By Mike Drak
Friday July 29th will be a day that I will remember for the rest of my life. After thirty-eight years, I finally packed in my banking career. I suppose my co-author Jonathan would call this my Findependence Day!
To be honest, it will take some getting used to as my banking job played an important role in my life. It provided financial security for my family and gave me a good reason to get out of bed most mornings.
My career, like most careers, had its good and bad points. Overall though, it was a good ride and one that I will miss to some degree, but I had to leave in order to publish Victory Lap Retirement and create my blog.
Banks really don’t like it when employees write books or blogs because it might not align with the story that they are trying to convey. Banks get nervous when employees stand out and don’t fit in, when employees invent something that is outside the approved message.
Banks are very protective of their brand. They want the customer experience to be the same in every branch across the country. They want every employee to talk, walk and act the same. They desire a high degree of predictable sameness, as it’s easier to control.
Why banks still sell the old version of Retirement
This is not a bad thing at first blush, but it tends to stifle individual creativity, which is costly long term both to the bank and its customers. The danger is that you end up being like every other bank selling the same story and nothing much happens out of the ordinary. Maybe this is why the banks continue to sell the old version of retirement, as it’s easier to sell to the masses. Marketing to the few is not very cost efficient.
By Kollin Lore
We are edging nearer to 2031, the year when all Baby Boomers will be age 65 and above, and most will at least be contemplating some form of Retirement or Semi-Retirement.
It will also be a time when the millennials will have pretty much all grown up and taken over the workforce.
Next month Jonathan Chevreau and Mike Drak’s Victory Lap Retirement will be published, a perfect time considering the age we are headed towards. However, though the book concerns the older generation, there is much to learn for millennials too.
Earlier in July, Chevreau discussed his upcoming book on Digital Citizen’s ThatChannel with creative director, Norman Evans, Laura Tyson, and host, Hugh Reilly. Click on the highlighted link to access the YouTube video: Get Ready to Earn Your “Playcheque.”
“The Boomers have reinvented every stage in life they have gone through,” said Chevreau. “Now they are going to reinvent retirement, by starting with the word ‘retirement’ because they are not ready to stop … That’s why Mike and I created the phrase Victory Lap.”
This titular ‘Victory Lap’ concerns finding that balance between stress and boredom following retirement. It means staying active and can include anything from travelling the world, to part time jobs, to volunteering to more time with family.
Of the many activities in which to partake during the Victory Lap, volunteering is an especially valuable past time to consider. Read more
By Akaisha Kaderli, RetireEarlyLifestyle.com
The other day I read an article about women and retirement. In this piece, the number one premise for motivation was that we should be afraid. Very afraid. It said that for the most part, men did the planning for retirement and that we as women rely on them blindly.
I dislike reading articles such as this, first, because it is fear-based but second, it doesn’t take into consideration the talents women contribute to the mix of partnership and planning. While it might be true that men are “wired to provide for the household,” women have moved into professions which pay grandly. Many marriages today are a different blend of partnership than what our own parents or grandparents enjoyed. Along with their jobs, many women still run the household, so why not get involved in retirement planning in a proactive manner?
Retirement is a boring word
The word “retirement” conjures up images of old people on pensions or perhaps pictures of those who no longer contribute powerfully to society with their expertise and knowledge. I prefer the description “financially independent” for the freedom, influence and self-reliance it implies.
One can choose financial independence at any stage of life and it’s an exciting and worthy goal. The younger a person begins on this path, the more you have in your favor.
Women, listen up
How much money do you really need to retire? On sister site Financial Independence Hub today, we ran a guest blog by Boomer & Echo’s Marie Engen on this topic, something I also mentioned in a talk last week at Durham LifeLong Learning.
Here’s the link to Marie’s blog at the Hub.
I also referred extensively to this blog in a piece at Money.ca, although I couldn’t locate the actual link. As I said in the piece, when determining how much you need to retire, it all depends on your lifestyle expectations. The short answer is that a Canadian with very modest needs can get by without saving a penny. The catch is you’ll have to wait till age 65, at which quite generous Government pensions like Old Age Security (OAS) and the Guaranteed Income Supplement (GIS) kick in.
The bad news is that if you have expensive tastes and have no employer pension, you’ll need to be a millionaire, or even a multi-millionaire to retire with the kind of lifestyle you enjoyed when working.
Those who have toiled at one or two employers with Defined Benefit pension plans can enjoy a more lavish middle-class lifestyle strictly on those pensions, CPP and perhaps some OAS. Again, if you don’t want to travel in luxury or eat out in expensive restaurants, you may not need to save much extra, although of course the more you sock away in an RRSP and ideally a TFSA, the better.
If you’re reading this, odds are you’re still working, have expectations for a more lavish retirement lifestyle and perhaps are not fortunate enough to have a DB pension, or switched jobs too often for a single one to really “take.” If you earned a decent salary along the way hopefully you maxed out your RRSP throughout, as well as your T Read more
Toronto, December 3, 2015 – A recent public opinion poll shows majority support among Canadians for leaving the TFSA (Tax Free Savings Account) limit at $10,000, not reducing it to $5,500 as the Liberal government is considering. This support is consistent across income levels, age, region and whether the respondent worked in the public or private sector.
Catherine Swift, spokesperson for Working Canadians said, “53% of Canadians are in favour of leaving the TFSA limit at $10,000, while only 19% favoured reducing the limit.” A total of 27% of respondents said either “it depends” or “I don’t know.” These results are consistent with other polls conducted on this issue.
Both public and private sector employees demonstrated similar support for a higher TFSA limit at 56% and 62% respectively. “Since very few private sector Canadians enjoy the generous, inflation indexed pensions that are commonplace in the public sector, private sector support for maintaining the higher limit is not surprising,” said Swift.
“Given that government employees are already very well provided for in retirement, the high level of support among this group for leaving the TFSA limit “as is” suggests public sector employees value the higher TFSA limit more than might have been expected.”
Support among all income groups
Keeping the TFSA limit the same enjoys considerable support among all income groups; support reaches majority level among respondents with incomes over $50,000. Respondents with income less than $25,000 exhibited the least support for leaving the TFSA limit “as is”, yet 37% of this group still wanted the limit to remain at $10,000. Support for retaining the $10,000 limit was also consistently strong across age groups, ranging from 51% among those 18-34 to 55% for those over 65.
The poll also showed support for the current TFSA limit among voters for different political parties. Of those who voted Liberal in the recent election, fully 52% want the limit to be left alone, as compared to 61% who voted Conservative, 51% of NDP voters, 63% of Green voters and 56% of Bloc Quebecois voters.
TFSAs have only been in place since 2009, and according to Canada Revenue Agency (CRA) data, over 11 million Canadians have a TFSA, which is roughly half of the working population. “This is an amazing level of participation in a very short time,” Swift noted. She added “These poll results are another indicator of how much Canadians love their TFSAs, and want the current limit to remain.”
“Some people have claimed that the higher TFSA limit is only for the “rich” and costs the government too much in foregone tax revenue. The results of this poll and other data indicate that the higher limit TFSA is by no means something only the “rich” aspire to.
As well, the federal government spends tens of billions of taxpayer dollars every year on very generous public sector pensions. Surely the couple of billion in tax dollars foregone annually in running the current TFSA program is the least the government can do to permit the 80% of Canadians who do not work for government to save for a decent retirement for themselves and their families,” stated Swift.
Formal petition coming to House of Commons
Since launching the campaign to promote leaving the TFSA limit at $10,000, Working Canadians has been overwhelmed by positive feedback. As a result, Working Canadians established a formal petition to the House of Commons, which will be introduced by Member of Parliament Peter Kent in the near future. The petition can be found at www.workingcanadians.ca/saveourtfsa
This online poll was conducted between November 26 and 29, 2015 by Research House, amongst a nationally representative sample size of 1,012 Canadians who were 18 years of age or older.
Catherine Swift is Spokesperson for Working Canadians, a not-for-profit organization dedicated to opposing the negative impact excessive union influence has on the Canadian economy and society.
To arrange an interview with Catherine Swift, contact Gisele Lumsden at 647 466-5509 or by email: email@example.com