{"id":2644,"date":"2024-10-09T08:49:07","date_gmt":"2024-10-09T12:49:07","guid":{"rendered":"https:\/\/www.rbcwealthmanagement.com\/en-eu\/2016\/12\/05\/beyond-retirement-wealth-planning-for-corporate-executives\/"},"modified":"2024-10-09T08:49:08","modified_gmt":"2024-10-09T12:49:08","slug":"beyond-retirement-wealth-planning-for-corporate-executives","status":"publish","type":"post","link":"https:\/\/www.rbcwealthmanagement.com\/en-eu\/insights\/beyond-retirement-wealth-planning-for-corporate-executives","title":{"rendered":"Beyond retirement: Wealth planning for corporate executives"},"content":{"rendered":"\n

Common wisdom suggests that high earners have little to worry about when it comes to retirement planning. In fact, this is a long way from the truth. <\/p>\n\n\n\n

No matter a person\u2019s net worth, careful planning is required to ensure that risks are mitigated and objectives are achieved. This is particularly important given that many people want to maintain the same lifestyle in retirement as in their working life. In fact, income needs often rise during the early years of retirement given that many people go on holiday while they’re still physically active. A proper plan will help to ensure the right arrangements are in place to fund your desired lifestyle and to cover any unexpected expenses along the way.<\/p>\n\n\n\n

William Sheard, director in the corporate executives team at RBC Wealth Management in the British Isles, says that retirement planning for clients with high earnings has a simple premise: \u201cit is about structuring your assets so that they pay for the lifestyle you want.” However, the process is not always so simple. This is because higher earners not only have more complex compensation arrangements, but given many of them are internationally mobile and might have assets spanning more than one jurisdiction, they will also have more complex wealth planning needs.<\/p>\n\n\n\n

First determine if you have a pensions issue<\/h2>\n\n\n\n

One of the biggest myths about retirement planning is that any conversation on the topic means talking about pensions, Sheard says. Higher earners tend to have several compensation arrangements depending on their specific circumstances, consisting of a salary and bonus package, additional benefits such as onshore and offshore pension plans, share schemes, complex deferred compensation schemes, as well as life insurance and medical plans. Of all these, pensions are frequently a small component. But this does not mean they are not important.<\/p>\n\n\n\n

Nisha Patel, director in the corporate executives team at RBC Wealth Management in the British Isles, says many high earners do not realise they have a pensions problem. \u201cMany corporate executives are financially well off and don\u2019t need their pension benefits, therefore they think they don\u2019t have to worry about it. But what they don\u2019t think about is that they can use them to help their family,\u201d she says. With that in mind, Patel says that by conducting a thorough review of a client\u2019s financial situation, any potential pension problems can be highlighted and then solved.<\/p>\n\n\n\n

Make use of all your retirement planning options<\/h2>\n\n\n\n

Sheard says that retirement planning means taking a holistic view of a client\u2019s financial affairs to see if it is possible to anticipate any future problems, such as succession issues, and how they can be solved. This consists of considering three key questions:<\/p>\n\n\n\n