Transitioning into retirement: What
will work mean
to you?
A survey of Canadian retirees conducted for TD
Waterhouse in March 2008 asked: “If you could offer
advice to someone planning for retirement, what would it
be?” Almost 60% of respondents said, “Take time
to prepare for and understand what you want out of
retirement.”
“Planning for the next stage in your life
is taking on extra significance,” says Patricia
Lovett-Reid, Senior Vice President, TD Waterhouse. “For
many of us, the goal of early and total retirement is being
replaced by a desire to stay in the workforce and take on new
opportunities.”
A recent Statistics Canada study showed that six in
10 Canadians aged 50 to 64 were employed or looking for work in
2006. That’s 2.1 million people — more than
double the number in 1976. The elimination of mandatory retirement
at age 65 means many more Canadians will work past the traditional
retirement age.
“Today it is much less likely that our
working lives will come to a sudden halt,” continues
Lovett-Reid. “Instead, we are staying in our careers
longer, working part-time or starting new businesses. Work is now
seen as part of the transition into retirement.”
Self-employment is a popular option, says
Lovett-Reid. Not only does working for yourself provide income, it
offers independence and the opportunity to pursue personal
interests and opportunities.
“The role work will play in our future
will affect how we plan and save for retirement,”
concludes Lovett-Reid. “That’s why
it’s very helpful for pre-retirees to sit down with a
financial advisor and discuss the next phase of their
lives.”
Here are some questions to consider before your
meeting:
- What does work mean to you?
- Do you need to stay busy?
- Does the idea of starting a business appeal to you?
- Do you have the skills and entrepreneurial drive to succeed in
self-employment?
- Could you, or the beneficiaries of your estate, benefit from
the extra income that working longer will bring?
If you’ve already started thinking about
working during your retirement years, be sure to talk to your
financial advisor. That way you’ll be able to identify
your goals clearly and develop a plan to reach them.
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