Do you have a retirement plan? 1

Retirement means something different for everyone. For some it's a time to travel, while for others, it might be indulging in a hobby, learning something new or devoting time to family.

Whatever your goal, having a plan is fundamental to making your retirement vision a reality. Yet a 2018 poll conducted by CIBC found that 90% of Canadians have no detailed plan that defines the lifestyle they want in retirement.

Finding security in retirement

Feeling financially secure is a goal shared by many pre-retirees, and it makes sense. It's reassuring to know that you’ll enter retirement with enough money to live the kind of lifestyle you want for the next 30+ years, without fear that you'll run out of money.

53% of those polled by CIBC who had yet to retire or were semi-retired weren't sure they were saving enough to fund their full retirement. Fortunately, active planning together with a savings strategy can help you find out if you’ll meet your needs.

30% of Canadian retirees, for example, say they had to deal with surprise costs, such as home repairs, long-term care expenses or providing financial support to children, grandchildren or ageing parents. If you plan for some of these items, then you’ll be more prepared if they do happen.

A financial plan can keep any surprises from steering your retirement off course, and it can provide the financial security that allows you to create a meaningful retirement lifestyle. Overall, a financial plan can help you make the most of the time you've worked so hard for.

Today’s seniors participate less in active pursuits than seniors in 1986

In my final post on the time we spend on activities, Stats Canada provided a Wayback Machine so we can compare how the Boomers spend time vs how our parents spent their time. 

It is possible to use data from the 1986 General Social Survey on Time Use to examine changes in time spent on selected activities, specifically unpaid household work, active pursuits and passive leisure.

In 2015, the participation rate for seniors aged 65 and over in unpaid household work was 87%, significantly higher than the 75% participation rate for 1986. During this 30‑year period, the participation for senior men increased significantly from 58% to 83%, while senior women’s participation rate remained fairly unchanged (88% versus 91%). Despite the fact that senior men in 2015 were more likely to participate in household chores and the average time they spend has increased, senior women still accounted for a larger share of unpaid household work in 2015 (209 minutes, compared with 177 minutes for men).

Table summary This table displays the results of Participation rate and time spent on selected activities for individuals aged 65 and over Total, Men (ref.), Women, 1986 and 2015, calculated using percentage and minutes units of measure (appearing as column headers).
	Total		Men (ref.)		Women
	1986	2015	1986	2015	1986	2015
	percentage
Participation rate
Unpaid household work	75	87	58	83	88	91
Active pursuits	74	69	69	68	77	69
Passive leisure activities	88	90	89	92	87	89
	minutes
Average time (participants)
Unpaid household work	162	195	130	177	179	209
Active pursuits	223	185	214	179	230	190
Passive leisure activities	291	283	318	291	270	276
Source: Statistics Canada, General Social Survey, 1986 and 2015.

In the 30 years between 1986 and 2015, the participation for senior women in active pursuits (excluding using technology) decreased significantly, from 77% to 69%. In addition, the results showed a significant decrease in the average time spent on these activities. Between 1986 and 2015, both senior men and women decreased their average time spent on active pursuits (by 35 minutes and 40 minutes, respectively).

The findings on participation in passive leisure activities show that the seniors’ participation rates (for both men and women) have remained fairly unchanged in the last three decades. In addition, the average amount of time they spent on these passive activities did not change significantly between 1986 and 2015, with the exception of senior men, whose time spent decreased by nearly half an hour (27 minutes).

There are several characteristics associated with time use allocation among seniors. Senior women spend more time on unpaid household work and less time on passive leisure activities than senior men.

The findings also highlight the importance of employment, which has a significant impact on the way seniors spend their time. The findings also show that health is a significant factor in the way seniors devote their time to various activities. Seniors who describe their health as fair or poor spend less time on unpaid household work and active pursuits. But they also spend more time on passive leisure activities.

Finally, this study also examines how time use allocation changed for seniors between 1986 and 2015. Seniors appear to have moved towards a more egalitarian division of unpaid household work. Senior men’s participation rate in unpaid household work increased from 59% to 83%. At the same time, seniors now spend less time on active pursuits than they did three decades ago.

The fact that seniors spend less time in active pursuits could have implications on the health and wellbeing on this group of seniors as they age.

Healthier seniors are more likely to participate in active pursuits

The participation rate of seniors in unpaid household work did not vary significantly by health status. Specifically, 89% of seniors who reported their health as excellent or very good engaged in unpaid household work on a given day, while the proportion decreased to 84% for seniors who reported their health as fair or poor. Among seniors who did report time spent on unpaid household work, however, those who reported their health as fair or poor spent less time in this activity than healthy seniors. The average time spent on unpaid work increased from 2.9 hours for those who reported fair or poor health to 3.4 hours for those in excellent or very good health.

In general, the participation rate for active pursuits varies significantly by health status. For example, the participation rate for civic, religious and organizational activities was significantly lower for seniors who reported their health as fair or poor compared with those in excellent or very good health (5% versus 10%). Similar results were found for socializing and communicating as well as for leisure and physical activities. Despite the gap in the participation rates for these activities, the average time spent by participants on any of these active pursuits did not vary significantly by health status. 

At the same time, the participation rate for using technology was significantly lower for seniors who reported their health in more negative terms than for those in excellent or very good health.

Participation in passive leisure activities is also affected by health status. For instance, among those who watched television, the average time spent increased by more than one hour between those who reported their health as excellent or very good and those in poorer health (3.7 hours versus 4.9 hours). According to the data, those in fair or poor health and those in good health also reported a lower participation rate for reading than seniors in excellent or very good health. However, the time spent reading on a given day did not vary by health status among seniors.

In addition, there is a relationship between sleeping and self-reported health among seniors who reported their health as fair or poor. On average, they spent more time sleeping than their healthier counterparts (9.5 hours versus 8.9 hours).

Employment and seniors’ participation in activities

In order to better understand how seniors, spend their time, the role of employment on how much time seniors spend on certain activities should be considered. For instance, employment may affect time use more than age because of its influence and impact on economic resources, time availability, and possible opportunities for social engagement and other activities. In general, older individuals who have transitioned out of employment are more likely to participate and spend a greater number of hours engaged in other activities. For example, participation in unpaid household work is lower for seniors who continue to work, at 78%, versus 89% for those who are not employed

A comparison of seniors’ engagement in civic, religious and organizational activities (which includes volunteer work) shows that their rate of participation did not vary depending on whether or not they were employed (9% for each). In addition, the average time spent on these activities between the employed and those who are not employed was not significant. A similar trend was found for participation and time spent socializing and communicating.

However, employment status matters when it comes to leisure and physical activities. Those who are not employed have a significantly higher participation rate than those who are employed (42% versus 30%). Seniors who are not employed are not only more likely to engage in these activities but, when they participate in leisure and physical activities, they are also more likely to spend additional time (30 minutes) on them than seniors who are still employed.

The results for passive activities also show that the participation rate for reading is higher for those who are not employed than for the employed (39% versus 31%), while the proportions are not significantly different for watching television (85% versus 80%). For time spent by seniors who engaged in these passive activities, the data show that those who are not employed spend an additional 1.2 hours (74 minutes) watching television. In addition, time spent reading is significantly higher for seniors who are not employed than for those who are still employed (an additional 39 minutes).