfall in retirement income, according to the National Institute on Ageing. RRSP savings are filling that gap but turning a finite amount of savings into income you can live on is a truly complex prospect. Watch this video from Harvest ETFs President and CEO Michael Kovacs to learn more about the challenges retiring Canadians face, and how equity income can help.

Over 5,000 Canadians retire every week[1]

%

90% of private sector employees don’t have a traditional pension plan[2]

One in five Canadians retiring at 65 will live past 95[3]

Traditional yields are below inflation – January 2022

Source: Bloomberg, December 31, 2021 ; Bank of Canada, December 31, 2021

Modern retirement is complex, but income brings simplicity

Stable monthly income generated by investments can offset government mandated RRIF drawdowns. Yields above the rate of inflation can help a retiree keep pace with the rising cost of living. If those investments remain exposed to long-term growth trends while paying income they can offer peace of mind and financial stability even as we all live longer and longer.

Harvest Equity Income ETFs are built to provide sources of steady income that can provide the simplicity retirees need. Our investment philosophy is as powerful as it is straightforward: our ETFs own high-quality companies that meet our high financial standards in sectors with serious long-term growth tailwinds. We maximize income by using a covered call strategy to generate tax-efficient cash flows, known as premiums, on our holdings while potentially minimizing portfolio volatility.

Harvest Retirement Resources

TFSA limit for 2022

Eight things to know about RRIFs in 2022

Finding the right Equity Income ETF

Each investor’s goals, risk tolerance, and outlooks are unique. Our suite of Equity Income ETFs can offer retirees and pre-retirees a range of options designed to meet their growth and income needs. Each ETF offers consistent, strong yields and exposure to serious long-term growth trends.

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For exposure to a sector with serious long-term demand dynamics, driven by global demographic and economic shifts, look at the Harvest Healthcare Leaders Income ETF which captures the healthcare sector’s largest players, innovation drivers, and income potential.

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Investors who want a resilient ETF of high-quality large capitalization equities diversified across subsectors and geographies with global revenues and growth prospects in any economic cycle should look at the Harvest Brand Leader Plus Income ETF.

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If you want more exposure to the technology sector and its remarkable growth track record, while still generating yield through dividends and covered calls, take a look at the Harvest Tech Achievers Growth & Income ETF.

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For a defensive position that generates consistent and high yields investors may want to consider the Harvest Equal Weight Global Utilities ETF which features broad diversification across subsectors and geographies to offset any individual stock specific risks.

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Real estate is a core part of many Canadian retirement plans, and REITs can generate attractive income. Canadian RIETs, though, lack the breadth, diversity, and income potential that can be found abroad. To generate income and gain exposure to global trends in commercial real estate investors can look at the Harvest Global REIT Leaders Income ETF.

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Big energy providers still play a crucial role in our day to day lives and have the scale and vision to embrace the next wave of energy, capitalizing on the complimentary growth of renewables. The Harvest Energy Leaders Plus Income ETF offers exposure to, and income from, those big players.

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For investors seeking income and growth from the US financials sector and exposure to the big, robust banking institutions that finance US growth and power the global economy, they can find that in the Harvest US Bank Leaders Income ETF.

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For investors seeking a truly diversified core income ETF the Harvest Diversified Monthly Income ETF combines 5 existing Harvest equity income ETFs. It captures the healthcare, technology, global brands, US banking and global utilities sectors in a basket of over 90 stocks with a target yield of 8.5%.

Harvest Retirement Insights

Explaining RRIF calculations

Explaining RRIF calculations

Registered Retirement Income Fund (RRIF) payments are calculated based on either your age or the age of your spouse or common-law partner.

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[1] Statscan, RBC

[2] and [3] MacDonald, B.-J., Sanders, B., Strachan, L., Frazer, M. (2021). Affordable Lifetime Pension Income for a Better Tomorrow. How we can address the $1.5 trillion decumulation disconnect in the Canadian retirement income system with Dynamic Pension pools. Toronto, ON: National Institute on Ageing, Ryerson University and Global Risk Institute.

Disclaimer

For Information Purposes Only.

Commissions, management fees and expenses all may be associated with investing in HARVEST Exchange Traded Funds (managed by Harvest Portfolios Group Inc.). The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account income taxes payable by any securityholder that would have reduced returns. Please read the relevant prospectus before investing. The funds are not guaranteed, their values change frequently and past performance may not be repeated. The information contained herein should not be considered as advice and/or a recommendation to purchase or sell the mentioned securities or used to engage in personal investment strategies. Tax, investment and all other decisions should be made with guidance from a qualified professional. Certain statements included in this communication constitute forward-looking statements, including, but not limited to, those identified by the expressions “expect”, “intend”, “will” and similar expressions to the extent they relate to the Investment Fund. The forward-looking statements are not historical facts but reflect the Fund’s, Harvest and the Manager of the Fund’s current expectations regarding future results or events. These forward looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although the Fund, Harvest and the Manager of the Fund believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. The Fund, Harvest and the Manager of the Fund undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

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