Beneva on ensuring retirees don’t outlive their savings and leave a meaningful legacy for their heirs
This article was produced in partnership with Beneva
When Andrew Gardiner made the decision to join Beneva, it wasn’t because he was searching for a new career path. With more than 20 years of experience in the mutual fund industry, he was well-versed in the intricacies of investment management. However, a conversation about Beneva’s innovative approach to estate protection and wealth management shifted his perspective.
“I was with my dad, who was 71 at the time, and I called a colleague at Beneva to ask about a platform that was completely new to me,” Gardiner recalls. “By the end of the call, I turned to my dad and said, ‘Everything you own should be in this.’”
What Gardiner discovered at Beneva was a company that didn’t just aim to grow wealth—it aimed to protect it. Unlike traditional financial products that focus solely on investment returns, Beneva's solutions are designed to ensure that wealth is preserved, efficiently transferred, and protected against unforeseen risks. For Gardiner, this was the missing piece, especially as Canada stands at the cusp of the largest intergenerational wealth transfer in its history.
The unseen costs: Why estate planning is critical for baby boomers
For many Canadians, estate planning is something they assume will “just happen.” In reality, failing to plan properly can result in substantial financial leakage.
“Most Canadians don’t realize how much of their wealth can be eroded by taxes, legal fees, and delays in settling an estate,” Gardiner explains. “Without an estate plan, a significant portion of assets can be lost to probate fees, legal challenges, and lengthy settlement times. And then there’s the issue of privacy—wills are public documents, so if your estate goes through the probate process, anyone can see what’s been left behind and to whom.”
This gap in awareness is where Gardiner sees the greatest opportunity for financial advisors. “Estate planning is the key differentiator between a comprehensive financial advisor and everyone else.”
A call for comprehensive planning
The demographic makeup of Canada is at a turning point. As baby boomers transition into retirement, they are positioned at the forefront of this unprecedented wealth transfer. Gardiner emphasizes that this shift creates a unique, time-sensitive opportunity for financial advisors.
“The opportunity is evergreen—there will always be a need for estate planning. But today, the urgency is driven by demographics,” he says. “Poorly advised Canadians will see their wealth diminished by unprotected market risks. And no one knows what the markets will look like when they pass away. Without proper planning, their heirs could receive much less than intended.”
Beneva’s approach integrates these goals with innovative solutions like the Beneva Investment Account Platform.
By leveraging Beneva’s investment accounts for registered plans, clients gain 100 percent death benefit protection at no additional cost. “Essentially it’s a retail mutual fund held in an insurance contract,” Gardiner says. “Keeping costs down means more money stays in the plan to grow, ultimately providing greater income for clients and more security for their beneficiaries.”
While registered plans like RRSPs and TFSAs offer structured estate benefits, non-registered assets present additional challenges—especially regarding tax implications.
“Managing non-registered assets is a big challenge, and the problem only gets worse the longer you wait to set up the estate,” Gardiner says. “Most people don’t want to trigger capital gains taxes just to make their estate more efficient. But there are strategies, like harnessing tax losses from existing positions, that can help.”
What sets Beneva apart is its flexibility with non-registered investments. “Unlike most insurance carriers, we offer different levels of protection for non-registered accounts,” Gardiner explains. “And the best part? You can adjust your level of contractual guarantee without triggering a taxable event.”
In contrast, most insured investment products require clients to sell and repurchase contracts to change coverage levels, which results in a deemed disposition and capital gains taxes. “With Beneva, clients can adjust their protection levels as they move through the investment lifecycle, right up to age 85, without tripping any taxable events,” Gardiner says.
This flexibility is especially important because it allows clients to increase their estate protection over time without incurring unnecessary tax liabilities. “It’s a major advantage that isn’t well understood—even by seasoned financial advisors,” Gardiner notes.
Not all Canadians are comfortable with taking on market risk and many want to protect their legacy. This is especially true amongst older Canadians that are looking for tax advantaged guaranteed income. Beneva, hosting both insurance and investment solutions, promotes the Guaranteed Income Enhancer strategy. “This strategy combines an annuity with a life insurance policy,” Gardiner explains. “The annuity provides guaranteed income, covering the insurance premiums, while the life insurance policy ensures that a specific amount is passed on to the heirs. It’s a way to provide income without market risk, along with a substantial after-tax benefit compared to other low-risk options.”
Why now is the time for advisors
The unique position of baby boomers, often inheriting wealth while supporting millennial children, requires a thoughtful approach to multigenerational estate planning. Gardiner stresses that advisors need to build relationships not just with their clients but with the entire family.
“Statistics show that if an advisor doesn’t know the client’s beneficiaries, the chances of retaining the assets under management when they transfer are close to zero,” Gardiner warns. “It’s critical for advisors to have relationships with the entire family to ensure a smooth estate transition.”
Beneva’s Private Wealth Management platform is designed to facilitate these connections. “Unlike other platforms, we allow families to pool their assets to qualify for private wealth management services. This way, millennial children can combine their savings with their parents and grandparents to gain access to reduced costs and enhanced benefits,” Gardiner explains.
Additionally, Beneva offers estate settlement options that provide flexibility in how inheritances are distributed. “Rather than handing over a large sum all at once, clients might choose to give a portion as a lump sum and the rest as an annuity. This approach provides financial stability for younger beneficiaries while still giving them access to their inheritance.”
“Financial advisors should conduct family estate planning reviews to show how the estate is set up and involve the next generation in the planning process,” he says. “It’s also an opportunity for advisors to build relationships with beneficiaries who may not currently be clients.”
Estate planning seminars are another effective tool. “Whenever I’ve hosted an estate planning seminar, the turnout has been strong,” Gardiner notes. “People are interested in protecting their wealth—they just don’t know where to start.”
Beneva’s approach is about more than just offering products; it’s about implementing systems that safeguard wealth across generations.
