photo credit: panaromico

I recently stumbled across an article called 53 Things That Get Better With Age on the Seniors for Living website. (Seniors for Living is an American site that offers a free service that helps users evaluate, contact, and compare Senior Housing options.)

Why 53? Probably because there were so many good ones that it did not make sense to stop at the traditional top 5, top 10 or top 20 list! I think old pizza should have been on the list but then again,  I could eat pizza day and night, 24/7.

Take a look at this list and feel free to add your own examples below.

photo credit: woodleywonderworks

What are the greatest risks to retirement?

Throwing your back out while tossing a horseshoe or getting beaned in the head by one is not your greatest risk – at least not when it comes to your retirement. According to a recent Financial Planning Association research study, outliving investments and withdrawing savings too quickly were some of the greatest risks in retirement. Inflation and investing too conservatively were also considered risks.

Are you postponing retirement?

Approximately 14% of clients that use financial planners have delayed their retirement date for these key reasons:

1. Insufficient investments.
2. They enjoy remaining mentally active and productive at work.
3. Need to keep their employer health care coverage (keeping the benefits).

What do you think are the greatest risks to retirement. Have you delayed your retirement date? Why?

Idea of Retirement

73% of Canadians that are NOT retired perceive retirement as a period of freedom. Only 19% associated retirement with negative images such as fear of aging or financial difficulties. As would be expected, those with a lower income were more negative about retirement than those with a higher income.

Traveling during retirement

photo credit: Indiana Stan

A large majority of Canadian actives (61%) hope that retirement will allow them to travel. With gas prices going north, will walking from one place to another be considered travel?

Will life be better for your children?

Only 30% of Canadian retirees believe that life will be better for their children. This is despite the fact that Canada is one of the countries where retirees are most satisfied with their lot, compared with that of the previous generation.

Sense of responsibility – looking after your parents

As Canadians, we don’t expect that our children will support us materially or financially when we retire since we highly value autonomy and individual responsibilities.  90% of retirees are much more concerned about whether the kids will visit regularly than getting support from them!  45% of those that are not retired think they are responsible for providing their retired parents with material or financial support.  Someone is in for a surprise – pleasant or not!

Will the nest egg be sufficient?

Canada is one of the countries where a good proportion of actives (60%) believe that their retirement income will be sufficient. Two-thirds of the retirees feel that their current income level is enough.

Will the quality of life improve upon retirement?

When assessing whether their quality of life will improve, 28% of Canadian actives and 36% of retirees agreed.

How much do people set aside for retirement and where do they invest?

The typical amount saved by Canadians for retirement is $482/month. To finance their retirement, both actives and retirees, tend to prefer risk-free financial products even though their return is lower. Is this figure consistent with what you thought or with what you currently set aside? I guess if you put $6000 into an RRSP, it equates to about this amount.

Who is responsible for ensuring your financial needs are met upon retirement?

In Canada, a large majority (85%) feel that the individual is responsible first, then the government (77%) and finally the employer (75%). If you’re in Quebec, a whopping 89% believe that the employer should play the main role!

Recipe for a happy retirement

What is the recipe for a happy retirement? The international study reveals that overall, the happiest retirees:

1. Feel that their health is better than that of the other retirees.
2. Prepared for their retirement earlier.
3. Have sufficient income to take advantage of retirement.

What should do you now?

• prepare for retirement early – there’s no time like the present
• think about where you will live and how accessible that will be for your children
• discuss retirement expectations with your children
• enlist the support of a financial planner
• keep investing
• if you are years from retirement, consider upping the amount that you have in higher return investments
• set aside some money for travel
• focus on your health (again, no time like the present)

Any other ideas from those that are retired or actives (planning to retire)?