Transitioning into retirement: What will work mean to you?
print this page|
A survey of Canadian retirees conducted for TD Waterhouse in March 2008 asked: “If you could offer advice to someone planning retirement, what would it be?” Almost 60% of respondents said: “Take time to prepare for and understand what you want out of retirement.”
Redefining what retirement means
Planning for the next stage in your life is taking on extra significance. That’s because, for many of us, the goal of early and total retirement is being replaced by a desire to remain productive and take on new opportunities. We are staying in our careers longer, working part-time, and starting businesses. As a result, our working lives don’t necessarily come to a sudden halt. Instead, work is now seen as part of a transition into retirement.
A recent study showed that 6 in 10 Canadians aged 55 to 64 were employed or looking for work in 2006.¹ That’s 2.1 million people — more than double the number in 1976. What’s more, 45% of 60- to 64-year-olds are active in the workforce, a record high. Meanwhile, the average retirement age is on the rise. The virtual elimination of mandatory retirement at age 65 also means more Canadians will work past the traditional retirement age.
Self-employment is another popular option. Not only does working for yourself provide income, it offers independence and the opportunity to pursue personal interests and opportunities. StatsCan says older Canadians are far more likely to be self-employed than younger Canadians. Indeed, 24% of Canadians 55 to 64 are self-employed, which compares with 15% of Canadians 25 to 54.
Your evolving objectives
What does all this mean to you? That the role work will play in your future will affect how you plan and save for retirement. That’s why it can be so important to seek financial advice when discussing and planning the next phase of your life.
Financial advice can show you how working longer may allow your retirement savings to continue growing tax-free for a longer period of time. It may be recommended that you take on more growth investments in your retirement portfolio.
Paid work or starting a business are not your only options. There are other ways to stay active and productive that may be just as rewarding.
Volunteering. As a volunteer you can remain active and share the experience and wisdom you’ve accumulated during your lifetime.
Pursuing your passions. Perhaps you’ve always wanted to take a course in art history or learn how to sail. Taking up an activity that is important to you can bring new purpose to your life.
These choices will also influence your retirement plan. Get a professional opinion to more confidently weigh your options and help you assess the “big picture.”
Here are some defining questions you might ask yourself first, before meeting with a financial advisor:
Article Disclaimer¹ "Perspectives on Labour and Income. “Participation of older workers”. Statistics Canada. Vol. 8, No. 8. August 2007. Online: Accessed Aug. 22, 2008."
The statements contained herein are based on material believed to be reliable, but are not guaranteed to be accurate or complete. The articles do not provide individual financial, legal, tax, insurance or investment advice and are for information purposes only. Graphs and charts, if used, are for illustrative purposes only and do not reflect future values or future performance of any investment. Particular investment strategies should be evaluated relative to each individual's objectives and risk tolerance.
Each insurance policy or contract has different provisions on coverages, benefits, exclusions and limitations. Any policy should be carefully reviewed to determine the rights and obligations of the owner and insured persons. The insurance strategy described is not appropriate for all people. Particular insurance strategies should be evaluated relative to individual objectives and in consultation with a life licensed insurance advisor.
The Toronto-Dominion Bank and its affiliates and related entities are not liable for any errors or omissions in the information or for any loss or damage suffered.