With the RRSP contribution deadline looming, here are some articles on retirement that you might find thought provoking and helpful.
Saving for Retirement
In an article by Gordon Powers for MSN Money, he shows that you may not need to save as much as you think for retirement.
Comparing the common assumptions of retirement calculations with the realities of life expectancy and actual spending patterns, he point out that you may be saving as much as 20 percent more than you need. See “You could be saving too much for retirement”.
Most of us would rather have too much than too little, so don’t stop saving, Powers acknowledges. A cautionary tale of another sort drives that point home.
The Financial Post's Andrew Allentuck tells a story of an affluent couple that found themselves in a tough spot when an unexpected job loss triggered early retirement. Despite their best planning efforts and a reasonably high net worth, they still faced some difficulties. See “Even with a net worth of $4-million, retirement at 50 is a struggle”.
Who wants to retire?
But what if you’re not ready to retire?
Jay Leno certainly isn’t, though that didn’t stop him from handing the reigns to Jimmy Fallon. “It’s not my decision,” he explained.
In a New York Times article, Abby Ellin looks at why so many aging baby boomers are still in the workforce and plan to stay there.
In the Financial Post, Armina Ligaya explores the similar situation here in Canada, where StatCan found that more than half of workers aged 55 and older return to the workforce within a decade of retiring.
While financial considerations are a driver for this trend, it’s not only about needing the income.
Living well in retirement
Planning for retirement isn’t only about saving and spending and financial projections – and anxiety.
A group of alumni from Massachusetts Institute of Technology share their wisdom and experience about how they would advise the next generation to plan for retirement. With nearly 20 years of living-in-retirement experience, the wisdom of these retirees is that:
A successful second life demands more than financial security. It requires a comprehensive plan and concerted effort to remain active, healthy and social.
See: “How to Live Better, Not Just Longer” and “Exercise to Age Well, Whatever your Age”.