Your asset allocation should change with your needs in retirement

The introduction of regular withdrawals means that you have to pay more attention to reducing volatility.

Michael Keaveney 30 January, 2017 | 6:00PM

Editor's note: Today on Morningstar.ca we begin our look at Your retirement to-do list. Each day this week we look at a critical task that investors must accomplish before making the transition to retirement. These five tasks are: setting an appropriate asset allocation, selecting investments for your retirement account, setting a plan for retirement withdrawals, incorporating government benefits, and creating an estate plan. Check back all week for more insights from Morningstar's experts.

In 2016, the ranks of Canadians aged 65 and over continued to grow faster than domestic population growth, with 16.5% of the Canadian population now at least 65 years old. And while the proportion of the Canadian workforce in that cohort has almost tripled since 2000 to 4.1%, there's no doubt that retirement is increasingly on the minds of more Canadians. Among the numerous transitions a retiree makes is in their approach to investments -- from accumulating financial assets to drawing upon them in their new life stage.

As Canadians reach a "standard" retirement age of 65, our median life expectancy is 20 years. At that point, especially for those among us without a defined benefit pension plan or other annuitized income, we are likely to have started considering the very real risk of outliving our money.

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About Author

Michael Keaveney

Michael Keaveney  Michael Keaveney, CFA, is Director, Investment Management at Morningstar Associates, Inc.

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