A Time For Change Magazine - Working Toward Wellness

Among Canadians over
55 years, two-thirds
of not-yet-retired and
one-third of the retired
carry some form of debt.
Don’t be one of them!
(Marshall, 2011).
Retirement Redefined
Retirement is viewed much diff erently today than in the past. With many Canadians living longer and leading more active lives,
retirement no longer means logging endless hours in a rocking chair or taking naps. Instead, most see it as an opportunity to pursue
leisure activities, travel, hobbies, and perhaps even a second career. Despite this shift in attitude, many Canadians aren’t setting themselves
up fi nancially for the kind of retirement they envision. In fact, of the 81% of Canadians aged 25 to 64 who are actually preparing for
retirement, only 46% know how much savings they’ll need to maintain their standard of living (Schellenberg & Ostrovsky, 2010).
When you think of retirement, what thoughts and images come to mind? Does it conjure up feelings of freedom and satisfaction, or does
the very mention of retirement send you into panic mode because you feel unprepared? According to Wendy Dupuis, Executive Director
of the non-profi t organization Financial Fitness Centre in Windsor, Ontario, taking the time to really consider and write down your
retirement goals is not only a good idea, but is also essential to helping you get to where you want to be in your “golden years”.
Retirement is not just a fi nancial event… retirement is a LIFE event (W. Dupuis, personal communication, January 25, 2012).
Successful Retirement
Doesn’t Just Happen
It takes planning,
commitment, and, oft en
times, sacrifi ce to reach
your long-term fi nancial
goals. Th e good news is
that it’s never too late to
start. Whether you’re 25 or
45, think about where you
want to be at retirement
and take action. Time can
be both your best ally and
greatest enemy when it comes
to fi nancial freedom in
retirement. Start planning
and saving TODAY!
SETTING UP YOUR
FINANCIALFreedom
• MAKE GOALS. Figure out how much you’ll need to
save to achieve the retirement lifestyle you desire
and create a plan to get you there. Setting a
realistic goal and backing it up with a written
plan will help you measure your progress and keep
you motivated to save. If you aren’t sure of how
to start, speak with a trusted financial advisor.
• DON’T RETIRE WITH DEBT. If you’re in debt, get out
as soon as you can. Set a monthly budget and don’t
stray. Adjust your lifestyle now so you can have the
lifestyle you want in retirement.
• KNOW YOUR RETIREMENT INCOME SOURCES. It’s
important to know where your retirement income will
be coming from BEFORE you retire. Take a look at all
potential sources, such as your workplace pension plan,
Canadian Pension Plan (CPP), Old Age Security (OAS),
personal savings plans (e.g., RRSPs, TFSAs), etc. to help
guide your long-term savings strategy.
Get on the path to financial freedom
start your journey now !
• CHECK OUT THE CANADIAN RETIREMENT
INCOME CALCULATOR. To help estimate your
retirement income, visit http://www.servicecanada.gc.ca/
eng/isp/common/cricinfo.shtml
• INVEST LONG-TERM. The money you invest for retirement
shouldn’t be used for anything other than retirement
income. The longer your money stays invested, the more
it can grow. Not only that—if you try to take it out
earlier, you’ll have to pay high penalties and taxes
which will eat away at your hard-earned savings.
• STAY HEALTHY. You’ll be able to be more active,
experience better quality of life, and maintain your
independence longer if you stay healthy. In addition,
living a healthy lifestyle could help keep health
care-related costs low as you age.
Key References
Marshall, K. (2011). Retiring with debt. Perspectives on labour and income. Statistics Canada Catalogue no. 75-001-X.
Retrieved from http://www.statcan.gc.ca/pub/75-001-x/2011002/pdf/11428-eng.pdf
Schellenberg, G. & Ostrovsky, Y. (2010). Retirement-related highlights from the 2009 Canadian Financial
Capability Survey. Statistics Canada Catalogue no. 11-624-M – No. 026. Retrieved from http://www.statcan.gc.ca/
pub/11-624-m/11-624-m2010026-eng.pdf
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