Reasons retirement plans fall short of their goals:

There are several common reasons retirement plans may fall short of their goals:

Insufficient savings. One of the most common reasons for retirement plans falling short is that people do not save enough money. This may be because of a lack of understanding of how much they need to save, or simply not having the disposable income to set aside for retirement.

High debt. High levels of debt, such as credit card debt or mortgage debt, can make it difficult to save for retirement. Interest payments on debt can eat into the money set aside for retirement savings.

Market fluctuations. The performance of the stock market can have a big impact on retirement savings, especially if a significant portion of the savings are invested in stocks. Market fluctuations can lead to losses that can set back retirement plans.

Unexpected expenses. Unexpected expenses, such as medical bills or home repairs, can drain retirement savings and make it difficult to stay on track with retirement goals.

Lack of planning. Without a coherent plan for retirement, it's difficult to know how much to save and how to allocate retirement savings. This can lead to retirement plans falling short of their goals.

It is important to plan for retirement to ensure that you have enough financial resources to support yourself during this phase of your life. If you do not plan for retirement, you may find yourself unable to maintain your desired lifestyle or unable to pay for necessary expenses.

There are several steps you can take to plan for retirement:

Determine how much money you will need. Estimate your expenses in retirement and consider any sources of income you may have, such as Social Security, a pension, or savings.

Start saving and investing early. The earlier you save and invest for retirement, the more time your money has to grow. Consider contributing to a retirement plan or investing.

Consider your risk tolerance. Consider how much risk you will take with your investments. A financial advisor can help you determine an appropriate asset allocation for your retirement portfolio.

Review and update your plan regularly. As your financial situation and goals change over time, it is important to review and update your retirement plan. This can help ensure that you are on track to reach your retirement goals.

If you are having trouble planning for retirement, it may be helpful to seek the advice of a financial planner. They can help you create a personalized retirement plan and provide guidance on saving and investing for the future.

Issues for Seniors in Canada

There are many issues that seniors in Canada may face, and the specific issues that are most significant can vary from person to person. Some common issues that seniors may face include.

• Health issues As people age, they may be more likely to experience health problems such as chronic diseases, mobility issues, and mental health challenges.
• Finances. Some seniors may have difficulty paying for their healthcare and other expenses, especially if they have limited income or are no longer working.
• Social isolation. Many seniors live alone, which can lead to feelings of loneliness and social isolation.
• Access to transportation. Some seniors may have difficulty getting around, which can make it hard for them to access necessary services or take part in social activities.
• Access to housing. Some seniors may face challenges finding affordable and suitable housing, especially if they are on a fixed income.
• Caregiving. Some seniors may provide care for a spouse or other family member, which can be physically and emotionally demanding.

It’s important to note that these are just a few examples of the issues that seniors in Canada may face. If you are a senior or are concerned about a senior in your life, it may be helpful to speak with a healthcare provider or social worker for more information and support.

Retiring within five years, read this

 If you’re within five years of retiring, now is a good time to review your plans for retirement. But five years away, you can see retirement with greater clarity. It’s a good time to review your retirement goals and dreams.

Whether you’re planning extensive world travel or eager to spend more time with family closer to home, people often find that they spend more when they first retire than they expected. With five years to go, take some time to draw out a realistic spending plan for the future and then plan for inflation or expenses you may not have considered.

Inflation is the enemy if you have not planned well. Spending plans in the first stage of your retirement could be more expensive. This round of inflation is heating prices, well the investments and savings are not keeping up. In the past, when prices were going up, those who invested also had their savings, getting higher interest rates and stocks did well. Not today, prices are going up. Interest on savings accounts is not and the investment market is sluggish. This leads to the value of your portfolio is depleted. Take some time to draw out a realistic spending plan for the future and then plan for inflation or expenses you may not have considered.

As of 2020, the average Canadian will live for 81.7 Years, according to Statistics Canada. But that figure doesn’t tell the entire story because it represents life expectancy at birth. If you’ve already made it to 60 or 65, your chances of outliving the age of 81.7 are much greater.

You can do a simple calculation known as the ‘four percent rule’ to perform a quick check on your finances. Multiply your projected yearly cash needs by 25 and you’ll have some idea of how well you’re prepared.

At age 65, a person expecting to live on $75,000 per year will require $1,875,000 in investments to take them to age 90.

If your portfolio has been performing to your expectations in recent years, recognize that the economic landscape is more volatile than it once was. Five years out is a good time to have your portfolio reviewed to optimize diversification and asset allocation for current conditions.

Government of Canada bonds, possibly the most secure investment available, are providing returns well below the current inflation rate. However, undertaking appropriate levels of risk can provide better returns.

Withdrawing cash from a retirement portfolio too early can affect its overall longevity and performance, especially when segments of the portfolio are underperforming. A strategic cash reserve — enough to last two years — can allow for drawdowns without depleting the portfolio during periods of sub-optimal performance. Reach out for expert advice and by talking to an advisor well before retirement, you can optimize the potential of your investments to provide adequate retirement income to support the lifestyle you’re counting on.

Steps people reaching retirement age this year should take

Retirement for most of us does not sneak up on us. We have a pretty good idea of when we want to can or could retire. In my case, I did not plan. I made a snap decision and retired suddenly. Don’t do that. Planning for your retirement can never start too early and if it’s closer than you realize, you may need to set aside some time now to make sure everything is in order.

Retirement is a big life event; we have worked for years and many of us are looking forward to retirement (some for decades). It is the stage in life for people to take a step back from working life, relax, and spend their time doing what they enjoy most. However, the reality of retirement can often be rather different from these visions of stress-free, later-life fun.

Some issues that many seniors face are loneliness, lack of mobility, and boredom. These, for some, lead to depression in later life. However, with the current cost-of-living crisis and alarming increase in energy bills, many people, and preparing for retirement, are facing significant financial stress that may contribute to their overall well-being and mental health.

To help people prepare for retirement, here are some tips for addressing common issues in retirement.

1. Review your retirement funds

First, consider the massive expenses you are likely to make throughout retirement based on your goals. This could be anything from a bucket-list travel destination to supporting a loved one in buying their first home. Make sure you have also accounted for a reasonable emergency savings pot.

Next, take the approximate amount needed for these big expenses and emergency funds away from your pension (unless you have saved for them separately). From there, work out what your average yearly budget should look like. Be realistic about your expected outgoings and the expenses you can’t cut down on.

2. Evaluate your current lifestyle

If after reviewing your finances you are concerned your pension pot won’t stretch to your needs, or you simply would like to prepare for the continued cost-of-living crisis, then evaluate your current outgoings and where you may cut back.

This could involve changing your day-to-day routine, such as scaling back on the weekly food shop, opting for public transport more frequently, or even swapping your current car for a more cost-efficient model. A typical solution for pensioners is to downsize their homes.

3. Make a retirement plan

Make a reliable retirement plan, mapping out your days, weeks, and even years with goals and activities that will bring you fulfilment.

Start by thinking about your long-term goals, such as places you want to travel to or learning a new skill. Then, consider what day-to-day activities you enjoy doing, such as visiting friends, as well as tasks you want to tick off your to-do list. This could include anything from giving your garden a makeover to clearing out some old items from the loft.

By writing these goals, activities, and tasks, you can create daily or weekly plans that ensure you are regularly occupying yourself.

4. Establish expectations and set boundaries

Whether it’s taking on childcare duties or running errands for friends, there is often pressure put on people in retirement to spend their newly found free time on other people.

While you may be happy to spend your time in this way, it is important that you do not take on more than you feel you can, or simply want to. Although it's challenging, it is important to set boundaries with your loved ones about how much time and money you can provide throughout your retirement.

5. Expand your social circle

A recent study by Age UK revealed that 1.4 million older people are lonely in England, with the impact of the pandemic, poor health and well-being, and income being cited as major factors contributing to this.

First off, ensure you are budgeting enough each week for socializing. This doesn’t need to be a major expense, especially if you’re happy to host people at your own home, but accounting for it within your budget will help you make it a priority.

Retirement Planning And Housing

Housing can be a big concern as you plan for retirement. Many who are planning for retirement think about what type  and mix of housing they want. I would recommend that you think of housing in retirement as housing across the care continuum. In many jurisdictions, there are different levels of housing and care for seniors, and they are categorized differently. Here is a senior housing grid we use in British Columbia. The grid covers the range of housing we may need from living independently to Palliative Care.

Independent Living	Supportive Housing	Assisted Living	Residential Care	Hospice and Palliative Care
If you are living independently, you can have in-home support to help you. There is usually a cost for these services.	There are Private and Subsidized homes for those that need some help such as meals, housekeeping, 24-hour emergency response, recreational activities, etc.	For those who want or need hospitality and personal care services who can live independently but may require some help with daily activities.	This is for people who cannot live independently and require a high level of care.	These facilities focus on comfort and the quality of life for people who suffer life-threatening and terminal illnesses.

In BC 94% of seniors live independently. 4% live in supportive housing and 3% live in Assisted, Residential or Palliative care. If you think about housing as part of your care continuum if one of you  gets sick and needs in-house medical care, long-term care, retirement lifestyle care or even worse, death you will have a plan in place to take care of your housing needs.

Some questions to consider as you investigate housing as part of your care continuum:

·        Is your health good enough to go up and downstairs?

·        Can you keep up with cleaning the house?

·        How much yard maintenance can you do?

·        Can you afford people to help take care of your home?

How do you spend your day?

 If you have planned well and have a passion, then every day (almost) can be set aside for doing what makes you happy.

One of my friends, gets up early, makes a coffee and then he settles down and spends two hours reading his newspaper or a new book. Then he settles in doing work around his house with his wife. He works on his antique car and keeps it in immaculate shape. Another friend, who lives in a Condo, spends his day doing maintenance in the garden of the Condo and talking to his neighbours. What retired life boils down to is;

·        Money

·        Well-being

·        Hobbies

When I and my wife first retired our passion was travelling and we did a fair bit. Her hobby was working in the theatre and as we aged, health became an issue; now we don’t travel, and my wife does not work in the theatre. Currently, we spend our time working on our garden in the backyard and creating magical scenes with our elves and other figurines we have collected over the years. In our garden, we have flowers blooming and a quiet space to enjoy morning coffee. I volunteer, but my wife works at home, and we live simply.

Find a passion

There are three stages of retirement which play out for most of in a 20-to-30-year period from the time we retire.

20 years is a long time and if you think that you will spend retirement just sleeping in or passing out for afternoon naps whenever you want you will become bored very quickly.

One of the hardest things to get used to when you retire is that suddenly you are the boss, and you have the freedom to choose with your significant other what you will do, how you will do it and when you will do it. In essence, your retirement life is about freedom of choice without anyone except maybe your significant other telling you yes or no. This is the time to find your passion and start to learn more and enjoy it.

I know seniors who have moved to be closer to their children, only to find the children are too busy to have time for them I know others who have decided to move to the country and find that they need access to medical services only available in the city. Many of my generation collected stuff, such as fine China, jewellery, pictures, etc. Some of this was inherited from our parents and grandparents and were family heirlooms. Now we find that our children don’t want stuff, and their priorities have changed. In fact, there is a growth industry of people who will help us downsize and get  rid of our belongings. In the first stage of retirement, if you are healthy, retirement time is the glory days of your life, but if you are not healthy or you have not saved then this first stage can be very scary.

What is life like in retirement?

 Many people before they retire imagine a life that is an ideal version of the reality of retirement.

Everyone will have a different take on what an ideal retirement looks like. I have some friends who find that since they have retired, they have done a lot more RVing and others who have created art, by taking up painting. I know others who volunteer and others who don’t volunteer but find ways to spend their time.

Oddly many believe that retirement is based on money and how much you can save to live your dream life. That is true to a certain extent, but most seniors in Canada are not bad off. We are not rich, but many of us are getting along, although with inflation raging many of us are falling behind. Living on a fixed income is one of the adjustments you have to make when you retire. Financial Advisors recommend that you have enough income to live on about 70% of your pre-retirement income. For many seniors that number is higher than they need.

In Canada when we retire, we have an income stream from government pensions, and many have savings in their Registered Retirement Savings Plan which is converted to an income stream when they turn 71. It’s easy to get caught up in the belief that retirement life will be the best years of your life. However, when planning retirement remember life can turn sour quickly.

My father saved money when he was working. He planned to travel and have adventures when he retired and was hoping to retire at 60. He died at age 49. My friends and I joke that we are lucky to be able to spend the money we saved, because many people we know who would have been our age, are not around. Many of you won’t even be around to see your retirement. I don’t recommend not savings, but I do recommend keeping a balance in your life while you can and not waiting until retirement.

What does well planned retirement mean?

 A few posts ago I talked about the importance of planning well ahead of retirement if you want to enjoy your retirement. Your goal is to have an enjoyable retirement, correct? You work your whole life and hopefully create and follow a plan so that you can kick back and do what you want to do in all three stages of retirement. Well, 72% of us have done that but a recent survey from Nationwide reports that 28% of retirees say that life in retirement is worse than it was when they were working.

Fortunately, there are ways you can improve your odds of having a more rewarding retirement, including asking questions and being creative, resourceful, and a bit adventurous at least in your first stage of retirement.

We spend our lives looking for happiness, but research from Age Wave and Merrill Lynch found that, of all periods in our life, we are happiest and most content between the ages of 65 and 74. In addition, experts from Princeton University and the London School of Economics and Political Sciences found that happiness peaks at the ages of 23 and 69.

When news broke in 2015 of the theft of upwards of $300 million of jewels and gold from the Hatton Gardens safe deposit facility in London’s diamond district, experts assumed that the physically demanding heist must have been pulled off by a team of extremely fit burglars. But it turned out that what’s been described as one of the largest thefts in English legal history was actually the last hurrah of a group of mostly retirement-age crooks, some well into their 60s and 70s. For these men hitting retirement age did not mean scaling back one’s aspirations.

Indeed, when Allianz Life asked 3,000 adults how they viewed the extra years afforded by today’s longer lifespans, 49% said the increased longevity could open a lot of new and interesting possibilities for people’s lives. Did you know that there are more entrepreneurs and more successful entrepreneurs over 50 than in any other age group?

For many of us, retirement is, or should, be a time to aim for new goals and accomplishments, new passions, or activities. These are things you about but never got around to doing (writing a book, starting a blog, creating an app, learning to play a musical instrument, whatever) or finding new ways to employ the skills you developed during your working career. Just because you’re retired doesn’t mean you shouldn’t still think big, take chances, and even be a bit bold.

 It is hard to enjoy retirement when you don’t understand the stages of retirement and you are not sure when you will actually run out of money.

Planning – creating a really comprehensive retirement plan – can give you peace of mind.  Planning will allow you to make smarter decisions and do better with your time, taxes, investments, healthcare, and more.

Research shows that retirees who have a solid circle of friends are much more likely to say they’re happy with their lives. Unfortunately, forging new relationships can be more of a challenge after leaving the work-a-day world. But it can be done. Volunteering at local charitable organizations, taking a part-time job, joining groups that get together to pursue a common interest (dancing, hiking, historical preservation, whatever), and enrolling in classes at a local college are all excellent ways to meet new people and broaden your social network.

While you’re forging new connections, be sure to maintain relationships with the people with whom you shared formative experiences in earlier stages of your life and who knew you before you became the person you are today.

Speaking of friends, you have had a long time… Staying connected in your marriage can be an important aspect of enjoying retirement. Research has found that a happy marriage or long-term relationships is good for you:

·        Married people show better health and lower mortality risk than the unmarried

·        Marital quality is important across the life span but seems to be particularly important in later life as health tends to decline, and the effects of adversity accumulate

The chance to kick back and relax without having a daily to-do list hanging over one’s head is one of the great benefits of retirement. But a steady diet of relaxation—or adhering too closely to any daily pattern for that matter—can lead to boredom and a sense of listlessness. To spice things up try something as simple as taking a spur-of-the-moment road trip, trying out a new hobby, attending local cultural events, sampling new cuisines, etc.

Stay as healthy as you can. Maintaining and improving your health isn’t complicated. You know the guidelines: get regular checkups, eat a healthy diet, and exercise regularly!  Here are a few more tips

·        If you can soak up the sunlight for at least 15 minutes a day. This helps your skin produce vitamin D, an essential vitamin for bone health, mental health, cardiovascular strength, and more.

·        Floss! Most adults brush their teeth but fail to floss. However, flossing is critical, not only for healthy teeth but according to researchers at the University of Bergen in Germany, to prevent Alzheimer’s and heart disease.

·        Splurge on the Hearing Aid: The research is overwhelming: the ability to hear can have a tremendously positive impact on your life.

·        Drink enough water: Drinking adequate water can keep energy levels high and will improve brain function. It also keeps skin healthier.

Examine plans for your retirement!

I have written about my failure to adjust to retirement. I show on my blog page that I officially retired in 2006 but I actually retired in 2014. One of the main reasons I took so long to adjust is that I did not have a plan before I retired. My wife was ill, so she retired, and, on a whim, I retired at the same time. That was a mistake. 

After years of semi-retirement and years of full retirement, my suggestion or advice would be to sit down and do some planning. The first step is to understand that there are stages of retirement. They have been labeled by Michael Stein ins his book as the Go-Go years, the Slow-Go years, and the No-Go years and by others as the honeymoon stage, the comfort stage, and the slow-down stage. No matter what you call it, most people go through these stages as they get older.

The first stage is when you tend to be physically and mentally capable of living a fairly active lifestyle. In fact, the phase may not be that much different than pre-retirement except that there may be more time to do things like travel and hobbies.

For some, this stage will include work. It may be part-time work, or it may mean self-employment. Whatever the case, active retirement is really living the stereotypical retirement dream. Many retirees in this phase, they are busier than they were prior to retirement.

In the second stage, the body tells you to slow down a little. Often this happens between the ages of 76 and 84. We are creatures of habit and so in this stage, life starts falling into patterns and the excitement of retirement becomes more stable. We fall into predictable patterns like banking on Mondays, groceries on Tuesdays, bridge on Fridays, etc. 

Part of the reason for these patterns is that energy levels are changing, and patterns help minimize effort and thought without compromising on the enjoyment of life. The older you get, the more important it is to find routines and patterns that give you comfort and security.

In the final stage, time and age play a role in slowing down activities and abilities. Sometimes this is mental, sometimes physical, and sometimes it can be financial.

Often this stage requires some level of support from family, governments, or agencies. Again, this can be physical, emotional, or financial support. Choices become much more limited, and we move to complete unresolved issues before we die.

With an understanding of the three stages then it is a good idea to start by listing a number of questions such as:

·        What would a successful retirement look like for you?

·        What’s still on your bucket list?

·        What would a good “average day” look like for you?

·        What kind of retiree/senior/elder/grandparent do you want to be?

·        Who do you want to spend time with during your retirement?

·        What would be the ideal community for your retirement years?

·        What type of house could best meet your needs after you retire?

Answering these questions about each stage of retirement can help you more easily move on to the important decisions that impact your finances. Ideally, you’d start exploring your answers at least five years before you plan to retire. In my case, I explored all of these questions for five years after I retired so some of the questions for me were redundant. But if you haven’t already started and you’re closer than that or even retired, it’s better late than never!

·        When would you like to retire? How will you decide when to retire?

·        Do you know what your living expenses might be in retirement? Have you developed a budget?

·        Do you have a plan for developing sources of retirement income that can cover your living expenses?

·        Will you be able to live in your current house if you or your spouse become frail later in life?

·        Do you have a plan if you reach a stage in your life when you’re no longer able to manage your day-to-day finances?

·        When’s the right time to ask these questions?

It might take some time for you to reflect on these questions. Important decisions deserve your time and attention. Also, remember to talk to seniors who are in each of the stages mentioned above as that alters or helps evolve your thinking as you explore your answers and approach your planned retirement date. It might turn out that your journey of reflecting on the questions may be as enlightening as the answers themselves. Along the way, you might find even more questions to ask yourself.

 

Seniors should get per month

I have seen this post making the rounds on FaceBook that says, we should be paying seniors $2,000 a month.Great idea, but a bit misleading. Why did they choose that number? What is magical about $2,000. Right if you started collecting Canada Pension you could receive starting the pension at age 65 is $1,253.59.  This is not the reality but it is a number the government likes to toss around. 

To be eligible for that amount of payment, a worker must contribute to the CPP for at least 39 of the 47 years from ages 18 to 65. You must also contribute the maximum amount to the CPP for at least 39 years based on the yearly annual pensionable earnings (YMPE) set by the Canada Revenue Agency (CRA). The YMPE for 2021 is $61,600, Since very few people start working and earn $61,600 a year, the amount of CPP earned by most workers is less than the full amount. The average monthly amount paid for a new retirement pension (at age 65) in July 2022 is $727.61. 

In addition to Canada, Pension seniors collect Old Age security in Canada for those between 65 and 74 this amount is $685.50 for those of us over 75 the amount is $754.05. To receive the maximum a senior must earn less than  $$129,757.

So the average senior who has worked in Canada now receives an income from Canada Pension and Old Age Security of $1,413.11. If this is the senior's only income they may be eligible to receive a Guaranteed Income Supplement (GIS). There is a formula for calculating the GIS and GIS payments are calculated using your income and marital status. From July to September 2022 the maximum monthly payment is $995.99 if you're single, widowed, or divorced. The maximum monthly amount is different if you have a spouse or common-law partner.

So if a senior is eligible they could receive more money so they could be earning $2,409.10 a month. Not a lot of money but better than the $2,000 that the FaceBook authors are asking people to fight for from the government.

Living on a retirement income is hard and even at $2,409.10 a month or $28,909.20 a year. This is still very close to the poverty level in Canada which is $26,620 a year for a single person. There are many seniors who are below the levels stated here because these are the maximum amounts and very few people get the maximum amount. One of the questions people ask is the following:

Does Canada have high elderly poverty rates?

The poverty rate among Canadian seniors is one of the lowest in the world. Five percent live below Statistics Canada's low-income cut-offs,1 and 7.2 percent below the OECD's poverty measure.

The issue of having an adequate income in retirement is complicated and there is no easy answer, but we are fortunate in Canada but that does not we should be complacent as the rate of inflation is rapidly destroying many seniors' savings and retirement plans, and most importantly their access to good affordable housing.

Retirement trends

 Worrying is an evolutionary survival trait that is hardwired into our brains; most of us seek to control and prefer order over chaos. There is no way around it; our instinct is to equate uncertainty with potential danger. The financial markets are volatile, and thanks to multiple round-the-clock financial news networks, we are reminded of this fact daily. We see the economy swinging between expansion and contraction. We read and watch pundits go on about the unpredictability of markets, Fed rates, and the economy. Given all of these factors, how can you worry less and have a happy retirement? One of the answers is to do some. financial planning for retirement. By planning you can:

·     Define what is important to you (your objectives, needs, wants, & wishes).

·     Set your own goals.

·     Evaluate your current financial situation.

·     Develop a retirement savings strategy.

·     Determine the best investments to meet your needs.

·     Anticipate inflation and economic volatility.

·     Monitor your progress, adjusting along the way.

With all this uncertainty how does one differentiate old retirement trends from new retirement trends.

Let’s take a trip down memory lane. Previous generations of retirees counted on pensions to enable their retirement. In the United States, government employees started receiving pensions in the mid-1800s, and many corporations began offering pensions to their retiring employees by the early 1900s. When pensions weren’t the primary source of income for retirees, Social Security would replace their earnings. Between pensions and Social Security income, many retirees of previous generations had predictable retirement income streams that they could never outlive.

Access to a time machine would likely show us that future retirees will not have the same predictable income. First, there is a dramatic decline in corporate pensions. In 1979, 87% of employees at medium and large companies participated in pension plans. As of 2017, only 16% of Fortune 500 companies offered “defined benefit pension plans”. Second, responsibility for retirement income has shifted from the employer (who provided pension plans) to employees who are now responsible for funding and investing in their own 401(k) or 403(b) plans. Third, even Social Security cannot be counted on fully; The Old-Age and Survivors Insurance (OASI) Trust Fund is on track to be depleted by 2034, meaning retirees will receive only 77% of their benefits. In summary, the old retirement trend included income predictability, while the new retirement trend does not. Hence, our human instinct to worry may be triggered.

Sixty-five used to be the magic number for retirement. To begin with, half of the state pension systems used 65 as the retirement age. Additionally, the federal Railroad Retirement System and most corporate pensions followed suit.

Today there is no definitive retirement age to target. Anyone born after 1938 must wait anywhere from a few months to a few years after turning 65 before becoming eligible for full Social Security benefits. Why? Few pensions are left, meaning most retirees have no guaranteed retirement income stream at age 65. While the old retirement trend was to work until age 65, the new trend leaves those not yet retired feeling uncertain about when they should retire.

70 is the new 60. We are living longer and healthier lives than our grandparents. With age comes wisdom, and with wisdom come possibilities. This reality leads to several questions: Do I want to work longer or part-time? Will I outlive my money? How can I optimize my retirement experience?

Financial planning and investing are multifaceted and complex, with many factors to consider, such as taxes, insurance, benefits, and tens of thousands of investment options. By working with a professional Wealth Advisor, you can reduce the uncertainty of retirement and enjoy the happy retirement of which you have always dreamed.

When you retire don't splurge

 Some of when we retire do things that in retrospect are silly. I had a cousin who when he retired, said, I worked all my life, and I will no longer work. I will stay at home, watch TV and read. He did just that and two years later his wife left him because he would not do anything around the house as he called it work. Two years after that he died. I had another friend who decided to do a ‘walkabout” he sold his house, bought a fancy motorhome, went on the road and six months later wanted to come back home but the housing market had gone crazy at that time, and he could not afford to come back into the market. His fancy motorhome was only worth 40% of what he paid for it. To this day, he regrets the decisions he made.

Here are some purchases that people have made and have come to regret.

Purchasing a boat is a retirement purchase that people dream about during their working years. They finally quit the working world and pull the trigger, preparing to sail off into the sunset. But there’s more to owning a boat than purchasing the vessel, and costs can add up quickly. Before you know it, what was supposed to give you joy and freedom is tying you down. If you buy a boat for $80,000 and go out in it twice a month, is it a smart way to use the money?

For retirees who prefer to stay on land, resort living is all the rage. That’s for good reason, as with it you get resort-style dining, concierge services, weekly housekeeping, a valet and a slew of activities that can easily fill up your social calendar. However, you may realize that all the things that gave you value and purpose and were fulfilling are back where you used to live, Don’t just pull up your stakes, take some time vacation there and see if it is a nice place to live year-round.

Who doesn’t want to travel in retirement? And what better way than with an RV? You get all the comforts of home and don’t have to worry about lodging. You do have to fill up the tank, which can set you back a pretty penny in the current environment. Remember my friend, don’t buy, rent

Retirement is supposed to be about downsizing, but for some people, it’s the time to build their dream home from the ground up. That’s fine for those who have a lot of cash in the bank or can stick to a budget. All renovations cost more than you think, so plan very carefully and think twice before building.

​It’s normal to want to help your kids, regardless of how old they are, but giving too much can be a big spending regret. Sure, you have the means to pay off your children’s college tuition or give them the down payment for a home, but this generosity can leave you destitute in the future, particularly if you are on a fixed income. It can also cause family strife if you expect repayment and don’t receive it.

We have a time-share and we purchased it over 30 years ago and still find it useful and we still use it. But this kind of property also comes with many costs beyond the initial investment. There’s an annual maintenance fee, utilities and taxes, which can quickly eat away at your retirement savings. They can be a drain on your finances if you don’t use it. I also recommend that if you are going to buy a time share, buy it on the wholesale market. You can get them for pennies on the dollar when compared to buying a new one.

Ideas to help save

I don’t know if you had this program growing up, but I did. In elementary school, we had a program where we could open up a bank account and deposit a weekly amount. I think it started when I was in grade 5 and lasted through grade 6. I did not continue it when I went off to grade 7 but some did. It was a program designed to get us to think about saving for the future and it worked for many. If I had the opportunity again, I would save more at a younger rate. 

If you have young men and women in your life, and want to give them some advice. My suggestion is start saving as young as you can, and use some sort of automatic deduction plan. You can set up a savings plan or a retirement savings plan and have an amount automatically withdrawn every month, so you don’t have to think about savings. Men have an advantage for saving for retirement because we earn more and work longer. If we lived in a world where women had pay equity, and they didn’t have to take time out of work for family, the challenges for women wouldn’t be quite so daunting. Since this is not yet a reality, here are some more ideas on how women can save more, given the unfairness of the system.

Women need to develop and build their own financial independence. Today’s life stages are far more complicated now than it was when I was young. The odds are that you will not be in the same relationship you started in your 20’s or 30’s when you reach your 60’s. If you get to retirement in the same relationship, you started years ago that’s a rare occurrence. Irrespective of your relationships in the future, it’s so important to have your own personal long-term financial objectives. Start to think about having a personal financial strategy that weathers the odd relationship break up as you plan for your retirement.

Get advice to help you invest. Women don’t have as much money to invest but there is good advice out there. The access of affordable professional advice, specifically tailored to meet women’s needs and circumstances is not widely available but there are resources. Digital advice and tools can help, but they are not the answer for everyone. The value of advice is very hard to measure and, in most cases, only time will tell how good it was. Those who have received advice are most likely better off than those who don’t. Each person who reaches retirement in good shape means they won’t need extra government support and there would be more money to help those who can’t. How cool would that be?

Time can mean so much

 Time is different in later life. Having expended so much energy in our youth, we are less willing or unable to summon the energy and enthusiasm for a repeat of earlier initiatives. As we reinvent ourselves, we may gaze upon the paraphernalia of our prior employment, such as tools, books, and credentials and struggle to come to terms with the probability that these will no longer be needed as we move forward. These props can evoke nostalgia for the end of a career even though some of us will retain them in the faint hope that they might once again become useful.

Some do not retire. Others shift to part-time work and thereby avoid some of the difficulties experienced by those who leave their former careers completely behind. Because of the high value placed on work in our society, those retirees who have problems developing new initiatives may experience guilt about whether they are doing enough. But it can be difficult to follow through on initiatives because many in our society expect seniors to confine/herself to lives centred on recreation, relaxation, and travel.

It is important, nevertheless, for those of us who have retired to search for meaningful projects and recreational activities. Meaningful initiatives in later life are different from those of the earlier stages. If finances are adequate, meaning and life satisfaction–rather than economic necessity and ambition–are more likely to be the criteria that influence their choice of activities, projects, or employment

Choices may be difficult

 Going to work, being engaged, and being productive may take time to fade, especially if these activities have high fundamental value in terms of us. Such values can create ambivalence for those who are making the transition to retirement.

The percentage of seniors in care is low, but because ageism is so prevalent in our society as we age, we have an increased fear of too much dependency on caretakers be they, relationship partners or professionals. Physical dependency restricts life choices and can overburden caretakers. The deterioration of vision, hearing, and memory can also threaten personal autonomy. Even though the odds are against this happening we have an overwhelming fear of being too dependent.

After the initial excitement of being retired, we may settle down to making necessary adjustments. Some of us find that a busy schedule of recreational activities does not provide long-term meaning. But the question arises: What do I do in retirement apart from recreation, hobbies, and travel?

When you first retire some may have a need to visit their old workplace. This is a mistake as the visit can produce feelings of powerlessness and isolation. When a person is first retired, they try to find new activities and projects to replace those lost to retirement. However, there is also the desire not to work hard when developing new projects. These feelings make it more difficult for some to look for projects and activities that are not a rerun of what they have already accomplished. The loss of the stimulation and meaning provided by their former employment, however, may draw some retirees back to their former work role, either in a part- or full-time capacity.

The basic question of What do I do with my retirement? is difficult to answer. Some of us find that taking it easy only prevails for a while until dissatisfaction mounts and the search for some meaningful activity occurs. The search is made more difficult by the large number of possibilities from which choices can be made. Because this choice dilemma occurs in retirement it should be faced with the enthusiasm of a younger person who is just beginning a career.

A life review

Retirement is a time for a life review. Some of the issues to look at include questions about which roles and identities we present to others when we retire and try to re-invent ourselves. We may have to face the fact that we did or did not reach the goals we set for ourselves related to our careers, family lives, and social relationships. 

When we acknowledge that we are closer to the end of life we may face questions about the very meaning of life. Death becomes more difficult to ignore as those around us die.

This is especially true for those of us who outlive our contemporaries. There is also the possibility that guilt, for those of us who believe that we lived a less than satisfactory life and this can lead to self-condemnation and depression, in some.

Although individual identity issues vary, one theme seems to be common. The questions raised are:

• Who am I, apart from the roles I have been playing?
• What, in short, is the second half of life if it is not to repeat the script and expectations of the first half of life?

Once retired, some of us begin to appreciate how much of our identity, especially for men was intertwined with their work. The loss of relationships, challenges, and activities associated with work can be painful losses that many people overlook as they contemplate retirement. 

The prospect of relief from a demanding or unsatisfying job in exchange for the prospect of freedom to do other things can be irresistible but is not necessarily lasting. Before you retire you should consider the question, What will I do with my life from now on? As you look back on your life, some may want to  think about this questions:

• I have done the expected things, according to my best understanding of myself and the world, so why does my life not feel right? 
• Some of the things I have done have been good, productive, and consistent with my inner values, and some have not. 

So, if my life is not feeling right, I may need to explore and refresh my understanding of self. This is a painful task and some of the questions asked may have painful answers. Many of us may eventually experience a discrepancy between what we sought, served, and accomplished, and what we feel in our hearts.

The void left by the absence of not only work but also much of the social activity associated with the workplace can create doubt as to how life in retirement will turn out. It is similar to “buyer’s remorse. You might ask yourself: Did I make the right decisions? 

Not knowing whether deciding to retire is the right choice can cause anxiety resulting in avoidance and delay. Many people do not retire when they plan for many reasons one of which is decision paralysis. 

Anxiety about trusting oneself to make the right decision often leads to procrastination of retirement plans. At this time in life, if you have a good track record of decision making you will probably feel confident about deciding and coping with the future. If your anxiety is high and your self-confidence low, you may be unwilling to trust yourself to make good decisions.

When to retire?

 As I stated in an earlier post, more people are or have retired and this is causing an interesting shift in the attitude of both employees and employers. Over the two years since the Covid-19 pandemic struck, more people than usual have retired. Research showed that since the pandemic started, a quarter of people had changed their plans for retirement and around one in seven considered accessing their pension funds earlier than planned.

The decision on when it’s the “right time” to retire is not easy, it is complicated and personal. It can be influenced by your health and ability to remain in employment, or the health of a loved one, Many boomers are providing care to elderly relatives, sometimes alongside supporting their own children.

However, there are also many benefits to staying in employment, not just financial but also social interaction and sense of purpose. In the past, many people assumed they would retire between 60 and 65. Many pension plans offered by employers coincided with government pensions.

However today there is not a normal age to retire, and government pensions in some countries are offering incentives to work longer and in others, they are increasing the age in which a person can collect the pension.

The rules differ from country to country about when a person can/should retire. In Canada, most individuals can start taking their Canada Pension from age 60, with more pension income the longer one waits. The Old Age Security kicks in when a person reaches 65. In Canada and other countries, because of the labour shortage, there is growing interest in “transitioning into retirement”, reducing hours or days worked.

For those who have already retired and who were told that retirement is an irreversible decision. It is not. On retiring, you may give up the right to return to that job, but in today's job market you may still work at your old job, but only part-time. Another alternative is that you can always seek new employment, which need not be in your previous line of work.

Even so, deciding when it is the right time to retire can be a daunting decision and financial advisers and retirement coaches can help you weigh up all the factors.

Best ciities to live in the world

 The EIU (The Economist Intelligence Unit is the research and analysis division of the Economist Group, providing forecasting and advisory services through research and analysis, such as monthly country reports, five-year country economic forecasts, country risk service reports, and industry reports.) said cities were ranked on more than 30 qualitative and quantitative factors across five broad categories: stability, healthcare, culture and environment, education and infrastructure. These are the top 10 most liveable cities according to the EIU:

1)  Vienna, Austria

2)  Copenhagen, Denmark

3)  Zurich, Switzerland

3)  Calgary, Canada

5)  Vancouver, Canada

6)  Geneva, Switzerland

7)  Frankfurt, Germany

8)  Toronto, Canada

9)  Amsterdam, Netherlands

10)  Osaka, Japan

10)  Melbourne, Australia

Money saving ideas

Many years ago, we were warned that inflation was going to come back, and it would come back with a vengeance. In the past when we had inflation, the money we had in savings or in stocks was protected. However, today the banks are raising interest rates on borrowing but not on savings, and the stock market is struggling to keep in positive territory. Many of us are worried about running out of money in retirement. Inflation is soaring, stocks are crashing, bank interest rates on savings are stagnant and to top it off, we are living longer. All of which means your money has to work harder to last. Here are some ideas:

There are stages to your retirement, in the early years we treat every day like it’s Saturday, we take a few extra vacations and trips with family and friends. This was fine when inflation was not going crazy. Now is the time to rein in your expenses or if you can a part-time job to supplement your income or to look for better places to save your money.

It’s natural to want to help your children and grandchildren out, but make sure before you do that you can look after yourself. My grandfather would pass money on to his children to help out, but he always made sure that he could cover his needs. So, before you book that cruise for the entire family or give your child the down payment for a home, make sure you can afford to do this. You may have to learn to say no, at least for now. Make sure you have enough cash in the bank to live comfortably in retirement, and then lend a helping hand.

Some people go into retirement with the intention of downsizing to a smaller home. Don’t treat the equity in your home as a windfall. If you need it, count it as an income stream you can live off of in retirement.

Close to 70 percent of Americans 65 and older will need long-term care in their lifetime, according to the Urban Institute and the U.S. Department of Health and Human Services. Some have family members to rely on, but close to half will need to pay for long-term care on their own, and many have no plan to do so. If you can add long-term care coverage to your retirement savings plan.

Lingering or new debt can be a big blow to your retirement savings. Try not to bring any debt with you into retirement. If you do, work on paying it off and resist accruing new debt.

Finally, remember that the great wealth-eroding factor has always been inflation. Your investments have to work harder to hold their value over the long haul. With inflation soaring, a portfolio checkup may be in order to ensure your investments are allocated properly.