Back in the day, the retirement age in Canada for a middle-aged person used to be 55. But nowadays, it
has increased to 65. If you want to create a retirement plan to retire early or at the right age, there are
some things about retirement that you may not know.
Here are the things about retirement planning that no one tells you about:
- You Are Right on Track
Those ads you see on TV, telling you that you can retire at 55 because that is a reasonable age to stay
home and enjoy…well, that’s not the case for most people. The median age to retire in the country is 62
for men and 61 for women (Statistics Canada). However, there are people in the country that quit work
at the age of 58, but that’s rare. If you have not been able to retire at 55 or even 58, do not worry, you
are not behind, but are right on track with most people in Canada.
- Longer Life Expectancy
As we grow older, we develop illnesses and diseases. You think that you will live up to 80, as that is the
average lifespan in the country. Again, that’s not the case. You can live beyond 80! A man who has
reached the age of 65 and does not have a terminal illness can live up to 83 whereas a woman who has
reached the age of 65 and does not have a terminal illness can live up to 86 (StatsCan).
- You Will See Your Partner A Lot
When you retire from your work, you will see your partner more often. Even though that is not bad, it
can lead to couples fighting and arguing. You can minimize that by establishing ground rules. For
instance, you may read in the study for a couple of hours while they watch TV in the room. You can even
come up with several activities that you both enjoy and can do together. If you want, you can go back to
school after you retire, start your own business, or contribute to charity.
- You Can Get a Part-time Job
If you have not been able to save as much money as you wanted, you can get a part-time job. With a
part-time job, you can expect to make $20,000 each year. This is a good opportunity to find work in a
field you enjoy. If you did not enjoy your last job, you can enjoy your part-time job. Perhaps, you can
work part-time in your dream job that you couldn’t do before you retired.
- You Do Not Need a Million in the Bank
You may have heard financial planners say that for retirement planning, you will need to save 70% of
your current income. If you go with the financial planner’s advice, you will need to save a million dollars
or more in your retirement fund. That’s surreal! But if you ask us, we will tell you the opposite. Your
expenses may go down once you retire. When you retire, you will not have to pay for your child’s
education, make RRSP contributions, commute to work, and pay off the house.
If you are planning to retire soon or are saving up money for retirement, you can do so knowing these
facts about retirement.