Commentary
Retirement. This one single word stirs a wide range of emotions in most people, especially those arriving at the 65-year-old “finish line,” a somewhat arbitrary mark set about a century ago.
How do Canadians cope with this period, which can be challenging? Do they feel the uncertainty and anxiety about living out their “golden years”? Or are they ready to embrace this new chapter in their lives with optimism?
Whatever the situation, in a series of upcoming articles I will endeavour to bring some fresh perspective to the retirement discussion, including expounding on the view that, no matter your financial situation, you can enter the retirement stage in good financial shape.
The central point is this: Money is a very important aspect of retirement, a time when you are supposed to relax and slow the pace. We will explore options to keep your income coming in during this stage.
But living out a meaningful, purposeful retirement goes far beyond that. It’s a good time to reflect and take stock. How can you improve and become better in every aspect of your life? Have you set new goals in areas like health, personal growth, relationships, and social life? What about spirituality? Have you ever wondered about the real meaning of life and your highest purpose?
If you haven’t, this is a good time to start. In this article, I will make some useful suggestions that will help retirees face the future with hope and a chance of success—a baseline from where to start and move toward a more vibrant retirement.
But first, let’s do a quick reality check to see where Canadians as a whole are in regard to retirement.
Are Canadians Prepared for Retirement?
A November 2023 survey by CPP Investments and Innovative Research Group to learn how Canadians are preparing for retirement shed some light on the topic.According to the survey, 53 percent of respondents said they don’t know how much money they’ll need to retire, and less than half (45 percent) had a financial plan in place.
Only a quarter of respondents said they set money aside from every paycheque for retirement, and most said they fear running out of money after retiring. (This is usually the No. 1 fear among retirees)
What a challenge.
The survey also found that 62 percent of non-retirees hold the view that retiring from work is very important, and more than half (52 percent) cite the Canada Pension Plan as a source of income they are counting on in retirement. (I hope it is not the only one!)
“For many Canadians, the pathway to retirement is not always clear,” the survey said.
“Canadians are weathering a perfect financial storm. Persistent inflation, high interest rates and record consumer debt are causing severe economic challenges, including a cost-of-living crisis. It’s hard to save for retirement when you’re struggling to pay rent.”
I got the sense from the survey that most Canadians would like to stop working at some point in the future, but they can’t afford it. Most people want to retire early, but can’t. Wishes don’t always align with reality.
But whether you can’t afford to retire, or are in good financial shape and can, I want to share a contrarian view that explains why postponing retirement, opting for semi-retirement, or at least remaining as “active” as possible, is not necessarily a bad idea. It’s actually the opposite. It’s also a matter of perspective.
Why ‘Active Retirement’ Is the New Retirement
Some say that “retirement,” in a traditional sense, doesn’t work for most people.In fact, stopping working and giving up active income could actually be a bad idea—even if you can afford to do it.
In his 2005 book “Automatic Wealth: The 6 Steps to Financial Independence,” successful entrepreneur and bestselling author Mark Ford (writing under the pen name Michael Masterson) explains the problem with retirement in its conventional sense.
“You can’t find happiness by trying to be happy,” he writes. “It’s one of the wonderful ironies of life. Happiness seldom if ever comes to us when we are trying to please ourselves. Much more often, it arrives while we are focusing on something or someone we care about.”
That experience, says Masterson, “has been so common in my life that I’d like to suggest it as a sort of life secret: the way to be happy is to focus your time and energy on someone or something you care about.”
There are three points to Masterson’s secret that are worth noting: The previously stated irony that happiness only comes when you’re not seeking it; that to achieve happiness, your attention has to be cast outside of yourself; and that you must devote your time, attention, and energy to an outside cause or issue. “In other words, you must work,” he writes.
This is why I suggest people start thinking in terms of “active retirement.” I’m not saying you should keep doing a job or occupation you don’t like. I’m suggesting you remain open to the idea of keeping a source of active income while doing something you like.
On top of that, I think people facing retirement should expand their minds and start looking at retirement in a different way. Again, it’s a matter of perspective. The premise is that you must stay active, keep earning income for as long as possible, and find new purpose and meaning during this stage of your life.
In a recent interview with The Epoch Times, 103-year-old Gladys McGarey, a retired doctor, spoke about her philosophy for living a long and meaningful life. For her it comes down to the “five Ls”: life, love, laughter, labour, and listening.
“Labour without love ... is too hard,” she said. “But labour with love is bliss. It’s what makes our hearts sing.”
In my view, one side of the equation is about sustaining income, either through postponing retirement, having a part-time job, or starting a side business. You can also work on a new non-business project you care about, and/or get involved with your preferred charity, though you might not get compensated for it.
The other side of the equation is about personal growth and finding purpose and meaning. For example, learning new skills or setting new goals in every aspect of your life, including health, relationships, self-improvement, and even spirituality.
Spirituality and faith are a big component of feeling fulfilled and having a sense of well-being, and this is probably even more the case during retirement when people are more mature and wiser, and have more time. It can be through established religions if you belong to one, or through spiritual cultivation practices more common in the East (such as Falun Dafa), which typically focus more on the improvement of one’s moral character and the practise of meditation and energy exercises. As popular performance coach Tony Robbins says, “Whatever you believe, practise it!”
I believe our later years are a precious opportunity to reflect on our journey and discover new ways to live life to the fullest with renewed purpose.
In future articles, I will expand on various aspects of the topic of retirement. After all, it’s about having perspective. We all have challenges and opportunities, and it is never too late to overcome the challenges and take advantage of the opportunities. Till next time.
