Canadians’ retirement perceptions and behaviours 1

 The following is from a Morneau Shepell, newsletter. Morneau Shepell is the only human resources consulting and technology company that takes an integrated approach to employee well-being to meet health, benefits and retirement needs

The Canadian Institute of Actuaries (CIA) and the Ontario Securities Commission (OSC) recently released studies regarding perceptions and behaviours of Canadians when it comes to the financial aspects of planning for retirement. The key findings of the CIA study indicate that many Canadians misunderstand certain aspects of retirement planning, potentially leading to a damaging impact on their financial well-being for the later parts of their lives.

These studies present the results of a survey by Canadians, aged 50 to 80, who are either close to retirement or already retired, examining their anticipated concerns and risk preferences with respect to retirement.

Key findings presented in the report include:

•                   Pre-retirees expect to retire at a later age than retirees have experienced. The expected median retirement age is 65 for pre-retirees versus the actual median retirement age of 60 experienced by current retirees who responded to the survey.

•                   Sixty-one percent of survey respondents have or expect to have relatively low liquid retirement assets. Ten percent have or expect to have less than $25,000 of liquid retirement assets and do not own their home or other properties.

•                   Respondents profoundly undervalue life annuities. Eighty-four percent of respondents estimated the price of an annuity at less than half of the actual market price. Furthermore, respondents showed low interest in purchasing annuities at any price due primarily to their views of the associated credit risk and the loss of flexibility, control and financial security.

•                   In general, respondents lack the understanding of the long-term cumulative impact of inflation on the cost of living. However, there is a dramatic change in their preferences when the cumulative inflation impact is depicted, and they become willing to “pay” more in exchange for inflation protection.

•                   Bequest (i.e., providing an inheritance) is generally viewed as fairly unimportant.

•                   The overall attitude towards seeking professional financial advice is positive. Behaviour, however, is found to be strongly related to liquid retirement assets: respondents with low liquid assets show little interest in seeking advice, mainly due to affordability. In general, respondents show high concerns over potential issues such as accessing quality service, conflicts of interest, and fraud.

The findings of the CIA study suggest that Canadians would benefit from plan sponsors implementing interventions or behavioural “nudges” to encourage plan members to engage in retirement education and planning. The study also demonstrates that there are a number of prevalent misperceptions that can lead to damaging results for imminent retirees.

The Concept of Healthy Aging

According to the Canadian Institute of Health Research in a report on Healthy Ageing, healthy ageing is about creating the environments and opportunities that enable people to be and do what they value throughout their lives.

Being free of disease or infirmity is not a requirement for Healthy Ageing as many older adults have one or more health conditions that, when well-controlled, have little influence on their wellbeing

Canada is ageing and by 2035, there will be more than 30% of the population will be 60 years and over. Are we ready?

The ageing of the Canadian population is characterized by:

•                   A decrease in the number of younger people, as a result of a lower birth rate.

•                   An increase in the number of people who are reaching old age due to the fact that more people engage in healthy lifestyles.

•                   A drastic increase in the number and proportion of the oldest old (i.e. individuals who are aged 85 and over), including an explosion of centenarians.

•                   An increase in the difference between the relative numbers of men and women, the latter representing the vast majority of the oldest.

The ageing landscape in Canada is increasingly characterized by diversity in individual trajectories, including a higher number of people working later in life, either by choice or by financial obligation.

Genetic makeup, epigenetic exposures, and, mostly, lifestyle choices, such as nutrition, physical exercise and cognitive stimulation, are known to be drivers of vitality in late life. Despite the diversity in the trajectories of ageing and in particular between women and men, the late years do allow for multiple opportunities, whether in relation to work, family time, further education, travel, entrepreneurship and community engagement.

As a result of lifelong adaptation and resilience, older individuals represent a source of invaluable wisdom that should be better integrated in all aspects of society. Older adults contribute massively to families and their communities through caregiving as well as volunteer activities. Health and wellness throughout our life trajectory and in the late years represent a central tenant of our Canadian values of happiness and fulfilment.

At the same time, multiple chronic conditions still characterize the health of older individuals and more than half (57%) of individuals aged 80 and over live with three or more chronic conditions, many of which are controlled by medication and/ or lifestyle. Moreover, frailty is a prevalent condition that affects up to 35% of older Canadians placing them at higher risk of disability, institutionalization and even mortality.

Frailty is particularly onerous in those aged 85 and older, reaching a prevalence of close to 50%. Frailty is associated with an increased risk of injuries due to falls, mobility disability, depression, and cognitive impairment. Cognitive impairment resulting in dementia is one of the most prominent and debilitating conditions for all older people and their caregivers, particularly among those in the oldest-old age group (more than 40% of individuals aged 85 and over are living with some form of dementia).

Despite these challenges, the vast majority of people aged 65 and over still live in private dwellings (92% for those aged 65 and over, and 68% for those aged 85 and over), while only a fraction (8% for those aged 65 and over, and 32% for those aged 85 and over) live in protected and /or long- term care facilities.

Nevertheless, the environment in which older Canadians live is not always supportive of health and wellness. There is a clear need for more age-friendly housing and communities in both urban and rural environments, as well as for more knowledge to address the issues of stigma and elder abuse, regardless of the form they may take (i.e. physical, emotional, psychological, or financial). Loneliness also represents a major challenge for many older individuals, especially within the oldest old age group.

Older people with health challenges represent an important proportion of health system users and associated costs. Unfortunately, the system is not equipped to deal with older individuals who have multiple chronic conditions, in particular as it relates to ensure a coherent transition between the different components of the health system, especially in the last years of life.

Canada’s demographic landscape and ageing trajectory is characterized by an ongoing increase in the numbers of older people, and even more of the oldest old. In order to optimize health and wellness in ageing, as well as adapted health and social interventions and health services that will support older individuals in their needs and diversity we will need will, determination and luck.

More ideas for preventing dementia--Eat Healthy

A healthy diet throughout life plays a crucial role in optimal development, and in maintaining health. Previous dietary intervention studies have shown that dietary changes are involved in the prevention of many conditions that increase the risk of dementia, such as diabetes and Cardio Vascular Disease. Mechanistic and animal models have linked dietary factors to neuropathological changes in the development of dementia. Therefore, dietary factors may be involved in the development of dementia, both directly and through their role on other risk factors, and a healthy diet may have a great preventive potential for cognitive impairment.

According to the World Health Organization (WHO), the Mediterranean diet is the most extensively studied dietary approach, in general as well as in relation to cognitive function. Several systematic reviews of observational studies have concluded that high adherence to the Mediterranean diet is associated with decreased risk of Moderate Cognitive Impairment and Alzheimer’s Disease, but modest adherence is not. Other promising dietary approaches associated with better cognitive function include: dietary approaches to stop hypertension (DASH); and the brain health-specific Mediterranean-DASH Intervention for Neurodegenerative Delay (MIND) diet.

Consumption of fruit and vegetables and fish are most consistently associated with decreased risk of dementia. Higher fish consumption has been linked to lower memory decline among healthy participants in many studies, as well as the intake of polyunsaturated fatty acids (PUFA) (fish-derived). Other foods and nutrients that have been associated with reduced risk of dementia or cognitive impairment are nuts, olive oil and coffee. Evidence has also been reported concerning folate, vitamin E, carotenes, vitamin C and vitamin D, but findings are inconsistent. For adults, the WHO guidelines recommend the following.

•                   Fruits, vegetables, legumes (e.g. lentils, beans), nuts and whole grains (e.g. unprocessed maize, millet, oats, wheat, brown rice).

•                   At least 400 g (five portions) of fruits and vegetables a day. Potatoes, sweet potatoes, cassava and other starchy roots are not classified as fruits or vegetables.

•                   Less than 10% of total energy intake from free sugars which is equivalent to 50 g (or around 12 level teaspoons) for a person of healthy body weight consuming approximately 2000 calories per day, but ideally less than 5% of total energy intake for additional health benefits. Most free sugars are added to foods or drinks by the manufacturer, cook or consumer, and can also be found in sugars naturally present in honey, syrups, fruit juices and fruit juice concentrates.

•                   Less than 30% of total energy intake from fats. Unsaturated fats (found in fish, avocado, nuts, sunflower, canola and olive oils) are preferable to saturated fats (found in fatty meat, butter, palm and coconut oil, cream, cheese, ghee and lard) and trans-fats of all kinds, including both industrially-produced trans-fats (found in processed food, fast food, snack food, fried food, frozen pizza, pies, cookies, biscuits, wafers, margarines and spreads) and ruminant trans-fats (found in meat and dairy foods from ruminant animals, such as cows, sheep, goats, camels and others). It is suggested to reduce the intake of saturated fats to less than 10% of total energy intake and trans-fats to less than 1% of total energy intake. In particular, industrially-produced trans-fats are not part of a healthy diet and should be avoided.

•                   Less than 5 g of salt (equivalent to approximately 1 teaspoon) per day and use iodized salt.

More ideas on preventing dementia Quit smoking

We all know that smoking, vaping, chewing tobacco is bad for us. According to the World Health Organization tobacco dependence is the leading cause of preventable death globally, causing an estimated 5 million deaths per year and worldwide medical costs ranging in billions of US dollars. Tobacco is the major risk factor for a number of conditions, including many types of cancers, cardiovascular diseases (CVDs) and risk factors, and respiratory disorders and tobacco cessation has been demonstrated to significantly reduce these health risks. What I did not know is that tobacco dependence is also associated with other disorders and age-related conditions, such as frailty and workability in older people, as well as dementia and cognitive decline.

Quitting tobacco has also been associated with reduced depression, anxiety and stress, and improved mood and quality of life compared with continuing to smoke. Interventions to treat tobacco dependence can be very diverse, based on either or both behavioural/ psychological strategies and various pharmacological treatments. Counselling is the most frequently used approach, but others have also been explored, such as mindfulness-based approaches, cognitive behavioural therapy, behavioural activation therapy, motivational interviewing, contingency management, and exposure and/or aversion to smoking.

Among the therapies for tobacco cessation, nicotine replacement therapy, bupropion and varenicline are the most common.  Combinations of non-pharmacological and pharmacological approaches seem to be the most effective in supporting tobacco cessation.

If you are a smoker you know that you should quit. I believe that our governments should fund appropriate programmes aimed at preventing tobacco use uptake and focus on programs that are promoting quitting.

There is a growing body of evidence available on how tobacco smoking is a risk factor for cognitive impairment and dementia. These studies show an association between tobacco smoking (including in mid-life) and dementia, or cognitive decline, in later life. It is never too late to quit. Continuing to smoke is more detrimental than beneficial to your health.

The evidence is strong, mid-life smoking is correlated to a higher risk of late-life dementia. Experimental laboratory results are in keeping with the observational evidence suggests that smoking causes brain damage, underpinning subsequent cognitive decline.