Attitudes, behaviors and lifestyle impact ideas about inheritance

While seniors often take pride in living frugally to provide for their loved ones after they have passed on, Boomers have grown up understanding there is a direct correlation between hard work and rewards, and may, therefore, believe that hard-earned rewards should be enjoyed.

According to the last BMO Wealth Institute report, Boomers are concerned about outliving their retirement savings and some are considering replenishing their retirement resources by working longer or returning to work. Conversely, seniors may feel more secure about their financial situation, given their lifestyle and affinity for lower-risk investments. In the current environment, one would presume that an individual’s priority would shift from leaving a legacy for future generations to self-preservation.

Carrying debt into retirement may be a reality for some. In fact, as members of a credit-driven economy, some Boomers may carry more debt into retirement than their parents did. Of the Boomer retirees surveyed in 2006, 64% reported that they carried debt into retirement. Both Boomers and seniors are responsible groups who are focused on repaying their personal debts. While the majority of Boomers and seniors surveyed claimed that paying off their mortgage and personal debt is important to them, any unpaid debts will reduce the estate value for heirs.

On the one hand, Boomers are an extremely generous bunch, with strong ideals and a deep sense of commitment towards loved ones, and the world they will pass on. On the other hand, given the current economic climate and other challenges mentioned earlier, some Boomers are torn between a desire to give and a sense of responsibility to remain self-sufficient throughout their retirement years.

Many Boomers still, stand to receive an inheritance, and the majority of them expressed a desire to pass on a legacy for future generations to enjoy. Nevertheless, the reality is a lot more complicated. Boomers who still expect to fund their retirement with an inheritance may find that reality falls short of expectations, and future generations who are counting on receiving an inheritance should be aware of the many risk factors that could reduce the amount of money, they will receive.

There are strategies that Canadian families can take to help achieve their inheritance vision and maximize the intergenerational transfer of wealth. Communication with advance planning is key. While proactively initiating a family conversation on the transfer of wealth may seem emotionally daunting to some, the risk of holding onto unrealistic expectations is likely to have far worse consequences. By having open intergenerational conversations about inheritance and with the help of a financial advisor, Boomers and their families can be empowered to make prudent planning decisions about their legacy plans.

Saying goodbye

A few days ago I talked about my cousin who had a brain aneurysm and had, after considerable discussion with family, been taken off of life support. Her daughter asked me if I would talk to my cousin as her daughter said that would cheer my cousin up. So two days after they took my cousin off life support I was able to talk to her and say goodbye.

I did most of the talking as my cousin could not speak very much. Every now and then her daughter had to tell me what her mom had said as her voice was not picked up well on the speakerphone. I told her I thought she was a strong woman and I was sorry about the situation she was in and she said, "Yes, I am, I'm like your mom." I knew what she meant, my mom had taken a year to die, after she was told she only had a few days too live. I agreed with her that she was tough, like my mom. She also said she enjoyed all the people who were coming to see her, but that it was very tiring to have all the visitors. I said that she had all the visitors because she was a well-loved person who had many friends. I said I loved her. My cousin's daughter phoned me today to say she had passed. I cried. 

My cousin has a wicked sense of humour and even as she is on her death bed, she has time for humour. My cousin's daughter told me two stories, "I brought in my son and asked mom if she knew who he was. Mom replied, "No, I don't and then called her son over by name, and looked at her daughter and laughed." 

In the second story, My cousin's daughter left the room for a few minutes to talk to someone on the phone and when she returned her mom had pulled the blankets over her head. My cousin's daughter let out a gasp and her mom pulled the blankets down and smiled. Her daughter asked, "Mom, did you pull the blanket over your head, and her mom replied, "I guess I did."

Now some may not think the above is funny, but I do and her daughter did. If you cannot see the humour in a situation, then it may be too late for you. I will miss her and I am glad I had a chance to say goodbye.

International Day of Older Persons

On 14 December 1990, the United Nations General Assembly designated October 1 as the International Day of Older Persons with the theme being ‘The Journey to Age Equality".

The composition of the world population has changed dramatically in recent decades. Between 1950 and 2010 life expectancy worldwide rose from 46 to 68 years, and it is projected to increase to 81 by the end of the century.  It should be noted that at present women outnumber men by an estimated 66 million among those aged 60 years or over. Among those aged 80 years or over, women are nearly twice as numerous as men, and among centenarians’ women are between four and five times as numerous as men. For the first time in human history, in 2050, there will be more persons over 60 than children in the world.

Almost 700 million people are now over the age of 60. By 2050, 2 billion people, over 20 percent of the world's population, will be 60 or older. The increase in the number of older people will be the greatest and the most rapid in the developing world, with Asia as the region with the largest number of older persons, and Africa facing the largest proportionate growth. With this in mind, enhanced attention to the particular needs and challenges faced by many older people is clearly required. Just as important, however, is the essential contribution the majority of older men and women can make to the functioning of society if adequate guarantees are in place. Human rights lie at the core of all efforts in this regard.

The government have chosen diverse approaches in setting priorities. These choices highlight different perceptions of the role that older people play in the family and in society at large. In some cases, measures aim to capture the rapidly evolving dynamics of communities and societies, inviting a second look at current perceptions about older persons and work, elder-care mechanisms, intergenerational support systems and financial constraints. Some Governments have designed policies founded on the principle of active ageing and autonomy, aimed at facilitating the continuation of independent lives at home, with services and facilities that cater for various types of needs. Others emphasize family ties and support for the family unit as the primary source of care for older persons. In all cases, various volunteer organizations and community-based centres, are essential to the smooth functioning of the entire system.

The different circumstances that shape the lives of women and men in old age are the outcome of a lifetime of experience. Good health, economic security, adequate housing, an enabling environment, access to land or other productive resources, these are the fundamentals of ageing with dignity, yet achieving them depends on decisions and choices only partly determined by each individual.

The impact of gender inequalities in education and employment becomes most pronounced in old age. As a result, older women are more likely than older men to be poor. Furthermore, older women often take on greater responsibilities for family care while managing inflexible working conditions, mandatory retirement ages and inadequate pensions and other social security benefits, which leave them, and those in their care, extremely vulnerable. Without doubt, ageing, its human rights challenges and its feminization constitute an unprecedented shift in the social fabric of all societies, with far-reaching consequences.

Empowering older persons in all dimensions of development, including promoting their active participation in social, economic and political life, is one way to ensure their inclusiveness and reduce inequalities.

Often, disparities in old age reflect an accumulated disadvantage characterized by factors such as: location, gender, socio‐economic status, health and income. Between 2015 and 2030, the number of people aged 60 and over is expected to increase from 901 million to 1.4 billion. In this regard, trends of ageing and economic inequality interact across generations and rapid population ageing, demographic and societal or structural changes alone, can exacerbate older age inequalities, thereby limiting economic growth and social cohesion.

The 2019 theme aims to:

·       Draw attention to the existence of old age inequalities and how this often results from a cumulation of disadvantages throughout life, and highlight the intergenerational risk of increased old age inequalities.

·       Bring awareness to the urgency of coping with existing — and preventing future — old age inequalities.

·       Explore societal and structural changes in view of life-course policies: life-long learning, proactive and adaptive labour policies, social protection and universal health coverage.

·       Reflect on best practices, lessons and progress on the journey to ending older age inequalities and changing negative narratives and stereotypes involving "old age."

Seniors and Recreational Opportunities 3

After the influence of the baby boomers, the second powerful demographic shift in the seniors’ population is immigration and the resulting cultural diversity. Starting a new life in Canada is challenging for most new immigrants but for older adults and seniors whose first language is not English, this transition can be especially difficult.

Without the structure and daily interaction that school or employment may provide, older adults and seniors may struggle to form connections in their new community.

Understandably, many rely on their younger family members to provide language translation and assistance navigating the system, but over time, that dependence can increase social isolation for the older adult. The ability to access support services and affordable opportunities for learning, recreation and social engagement is vital to a positive transition to living in Canada for many new immigrant older adults and seniors.

Segments of the older adult and senior population will continue to experience challenges and constraints to meaningful recreation participation. To put it simply: a constraint intervenes between the desire to participate and actual participation. These can be summarized into five main categories and can be understood as either a personal constraint or a constraint caused by a systemic barrier:

·   Financial: There is increasing income disparity within the senior demographic. The assumption that all seniors require some form of subsidy due to a low, fixed income needs further examination. Sixteen percent of Coquitlam’s 65+ population has low income (LIM-AT) and a large proportion of seniors living in poverty are single women.

·   Limited knowledge of available recreation resources: Information about recreation resources may not be available, relevant, or provided in a timely manner.

·   Transportation: Seniors need to be able to easily and safely get to and from a recreation centre, park or an event.

·   Health and activity limitations: Approximately half of Canadian seniors have health and activity limitations that impact their full participation in recreation.

·   Isolation and loneliness: Many seniors live alone; the number of isolated or lonely seniors is unknown. Seniors who are new to Canada may encounter language and other cultural barriers. The risk of becoming socially isolated and disconnected from community life increases significantly for seniors who experience one or more of these challenges and constraints. Seniors with low social support are less likely than were those with high social support to report positive self-perceived health and are more likely to be dissatisfied with life. Having a friend to participate with can make all the difference.