Health issues more important than Finances for boomers

As they approach retirement, Canada's younger boomers (aged 50-59) are focusing on health concerns over finances, with 70 per cent ranking changes to their physical health highest on the list of top challenges they expect to face as retirees, according to the 2013 RBC Retirement Myths & Realities Poll (PDF file).  What this means for the Federal government is that they need to pay attention to issues around Health Care.

In Canada Health Care is a provincial responsibility but the Federal government gives funds to help maintain National Standards.  It is clear that the way forward and on issues is through partnership and collaboration between the provinces and the Federal Governments.

On the one hand, you have the federal government saying problems with health care are because of how it is being delivered by the provinces; the provinces say it is because they are not getting enough money. No matter what the jurisdiction, the parties will have to work together

"Younger boomers are more health-conscious as they near and enter retirement. Watching their older relatives and friend’s age has made this generation more aware that good health is not something to take for granted," said Amalia Costa, head of Retirement Strategies & Successful Aging, RBC. "What they aren't yet as aware of, however, is that health issues of their loved ones may have an impact on their retirement plans - not only on their finances, but also in terms of time commitment and emotional stress. It's important to work with a financial advisor to take all aspects of aging into account when making future plans."

Finances ranked a distant second, with 57 per cent expecting changes to income to be a challenge during retirement. Within these rankings, men (73 per cent) are particularly concerned about changes to their health, compared to women (66 per cent).

The RBC poll, now in its fourth year, continues to underline how expectations do not always match realities. For example, while four-in-10 younger boomers (40 per cent) do not expect health or disability constraints to ever change their lifestyle or independence, almost three-in-10 (27 per cent) report that a significant health issue or decline has affected them or someone in their family within the past year.

At the same time, 42 per cent of these younger boomers responded that being a caregiver to another adult was a support role they had already performed, were doing now or expected to do in future. Some of the impact of that caregiving, already experienced or expected by younger boomers, include:

• Significant increase in stress levels (50 per cent)
• Significant out-of-pocket expenses (24 per cent)
• Moving/making accommodation changes (18 per cent)
• Reducing number of paid hours worked (15 per cent)

Hunger Lives Next Door: Support your local Food Bank

Hunger Lives Next Door:One-in-Five Canadians Skip Meals to Help Make Ends MeetHelp Food Banks across Canada Reduce Hunger by supportingHunger Awareness Week: May 4 – 8 2015

Food banks across the country are asking Canadians to join the Hunger Awareness Week movement from May 4-8, 2015, to raise awareness about the solvable issue of Hunger in Canada.

In communities nationwide complex factors such as health, education, and employment are directly impacting Canadians’ ability to feed themselves and their families.  Hunger can very much be a hidden issue and the number of people forced to live with it is often underestimated.

 You can help make a positive impact during Hunger Awareness Week with three easy steps:

Give It Up: Put food out of reach - challenge yourself to fast on May 8^th.
Give a Shout: Share your experience – show your support via Facebook, Twitter (#HungerWeek), or blogging.
Give It Out: Donate food, funds or your time to a local food bank.     

Tips on travelling within a budget

1. Dress well. When you are out sightseeing and need a restroom, you can walk into the finest of hotels and use their facilities, which are usually positioned off the lobby and no one will see you as out of place.

2. For the price of a spa treatment, make a day of it at some of the world’s best hotels and resorts. Book an early treatment and then you can work out in the gym, use the pool, take a sauna, and maybe even relax in a meditation room.  You’ll be able to do all this without having to pay for an up scale hotel room. Additionally, some hotels will comp your parking ticket. 

3. For the ladies, think about going to the finest department store in any city and get your make-up done. Most luxury department stores have make-up artists on hand who will be happy to doll you up for an evening on the town. While you aren't required to make a purchase, it’s a nice thing to do. Besides, who doesn't need a new lipstick, mascara, or skin care item?  It’s especially fun to see what look you receive in different locales. 

4. You don’t need to spend hundreds of dollars to enjoy some of the world’s best restaurants. Many cities have Restaurant Week, where restaurants offer a Prix fixe (Fixed Price) menu. You can check out the prices beforehand so you know exactly how much you’ll be spending. Just allow for drinks and gratuity. Or, splurge on a glass of champagne or a cocktail at the bar of a great hotel or restaurant. Add an appetizer and you still can have a world-class experience for way less than $100. The people watching is free. 

5. You may be a flying tourist, but if stuck with a long airport stay, buy a day pass to an airline club. For around $50, you can lounge in comfy chairs, enjoy free Wi-Fi, TV, magazines, and sometimes even free snacks and drinks along with all those business and first-class travellers. 

6. Check out the arts gallery district when visiting a city for show openings. While some may be invitation only, many are happy to have visitors. Enjoy the art, a drink, perhaps a canapé, and always savoir the people watching. It’s easy to fit in…..just wear black. 

7. One should choose friends for their fine qualities and personalities. But it doesn't hurt if you select some who also have first or second homes in geographically desirable locales so you can travel without paying for hotels. Just be sure to be a thoughtful, entertaining house-guest. 

8. A B&B offers double the warmth and cultural intimacy for half the price of a hotel. You'll find them in most countries if you know the local word: Husrom is Norwegian for sobe which is Slovenian for Gästezimmer which is German for rooms in a private home. 

9. Avoid touristy restaurants with "We speak English" signs and multilingual menus. Those that are filled with locals serve better food for less money. I look for a short, handwritten menu in the local language only. Go with the daily specials. 

10. Ask for a deal on your hotel room. You'll have the best chance of getting a discount if business is slow. Go direct (a room-finding service costs the hotel a booking fee), offer to pay in cash, or stay at least three night

Maui Vacations website

We have been to Maui three times and we love the Island and we hope to be going again in Sept. One of the best resources for what is going on in Mauii is Maui Vacations  

The author Jon Blum, is Passionate about Maui and it shows in the care and the presentation of information about the island. His site and Newsletter covers Maui Hotels & Condos, Maui Car Rental Deals, Maui Restaurants, Things To Do, Photos Videos Webcams  and Weddings & Honeymoons. 

The Newsletter, I believe is a must read for those new to Maui; or for those returning (like us) this newsletter provides us with updated changes and news about this island paradise.

Please tell your friends to subscribe to his newsletter, use the blue Newsletter box near the menu on any page of the Maui Vacations website.

2015 Retirement Confidence Survey: Trend of increasing retirement age slowing

The 2015 annual Retirement Confidence Survey (RCS) marks the 25th year of the RCS, making it the longest-running survey of its kind in the nation. Among this year’s highlights:

The trend of increasing retirement age expectations may be slowing, however. Between 2009 and 2012, between 20 and 25 percent of workers reported that the age at which they expected to retire increased in the past year. 

Since that time however, fewer workers have reported postponing the age at which they expect to retire. Only 13 percent of workers report increasing the age at which they expect to retire in the past year, compared with 22 percent in the 2013. 

The 2014 RCS found that workers planning to delay retirement gave the following reasons: 
 The poor economy (25 percent). 
 Inadequate finances or can’t afford to retire (18 percent). 
 A change in employment situation (17 percent). 
 Needing to pay for health care costs (12 percent). 
 Lack of faith in Social Security or government (9 percent). 
 Higher-than-expected cost of living (9 percent). 
 Wanting to make sure they have enough money to retire comfortably (8 percent). 

The RCS has consistently found that a large percentage of retirees leave the workforce earlier than planned (50 percent in 2015). Many who retired earlier than planned did so because of a hardship, such as a health problem or disability (60 percent), though some state that they retired early because they could afford to do so (31 percent). 

This tendency to retire earlier than planned may explain the considerable gap that exists between workers’ expectations and retirees’ experience. Just 8 percent of workers say they plan to retire before age 60, compared with 36 percent of retirees who report they retired that early. On the other hand, 26 percent of workers plan to wait at least until age 70 to retire, compared with 6 percent of retirees who actually did so. As one might expect, workers who are not confident about their financial security in retirement plan to retire later, on average, than those who express confidence. 

Working for Pay in Retirement Two-thirds (67 percent) of workers plan to work for pay in retirement, compared with just 23 percent of retirees who report they have actually worked for pay in retirement. In fact, the RCS has consistently found that workers are far more likely to plan to work for pay in retirement than retirees are to have actually worked.

Sources of Retirement Income While the majority of retirees (90 percent) report that Social Security provides a source of income for their and their spouse’s retirement (63 percent say it is a major source of income), workers and their spouses continue to expect to draw their retirement income from a wide variety of sources. (Social Security is the federal program that provides income replacement for the aged and disability coverage for eligible workers and their dependents). Eighty percent of current workers expect Social Security to be a major or minor source of income in retirement, but they believe that personal savings will also play a large role. At least two-thirds each say they anticipate receiving retirement income from an employer-sponsored retirement savings plan (74 percent), an individual retirement account or IRA (69 percent), and other personal savings and investments (66 percent). Seventy-three percent expect employment to provide them with a source of income in retirement and 55 percent expect to receive income from an employer-sponsored traditional pension or cash balance plan. In contrast to workers, retirees are less likely to expect to rely on any form of personal savings or on employment for their income in retirement