Over 70% of retirees go back to work in Canada

There are more older workers than ever before. They are staying in the workforce longer — some because they need to, but also because they want to. Today, 3.6 million workers are age 55 and over, representing 20 per cent of Canada’s workforce, an increase of 1.2 million since 2006, according to Statistics Canada.

More than 650,000 people are 65 and over with paying jobs — more than twice the number as in 2006.

Retirees who spend most of their lives in physical jobs tend to want to leave the workforce entirely, while those who do more knowledge-based work often like the content of their work but may not have liked the organization, many will stay in similar fields or seek out other types of work in which they can draw on their experience.

The big picture is that this is a good thing, because as the population ages we are going to be looking for workers.

Statistics Canada followed a group of workers who were between 50 to 64 when they left their jobs. Ten years later, most had gone back to work. Just 32 per cent of men and 36 per cent of women did not.

Among those who left their careers in their early 60s, the agency found that 47 per cent of men and 41 per cent of women were re-employed during the next 10 years, and most did so within a year or two.

StatsCan also discovered that men and women who were separated or divorced were more likely than their never-married counterparts to be re-employed after leaving their long-term jobs. However, married men were more likely to be re-employed than never-married men, but married women were less likely to be re-employed.

Compared with Ontario residents, older workers living in Atlantic Canada were less likely to be re-employed after leaving their career, while those living in Manitoba, Saskatchewan, Alberta and the Territories were more likely to be re-employed.

Retirement is evolving. So many of us want to be doing something, even part-time or on contract. It’s having the best of both worlds if your health is good.

Life expectancy plays a big part in the encore job trend, so “it’s not surprising that this is happening,” says Gordon Betcherman, a University of Ottawa professor of social sciences with a focus on the labour market.

In 1970, the average life expectancy at birth in Canada was 69 years for men and 76 for women. By 2011, it had increased to 79.3 years for men and 83.6 for women.

“You’re likely going to be living longer so if you’re not physically spent and you can find work that is not physically demanding, why not try to keep on doing it,” Betcherman says.

“People are making the decision that they don’t want to sit around for 30 years” after traditional retirement at 65, he says. “And fewer people are able to count on pensions.”

Leaders must put people before politics

An email I received from David Suzuki in August

When we elect people to office, we give them power to make and enact decisions on our behalf. They should have a vision that extends beyond the next election and the latest Dow Jones average — to our children and grandchildren.

We expect our leaders to have a clear picture of our world and the conditions necessary for human life and well-being. If they don't, how can they make informed decisions? So let me outline some simple, scientifically validated truths about us and the world we live in — truths that should guide our political decisions.

We are, above all else, biological beings, with an absolute need for clean air from the moment of birth to the last death rattle. We take air deep into our lungs and filter whatever's in it. Plants on land and in the ocean take in the greenhouse gas carbon dioxide and release oxygen during photosynthesis, creating the atmosphere we depend on.

We are about 60 per cent water by weight, so we need clean water to be healthy. When water falls to Earth, it's filtered through tree and other plant roots, soil fungi and bacteria, cleansing it so it's safe to drink.

All the energy in our bodies that we use to move, grow and reproduce is sunlight captured by plants in photosynthesis and converted to chemical energy, which we ingest. We eat plants and animals for our nourishment, so whatever they're exposed to ends up in our bodies. We need clean soil to give us clean food.

These are basic, biological facts and should be the prism through which any decision is made at individual, corporate or government levels. Protection of air, water, soil and the web of life should be the highest social, political and economic priority.

We're also social animals. Scientists have shown that love during childhood is essential for healthy development. Children who are deprived of love at critical points can develop a variety of physical and psychological deficits. To avoid those, we have to work for strong families and supportive communities, full employment, justice, greater income and gender equity and freedom from terror, genocide and war.

Finally, we are spiritual creatures who require sacred places, a sense of belonging to the world and a recognition that we are not in charge of nature, but dependent on the biosphere for our health and well-being. We are not outside of nature; we are part of it.

To be fully healthy and human, our most elemental needs are biological, social and spiritual. Politicians ought to know this. Their role is to protect and enhance those necessities of life; otherwise there is no vision, direction or leadership.

That's why it's absurd for a politician or government representative to speak about any aspect of the economy without acknowledging the threat of human-induced climate change. Many oppose doing anything on ideological grounds, but the science is overwhelming and compelling, and the need for action is clear. What can you say about "leaders" who choose to ignore the best available evidence to the detriment of the people they are elected to represent?
Surely those who act only for short-term economic gain, imposing destructive consequences on generations to come, must be held responsible. We must also consider the consequences of rapid and excessive exploitation of fossil fuels on the world's poorest people, who have done little to create climate change but are most affected by it.

Even though Canada ratified the legally binding Kyoto Protocol, which spelled out our obligations to reduce the risk of climate change, many of our "leaders" have wilfully ignored scientific evidence and urgent calls to meet the protocol's targets, and Canada eventually abandoned the agreement. What should we call that?

And what can we say about "leaders" who can see something is wrong and have the means to respond but choose not to? This is what Canada is doing — in the face of overwhelming evidence and pleading of other industrialized nations.

Our elected representatives deserve respect for their commitment. But the elevated status and power of politicians also carries responsibilities. Many are abrogating those responsibilities for ideological reasons that have nothing to do with our well-being.

Pension freedom day in England is getting mixed reviews

In England, pensions freedom gives retirees complete control over their retirement income options.   So this should be good news as people will have some control and conventional economic theory states that people will make rational decisions about their money. 

However, Behavioral economic theory shows that people don't make rational decisions. What  does influence behaviors around money?  According to the paper in this month's Journal of Political Economy  .it is in our genes. A new study of twins has found that people are genetically predisposed to save or spend the money they have, regardless of their wealth, sex or upbringing. One third of our behavior when it comes to money is explained by natural factors, rather than being someone's choice to consume or save earlier in life. 

According to Barclays head of behavioral investment philosophy Greg Davies thinks there will be trouble on the horizon for many.

"When we look at the pension world and what has happened to it over the past few years – and indeed, what is about to happen – from our perspective, what is happening is very strong behaviorally."

Davies, who has written Barclay's' latest white paper Humanizing Pensions on the topic, says auto-enrollment was put in place to combat the notion that people do not do what is in their own best long-term financial interests. 

"We think something such as auto-enrollment is absolutely crucial because it prevents people from being in a situation which is just terribly wrong for them. 

"But we also think it is not the whole solution. If you put someone in a default, one-size-fits-all solution, it gives them the impression that someone has thought about this for them. It disincentives people to engage any further. It has unintended consequences.

"The pension changes that are coming make very different behavioral assumptions." 

He adds: "If automatic enrollment is there to say 'if people are left to their own devices, they don't necessarily do what is best for them', then freedom of choice interestingly gives the impression that in the intervening decades they have magically acquired the ability to process huge amounts of information and make complex choices in the right way for them.

The reality is there is a need for foresight – that is, care in providing for the future. But the fear is by behavioral economist is that many people will spend all their money at once showing little foresight.

Freedom is not licence. Just because people have the freedom to spend their pensions as they please does not mean they have licence to spend their money unwisely.

It is lazy thinking for people to think that advice is not important, or that the adviser community is simply out to feather its own nest.

My hope is that more and more people will realize that they owe it to themselves to make good decisions about their retirement income, because if they get it wrong the only people who will lose out will be themselves and their families. To do this they need to be educated and without the education about long term planning, investing and the new rules, many will follow their genes and this may cause problems later.

Credit Card Debt What You Should Do

Unfortunately, throughout the years, more and more people are becoming victims of enormous credit card debts that they probably will never get paid off. It is a shame to know that so many people feel that they NEED so many things but realize the only way that they could possibly get those things is by using their credit cards, and they normally have plenty of them to choose from!

Credit card debt has increased drastically throughout the past several years and it does not look like many people are yet realizing just how bad this problem is. If you are struggling each month, trying to figure out how in the world you will ever have the ability to pay all of your credit card payments on time, then you should definitely continue reading this article. 

It is very important for you to understand how dramatically credit card debt can affect your financial standing, or lack thereof. Credit card debt is one of the leading causes why an individual would end up having to file for bankruptcy or take out mortgage loans on their homes or other drastic things such as that. People become so caught up with trying to make purchases that are just not feasible, never considering how much it is going to cost them down the road, because of the enormous interest rates.

Start choosing to simply throw away all of those credit card offers that you get in your mail so regularly, trust me, you do not need anymore debt! These credit card bills will continue adding up and the next thing you know, you are going to be skipping payments and when that does happen, be prepared for an outrageous monthly bill, which you know for sure there is no way you can afford it!

To all of you young adults that have not yet gotten in severe credit card debt yet, do not do it, do not let this endless cycle of unbelievably expensive debts take over your life. If you can start your adult life out without too many unnecessary debts, such as credit cards, your life is going to be much more enjoyable and much much less stressful. 

Because of the fact that credit card debt has gotten so unbelievably out of hand, perhaps you could start a new trend and try staying clear from getting yourself into so much debt. So, start now by trying to focus on doing positive things to make your life easier and once you start achieving those goals, you are going to sleep much better at night and feel much more positive when it comes to every aspect of your life. 

Be responsible for your actions and if you have gotten yourself into a tremendous amount of credit card debt, make those monthly payments or try working extra hours so that you can start doubling up your monthly payments or even paying some of them off completely. 

Another way to think about April 1st

April 1st, is a day when we play practical jokes on others or others play practical jokes on us.While there are many ways to live life, most of the options fit into one of two categories:

So are you the one who has the joke played on you? Are you the one who lives your life in a reactive manner, constantly at the mercy of the people and circumstances around you.

Or are you the one that plays the jokes on others, do you choose to be the master of your life? Are you focused, resilient, and are you creating the type of life you deserve. If you control yourself, you control your destiny.

Being successful is rarely about working harder or longer. It's about spending your time effectively. If your levels of success and happiness leave you less than thrilled, consider making some positive changes.

If you're the one who has had the joke played on you today are you ready to take control of yourself and your life:

• Recognize that the issue isn't that you're not "good" at being successful. You've simply been good at being unproductive. To bring about the results you're currently experiencing, you've had to do certain things consistently for quite a long period of time. Consistently taking a new set of actions will bring about new results.
• Take responsibility for your results up to this point. While most of us would like to blame others and put the responsibility on them, it's much better to take responsibility.
• If you take responsibility, you can fix it. If you really believe that your circumstances are someone else's fault, what can you do?
• Even if it is someone else's fault, they're unlikely to do anything to rectify the situation. It might not be your fault, but it's still your responsibility to fix it. 
• Understand the actions you least want to take are likely the actions that will improve your life the most. Think about that. The things you're really dreading might be the very things you need to do to turn your life around. 
• Focus on effective actions. These are the actions that will take you on the most direct path to your goals.
• For example, suppose you're trying to lose weight. The most direct path may simply be to eat a small number of calories of healthy food and spend some time exercising each day. An entire industry of crazy diets and exercise programs has been created because people can't get themselves to take the direct path.
•  In most cases, effective actions are obvious. The challenge lies in getting yourself to take them.
• Embrace discomfort. We're all attracted to being comfortable. Unfortunately, the road to progress travels through the land of discomfort. We're generally only comfortable with the things we do on a regular basis. However, those are the same things that have led to the life you're currently living. 
• Discomfort is really a state of mind. This perceived lack of comfot can be overcome by overruling your mind. Like any new activity, taking action in spite of discomfort gets easier with time. 
• Realize that life is short. Imagine you're 80 years old. How do you think you'll look back on all the things that are challenging you now? 
• Think about your life 20 years ago and the things that you found challenging back then. Are they the same types of issues?

Mastering yourself is a challenging but rewarding process. Imagine if you could get yourself to do all the things you know you should be doing. How would your life look a year from now?

Take the time today to take one mildly uncomfortable action you've been putting off - even if it's just sitting down and paying your bills or calling your mother - AND JUST DO IT! 

Then, create the habit of doing something uncomfortable, but productive, each day. Over time, the really challenging things will become easier. And next year you will be the one playing the joke not being on the receiving end of the joke.

Master yourself and create the life you desire.