The recent protests in France over the two-year delay in the retirement age—to 64 years-old—left many North Americans scratching their heads. Most of us would be happy to hang it up a year earlier than our current official retirement age of 65, which might even reach 67 by the time many of us retire.
The fact is that the retirement age in Canada has been 65 years-old for about 80 years. Before that, many Canadians worked until their physical health wouldn’t allow it.
A number of factors transformed retirement in the post-war period. Canadians gradually became wealthier. Health care improved and became universally accessible. Life expectancies climbed steadily—now hovering around an average of 82 years-old, according to Statistics Canada—as we stopped smoking, embraced exercise, lived healthier lives. Defined benefit pension plans became commonplace until they were largely supplanted by defined contribution alternatives. Over time, retirement savings tools such as Registered Retirement Savings Plans, Tax-Free Savings Accounts and more attractive investment products emerged to help Canadians fund their retirement lifestyle expenses.
Because we’re living longer and generally better lives, we need financial planning that reflects that (very positive) change. At Bridgewell, we’re on a mission to change the retirement conversation—in fact, we don’t want to talk about retirement at all. For many professionals, executives and entrepreneurs, the golden years are an opportunity to start a new career, a new business, begin consulting, investing in companies or volunteering for their favourite charity. It’s really about the next phase of their life. That change of view opens new ways of thinking about financial planning and how those post-career years can take shape.
Here are three things to consider:
Your golden-year goals—Having a rough idea of what you want to accomplish when you pull back from your core career is an important step in defining the financial roadmap that will help you achieve those goals. Again, that could still mean operating a business in some form, engaging in philanthropy, spending time with family, or some combination of those or other pursuits. Working with a fee-based financial planner to develop that roadmap—ideally long before retirement—will help define your wealth-building strategy and proactively build the capital necessary to live those golden years on your terms.
The purpose behind your wealth—Ever wondered why you’re building all that wealth in the first place? We’re programmed to save, invest, carefully manage our spending, and all for good reason. But putting purpose behind your wealth requires strategy, reflection and probably some long conversations with loved ones. Whether you wish to leave an estate legacy for family or your favourite charitable cause, or even gift much of your wealth to family during your living years to see them enjoy it, think in terms of achieving financial wellness and putting the ‘why’ behind your wealth.
The holistic side of achieving financial wellness—It’s not just about knowing what you want to do in your golden years, but developing the right plan to save the right amount of money to get you there. Tax planning and wealth-building strategies are crucial considerations. Even philanthropy can be used as a tool to mitigate tax liabilities. By conducting a strategic tax review and building a dynamic financial plan that we not only help move forward but adjust over time, we can help you take a 360-degree view of your finances and help you prepare for whatever exciting opportunities life brings in your senior years.
The Bridgewell Team
To learn more about Bridgewell Financial’s wealth and financial planning solutions, contact a member of our team now.
