Posts Tagged FPSC

Fewer Canadians Plan to ‘Retire’ (Sunlife Unretirement Index)

Holy unretirement! This week was full of news on the Unretiredlife front. A new survey from Sun Life Financial revealed that the number of Canadians who expect to retire at age 66 has dropped to just 27 per cent. That’s a significant decline from 51 per cent when the survey first began in 2008. 

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The Sun Life Financial’s annual Canadian UnretirementTM Index was released on Tuesday and made headlines across the country. The survey revealed that more Canadians are expecting to work past 66 because of necessity and fear of outliving their savings:  

63 per cent expect they will need to work past 66 compared with 37 per cent wanting to work. With Canadians expecting to be retired for an average of 20 years, over a third (38 per cent) say there is a serious risk of outliving their retirement savings.

Financial preparedness is becoming more salient as boomers approach the age when past generations would have retired.

Earlier this year, another survey came out that juxtaposed this fear of not being prepared for retirement — but only for a select group of Canadians. Guess what: they aren’t necessarily wealthier folks – they are Canadians who engage in comprehensive financial planning. And as a result these Canadians claim to have a GPS for their financial wellbeing. Financial Planning Standards Council (FPSC) conducted a study (the Value of Financial Planning) that said those who have comprehensive financial plans are far further ahead in their financial wellbeing (confidence, plans, savings, and more) than those who don’t plan or who only do limited planning.  This is for both the longer term (retirement) as well as for shorter term goals.

DISCLAIMER: I have a professional involvement with FPSC and helped write the release — but the research is clear and substantive. The proof is there…

Plan for your future. Hire a professional (a CFP professional ideally) and you will experience much more emotional and financial wellbeing both in your retirement and in every life stage along the way. 

Now that sounds like a plan!

Learn more:

Check out Brighterlife for some amazing tips and more information on the study. Brighterlife is part of the Sun Life group.

See further detail on Sun Life’s Unretirement Index here.

Find a CFP in your area and learn what to ask before engaging your planner.

To your wellbeing now and in your unretiredlife!

Eileen

Eileen

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A New Definition of Retirement: “Freedom to Choose”

I had an interesting conversation with my Certified Financial Planner professional the other day.  I recently made a change in advisors and in the process of establishing the engagement, we have been reviewing all aspects of my financial plan. That of course, includes retirement.

Like any good planner, he asked the question: At what age are you thinking of retiring? Well, let me tell you how I resisted answering that question! I wanted to send him straight to this blog so he could understand that retirement ain’t what it used to be (I exclaim with indignation! 🙂 ). Like many other Canadians, I will likely work for quite some time — not just for financial reasons but because I get a lot of satisfaction from my work. According to many recent polls, I am not alone.  

 But my CFP did understand. He said: “Well, Eileen, I have a different definition of retirement. Rather than it being a fixed date when you stop working, I see it more as a time (projected) when you will have the freedom to choose. It may or may not include work but you have that freedom to decide.”

Business man with briefcase jumping in air in search of success

Ohhhhh…I like the sound of that.  The ‘freedom to choose’ ….isn’t that delicious?

It can be daunting to pin-point a date in time when you will retire (especially if you are still young…literally…or ‘at heart’). So reframing it to ‘freedom to choose’ (whether work is part of your retirement or not) is much more palatable and easier to do when it feels you are years away. The bottom line is you do need to prepare financially and you need a target time-frame. But this definition offers some much appreciated wiggle room on what retirement will mean to you.  

Some people will argue that you always have a choice. But let’s be real. Different lifestages bring different commitments. If you are early in the mortgage, raising kids, sending them to school (like many Canadians), then you gotta work hard to bring in the dough. But at some point, those obligations shift and there does come a time for many when there can be a loosening up of the wealth accumulation agenda (unless you are committed to spend, spend spend). Do you have to work as hard? Do you want to? Maybe, maybe not.

Getting clear on your goal age to have freedom to choose is both a financial planning question and a life planning question. Success in the UNretiredLife involves planning in all three dimensions:  work + life + financial. 

If you don’t yet have a financial planner yet, I encourage you to check out Financial Planning Standards Council  and select their ‘choose a planner’ function to find a CFP professional in your area. And do check out the tips in what to consider when hiring (disclaimer: I have a professional involvement with FPSC and I believe wholeheartedly in their mission). 

And if you would like some help with the life planning dimension — to explore your possibilities, then give me a call!

To your version of a meaningful UNretiredLife!

Eileen

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