Working into retirement becoming a growing trend
The dream of a leisurely retirement may be farther away than you think.
According to a new study by BMO Financial Group, more and more Canadians — 81 per cent to be exact — plan on working during their retirement.
Larry Moser, regional sales manager at Bank of Montreal, says it is a growing trend amongst retirees who feel the need for an additional income going into their retirement years.
“People are living a lot longer today,” explains Moser. “Life expectancy was typically around 72 years old. Now people are living well into their 80s and even 90s and are having to fund their retirement a lot longer than they ever had to [before].”
The decline in employer-sponsored defined registered pension plans, coupled with reforms to government pension plans has also created a greater need for people to supplement their income during retirement. This also rings true for those who haven’t been saving aggressively for their retirement through other retirement savings vehicles.
“Some people think they have lots of time and start to save for their retirement too late,” says Moser. “The more money you have saved the easier it is going to be in your retirement years.”
According to the study, the top reasons for people working into retirement are to earn additional money (75 per cent); to stay mentally active (62 per cent); and to enjoy a hobby (53 per cent).
Before starting a business, Moser suggests it’s wise to do some research.
“Business plans need to be written and need to be economically viable,” he says, adding that you don’t want to be working even harder and longer into your retirement years.
The study found retired men are more likely than women to start their own business.
It also found that 47 per cent of Canadians would fund a business using some of their retirement savings, while others would use a separate savings account earmarked for a business (43 per cent); a loan from a bank or another source (34 per cent); an inheritance (21 per cent); or a loan from a family and/or friends (14 per cent).
But what about those of us who want to simply enjoy the dream of a leisurely retirement?
“The first thing you should do is get a financial plan and talk to a professional about how much you should be saving,” says Moser. “The longer your investment, the better. Simply put, time plus money equals more money.”
For the full BMO Study: Two in Five Canadians Open to Being Their Own Boss in Retirement
How do you plan on spending your retirement? Comment below …
-- Donna Donaldson, MSN Money
Posted by: Sam | Jan 30, 2022 4:10:14 AM
I plan on spending my retirement working to pay for the debt left by the retirement and spending of the Baby boomers who came before me saddling our generation with student loans, sky high house prices and massive municipal, provincial and national debt.
Posted by: Mark | Jan 30, 2022 11:30:34 AM
Ontario is already a wasteland of crummy low paying jobs and old people thanks to our Liberal goverment and they're policies, Even at my age (51) I can't get ahead because of the frigging old men that simply won't retire(70-75) and CAN AFFORD TO. I agree 100% that if you don't have enough money to maintain your life style in retirement ADJUST IT so you can afford it, don't expect the kids to support you they have enough problems with paying back the loans and competing with the constant influx of imigants for the few decent jobs left in this province... For the younger people a little advice, GET OUT OF ONTARIO there's nothing here,out west is where I'd be if I were 20 years younger
Posted by: TW | Jan 30, 2022 1:35:56 PM
Posted by: Sam | Jan 30, 2022 4:10:14 AM
I plan on spending my retirement working to pay for the debt left by the retirement and spending of the Baby boomers who came before me saddling our generation with student loans, sky high house prices and massive municipal, provincial and national debt.
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Unfortunately you have it wrong, its the so called "me generation" those born after 1970 who are mostly responsible for the current debt. Just look around,big homes,two cars,lots of toys and a home credit line against present and future equity on their homes. It was precisely this generation of financiers who caused the mortgage-gate in the U.S. and now Canada is following in their footsteps. The home credit line was never around prior to the 70's, but of course, yes I know, 2nd,3rd etc mortgages were there but they were intended as a method to improve the equity on a home whereas home credit lines are used for anything you can dream of and is intended to keep all such adventures by the financiers clients' into loan shopping inhouse. We've all seen this scenario; big beautiful home goes up next door and then the expensive finishing,appliances,pools,boats follows, you know, toys R Us. A very experienced Home Contractor once told me, build your house like we do, to Spec don't get carried away during construction and keep your attention focused on how your life will change if your mortgage controls you. By spec he meant, nothing fancy other than the square footage you're looking for. After you've moved in you can upgrade one item at a time and do so with your current cash flow, stay away from 2nd mortgages, credit lines. That home next door is soon on the market when the mortgage payment begin.
Posted by: Sam | Jan 30, 2022 7:24:16 PM
Follow on to TW.
Purchasing a house, car etc beyond one's means as a vanity project is some people's personal decision.
Paying for the Boomers free university, free provincial drug plans, inflated government & private sector pensions, and the debts taken on to buy their votes during the Trudea etc years... is not a personal decision.
Please do try to understand difference. One is not my problem financially, the other sadly is.
Posted by: EL | Jan 31, 2022 1:19:02 AM
Comment to Sam....
I don't know of any Baby Boomer that got free university. I paid for my post-secondary education on my own. I don't have a "gov't" or Private sector pension and I get I have the same drug plan you have. What I've saved was through hard work and sacrifice. Quit blaming your sense of entitlement on someone else. I'm tired of your whining.
Posted by: Judy | Jan 31, 2022 5:07:39 AM
Retirement is a time to downsize and get a manageable lifestyle. I'm a "boomer" and it bothers me to hear single (widowed or divorced) people complaining that they are struggling to maintain their big suburban homes and wanting someone to subsidize their lifestyle. Retirement is the time to move to a smaller home, condo or apartment and leave the 3 or 4 bedroom homes to young families. If single people want to stay in houses that they bought to raise their families, then we will end up building on every square inch of farm land in the province and we can't eat housing developments.
I also agree with someone else's comment here about older folks hanging onto jobs. As the parent of young adults, it is very difficult for them to get started on their careers. It's unfair that people who could retire hang onto jobs just to keep up an expensive lifestyle. Living within one's means is one of the keys to happiness in life, regardless of age.
Posted by: LK | Jan 31, 2022 5:56:25 AM
Comment to Sam and Judy...
The cream will always rise to the top...I was told this 32 years ago when there were absolutely no jobs in my profession. I never once looked at shoving people out the door so that I could have a job. Sadly, it would appear that most of the kids of this entitelement generation are too lazy to be the 'cream'. By the way, I got a job in my profession shortly after PROVING myself over and over again. I am now in a position to hire the 'cream' and can say all of this with integrity. No one wants to hire lazy and entitled people. Sadly, I see this everyday. Stop blaming anyone who actually EARN their right to keep the job they have at any age. Stop whining and be the 'cream' or stay living with your parents for life who apparently will always keep handing you money.
Posted by: Patrick | Jan 31, 2022 9:07:14 AM
@LK. 32 years ago? you mean when jobs were plentiful and all you had to do was show up to the door to get one. None of this "must have these 2 degrees + 5-7 years experience for entry level position."
See the problem is we have a Catch-22 in our system now. Need the education and experience for ENTRY LEVEL positions. Positions that, by there very definition, should require little education and no prior experience.
I'm doing fairly well for myself but, cannot say the same of some of my friends. The world is very different now and I hardly believe you're the "creme de la creme" you claim to be. Most people are not.
I've worked with many different people in my life ranging from almost retired 60+ to the very young 16 year olds of today.
The young people are hungry individuals ready to prove themselves. The middle of the pack are either like me (optimistic and hard working) or not (disillusioned and lazy)
Unfortunately the higher end, most like your demographic 40-50+ are 9 times out of 10 the laziest, do nothing, collecting and paycheck and waiting for retirement group. They complain about any and every change, they complain about added responsibilities or changes in pay structures because of course they've "Earned" it and everyone else is just "Entitled."
So you'll have to forgive my generation for wanting to shove out the lazy, do nothing Boomers who continue to suckle at the public teat while my generation breaks its back trying to start their lives while simultaneously supporting your ridiculous retirements and benefits.
Posted by: Don | Jan 31, 2022 6:17:53 PM
Not all over 40 are lazy do nothing people anymore than people under 40 all being whiny and entitled. These arguements do nothing for anyone. I am over 40, have worked full time for over 30 with 15 or so left to go. Had no free education. I could not pay so I did not go. No help raising my childern. Did not have my first piece of new furniture until after 9 years of marriage. Had no home phone for the first 2 years of marriage. Did not purchase my first home until I was in my mid 30's. We worked for what we have. I paid a lot in taxes, and will continue to for the little I will receive. My parents had more money that I did, lived in a nicer house.Went on vacations I could not afford. Doesnt seeem to me like much has changed. I have no silver spoon and am watching my chlidern raise families with the same struggles and money issuues we faced raising them. We are more alike than anyone cares to admit. Give it 25 years and see where you are then. Bet you will have a lot more than your childern and they will probably tell you it is not fair........but ...why work for all those years if not to build a lifestyle and retirement. I am proud of what I have and yet seem to have less than a lot of people in thier 20's - 30's. The difference.........mine is paid fo but I have never been outside Canada. One vacation to Niagra falls about 15 years ago, other than that camping close to home. It took 35 years but we got there. Patience. Is it hard ......yes! It is for most who arent born with parents wealthy enough to help but it doesnt mean you dont try. It will take decades to build but you will get there. Dont give up. Do it for own self respect,do it for your childern. We all have struggles. They may not exactly the same 30 years ago as they are today but we still struggled. I just cant remember blaming the older generation for it. Sorry it is not like it was 30 years ago. We had no i-phones , no cable and did not require such technical trainng as the technogoly did not exsist...and neither did the bills that come with it. The world has developed and moved forward....that is no ones fault.Good luck but luck is not what is required. Hard work is.....even if it is the wrong job and is at less pay than youd like....keep at it and you will succeed..but it will feel like forever before you get there.