Retiring within five years, read this

 If you’re within five years of retiring, now is a good time to review your plans for retirement. But five years away, you can see retirement with greater clarity. It’s a good time to review your retirement goals and dreams.

Whether you’re planning extensive world travel or eager to spend more time with family closer to home, people often find that they spend more when they first retire than they expected. With five years to go, take some time to draw out a realistic spending plan for the future and then plan for inflation or expenses you may not have considered.

Inflation is the enemy if you have not planned well. Spending plans in the first stage of your retirement could be more expensive. This round of inflation is heating prices, well the investments and savings are not keeping up. In the past, when prices were going up, those who invested also had their savings, getting higher interest rates and stocks did well. Not today, prices are going up. Interest on savings accounts is not and the investment market is sluggish. This leads to the value of your portfolio is depleted. Take some time to draw out a realistic spending plan for the future and then plan for inflation or expenses you may not have considered.

As of 2020, the average Canadian will live for 81.7 Years, according to Statistics Canada. But that figure doesn’t tell the entire story because it represents life expectancy at birth. If you’ve already made it to 60 or 65, your chances of outliving the age of 81.7 are much greater.

You can do a simple calculation known as the ‘four percent rule’ to perform a quick check on your finances. Multiply your projected yearly cash needs by 25 and you’ll have some idea of how well you’re prepared.

At age 65, a person expecting to live on $75,000 per year will require $1,875,000 in investments to take them to age 90.

If your portfolio has been performing to your expectations in recent years, recognize that the economic landscape is more volatile than it once was. Five years out is a good time to have your portfolio reviewed to optimize diversification and asset allocation for current conditions.

Government of Canada bonds, possibly the most secure investment available, are providing returns well below the current inflation rate. However, undertaking appropriate levels of risk can provide better returns.

Withdrawing cash from a retirement portfolio too early can affect its overall longevity and performance, especially when segments of the portfolio are underperforming. A strategic cash reserve — enough to last two years — can allow for drawdowns without depleting the portfolio during periods of sub-optimal performance. Reach out for expert advice and by talking to an advisor well before retirement, you can optimize the potential of your investments to provide adequate retirement income to support the lifestyle you’re counting on.

Coffee and Longevity

We are living longer, and this may be the most important trend we’ve ever experienced. It’s driven by — and it affects — everything from health to housing, money to technology, lifestyle to social policy.

When I was working, I would drink between 8 and 10 cups of coffee a day. Now that I am retired, I drink occasionally two or three cups a day. I like coffee as do many people. Coffee may extend our longevity, as cited in the following research:

A British study of 500,000 people, over a 10-year period, found that habitual coffee drinkers were less likely to die — of any cause than non-coffee drinkers in this very large study, coffee drinking was associated inversely with all-cause mortality, including in those drinking at least 8 cups per day, in both slow and fast metabolizers of caffeine, and in consumers of ground, instant, and decaffeinated coffee. The results are based on observational data and should be interpreted with caution. These results provide further evidence that coffee drinking can be part of a healthy diet and may provide reassurance to those who drink coffee and enjoy it.

A Spanish study which examined the association between coffee consumption and the risk of mortality in a middle-aged Mediterranean cohort of 20,000 people found that people over the age of 45 had a 30 percent lower risk of death for every two additional cups of coffee they drank each day.During the ten-year period, 337 participants died. The researchers found that participants who consumed at least four cups of coffee per day had a 64% lower risk of all-cause mortality than those who never or almost never consumed coffee. There was a 22% lower risk of all-cause mortality for every two additional cups of coffee per day.The researchers examined whether sex, age or adherence to the Mediterranean diet had any influence on the association between baseline coffee consumption and mortality. They observed a significant interaction between coffee consumption and age. The association was not significant among younger participants.

The Harvard School of Public Health followed 200,000 doctors and nurses over a 30-year period and linked coffee consumption to lower risk of death from heart disease, stroke, diabetes, neurological diseases and even suicide. How much lower is the risk? Drinking between three and five cups dropped the risk by 15 percent. They assessed coffee drinking using validated food questionnaires every four years over about 30 years. During the study period, 19,524 women and 12,432 men died from a range of causes.In the whole study population, moderate coffee consumption was associated with a reduced risk of death from cardiovascular disease, diabetes, neurological diseases such as Parkinson’s disease, and suicide. Coffee consumption was not associated with cancer deaths. The analyses took into consideration potential confounding factors such as smoking, body mass index, physical activity, alcohol consumption, and other dietary factors.“This study provides further evidence that moderate consumption of coffee may confer health benefits to reduce premature death because of several diseases,” said senior author Frank Hu, professor of nutrition and epidemiology. “These data support the 2015 Dietary Guidelines Advisory Report that concluded that ‘moderate coffee consumption can be incorporated into a healthy dietary pattern.”

Stanford University School of Medicine scientists has unearthed a connection between advancing age, systemic inflammation, cardiovascular disease and caffeine consumption.Extensive analysis of blood samples, survey data and medical and family histories gathered from over 100 human participants in a multiyear study has revealed a fundamental inflammatory mechanism associated with human aging and the chronic diseases that come with it.The study implicates this inflammatory process as a driver of cardiovascular disease and increased rates of mortality overall. Metabolites, or breakdown products, of nucleic acids — the molecules that serve as building blocks for our genes — circulating in the blood can trigger this inflammatory process, the study found.

Then there was a small study at Stanford University, involving only 100 coffee drinkers but extending over several years. The study looked at the relationship between coffee drinking and the buildup of inflammation, which is a major feature of aging and contributes to so many diseases and chronic conditions. Researchers theorized that the high caffeine content in coffee acted to counteract the chemical reactions that caused inflammation.

Another possible cellular-level action was discovered in a study at the Krembil Brain Institute at the University of Toronto, which showed that coffee consumption “seems to have some correlation to a decreased risk,” of both Alzheimer’s disease and Parkinson’s disease: “The secret here seems to be connected to a kind of chemical called phenylindole’s, which are created during the roasting process. These chemicals may help stop the buildup of two toxic proteins in the brain, called tau and beta-amyloid, which have been linked to both Alzheimer’s and Parkinson’s.”

Okay, bottom line: How much coffee is enough? How much is too much?

Yet another study weighs in, this one reported in The American Journal of Clinical Nutrition: “The tipping point where caffeine negatively affected cardiovascular risk is five cups.” So, if you are a coffee drinker, make sure you do not drink over five cups a day. As with any research, take the information with a grain of salt and before you increase your coffee intake, check with your medical team.

Think about volunteering

 What is volunteering?

Volunteering is the time you give to strengthen your community and improve others’ quality of life as well as your own. There are so many ways to be involved in the community:

     Speak to your passion 
Suit your personality 
Meet your interests
Build on your experiences
Fit into your lifestyle Contribute to your health and well-being

How can volunteering fit into my lifestyle?

You may be at a point in your life when you do not want to take on any more responsibility or you may be in a position to take charge. A wide spectrum of volunteer opportunities is available to suit various interests and circumstances.

You can volunteer…

·        From home

·        In an office

·        In a garden

·        Overseas

·        With family and friends

·        On your own

·        Just in the summer Once a year

·        Every day •

·        Now, later

·        Short-term longer-term, ongoing, or occasionally

LEADERSHIP

·        Facilitate a strategic planning session Serve on a Board or Committee Chair a fundraising campaign

·        Help start a tenants’ rights association

MANAGEMENT AND ADMINISTRATION

·        Review a Human Resources Manual Organize a volunteer schedule for an event Enter data at a resource centre

·        Provide general office help

TECHNOLOGY AND SOCIAL MEDIA

·        Design a website for an elder-care co-op Write a blog on affordable housing Customize a donor database for a food bank

·        Teach computer skills in a community centre

BUILDING AND HANDICRAFTS

·        Build a bookshelf for a reading room Sew costumes for a play

·   Teach card-making in a rehabilitation centre Build a stage for marathon ceremonies

·        Combine volunteering with other things that are important in your life such as:

·        Time with family (volunteer with your family or in your grandchildren’s school)

·        Travelling (joining an international development project overseas)

NATURE AND ENVIRONMENT

·        Walk a dog for a local animal shelter

·        Research pesticide bylaws in different cities

·        Plant vegetables in a community garden

ONE-TO-ONE SUPPORT

·        Tutor children

·        Comfort a victim of violence Be a mentor to a teen Coach an executive director

DIRECT SERVICE

·        Answer the phones for a helpline Prepare lunch in a soup kitchen Coach a team

·        Drive people to medical appointments

ENTERTAINMENT

·        Play piano for a sing-along at a retirement residence

·        MC at a volunteer service awards night Do a stand-up comedy act at a fundraiser Join a choir that entertains at community events 

·        Spending time with friends (get a group together to plan a special event)

·        Hobbies (teach puppet-making in a community centre)

·        Recreation (be a swimming buddy for someone with a disability)

Benefits of volunteering

·        In addition to the valuable contribution, you make to the community, volunteering has been proven to have many benefits for you as a volunteer:

Opportunities to:

·        Learn new skills Expand horizons

·        Maintain or establish a sense of belonging

·        Expand social and business contacts Stay active

Reduction of:

·        Stress, anxiety, and depression Low self-esteem

·        Social isolation Stress-related illness

Volunteering and retirement planning

·        Volunteering can play a key role at every stage, but it can also serve as a way to help you through transitions, such as retirement. Volunteering can contribute to your quality of life today and allow you to create a legacy for the future.

·        Whether your transition or retirement involves a change in your household, neighbourhood, health situation, employment status, or daily schedule, volunteering can make your days both meaningful and satisfying in new ways.

·        Volunteering can connect you to your community, help you maintain your skills or develop new skills, and allow you to participate in the democratic process. Volunteering can help shape and preserve the society you want to live in—for yourself and for generations to come.1

How to find the right volunteer opportunity:

Start by asking yourself the following questions:

·        What matters to me?

·        What skills and experiences do I want to share or develop?

·        What setting would be best for me?

·        Are there others I know who might like to volunteer together?

·        What are the challenges and issues in my community, the country, and in the world?

What kind of volunteer are you?

Take the Volunteer Quiz and get some ideas of what might suit your interests, skills, and personality. www.getinvolved.ca

Finding volunteer opportunities

·        To find current opportunities, call an organization you know, contact your local volunteer centre, look in your neighbourhood newspaper, or check out websites or databases for volunteers.

www.volunteer.ca 

www.getinvolved.ca

www.charityvillage.ca   

www.govolunteer.ca

 To find more information on seniors’ services and benefits, visit www.seniors.gc.ca  or your local Service Canada office.

This information was prepared by Volunteer Canada at the request of the Forum of Federal/Provincial/Territorial Ministers Responsible for Seniors. 

Steps people reaching retirement age this year should take

Retirement for most of us does not sneak up on us. We have a pretty good idea of when we want to can or could retire. In my case, I did not plan. I made a snap decision and retired suddenly. Don’t do that. Planning for your retirement can never start too early and if it’s closer than you realize, you may need to set aside some time now to make sure everything is in order.

Retirement is a big life event; we have worked for years and many of us are looking forward to retirement (some for decades). It is the stage in life for people to take a step back from working life, relax, and spend their time doing what they enjoy most. However, the reality of retirement can often be rather different from these visions of stress-free, later-life fun.

Some issues that many seniors face are loneliness, lack of mobility, and boredom. These, for some, lead to depression in later life. However, with the current cost-of-living crisis and alarming increase in energy bills, many people, and preparing for retirement, are facing significant financial stress that may contribute to their overall well-being and mental health.

To help people prepare for retirement, here are some tips for addressing common issues in retirement.

1. Review your retirement funds

First, consider the massive expenses you are likely to make throughout retirement based on your goals. This could be anything from a bucket-list travel destination to supporting a loved one in buying their first home. Make sure you have also accounted for a reasonable emergency savings pot.

Next, take the approximate amount needed for these big expenses and emergency funds away from your pension (unless you have saved for them separately). From there, work out what your average yearly budget should look like. Be realistic about your expected outgoings and the expenses you can’t cut down on.

2. Evaluate your current lifestyle

If after reviewing your finances you are concerned your pension pot won’t stretch to your needs, or you simply would like to prepare for the continued cost-of-living crisis, then evaluate your current outgoings and where you may cut back.

This could involve changing your day-to-day routine, such as scaling back on the weekly food shop, opting for public transport more frequently, or even swapping your current car for a more cost-efficient model. A typical solution for pensioners is to downsize their homes.

3. Make a retirement plan

Make a reliable retirement plan, mapping out your days, weeks, and even years with goals and activities that will bring you fulfilment.

Start by thinking about your long-term goals, such as places you want to travel to or learning a new skill. Then, consider what day-to-day activities you enjoy doing, such as visiting friends, as well as tasks you want to tick off your to-do list. This could include anything from giving your garden a makeover to clearing out some old items from the loft.

By writing these goals, activities, and tasks, you can create daily or weekly plans that ensure you are regularly occupying yourself.

4. Establish expectations and set boundaries

Whether it’s taking on childcare duties or running errands for friends, there is often pressure put on people in retirement to spend their newly found free time on other people.

While you may be happy to spend your time in this way, it is important that you do not take on more than you feel you can, or simply want to. Although it's challenging, it is important to set boundaries with your loved ones about how much time and money you can provide throughout your retirement.

5. Expand your social circle

A recent study by Age UK revealed that 1.4 million older people are lonely in England, with the impact of the pandemic, poor health and well-being, and income being cited as major factors contributing to this.

First off, ensure you are budgeting enough each week for socializing. This doesn’t need to be a major expense, especially if you’re happy to host people at your own home, but accounting for it within your budget will help you make it a priority.