The Best Time to Start Saving Is Now, No Matter Your Age

Most people don’t talk openly about retirement until they’re already well into their 50s or 60s. For a long time, I was one of them. Like many others, I didn’t start seriously thinking about my own retirement until I was in my 50s. Life was full, raising a family, working, covering the day-to-day bills, and retirement felt like something far away, something “future me” would figure out.

Luckily, when I finally did take a hard look at my future, I had a workplace retirement plan and was able to save into the six figures to supplement it. That gave me a decent foundation. But let me be clear: I was fortunate. Many people hit their 50s or 60s with very little savings, fear in their gut, and no idea what to do next.

Even worse? When they go looking for help, they hit a wall. Financial advice can be expensive, often limited to those with large portfolios, and good guidance feels out of reach. This is a retirement blind spot we don’t talk about nearly enough, and it’s long overdue that we fix it.

My goal of this series is to provide Canadians with down-to-earth, practical information that helps you take control of your retirement planning, no matter where you’re starting from. Whether you’re in your 20s or your 60s, the best time to start is now. Really. The advice given in these posts is based on my situation, and should not be taken as expert advice. If you are planning for your retirement, talk to your advisor or financial institution before taking any actions.

Why So Many of Us Delay Retirement Planning

If you haven’t started saving for retirement yet, you’re not alone. In fact, surveys have shown that nearly half of Canadians don’t have a formal retirement plan. Why?

• Life gets busy. Between raising kids, paying the mortgage, and dealing with unexpected expenses, it’s easy to let retirement planning slide.
• It feels overwhelming. There are so many acronyms, RRSPs, TFSAs, CPP, OAS, and it’s hard to know where to begin.
• We think there’s still time. In your 30s or 40s, retirement seems far away. In your 50s or 60s, it feels too late.

Here’s the truth as I see it: It’s never too early or too late to start.

The Sooner You Start, the Easier It Gets

One of the most powerful concepts in saving is compound interest, your money earns interest, and then that interest earns interest too. I found this out late in life. The earlier you start saving, even small amounts, the more time your money has to grow.

Let’s say you start saving $200 a month at age 25. By the time you’re 65, you could have over $300,000, depending on your investment return. Wait until 45, and that total might be closer to $100,000. That’s still a solid start, but more time equals more growth.

Even if you feel behind, you can still make progress. Many people ramp up their saving in their 50s and 60s when their expenses go down or their income stabilizes. That’s what I did. I got focused, built a plan, and stayed consistent.

What If You’re Starting Late?

If you’re in your 50s or 60s and just beginning, don’t panic. Here are a few things you can do:

• Review what you already have. You might have workplace pensions, RRSPs, TFSAs, or even some equity in your home.
• Cut unnecessary expenses. Even small changes, like reducing subscriptions or eating out less, can free up money for saving. My wife and I only went out once a month once we started getting serious. A friend of mine and his wife, only went out for lunch or happy hour and they shared a meal. Little things add up.
• Make use of tax shelters. RRSPs and TFSAs can still offer advantages, especially if you’re in a higher income bracket now than you expect to be in retirement.
• Set specific goals. Retirement isn’t just a number, it’s a lifestyle. What do you want yours to look like?

Your First Action Step

If you’re just starting, here’s a simple three-step plan:

1.   Open a TFSA or RRSP if you don’t already have one (more on this in Posts 2 and 3).

2.   Start with any amount, even $25 a week adds up over time. If you are a Tim Hortons or a Starbucks regular, cutting back to twice a week may save you the $25, to start your plan.

3.   Automate it. Set up automatic transfers so saving becomes a habit, not a chore. I did that and it made my ability to save,  a lot easier.

These baby steps can snowball. Once you start seeing your savings grow, it becomes easier to stay motivated.

You Don’t Need to Be Rich to Retire Well

Too often, the retirement industry focuses on people with big portfolios and high incomes. But the majority of Canadians are working with modest means, trying to balance competing priorities.

That’s why  over the next few posts I will focus on what everyday people can do:

·        How to choose between TFSAs and RRSPs

·        When to apply for government benefits like CPP and OAS

·        What to know about health benefits in retirement

·        Where to go for affordable or even free advice

·        What housing options make sense for you

Don’t Wait for the “Perfect” Time

Waiting until you earn more, spend less, or “have time” won’t make retirement planning easier. Taking one step, today, is what moves you forward.

I started in my 50s. You can start now.

Helpful Link: Get Smarter About Money – Retirement Planning

In the next post, I will break down Tax-Free Savings Accounts (TFSAs), one of the most flexible tools for saving, whether you’re 25 or 65.

Until then, take a deep breath, remind yourself that you’re not behind, you’re just getting started, and you’re not alone.

Boomers and Gen Xers, Welcome to the Next Big Adventure: Retirement!

In 2025, the last of the Boomers turn 60, and some Gen Xers are hitting the big 5-0. Whether you're considering retirement or already making plans for your golden years, you’ve likely realized this is a big transition. For those of us who have already taken the leap, retirement is what you make of it, and it can be both exciting and daunting.

To make sure retirement isn’t just a long vacation but a rewarding new chapter, here are 10 pieces of advice to help you step into 2025 and beyond with confidence and a smile.

Your time is now your own, use it wisely. 

Your working years were all about making money, but in retirement, time is your most valuable asset. Spend it on what brings you joy, purpose, and connection.

• Just like Santa, make a list and check it twice, but make a list of things you’ve always wanted to do, you don’t need a naughty and nice list yet unless you are preparing your will.(😉) 

• Try a hobby, or pick up an old one—macrame, anyone?

• Build a morning routine you enjoy (yes, this can include coffee and crossword puzzles, my routine includes coffee, Wordle, Connections and the Mini crossword).

Think of your time like a budget: spend it where it counts, and save the rest for what matters most.

Retirement: Your Launchpad for Life’s Next Adventure

Think of retirement as the starting gate for your next big adventure.

• Want to learn a new skill or take a part-time job? Go for it!

• Explore volunteering or joining a social club.

• Make a bucket list—not just for travel, but for experiences that light you up.

Remember, if it’s all too overwhelming, start with one small step. You don’t have to reinvent yourself overnight.

Ease the Transition

A sudden halt from full-speed work to full-stop retirement can feel like slamming the brakes on a speeding car. An interim project, something engaging and meaningful, can help smooth the ride.

• Write your memoirs (your grandkids will love to read it someday).

• Start a vegetable garden (bonus points if you get the neighbors hooked on your tomatoes).

• Learn a new language and plan a trip to show off your skills.

Spend on what you care about

You’ve worked hard for your money, so spend it on what truly matters.

• Invest in experiences over things.

• Treat your health as the most important asset in your portfolio.

• Enjoy life now, but keep an eye on the future (your 85-year-old self will thank you).

Splurge a little—but skip the gold-plated golf cart.

Create a “New Normal” Routine

Without work setting the alarm clock, it’s easy to drift. We all need a reason to get up in the morning and face the day. So start by building a routine that balances relaxation and purpose.

• Schedule time for exercise, hobbies, and socializing.

• Set goals—weekly, monthly, or just for today.

• Stay flexible—this is your time, not a to-do list marathon.

Social Connections Are Your Secret Weapon

Retirement can sometimes feel isolating if you’re not intentional about staying connected.

• Reconnect with friends and family you’ve missed.

• Join a group, whether it’s book clubs, walking clubs, or even bird-watching enthusiasts.

• Get tech-savvy. My brothers and I have a scheduled meeting once a month and we talk for about 40 minutes to catch up on how we are doing, how are families are and what new things we are into. I love the contact with my brothers and I thought I would never say this but a  Zoom call counts as quality time. Friendships are the spice of life—don't let them go stale.

Keep Your Mind Sharp—Because Trivia Nights Are Fierce

Your brain needs exercise, too!

• Pick up puzzles, crosswords, or strategy games.

• Take an online class or attend local workshops.

• Stay curious—ask questions, explore, and never stop learning. I found that since I retired and I have white hair, asking questions is easier and for the most part, people are inclined to answer, although very few can be condescending.

Plus, it gives you an edge when competing for the trivia championship at the local pub or legion

Embrace Your Inner Adventurer

Every day was an adventure, remember when you were younger and every day was new and exciting. A great mindset which you can now tap into to see the world with a new vision.

• Travel doesn’t have to mean jet-setting—explore local parks, museums, or road trips. Travel can be playing tourist in your own town or city and looking at where you live as a tourist might see it. This can lead to finding a new coffee shop or bakery or restaurant you never knew existed.

• Try something new that feels a little daring—salsa dancing, anyone?

• Give yourself permission to dream big.

Change Takes Time

Retirement is messy, confusing, and emotional. That’s perfectly normal. There are stages of retirement and the first is messy and confusing, but if you are not too hard on yourself, you will make it through this stage and look back and wonder at what you did.

• Take time to decompress—you’ve earned it.

• Experiment with new activities, knowing it’s okay if some don’t stick.

• Treat yourself with patience and humour—nobody becomes a retirement pro overnight. I have been retired since  2006 and I am still learning about this stage, so, think of this as your “trial and error” phase.

Keep Laughing

Laughter really is the best medicine, and gratitude makes everything sweeter.

• Celebrate the little wins—your first perfect pancake flip deserves applause. By doing this you are setting a wonderful example for your children and your Grandchildren and Great Grandchildren.

• Share your joys (and your bloopers) with loved ones.

• Practice gratitude for this new chapter—it’s a gift, wrinkles and all.

Retirement isn’t about slowing down; it’s about choosing your own pace. You’ve got the tools, the time to learn how to use them, and the wisdom. Now, go make this next chapter your best one yet!

Warning sign 4 you are not ready for retirement part 2

More thoughts on how to avoid social isolation when you retire. Retirement gives you the time and flexibility to be more present in your children’s and grandchildren’s lives. Attending important events, hosting family gatherings, or simply offering to help out in small ways can nurture a stronger connection. Grandparents can also be an important source of emotional support and guidance for younger family members.

My niece is very interested in family and family history and when we meet with her, she is always asking us to share family stories, experiences, and traditions which help foster a sense of belonging and continuity. Passing down knowledge or life lessons strengthens the family bond and keeps your legacy alive.

With more time in retirement, couples can focus on their relationship in new ways. Taking up shared hobbies, travelling, or simply spending quality time together helps nurture intimacy and companionship. This is an opportunity to rediscover each other’s interests, rekindle romance, and create new memories together.

Retirement can be a significant life change, and it’s important to ensure you and your partner are aligned on your retirement goals, daily routines, and activities. Open, honest communication helps avoid misunderstandings and strengthens your partnership.

As friends or family members experience life changes—whether it’s retirement, loss, health issues, or other transitions—being there for them in small but meaningful ways is invaluable. A kind word, a listening ear, or offering to help during difficult times builds trust and strengthens relationships.

Sometimes, the most valuable thing you can give to others is your time. Volunteering to help a friend with a project, visiting someone who may feel isolated, or even just spending an afternoon with loved ones shows that you care.

Whether it’s an annual family vacation, a birthday tradition, or a regular gathering with friends, establishing new traditions gives you something to look forward to and creates memories that bond you closer to those you care about.

Join or form a group with friends who share a common interest. This could be anything from a book club to a walking group. Regular social engagements help keep your mind and spirit active, while also maintaining important connections.

One of the simplest but most profound ways to nurture relationships is to truly listen. Giving your full attention to others when they speak shows that you value their thoughts and feelings. This fosters deeper emotional connections and mutual respect.

As you and your loved ones navigate the changes that come with retirement, showing empathy and understanding can help create a supportive and caring environment. Whether it’s adjusting to a new routine or managing health challenges, being there for each other through the ups and downs is essential.

Prioritize regular get-togethers with family and friends. Schedule monthly lunches or activity dates to stay connected. Join clubs, senior centers, or hobby-based groups to make new connections outside of work. If proximity to loved ones is a concern, consider moving closer to family or into a retirement community that fosters social engagement. Here are two resources to help you in this journey AARP.org – Staying Connected: AARP provides great resources on preventing isolation, including social activities for retirees. SilverSneakers.com: Offers group fitness classes tailored to seniors, many of which are highly social.

Pearls of Wisdom

A while back, I read the blog "Pearls of Wisdom" by Caree Recover, where she talks about being retired for 10 years. I have a clock on my blog that counts the days, hours, and minutes since I retired. Actually, I have two clocks: one marks my official retirement, and the other tracks my true retirement, with an 8-year difference between them. I was slow to retire, returning to work just two days after initially retiring on a part-time basis, which soon became full-time. After quitting the full-time job, I was rehired part-time a month later. This pattern continued for about three years until I fully retired.

I haven’t always focused on retirement milestones, but I am now approaching 19 years of retirement, with the last 10 years being fully retired. Over time, I’ve shared my retirement journey and the common challenges we face. The idea of milestones is intriguing. We celebrate milestones like becoming a teenager or turning 21, but as we age, we often overlook them. While we celebrate significant birthdays, like turning 65, 80, or 90, we tend to forget other milestones, such as 10 years of retirement.

So, I want to congratulate Caree on this remarkable achievement and encourage everyone considering retirement to recognize and celebrate these important milestones.

Ageing in place

 Are you among the many Canadian seniors who cherish the idea of staying in your own home for as long as possible? It's a sentiment shared by a growing number of individuals, with Canadians now living longer lives, some even reaching the remarkable age of 100!

According to recent data from the Office of the Chief Actuary, the average life expectancy for Canadians aged 65 and above is 87 for men and 89 for women. This longevity trend opens up a world of possibilities, including the option to age gracefully in the comfort of your own familiar surroundings.

Aging in place isn't just about staying at home; it's about ensuring you have access to essential services, health care, and the supportive community you need to live safely and independently. If you're a near senior or senior contemplating aging in place, this booklet is tailored just for you. It's a roadmap to help you understand what steps you can take to prepare for your later years.

Planning for the future is an empowering step that gives you more control over your life as you age. By envisioning what you want your life to look like in 10, 15, or 20 years, you can start making choices today that support your long-term well-being and independence. Creating a personalized plan for aging in place not only enhances your quality of life but also minimizes the need for rushed decisions during times of crisis.

Once you have your plan in place, take the time to add a section to the plan that allows you to reflect on what you have in your plan. Use this section to jot down your thoughts and concerns, helping you focus on areas that matter most to you. Then, act by taking actionable steps to prepare for a fulfilling and self-directed aging experience.

Your home is not just a place; it's a sanctuary where you've built memories and a sense of belonging. Embracing aging in place is about preserving that cherished lifestyle while ensuring you have the support and resources to thrive. Let's embark on this journey together and make your later years truly golden!

Retirees may stuggle with

Yesterday I posted some struggles that we may have when we retire, they were meant to be humourous. Today I want to look at some serious retiree struggles:

Adjusting to a new routine:

Saying goodbye to the daily work grind can be a significant adjustment. However, it's an opportunity to create a new, flexible routine that suits your preferences.

Finding a new identity:

Retirement is a chance to rediscover who you are outside of your profession. It's a journey of self-exploration and personal growth.

Boredom:

While the absence of work routines can lead to boredom, retirement opens up a world of leisure activities and hobbies to pursue.

Social isolation:

Maintaining social connections may require more effort, but it's also an opportunity to forge deeper relationships with loved ones.

The struggles of staying active:

Staying active in retirement may pose challenges, but it's crucial for maintaining physical and mental well-being. It's a chance to explore new forms of exercise.

Finding purpose day-to-day:

Retirement provides the freedom to pursue passions, volunteer, or learn new skills, giving each day a sense of purpose.

Mental stimulation:

Keeping the mind sharp is a vital part of retirement. Lifelong learning, puzzles, and engaging activities can help maintain cognitive abilities.

Keeping in touch:

Nurturing relationships requires more effort, but the quality of connections can improve as you have more time for meaningful interactions.

Financial challenges:

Adjusting to a fixed income can be tough, but effective budgeting and financial planning can ensure a comfortable retirement.

Budgeting:

Creating and sticking to a retirement budget can be empowering and offer peace of mind.

Housing decisions:

Choosing the right housing arrangement can be challenging but is essential for safety and comfort in your later years.

Family dynamics:

Open communication with family members is key to avoiding misunderstandings and conflicts about caregiving and responsibilities.

Loneliness:

Recognizing and addressing loneliness is important for emotional well-being. Engaging in social activities can be fulfilling.

Challenges with technology:

Embracing technology can enhance communication and entertainment options, making retirement more enjoyable.

Scammers:

Being cautious about scams is vital to protect your financial well-being during retirement.

Healthcare concerns:

Prioritizing health through regular check-ups and a healthy lifestyle is crucial in retirement.

Sleep challenges:

Establishing a consistent sleep routine is important for overall health and well-being.

Navigating health insurance:

Ensuring you have the right health insurance coverage is essential to avoid unexpected medical expenses.

Planning for the future:

Planning for end-of-life arrangements and legal matters provides peace of mind for both you and your loved ones.

Dealing with grief:

Coping with loss is a part of life, and support from friends and family can help navigate these difficult times.

Empty Nest Syndrome:

Rediscovering your identity after children leave home can be a positive journey of self-discovery and new interests.

Navigating the benefits system:

Understanding and accessing available benefits can provide financial relief and security in retirement.

Physical challenges:

Adapting to physical changes may require lifestyle adjustments, but staying active and seeking medical advice can promote well-being.

Changing social circles:

Building new social connections can be enriching, and staying connected with old friends is equally important.

Caregiving responsibilities:

Balancing caregiving with self-care is essential to prevent burnout and maintain your own well-being.

Fulfilling the bucket list:

 Retirement offers the time to pursue lifelong dreams, and there's no rush to achieve them all at once. It's a journey, not a race.

Finding ways to be part of the community:

Engaging in community activities can provide a sense of purpose and connection in retirement.

Revisiting old hobbies:

Reconnecting with past hobbies can bring joy, and it's an opportunity to explore new interests.

Remember it is not all struggles: Despite the challenges, retirement is a phase of life filled with the potential for happiness, personal growth, and new adventures. Embrace it!

Want to live longer embrace the Blue Zone ideas?

I was reading abut two studies that will help seniors live longer. Here is a quick summary of them and my ideas as to whether they would be accepted by seniors in North America.

The Blue Zones study conducted by National Geographic and author Dan Buettner identified five regions around the world where people tend to live longer and healthier lives. These regions are Okinawa, Japan; Sardinia, Italy; Nicoya, Costa Rica; Icaria, Greece; and Loma Linda, California. Let's take a closer look at some of the key findings and principles from the Blue Zones study:

One common factor among the Blue Zones is a plant-based diet rich in vegetables, fruits, whole grains, and legumes. These communities consume less meat and processed foods, focusing instead on locally sourced, seasonal, and natural foods. For example, the traditional Okinawan diet is primarily plant-based, with sweet potatoes, vegetables, tofu, and seaweed as staple foods.

The Okinawan tradition of "hara hachi bu" emphasizes eating until you are 80% full. This practice helps to prevent overeating and promotes a healthier relationship with food. By being mindful of their eating habits, individuals in Blue Zones avoid excess calorie intake and maintain a healthier weight.

Regular physical activity is another key element in promoting longevity. Blue Zone inhabitants engage in natural movements throughout their daily lives. They walk, bike, garden, and perform other physical tasks instead of relying heavily on modern conveniences. This constant moderate activity helps them maintain their strength and overall fitness.

Family and community play a significant role in the lives of people living in Blue Zones. They prioritize spending time with family and cultivating strong relationships with friends and neighbors. This sense of social support and belonging contributes to their overall well-being and happiness.

Moais are social support groups formed by individuals in Okinawa. These groups provide emotional, financial, and social support throughout life. Being part of a close-knit community and having strong social connections has been shown to reduce stress and improve health outcomes.

The Okinawa Centenarian Study, funded by the Japan Ministry of Health, has also provided valuable insights into the lifestyles and behaviors of the Okinawan population. Here are some notable findings from this study:

Similar to the Blue Zones study, the Okinawa Centenarian Study highlights the importance of a diet centered around plant-based foods. Okinawans consume a wide variety of vegetables, legumes, and whole grains, along with smaller portions of fish and lean meats.

As mentioned earlier, Okinawans practice hara hachi bu, which involves eating until they are 80% full. This mindful approach to eating helps them maintain calorie control and prevent overeating.

Okinawans engage in physical activities through natural movements like walking, gardening, and traditional practices such as martial arts. This active lifestyle contributes to their overall fitness and well-being.

Okinawa is known for its tight-knit communities where social bonds are prioritized. These strong social connections provide support, companionship, and a sense of purpose, all of which contribute to a higher quality of life and longevity.

Okinawans incorporate stress reduction techniques such as meditation and mindfulness into their daily routines. These practices help them manage stress levels and maintain emotional well-being.

By adopting the principles and practices discovered through these studies, individuals can make lifestyle changes that may contribute to longer, healthier lives.

The ideas and principles discovered through the Blue Zones study and the Okinawa Centenarian Study are generally applicable and acceptable to North American seniors. While there may be cultural and regional differences, the underlying concepts of a balanced, plant-based diet, mindful eating, regular physical activity, strong social connections, and stress reduction techniques are universally beneficial for promoting longevity and overall well-being.

Many North American seniors are already embracing these principles and incorporating them into their lifestyles. For example, there is a growing trend of adopting plant-based or plant-centric diets among seniors in North America, recognizing the health benefits associated with consuming more fruits, vegetables, whole grains, and legumes.

Mindful eating practices, such as paying attention to hunger and fullness cues and eating slowly, can help seniors manage portion sizes, prevent overeating, and improve digestion. Regular physical activity, even in the form of low-impact exercises or natural movements like walking or gardening, can enhance physical fitness, strength, and mobility in seniors.

Prioritizing social connections and maintaining a strong support network is crucial for seniors' emotional well-being. Engaging in community activities, joining clubs or groups, or participating in volunteer work can help foster social connections and combat isolation.

Stress reduction techniques, including meditation, mindfulness, or other relaxation practices, can be beneficial for seniors in managing stress, promoting mental clarity, and enhancing overall mental health.

It's important to note that individual preferences and health conditions should be considered when implementing any lifestyle changes. Consulting with healthcare professionals, nutritionists, or dieticians can provide personalized guidance and ensure that the recommended principles align with individual needs and goals.

Opportunities vs Challenges in retirement 4

After retiring, the daily grind of commuting, meeting deadlines, working for a demanding boss, and adhering to a strict nine-to-five schedule may come to an end. However, it does not necessarily mean that one's life will be free of stress and anxiety. While workplace stress can take a serious toll on one's health, especially when job satisfaction is lacking, retirement does not necessarily eliminate damaging stressors.

Retirees may have concerns about managing financially on a fixed income, dealing with declining health, or adjusting to a new dynamic with their spouse now that they are at home all day. Additionally, the loss of identity, routine, and goals can impact one's sense of self-worth and potentially lead to depression.

Despite these challenges, there are healthy ways to alleviate stress and anxiety, cope with change, and improve overall well-being. One effective method is adopting a relaxation practice such as meditation, progressive muscle relaxation, deep breathing, yoga, or tai chi. These techniques can help ease anxiety and stress, lower blood pressure, and improve one's overall sense of well-being.

Physical exercise is also a highly effective way to boost mood, relieve tension and stress, and promote relaxation and positivity as one gets older. Regardless of age or mobility limitations, there are ways to achieve the benefits of regular exercise, and aiming for 30 minutes of activity most days is a good start.

Practicing gratitude by noting the things one is thankful for, even small things like a phone call from a friend or a sunny day, can be a quick and easy way to improve one's mood and outlook. Spending time in nature, such as hiking, fishing, camping, or walking in a park, on a beach, or through woods, can also alleviate stress and deepen one's sense of well-being.

Breaking the habit of chronic worrying is crucial in reducing stress and anxiety. By challenging anxious thoughts and learning to accept life's uncertainties, one can calm their anxious mind, adopt a more balanced outlook, and reduce the time spent worrying.

However, it is important not to take it too easy. At manageable levels, stress can help build resilience and problem-solving skills, and keep one focused, energetic, and engaged. A total lack of challenges, such as spending the day napping or watching TV, may harm one's health and lead to cognitive decline and memory problems. The key is to keep challenging the brain without letting stress build up to overwhelming levels, leading to constant feelings of frazzled or anxiousness.

Retired, consider working for fun?

The idea of “Working for FUN” as a retirement theme is fascinating. Retirement often comes with slowing down, relaxing, and not having to work. However, I would like to suggest that this approach to retirement is counterproductive and can lead to a boring life and a premature death.

Instead, we need to remember that retirement should be viewed as an opportunity to work for the FUN of it. It’s a chance to pursue activities that bring joy and fulfillment, even if they’re not tied to a traditional job or career. Studies have shown that continuing to work in some capacity during retirement can be beneficial for mental and physical health, providing structure, social interaction, and a sense of purpose.

Working for FUN can involve pursuing hobbies, learning new skills, volunteering, or starting a business or project. These activities can help retirees stay engaged, stimulated, and happy. They can also lead to new experiences, friendships, and opportunities for personal growth.

In conclusion, the idea of “Working for FUN” challenges traditional notions of retirement and encourages retirees to embrace a more active and fulfilling lifestyle. By finding joy in work and pursuing meaningful activities, retirees can stay vibrant and engaged, creating a more enjoyable retirement experience.

Are you an active senior?

 Musings on a Sunday 

There are a lot of active seniors. Retirement has been the next best thing for them. And, what they like about retirement is they can do what they want to do when they want to do it! No more alarm clocks, no more early morning or late night meetings.

The flexibility to pursue one’s interests and passions without the constraints of a work schedule can be a significant benefit of retirement. The absence of the daily stressors that come with a busy work schedule can also contribute to an overall sense of well-being and enjoyment in life. It’s essential to recognize that retirement looks different for everyone, and not everyone may have the same opportunities or resources to enjoy retirement. It’s encouraging to see that many seniors are making the most of their retirement years and that many seniors are leading active and fulfilling lives in retirement. Two of these activities are travelling and exercise. They  offer the following benefits for retired people:

Travelling can provide seniors with the opportunity to explore unknown places, experience different cultures, and create lasting memories. It can also provide mental stimulation, as seniors engage in activities such as learning a new language, trying new foods, or visiting museums and historical sites. Travelling can help seniors feel more connected to the world around them, and it can be a great way to stay active.

Regular exercise has many physical and mental health benefits for seniors, including improving cardiovascular health, strengthening bones and muscles, and reducing the risk of chronic diseases. Exercise can also help seniors maintain a healthy weight, improve balance and flexibility, and reduce stress and anxiety. Engaging in regular physical activity can help seniors maintain their independence, increase their energy levels, and improve their overall quality of life.

Travelling and exercise can offer retirees the opportunity to stay engaged, and healthy during their retirement years. These activities can provide a sense of purpose, joy, and fulfillment, as seniors explore unknown places, meet new people, and take care of their physical and mental health.

Women and planning for retirement

First up, it’s important to note that women live around 4.7 years longer than men. This means that women need to plan for a longer retirement period compared to men. But don’t worry, with careful financial planning, women can ensure they have enough savings and income to support their retirement goals and cost of living. It’s time to act and plan for the future by creating a retirement plan that considers their longer life expectancy. Women should explore various options for generating retirement income, such as pensions, superannuation, and investments.

Second, because of factors like the gender pay gap and taking time off work to care for their families, women often earn less than men over their lifetime. This means that most women have lower retirement savings compared to men. As a man, I encourage women to take charge of their finances and maximize their retirement savings earlier. Negotiate for higher pay, contribute more to your superannuation, and take advantage of superannuation tax concessions as early as possible in life to achieve financial independence and a comfortable retirement.

Lastly, as a woman, you are more likely to take on caregiving responsibilities for your loved ones. Although this is a beautiful thing, it can affect your ability to work full-time and save for retirement. So, it’s essential to plan for caregiving responsibilities. Consider childcare, eldercare, or other family responsibilities when planning your retirement goals. Explore options for flexible work arrangements or part-time work to accommodate your caregiving responsibilities while also achieving your retirement goals.

Engaging employees with pension planning

Getting employees engaged with their pension investments can have several benefits for both employees and employers.

When employees understand the importance of saving for retirement and actively engage with their pension investments, they are more likely to be financially prepared for retirement. This can reduce stress and improve the overall well-being of employees.

Employers who provide education and resources for employees to engage with their pension investments are more likely to keep their employees. This is because employees feel valued and supported by their employer, which can increase job satisfaction and loyalty.

Engaging with pension investments can provide an opportunity for employees to learn about financial planning, investing, and the importance of long-term savings. This knowledge can benefit employees beyond their pension investments and lead to better financial decision-making in other areas of their lives.

When employees engage with their pension investments, they are more likely to make informed decisions about their investments and contributions. This can cause better pension outcomes, such as higher returns and more retirement income.

We can make investments in pensions more meaningful by using layperson’s terms to explain the funds and what they mean for employees. Here are some ways to explain pension funds in simple terms:

Asset classes: A pension fund will typically invest in a range of different asset classes, such as stocks, bonds, and real estate. These represent different investments with varying levels of risk and return. For example, stocks represent ownership in a company and can provide higher returns but are also riskier than bonds, which represent a loan to a company or government and offer lower returns but are considered safer.

Diversification: By investing in a range of asset classes, a pension fund can diversify its investments and reduce risk. This means that if one asset class performs poorly, other investments in the fund can help offset those losses.

Risk profile: Different pension funds will have different risk profiles, depending on the investments they hold. Some funds may be more conservative, with a greater proportion of bonds and other lower-risk investments, while others may be more aggressive, with a greater proportion of stocks and other high-risk investments.

Fees: Pension funds charge fees for managing the investments, which can impact the overall returns. It’s important for employees to understand the fees associated with their pension fund and how they compare to other similar funds.

Yes, bringing environmental, social, and corporate governance (ESG) into the conversation can help employees relate their pension investments to support responsible and sustainable objectives. ESG refers to the consideration of environmental, social, and governance factors when making investment decisions.

By incorporating ESG considerations into their pension investments, employers can show their commitment to social responsibility and sustainability, which can be attractive to employees who share those values. This can also help employees understand the broader impact of their pension investments and how they can support positive change.

For example, an employer might explain that their pension fund invests in companies with strong environmental practices, such as renewable energy companies or companies with low carbon footprints. Or, they might explain that the fund avoids investing in companies with poor labour practices or that engage in unethical behaviour.

By linking pension investments to ESG considerations, employers can help employees see how their investments can align with their personal values and beliefs. This can lead to increased engagement with pension investments and a greater sense of purpose when saving for retirement. Research has shown that incorporating ESG considerations into investment decisions can cause better long-term performance, which can benefit employees and the pension fund alike.

By using simple terms to explain these concepts, employees can better understand how their pension fund works and what it means for their retirement savings. This can help them make more informed decisions about their contributions and investment choices.

Overall, engaging employees with their pension investments can improve retirement readiness, increase employer retention, provide valuable education, and lead to better pension outcomes for employees.

 

How long will you live, most people don't know

 Most people don’t know how long the average 60-year-old will live in America. When given four responses, only 37% correctly identified the average longevity of men and women in a recent survey conducted by researchers from the George Washington University Global Financial Literacy Excellence Center and the TIAA Institute.

Why is it important for clients to understand how long they’re actually going to live? Many look to their parents or relatives, particularly those who died young (we overweight premature deaths because they’re more dramatic) to estimate retirement longevity.

On average, 60-year-old men can expect to live an additional 22 years and women an additional 25 years. Most individuals either don’t know (28%) or underestimate (25%) their expected retirement-age longevity. Only 10% overestimate their longevity.

Eighty percent of those who understood (or who overestimated) their retirement longevity saved for retirement regularly, compared with 57% of those who didn’t know how long they were going to live and 68% who underestimated their expected longevity.

Fifty-four percent of those who had an accurate or optimistic expectation of longevity had estimated their retirement saving needs compared with 30% who didn’t know and 45% who underestimated how long they were going to live.

Similarly, 40% of those who could accurately guess how long they were going to live were very confident about having enough money to live comfortably throughout retirement compared with just 25% of those who didn’t know and 32% of those who underestimated longevity.

Many advisors use a “break-even” technique to evaluate the benefits of strategies, such as delaying Social Security or income annuities. I’ve heard statement such as “the crossover age is 82, so I didn’t see any benefit from delaying Social security.”

If an advisor has a more accurate understanding of how long their client will live, is it their job to educate the client? Is longevity education. Although it might be easier to go along with what a client believes, a longevity-literate client can choose a more realistic retirement age, save more, and make a better decision about when to claim Social Security. In the long run, each of these decisions may benefit the asset-compensated advisor.

It’s perhaps more important to provide longevity literacy education to younger Americans than to near retirees. A simple way to increase longevity awareness is to add information in retirement statements of a defined contribution plan. This may not be as farfetched as it seems. Investment companies and record keepers have a clear incentive to provide information about longevity.

Longevity illiteracy is costly for women if results in lower savings rates or early Social Security claiming. Fortunately, women appear to have better longevity literacy scores than men. Unfortunately, while women better understand their longevity, they are likely to live in retirement, and they also have lower overall financial literacy scores. This likely occurs when married couples choose to split tasks, with married men often taking on the bulk of financial decisions.

Do you have a big ego, if so lose it

 We have survived through our teenage years, and our working years, and have successfully moved into, or are moving into, retirement. Our egos want to protect us from perceived harm, including the fear of failure. We form ideas early in our lives of who we are, what we want to be, and how to get there. Now, as we retire, we need to lose our ego.

Yes, our ego helped us with self-preservation and self-identity, and influenced our thoughts and actions in ways that protected us from perceived harm. It also shaped our sense of self and our goals. However, our ego can make it difficult to change our beliefs or behaviors when we face the challenges we face in retirement.

Ego plays a central role in shaping our sense of self. Ego is the part of the psyche that mediates between the conscious and unconscious mind, and it organizes and interpreting our experiences. It uses our experiences, cultural and societal influences, as well as our personal beliefs and values to construct a sense of self. It helped create a sense of identity and self-worth, and it helped us to navigate our relationships with others. The ego also helps us to decide and take action based on our sense of self. It used our beliefs, values, and goals to evaluate our experiences and make judgments about what is in our best interest. However, we are now in uncharted waters, and we should put aside our egos if we want to grow and become be a better person when we retire.

If we hold on to our ego, it can impede excellent decision making. When our ego is overly dominant, it can lead to a narrow and rigid perspective. This can cause us to decide based on our own self-interest, rather than considering the needs of others or the greater good. It can also lead to a lack of self-awareness, which can cause us to make decisions that are not in line with our true values or goals. The ego can cause us to cling to old beliefs, patterns, and habits, which can prevent us from seeing new opportunities or making necessary changes.

When the ego is balanced, it can help us make well-informed and thoughtful decisions. It allows us to be self-aware and consider different perspectives, and make choices based on our values, goals and long-term well-being.

Here are a few steps you can take to ensure that your ego is well-balanced:

Practice self-awareness. Reflect on your thoughts, feelings, and behaviors, and try to understand how they are influenced by your ego. This will help you identify when your ego is impeding excellent decision making.

Challenge your beliefs. The ego can cause us to cling to old beliefs, even when they no longer serve us. Challenge yourself to question your assumptions and consider different perspectives.

Practice humility. Recognize that you do not have all the answers and be open to learning from others. This can help to prevent the ego from becoming overly dominant.

Cultivate empathy. Try to understand the perspectives of others and put yourself in their shoes. This can help to prevent the ego from causing you to make decisions that are not in line with the needs of others.

Develop a mindfulness practice. Mindfulness practices such as meditation or yoga can help to reduce stress, increase self-awareness, and improve emotional regulation.

Seek feedback. Seek feedback from others. This can help you identify areas where you might act out of your ego and make adjustments as necessary.

Engage in activities that align with your values and goals. Engage in activities that align with your values and goals. This can help to keep your ego in check by providing a sense of purpose and fulfillment.

It’s important to keep in mind that there’s no one-size-fits-all approach to balancing the ego and it’s a continuous process of self-reflection and self-improvement.

Inflation is eating away at people's pension funds

Inflation is the general rise in prices of goods and services in an economy over time. When the rate of inflation is high, it can erode the purchasing power of money, including the funds that people have saved for retirement. If the returns on a pension fund do not keep pace with the rate of inflation, the value of the fund can decline in real terms.

For example, if the rate of inflation is 2% per year, then a person who has a pension fund worth $100,000 today will have less purchasing power with that same amount of money in the future. If the rate of inflation remains at 2% per year, then after 10 years, the purchasing power of that $100,000 will be about $81,000 in today’s dollars. This means that the same amount of money will be worth less in the future because of inflation.

To protect against the erosion of purchasing power because of inflation, it is important for pension funds to invest in a diversified portfolio of assets that can generate returns that outpace the rate of inflation. This can help to ensure that the fund maintains its value.

Inflation can impact pension funds, as well as on other investments and savings. Inflation is a measure of the overall increase in prices for goods and services in an economy. When prices rise, the purchasing power of an amount of money decreases. This means that the same amount of money can buy fewer goods or services.

There are several ways that people can try to protect their savings and investments from the impact of inflation. One option is to invest in assets that are expected to grow in value over time, such as stocks or real estate. Another option is to diversify one’s investments, which can help to reduce the overall risk of loss because of inflation or other factors. It is also important to consider the rate at which one’s investments are growing compared to the rate of inflation, as this will help to determine the overall impact of inflation on one’s savings and investments.

Keeping track of time when retired

Retirement can be a great time to relax and enjoy all the things that you may not have had time for while you were working. It’s important to find a balance, however, and make sure that you are still engaging in activities that keep you active and mentally stimulated. It's easy to lose track of time when you are retired, but it’s important to find a routine that works for you and to make sure that you are taking care of yourself physically and mentally. It’s also a good idea to have a plan for how you will spend your time, whether it’s pursuing hobbies, volunteering, or travelling.

Many people find they lose track of time when they retire because they no longer have the structure of a work schedule or the demands of a job to keep them on track. It's helpful to create a routine or schedule for yourself, even if it’s just a loose one, to help you stay organized and make the most of your time. 

This could include activities like exercise, hobbies, volunteering, or socializing with friends and family. It also might include things like exercising regularly, staying in touch with friends and family, and continuing to learn and grow. It’s important to make time for self-care and relaxation, such as taking breaks, getting enough sleep, and taking care of your physical and mental health.

Pensioners are worried about the economy

It’s hard to imagine what retirement will be like even now, but it is getting tougher by the day. Senior anxiety over the state of the nation’s finances and their worries about health, career and other aspects of life have been clear in recent months. Imagine how you would feel if you were told that certain social security benefits are under threat. This would be a worrying prospect for older people who are already battling financial challenges in retirement.

Retirement is no longer as secure a prospect as it was. It is important to look into the future, plan, and make informed decisions. There are many areas of retirement to consider when deciding on how much you will spend and where your money will go. Below are some of the major factors that may impact how much you can afford in retirement.

As we approach our golden years and look ahead to retirement, it’s worth considering the bleaker side of this wonderful time.

If a pension is the only thing you have to fall back on when you go through old age, then it’s worth thinking about today. The population of older people is growing faster than ever before, and many countries have already realized that the time for action is now.

One thing that really puts the icing on the cake is when you consider how much older North America has become. It was just a few years ago that women were hitting their 30s. Now, they’re looking at being 60-something. The baby boomers are aging and this demographic shift has led to a lot of alternative employment, with fewer younger people entering the workforce altogether.

It’s no secret that the ageing demographic is not being very cooperative about things. Many of us are working until we drop dead or we are just sitting around doing nothing. Then there are pensions, health and economic worries. The situation is pretty grim if you ask me! Don’t worry, it won’t always be like this. One day everything will be fixed and you’ll be able to retire on your four wheeler with a smile on your face while drinking some beer by the lake with all your friends.

Four big retirement risks

My brother did not have a pension plan when he was working. He was self-employed so he created his own plan. When he was developing his plan, he realized that there were five major risks in planning for retirement:

Longevity risk — the risk he will outlive his money

Market risk — the risk of volatility in the stock market and housing market

Health risk — the risk of unexpected medical expenses and long-term care

Family risk — the risk of things like the death of a spouse or partner and adult children becoming ill or unemployed

My brother was a lawyer and so when he planned his retirement, he hired an expert financial planner to help him understand and plan for the risks.

We normally predict longevity based on the age their parents died, but in my case and my brothers case, which is not realistic. Our father died in an accident before he was fifty and our mother died of a rare cancer when she was 58. So we have to rely or other sources to predict our longevity.

The actual mortality statistics say that today’s 65-year-old male in Canada  can expect to live, on average, to about 88; a 65-year-old female to about 90.

In the United States partly because of their approach to the pandemic, life expectancy is dropping while in Canada it is going up. Averages being averages, it’s possible you’ll live into your 90s or 100s — or not. Of course, it’s impossible to know exactly how long you’ll live. Your genes play a role. So does your current health, your future health, your health history, the possibility of an accident or becoming a crime victim and simply the unexpected.

I’m 76 and the rudimentary (and all right, slightly morbid) Actuaries Longevity Calculator computes that I have a 86% chance of living to 80, a 63% chance of living to 85 and a 36% chance of living to 90. I’m factoring those numbers into my retirement planning.

My brother is two years younger and in better shape than I am and the Actuaries Longevity Calculator computes that he has an 86% chance of living to 80, a 68% chance of living to 85 and a 44% chance of living to 90. I’m sure he or his financial advisor is also factoring those numbers into his retirement planning.

The second risk in retirement is market volatility. We tend to be pessimistic when it comes to our expectations about the stock market. I was talking to my advisor, and she asked if I was concerned about the recent drop in the market. I said I was, but she said the markets are slowly coming back, so be patient.

Here’s the problem, when we were young, we could take a long-horizon perspective with our investments. However, as we get older, we shift our horizons from the long term to the shorter term. This is because we are so nervous about the volatility of the stock market shrinking our retirement savings. If you have good health and realize that your expectations about your life expectancy is wrong, you understand that you also wind up reducing the negative effect of any one year’s stock market volatility on your retirement. As my advisor said, stay patient.

The third risk to consider is health. I and my brothers are very lucky in that we have our health. The researcher in Canada shows that 93% of Canadians age in place, and of the other 7% who don’t 3% go into care (and in BC where I live the care is subsidized and the maximum the government charges for the care is about 85% of a person ‘s current income), and 4% go into independent living. In the United States it is a different story.

According to Fidelity Investments’ annual projection, an average 65-year-old retired couple in the United States, may need about $315,000 to cover their healthcare expenses in retirement. And that doesn’t include the possibility of long-term care costs, which can be exorbitant. The median cost of a private room in a nursing home in 2022 is $108,405, according to the Genworth Cost of Care Study. In assisted living, it’s $54,000. A home health aide runs $61,776.

Long-term care is a significant risk faced by retirees, but better-designed public programs and private products could help protect retirees from these potentially catastrophic risks.

The last risk is family related and there is no advice or planning that can take the place of talking and helping when and if you can.

Retirement and identiy issues

 We do not shed our personalities, our life views, or our habits when we retire. These become the basis of building our new understanding of our new role and our new responsibilities. Having a sense of who you are, in the context of culture and community, may help you see how you can continue to contribute to your world.

The terms self-concept and self-identity define how we see ourselves. Scientists have found that the body's cells largely replace themselves every 7 to 10 years. In other words, old cells mostly die and are replaced by new ones during this time span. The cell renewal process happens more quickly in certain parts of the body, but head-to-toe rejuvenation can take up to a decade. This reality means that we become a new person every ten years or so, however, there may be some aspects of our identity that are relatively stable over time.

Mid-life and retirement are two periods in which one phase of life ends, and we have to dig deep to replace what we may have lost. At this point, some of us may experience a potential identity crisis. Ageing can bring physical limitations or outright elimination of some activities such as hard labour or playing contact sports.

Retirement can cause us to struggle with identity issues. Many can be surprised by the ways in which retirement adjustment can evoke past issues. Self-awareness is a critical influence on an individual’s ability to assimilate or accommodate feedback, especially feedback received from their social environment. Taking stock of one’s life upon becoming a retiree, however, is common.

Our reflections upon the past can take various forms. Some of us may be consumed by nostalgia while others can be troubled by regret for lost opportunities. Others of us might be aware of influences that we think shaped us, but have the wrong ideas of how certain episodes shaped us. Increased awareness of how one’s identity has developed might better equip present and future retirees to understand and cope with the challenges to identity that are triggered by retirement. Adjustments may come from an updating of the foundations of identity laid in prior years.

 

Attitude toward retirement

When you retire your attitude toward your future is important. You can believe that retirement is about, creating a new self-awareness and self identification, gaining new friends, living on a smaller income, finding new social supports, creating a new role for yourself, finding things to do to fill the time, and developing new skills.

Or you can believe that retirement is adjusting to a lower income, losing friends and other social support, finding out you are no longer an important person, filling time until you die, and feeling blue because you are not using your old skills.

Retirement is not about being taken care of or being put into care.

According to the school of Mental Health in Ontario exploring self-awareness and sense of identity is a chance for courageous and supportive conversations about strengths, difficulties, preferences, values, lived experiences, ambitions.

To do this you need a safe environment where you can learn, affirm cultural heritages and practise advocating for yourself. Having a sense of who you are, in the context of culture and community, may help you see how you matter and can contribute to the world.

Retirement is a formal departure from paid work that occurs on a given day, a status with new rules to learn and a process that begins the day an employee acknowledges that their worker role will end. For example, there may be losses of social and recreational activities with other workers, a shared history with other workers, pride in and respect expressed for a worker’s competence, the stimulation and challenge of the job, and perks that were part of the job.

For many of us, the job has defined us for all of our working years, Our lifestyle is tied to our work, because work/career occupies so much of our existence. Our career/work defines our Involvement with family, friends, recreations, hobbies, etc. However, the social interaction of the workplace is also part of our social life. These important aspects of the workplace can be missed following retirement.

In retirement the roles and behaviour patterns will or should be abandoned or modified, many face the difficult task of finding new sources of identity to replace those lost. A small but growing part of planning for retirement is to develop a diversified portfolio of “self” so that despite losing your work self to retirement, other selves will be available to fill the gap. Some of these alternate selves (e.g., family roles, club involvements) will continue into retirement and will grow.