For more and more Canadians, the day of eagerly anticipating the first ‘official’ day of not having to get up to an alarm clock and going to work is gone. According to recent research from Investors Group, 52 per cent of boomers think that working beyond “retirement” will keep them young. Four out of ten (42 per cent) think that the best way to retire is gradually, by working fewer hours with current employer.
“Older workers are being creative with their careers as they move into a new stage of life,” says financial planning expert David Ablett of Investors Group. “For personal or financial reasons, many people aren’t ready – or willing – to disengage abruptly from work just because they reach a certain age. Working in retirement – whether it means full-time employment beyond traditional retirement age, a second career or a new job with flexible hours – gives people opportunity and choice.”
David recommends considering the following when thinking about a phased in retirement:
- Consider the big picture – think about the benefits of working and weigh the impact on your retirement.
- Determine the motivation – Is it a need to make more money? Or is it a want to be active or a desire to contribute?
- Investigate the availability of the type of work you want to do – will you be staying with your current employer or venturing into a new line of work? What are the opportunities you are looking for and are they available where you live?
- Determine the need for skill upgrading or additional education – staying current is very important and even more so if you plan to venture into a new area of work.
Paramount to the decision is an understanding of income requirements and where retirement income will come from, Ablett says. Scaled-back employment income, investments and personal savings, government benefits, and employer sponsored pension programs should all be factored in.
The Investors Group expert counsels that the keys to assuring sufficient retirement income are to know your expenses and manage them, use effective tax reduction strategies and maintain a balanced, diversified selection of investments.
This article, written and published by Investors Group Financial Services Inc. (in Québec – a Financial Services Firm), presents general information only and is not a solicitation to buy or sell any investments. Contact a financial advisor for specific advice about your circumstances. For more information on this topic please contact your Investors Group Consultant.
For more information, or to schedule an interview with David Ablett, please contact: