How much do I need for retirement?

This is a great question and of course, the professionals will tell you that you should be prepared to live on about 70% of what you currently make. Calculating the amount of savings needed to retire is not necessarily simple or straightforward.

There are general “rules of thumb,” such as saving 10 to 15 percent of income – which is one of the first things a Google search for “how much should I save for retirement” would suggest –which is better than no saving or planning guidelines at all. But relying solely on such maxims, particularly for a highly personalized process such as retirement planning, risks glossing over critical aspects. Health care expenses, for example, will be highly variable based on health status and lifestyle factors.

On average, Boomers believe expenses for health care will consume 23 percent of their income in retirement, significantly lower than the 33 percent of income those aged 60 and older currently spend on health care. Of even greater concern, an increasing number of Boomer's estimate costs at the low end of the scale, as 30 percent believe they will need less than 10 percent of income for health care.

Besides health care costs Boomers have to figure out how long they will live, the longer you live, the more money you need to save. One way to think about how much money you will need is to examine what Boomers who are already retired are spending. This will give you a starting point. 

Boomers have a sense of what they think they will need when they retire, and that number is about $35,000 a year. This is close but the actual amount being spent by people already retired is $46,757 according to the Bureau of Labor Statistics Consumer Expenditure Survey, 2013.

We have three pillars of safety in Canada for people as they approach retirement. The first is the Old Age Security Income, the second is the Canada Pension Plan, the third is Personal Registered Retirement Savings Programs and finally, we have Employer Pension Plans. Employer Pension plans are either a defined benefit plan or a defined contribution plan.  

Boomers are spending about $47,000 a year in retirement, where do they get that money?

Here is a very simple example:

Old Age Security is about $6,480 a year

Canada Pension is about $8, 800 a year—This is based on the average payout in 2017 and individual rates will differ widely.

Between OAS and CPP in Canada, a retiree will receive about $15,280 a year. If this is the only income you receive then you may be eligible to receive the Income supplement of between $500 and $800 if you qualify. So that adds another $6,000 to $8,400 and could bring your income up to approximately $22,000 a year.

The rest of the money needed will come from either your employer pension plan if you are lucky to have one or your own savings.  Most Canadians do not have an Employer Pension Plan so they will have to save money in their Registered Retirement Saving Plan.

Most Canadians will be short about $23,00 a year if we continue to spend like those already retired. How much do you have to have to generate an income of $23,000 a year? You may need to buy an annuity of $500,000 or other investments to generate that income when you turn 65.

To save $500,000 at age 45 you will need to save about $1,450 a month. Or if you were 35 you would need to save about $800 a month for retirement.

Retirement savings becomes complex really quickly and most people do not understand the math involved. It is important that you sit down, (the earlier the better) with a qualified retirement specialist who can chart your own path to retirement.

Counterfeit

Another challenge from BrewNSpew The event is to Write a story or poem of 5 Lines or Less using the word counterfeit. Please drop by and join the challenge at Patricia’s Place. Here is the first by -Eugenia

Dang counterfeit news

Is what’s been taught for naught

Just noodle the thought

The wicked have become insipid

The whoo’s vs who’s is not amused

Here is mine, based on a movie from 1936 and a book which was written in 1984

Counterfeit lady,

Ever so Shady

Filmed in the 30’s

Did not meet with success

Recreated in the 80's with much more finesse

How Much Exercise Is Enough?

According to the Centers For Disease Control (CDC), the average person 65 years or older, exercise for seniors should ideally include both:

a) Aerobic (cardio) exercise to increase heart and lungs activity;
b) Plus strength training for the various muscle groups.

The major muscle groups include arms, shoulders, chest, abdomen, back, hips, legs. Exercise for seniors should include using these muscles groups several times per week.

Here is a simple breakdown of the ideal amount of exercise for seniors:

• 2 ½ hours of moderate aerobic (cardio) exercise each week (including brisk walking) and muscle strengthening for all muscle groups a couple days a week; OR
• 1 hour and 15 minutes of vigorous aerobics and muscle strengthening for all muscle groups a couple days a week.

Any of this can be done in (at least) 10-minute segments throughout the day and week. It takes a good 10 minutes of any activity for it to really be effective. Stretching and joint exercises can also be included. And what is considered moderate exercise for seniors, may be vigorous for others. Like walking.

It depends on what shape your body is in (and we're not all going to look like the picture here), what you are used to, and your overall health. Moderate exercise will simply make your heart beat faster and you will breathe harder.

With vigorous exercise like running, you will also break into a sweat. And if the mere idea of running makes you gasp in advance (like me), then just walk. As rapidly as possible. I guess they call this "power walking." Walking alone will make me break into a sweat after a while.

Sweating is healthy for you, of course, for your liver and for cleansing toxins out of your body. Just be sure to shower afterwards, or the toxins can be reabsorbed, one of my health professional friends has advised me. And as we age we should always consult our doctors or health professionals regarding exercise for seniors and middle-aged folks too, especially if we have health issues.

Exercise for seniors is meant to be flexible and fun, even social. If you don’t know where to start, check out the following possibilities in your area:

• Senior center 
• Fitness club
• Church groups
• Some local clinics and wellness centres offer exercise classes
• YWCA or YMCA
• Community ed centre

Whatever you choose to do, be sure to always consult your medical professional first if you have any concerns. And pay attention to your own body. The most important thing is – to get moving – even in a small way! And consistently!

Remember, exercise for seniors… 

* Is good for your heart

* Stabilizes blood pressure

* Increases proper lung functioning

* Improves back pain

* Decreases joint pain and stiffness

* Is excellent for weight control

* Strengthens the immune system

* Helps manage diabetes and glucose levels

* Increases muscle strength

* Improves flexibility

* Helps with arthritis pain, including rheumatoid arthritis

* Helps maintain good balance

* Improves overall walking ability

* Reduces falls and injuries

* Strengthens bones and improves bone density

* Lifts your mood and helps with depression

* Calms and relaxes, and can ease anxiety

* Improves ageing and sleep problems

* Lessens daytime drowsiness

* Improves restless leg syndrome (RLS) and leg cramps

* Can provide important social activity too

Elder-one-stop a great resource for keeping acitive

I have been talking about how being active is good for all of us, especially seniors. I came across a site that will help. The site is called Elder-One-stop and it is a fascinating site full of ideas and stories which are very easy to navigate. One of the site's features which I love is a list of activities by month. 

The site is easy to navigate with the menus on the left which are easy to read. The site was developed out of love and respect by two women who when faced with the task of becoming caregivers for senior parents rose to the challenge and in doing so pooled their resources and ideas and this website grew out of their collaboration. As they say in their about us page. And then decided to share what we knew and learned in this website, covering a wide range of elderly issues. 

There is no universal “recipe” or To-Do list to help our elderly loved ones. Because everybody’s situation is different. But it helps to make a plan. These pages hopefully will offer some insight, tips, and also senior activity ideas and fun.

To encourage you to visit below are a few of the activities listed for November.

Crafts – Make an easy centrepiece or collage for November senior activities, using dried foliage, as seen at the top of our page. Add a peacock feather for fun! For more craft ideas, see our pages on fall crafts for the elderly, which will also point you to a variety of pages.

Another easy idea is to use a simple image from nature as inspiration for a painting or collage.  

Silhouettes are especially simple. In November you can also add a bit of snow. Here are basic ideas to use as designs…

National Family Caregivers Month - It started in 1997 as a commemorative week during the week of Thanksgiving. But now this commemoration has evolved into a month-long acknowledgement. The National Family Caregiver Support Program was set up in the year 2000 to help caregivers who are age 70 and over. It is part of The Older Americans Act of 1965.

A good month to be mindful of those of any age who are caregivers for their family. So plan special November senior activities with them. Some towns, facilities and churches have special services, luncheons and events for caregivers.

American Indian Heritage Month - Learn about the Native American cultures and history in your area, so important to the overall history of the Americas and Thanksgiving. Consider having a tribal member visit and give a presentation. If you'd like to make a fun craft with coloured "Indian corn," see our page about fall crafts for the elderly.

Drum Month – Music is important to have with your November senior activities. Have a visiting musician, including from a school. (I'm sure you'll find a teen who is a good drummer). Talk about different kinds of drums. This is also a good time to have an event in conjunction with American Indian heritage.

Stamp Collecting Month -- Stamp collecting is intriguing for many people, and is also a valuable hobby. Discussions and displays can be enjoyed by those interested. Some in your group may have samples that they are willing to show and share.

Aviation Month – Aviation has been a topic in other months also, and any aviation events are perfect to work into your November senior activities. Another chance to celebrate its history. If there's a museum near you, it may be fascinating to visit. Or find an expert in the field to come and give a presentation. You may even have an expert in your group, or associated with it.

National Model Railroad Month -- This celebration is sponsored primarily by the National Model Railroad Association. For those who are real model train enthusiasts, celebrate it in your November senior activities. There is a great interest in model trains and railroads. Some of your community or members may have been a collector of model trains or memorabilia. Perhaps they even have some items that they can share, a bit like show and tell.

National Pomegranate Month – This exotic fruit even involves Greek mythology about the goddess Persephone and the underworld. The deep ruby jewel-like seeds and juice have many health benefits (but may also interfere with some medications). I love eating the fresh fruit! Also, try it in jam and juices, or sprinkle the seeds on cereal, ice cream, or in yoghurt.

National Novel Writing Month – Has any of your group aspired to write a novel (even a short one)? An excellent project for November senior activities! It’s especially fun if you create a writing group to motivate each other. Some may enjoy dictating into a recorder or into a computer program, with a little assistance at editing. A great legacy for family and friends. And it’s easy and inexpensive to self-publish through Amazon's Kindle, or CreateSpace (for an actual printed book).