How about a cup of coffee a day?

Looking to save money for retirement and don't have any idea on how to start?

How about a daily coffee? Here are some interesting statistics.

 One Latte per day at $4.50 over 25 years = $41, 062.50 

 One lunch per day at $10.00 over 25 years =$91, 250.00

 One dinner per week at $50.00 over 25 years = $65, 000.00

If you added a tip, then the amount could be higher by between 10 and 20%

Make a difference

The difference you make in someone else's life will always be smaller than the difference it will make in your own life.
How do you make a difference in someone's life? I believe we make a difference by the little things we do or say. The small touch, of encouragement, the smile at the end of the day, the look of admiration for a job well done. We remember the little things because they add up. 

Many years ago, I had my senior students reflect and consider their elementary years, and what made a difference to them during those years. The answers were not about big gestures, but about how an adult had reached out, cared for them in a time of stress, or laughed with them in a time of fun. Those little gestures were what was remembered.

Life is, for most of us a series of small events that we weave together to make a story that reflects who we are, or who we want to become. We, I am told see and retain everything in our heads, but we choose what we want to recall, and want we want to make important, and those important events are usually not the big events, but the small ones.

So by making small positive gestures, you can have an impact on another person. Try it, maybe next time you are walking, smile and say high or just nod. Little gestures can have big impacts. 

Retirement Confidence is low for women

A new report shows some interesting facts about women and retirement in the US.  I am highlighting six facts here, but the report contains Seventeen Facts About Women’s Retirement Outlook Select Findings from the 17th Annual Transamerica Retirement Survey of American Workers. For the full report (pdf file) go to Women and retirement some facts:

Fact #1. Retirement Confidence is Low Only 10 percent of women are “very confident” in their ability to fully retire with a comfortable lifestyle, compared to 19 percent of men. Nearly half of women (45 percent) are “not too confident” or “not at all confident” compared to only 32 percent of men who share those sentiments.

Fact #2. Many Expect to Retire After Age 65 or Not at All Fifty-three percent of women plan to retire after age 65 (40 percent) or do not plan to retire (13 percent), a similar percentage to that of men (54 percent). One in four women expects to retire at age 65, and 22 percent expect to do so before age 65

Fact #3. Half Plan to Work in Retirement Half of women (50 percent) plan to work after they retire, including 11 percent who plan to work full-time and 39 percent who plan to work part-time. Similarly, 52 percent of men plan to work after they retire, including 15 percent full-time and 37 percent part-time. Continuing to work in retirement can help bridge a savings shortfall; however, it may not be a viable option without taking proactive steps to allow for continued employment in retirement.

Fact #4: Are Women Being Proactive So They Can Work Past 65? A majority of women are taking proactive steps to help ensure they can continue working past age 65. Sixty two percent are staying healthy, while 54 percent are performing well at their current job and 42 percent are keeping their job skills up to date. However, responses were lower for networking (16 percent of women, 22 percent of men), scoping out the employment market (16 percent women, 18 percent men), and going back to school (12 percent both women and men). All in all, 91 percent of women have taken at least one of the six steps identified. More than half (55 percent) have taken at least two steps, 33 percent three steps, 14 percent four steps, six percent five steps – but only two percent of women have taken all six steps.

Fact #5. Most Lack a Plan B If Forced Into Retirement Sooner Than Planned An alarmingly low percentage of women (19 percent) and men (31 percent) have a backup plan if forced into retirement sooner than expected. While delaying retirement and taking proactive steps to enable continued employment during retirement, it is vitally important to have a backup plan if forced into retirement sooner than expected (for example, due to a job loss, health issues, family obligations).

Fact #6: Seven in 10 Women Are Saving for Retirement Seventy-two percent of women are saving for retirement through employer-sponsored plans (e.g., 401(k) or similar plans) and/or outside the workplace (e.g., in IRAs or mutual funds), compared to 80 percent of men. Women retirement investors started saving for retirement at age 28 (median), while men investors got an earlier start at age 26 (median)

Can we afford to stay at home when retired?

A growing trend among retirees is the desire to remain in one's home as long as possible. In fact, a recent study quoted by AARP shows 87% of those 65+ want to age in place for as long as it is safe. Even among those 10 years younger, 71% would opt to stay put. Familiarity and community ties are the biggest draws.

In BC 93% of seniors live independently, with 80% owning their own homes and 20% renting. The three biggest challenges to senior homeowners are

• Taxes and utilities increasing faster than inflation
• Maintenance costs
• Major repairs may force a move
• Home equity becomes difficult to assess.

The biggest challenges to senior rentals are

• Affordability
• Availability
• Appropriateness

 The following chart from the office of the Senior Advocate of BC shows how in BC senior renters and homeowners are in trouble:

Homeowners and renters Living expenses 2016
Metro Vancouver	Home Owner	Renter
After Tax Income	1902	1902
Total Homeowner Expense	966
Basic Cost of Living	1064
Remaining Funds	-371
Average Rent 1 Bedroom		1079
Basic Living Costs		1008
Safer Subsidy*		108
Remaining Funds		-81

*Shelter Aid for Elderly Renters

So We want people to age in place, but we make it almost economically impossible to do this, so we have to advocate the government to give more consideration to this particular aspect of ageing. The research shows that if more seniors end up in homes than the health care costs will go very much higher. This issue is not just an issue for us in BC, but it is an issue in almost every jurisdiction. Allowing seniors to age in place reduces the cost to society, and makes ageing a more pleasant experience.