The ever-evolving definition of 'retirement'
Remember those Freedom 55 commercials from the ‘90s?
Man, what a crock of (removed)!
Indeed, what every Canadian knew, deep down, about the financial afterlife was confirmed earlier this week, when Statistics Canada revealed that early retirement was a nineties myth along with “Nobody’s stopping Sinbad” and “Put all your cash in Bre-X.”
The cruel reality, as per StatsCan’s numbers: a 50-year-old worker in 2008 could expect to stay in the labour force 3.5 years longer than they would have more than a decade ago.
In other words, grab your daytime Depends, boomers. You’re not becoming a Snowbird just yet.
According to Statistics Canada, an employed 50-year-old worker in 2008, the latest year data is available, could expect to work another 16 years, putting him in the 66-year-old retirement range (nice math, we know).
*Bing: How to tell if you're ready to retire
That’s a big jump from the mid-1990s, when retirement could come as early as 62-, 63-years-old.
What’s to cause for the delayed retirement? For one, a recession and the great pension vanishing circa 2009 surely hasn’t helped, but StatsCan notes retirement has also been pushed back from where it stood in the late ‘80s and ‘90s because of high public-sector deficits and downsizing among private companies, which pushed many workers into an almost forced retirement 15, 20 years ago.
Yet the greatest takeaway from the above report isn’t when we’ll retire, rather our tragically shifting definition of the word.
Certainly, in a time of economic rethinking, early retirees look, well, lazy on the world’s scale. Regrettably, just look at all the scorn afforded European countries like Greece when it tried to fight for its youthful state retirement age last year.
So now, more than ever, it seems, we’ll work ourselves to the bone and be happy we even have the chance.
And lastly, want more proof the concept of retirement is changing? According to a new CIBC poll, a whopping 80 per cent of 18-to-24-year-olds believe they’ll work well into retirement age. That was the highest figure of any age group polled, suggesting young Canadians growing up today aren’t preparing for Freedom 55, Freedom 60 or even Freedom 65.
Has your idea of retirement changed since the recession’s outset in 2008?
By Jason Buckland, MSN Money
Posted by: Northern Ontario | Oct 31, 2021 12:11:12 PM
Terrific for those who can retire early and are hopefully healthy. I have said it before, every circumstance is different. I have friends who have 5 kids, others who have supported both parents stricken with Cancer at an early age, some with government pensions and others who own their own small business. What is common, however, is that each of them live within their means. No extravagant extras like cottages, pleasure crafts, large homes..... They all take winter vacations every other year even though they would like it annually. They set their priorities based on their family needs. Approx. 5 years ago, many of them talked about retiring at the age of 58-62. The stock market has made that lofty goal impossible and delayed for 3 years or so. No big deal! Most workers at that age have 4-6 weeks vacation, many long-weekends and live in a great a country. Many jobs are now white collar and not the blue collar that the majority had in the past. People are living longer so why not work for a few more years.
The Graduates will eventually find that ideal job. They just need to lower their expectations.
Posted by: PETE | Oct 31, 2021 6:20:30 PM
Well done Mark and GG. I could not agree more. " A failure to plan, is a plan to fail". I don't know WHAT those other two are talking about?? I would like to fully retire before 60, but I failed to start RRSP saving until my 30"s. My wife has a CB plan at work, which has helped a lot, but you need more than 25 to 30 years of saving to provide a retirement income in Canada. I read that union pension employees retire, on average, at 59 and the rest of us at 62. Lifestyle will play an important role in how big that pile of investment cash is going to last. I have rural property bought and paid for, so I will be trading the rat race for the country life in 8 to 10 years, but I am told I could live to be 90. LOL. That could be 30 years of retirement!! I am NOT in favor of the government clawing back 36 to 40 percent of my CPP for collecting at 60. That could be 50 percent or more in 10 years. The government does not want you to retire, EVER!! Your pile of investment cash will need to even bigger. Start with a solid, diversified investment plan and start early.
Posted by: GG | Oct 31, 2021 6:23:52 PM
joannie,
LOL, glad to see that you are happy.
Your message can be read many ways..... Freedom 55 worked well for the London Life Rep who sold you the plan.... For you however 70 was your retirement age ! :-)
Posted by: pete | Oct 31, 2021 7:33:24 PM
Well done Mark & GG. I could not agree more. " Failure to plan is a plan to fail ". I would like to fully retire before 60, but I failed to start RRSP saving until my early 30 "s. My wife has been in a CB plan for the past 21 years, which has helped alot, but you need more than 25 to 30 years of saving to provide a retirement income in Canada if you do not have a union pension plan. I read that union pension employees retire at 59 on average and 62 for the rest of us. I have been told I could live to be 90. LOL. That retirement pile of cash may have to last 30 years. Start young with a solid, diversified investment plan. The government does NOT want you to retire, EVER!! Clawing back 36 to 40 percent of CPP for 60 year olds will be 50 percent or more in 10 years.
Posted by: Sandi | Oct 31, 2021 10:03:32 PM
The real question - what are your expectations for retirement? Those who are feeling the pinch of our economy are being squeezed between silk sheets. I will retire in a few years with an empty bucket list, no debt, and enough to get by. Oh, I also will not have to work anymore. Bonus.
Posted by: Canuckguy | Oct 31, 2021 10:17:50 PM
@Joannie
You mean Freedom 55+15 worked for you. Right?
Posted by: Canuckguy | Oct 31, 2021 10:19:43 PM
@Clear&Focused:
You should be in a tent somewhere spouting your nonsense at one of the Occupy Wall Street rallies. Get a job!!!
Way to go Elmo.
Posted by: contrarian | Oct 31, 2021 10:58:34 PM
wanted to retire at 35, made it by 40. wife, 3 kids now 51.
always travel 3 months of the year.
First off, ignore mainstream thought. If you aim for 60 or 70, wow, you get it. set the bar high.
Think for yourself. Do the opposite of what the media is proclaiming. Do the opposite of the masses. If everyone seems to agree with you, change your path quickly.
Don't over-leverage yourself. Use it with prudence. If the pendulum swings out of favor, you can get wiped out- permanently.
Start early. I started in early 20's, not early 50's. If you make all your mistakes in your 50's or 60's- forget it.
Take an interest. If you let others look after your afairs, no one really gives a crap as much as you.
Turn off the tv. Put some time into it. Ignore your emotions, they cause one to make huge mistakes. This takes practice. Don't get caught up in the debt game. Don't get caught up in the
Posted by: Canuckguy | Nov 1, 2021 3:05:49 PM
@joannie
You mean Freedom 55+15 worked for you.
Posted by: Canuckguy | Nov 1, 2021 9:34:19 PM
@joannie
You mean Freedom 55+15 worked for you.
Posted by: Canuckguy | Nov 1, 2021 9:36:23 PM
testing