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WHEN YOU RETIRE, WHAT ARE YOU GOING TO DO?
It seems the most common answer to the question, “what age do you want to retire at?” The most common answer is 55 years old.
We see retirement as a reward for hard work. But when the Friday comes that you turn in your building pass, you won’t be allowed back on Monday morning. A week later you come by to pick up a forgotten item, someone is sure to ask, “Didn’t you used to work here?”
To quote Dr Cote` a noted educational psychologist, “retirement is the most hazardous occupation and for the unprepared the reality can be and often is devastating.”
What is the reality of this? Let’s step back for a moment. We go to school until age 23. We will then work for 32 years and expect to retire for 20 years on 70% of our working salary. During the 32 years of work, we typically get married, start a family, buy a home, pay a mortgage, and put our kids through school, college and/or university. During our lowest income years, we may have the largest debt load while raising our family.
Of course, we need to save for retirement!! Not only do we need to save for retirement, we need to save enough money to last us, while generating an income, the rest of our lives. This is no small feat.
Let’s say you do retire, then what? The word “retire” has more than one meaning. Besides referring to giving up work or career, it also means going away, retreating or withdrawing to a private, sheltered and secluded place. In the past, that was retirement. In the past, the average person retired at age 65 and lived 2 years longer. Today we are living 10 to 20 years longer. To retire today, you need lots of money. You need a retirement plan, not just a monetary plan but a life plan to retire and fulfill all your needs.
Some of our clients retire with more money than they could ever expect to spend. Yet, they are not fulfilled and not enjoying their golden years. The days are long. Others retire with an enviable nest egg and are active doing things that provide them with fulfillment. They can’t imagine how they had time to work.
Retiring at age 55 today is optimistic for most people. That’s why most people that retire at 55 take on a new working career. Retiring at 65 is more realistic for most and even older for others.
At whatever age you plan to retire, you need to have:
- Money
- Friendship
- Routine
- Challenge
- Satisfaction
- Stimulation
- Purpose
- Identity
- Status; and
- Power.
Retiring to only travel and/or golf will not satisfy you, nor will puttering around the house. When you plan to retire make sure you plan to have activities that encompass most of the 10 things necessary to enjoy your retirement.
Sadly one third of retirees are living severely diminished lives, not because they are not financially prepared but because they embarked on retirement without a plan to continue living. Plan now.
Our mission is to enhance your life by creating a positive life vision and the money to support it through our unique approach to financial planning. We have recently introduced our Afterworks Workshop Series that helps understand and develop a life plan for retirement. To learn more about our Afterworks meetings, please call or email me.
This article was prepared by Terry Fay who is an Investment Advisor with Dundee Securities Corporation, a DundeeWealth Inc. Company. This is not an official publication of Dundee Securities and the author is not a Dundee Securities analyst*. The views (including any recommendations) expressed in this article are those of the author alone, and they have not been approved by, and are not necessary those of Dundee Securities.
The particulars contained herein were obtained from sources which we believe reliable but are not guaranteed by us and may be incomplete. The opinions expressed have not been approved by and are not those of DundeeWealth Inc., its subsidiaries, or its affiliates, including, but not limited to Dundee Securities Corporation, Dundee Private Investors Inc. / Ltd., Dundee Insurance Agency Ltd., Dundee Bank of Canada and Dundee Mortgage Services. This website is not deemed to be used as a solicitation in a jurisdiction where this Dundee representative is not registered.
Insurance products provided through Dundee Insurance Agency Ltd.
Only securities related products and services referenced are offered through Dundee Securities Corporation.
Dundee Securities Corporation, Member CIPF, is a DundeeWealth Inc. Company
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