Retirement age in Canada: Introduction
We’re now a nation of long-livers, and as a result we need to reconsider the way we look at retirement age in Canada. The great news is that we’re living longer than earlier generations. The bad news is that we haven’t planned for a retirement that could last for 30 years. As a result, our longer lifespans are having a profound effect on our personal finances.
Retirement age in Canada: Time to adjust your mindset
Unless you’re one of the few who can retire early and fund a 30 year retirement, it’s time to adjust your mindset. Think of 70 as the new 65. Many Canadians are already trending in this direction:
- Older Canadians are already increasing their participation in the labour force. Retirements are being postponed (2014 survey by Philip Cross at the Fraser Institute)
- “Longevity and the changing workplace have put in place a trend towards a more transitional retirement” (Retirement expert and certified financial planner Tom Feigs)
Retirement age in Canada: Will retiring at 70 help you live longer?
Personal finance expert, Suze Orman, says that resetting your retirement age to 70 will help you live well, into your nineties. She suggests:
- Delay tapping retirement benefits until age 70
- Lay the foundation to work longer: Talk to your employer before retirement about how you could continue to contribute on what could be a part-time basis
- Take the long view: Working longer will give you more confidence that you’re financially set for retirement
Retirement age in Canada: Delaying retirement reduces stress about retirement
The reality is that most Canadians still count on CPP, OAS and Guaranteed Income Supplement (GIS) for their retirement income. Instead of worrying if you’ve saved enough for retirement at 65, think of 70 as the new 65. Continue working, earning, contributing and enjoying life.
Retirement age in Canada: Do you have too much debt and getting close to retirement?
Whether you’re planning to retire at 65 or the new 65, the best piece of advice we can give you is to make sure you’re debt free going into retirement. If you’re still struggling with a debt load that you can’t get rid of, give Ira Smith Trustee & Receiver Inc. a call. We can help you deal with debt and give you back peace of mind so that debt is one thing you won’t have to worry about in retirement Starting Over, Starting Now.