Will you retire at 65 or earlier?

Many Canadians expect to be working past the age of 65 because they won’t be able to afford to retire.

That’s according to a new survey from Chartered Professional Accountants of Canada (CPA Canada) which found that 42% of respondents who are not already retired think they will still be working past 65.

Saving for retirement is the most substantial financial concern of 20% of respondents while 17% cited managing debt.

That said, 41% of respondents said they are confident that their finances will improve over the next 12 months; 45% expect them to be the same and 11% think they will be worse.

While the vast majority of Canadians expect to be in the same or better financial position next year, there is still lingering anxiety among others about saving for the future and managing current debt. This highlights the importance of financial literacy education, in particular, around retirement saving and debt management.

Of the 2,042 people surveyed, 74% said they contribute to their savings monthly with 63% having a savings account and 52% having funds in a TFSA (66% of them made contributions in 2017). Just 9% said they have no investments or accounts at all.

Interest rate concerns

With interest rates set to rise further in 2019, 39% said that a significant rise would make mortgage and debt payments challenging.

Almost two thirds of respondents said they have made cutbacks to day-to-day spending over the past five years.

And when asked about their financial skills, 48% gave themselves a grade of B or higher and 49% graded themselves C or lower, 3% were unsure

Do you have a retirement plan? 2

In your plan once, you have considered your financial situation then you need to look at some other important ideas.

Rediscover your purpose

How you think about retirement beyond just finances matters. Other desires will likely influence the choices you make once you retire, including how you spend your time. Having a positive mindset and clearly defined goals can make it easier to create the kind of lifestyle you desire most.

Taking care of your physical health is also a key part of the retirement planning picture. Data from Statistics Canada shows that healthy seniors are more likely to be active, and active seniors have stronger social ties, are more involved in their communities and more likely to indulge in hobbies they enjoy.

Maintaining social connections and personal relationships are particularly important for your mental and emotional wellbeing. A 2017 CARP survey found that older Canadians who spent time in public places with others present, such as parks or libraries were less likely to experience feelings of loneliness.

Retirement is also an opportunity to re-centre and rediscover your purpose then pursue it wholeheartedly. That could involve testing your entrepreneurial skills and starting a business. It might be volunteering or sharing your expertise with others as a mentor or it could mean indulging your creative side and finally writing your memoir.

When your retirement plan covers all the bases your mindset, maintaining good health, staying connected with friends and family, engaging in new or old activities you love the result can add up to give you a deeper sense of satisfaction.

Shaping Your Vision

Planning for all aspects of retirement puts you in control of your retirement destiny, allowing you to forge ahead with confidence. The sooner you begin planning, the more flexibility you will have to account for life changes or unexpected obstacles that could otherwise leave your vision out of reach.

Determining how much you need to save is an important next step. The average Canadian believes they'll need $756,000 in retirement savings. Your individual savings goal may be higher or lower, but it's equally important to consider your purpose in retirement and consider the larger picture.

That's what this series will help you with. As you explore the different topics, keep in mind this central question: what will you need to feel fulfilled, purposeful and content in retirement?

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.