Sure, you’ve heard forty is the new thirty, but have you heard seventy is the new sixty-five? Not for the same reasons of course – but Canadian lifestyles are shifting nonetheless. With life expectancy on the rise, people are finding it difficult to have enough money to live off well into their eighties and even their nineties. Instead of retiring at the age of sixty-five, many people nowadays are forced (or feel it necessary) to continue working until the age of seventy and even beyond that. That’s why all across Canada the new retirement age is quickly creeping upward.
Read on and find out the main reasons why seniors are returning back to work after the traditional retirement age
Higher Health Care Costs
Seniors often require care when they enter into their eighties and beyond, and the costs associated with medical equipment and supplies, medications, surgeries, in-home care, and long-term care facilities are almost always higher than one expects. Sure, Canada has quality healthcare, but there are lots of other things that are not covered, even under insurance plans. So as a result, many seniors are now adding on a few more years of work to make sure they can cover those costs when they arise.
The Cost of Living is Increasing
Downsizing is becoming more common with seniors. Many are switching to apartment living or maintained condos to get rid of the burden of maintaining their home, and to use the sale proceeds to retire comfortably. Unfortunately, the cost of living has also been on the rise in Canada. Rents are going way up, along with the cost of food and other necessities. And as many seniors begin to see their bank accounts quickly dwindle away, they have little choice but to return to work to make ends meet.
Keeping the Mind Active
With all the research conducted on health and wellbeing out there being popularized, seniors are starting to recognize the important benefits of keeping the mind and body active. They fear that if they just sit at home all day that their health will begin to suffer. To combat the early onset of health problems, many are returning back to work for this reason as well. Staying in the workforce keeps them busy and keeps the body and mind engaged – an added benefit of course is the financial aid.
Catch Up on Finances
Believe it or not, there are many people that retire in Canada with little to no savings as a result of bad luck, and or limited financial planning. In this case, it makes sense for seniors to return back to work to try and catch up on their finances and add a little more to the honeypot. The last thing people want is to transfer their debts to their family members upon their passing.
Don’t wait to have a financial plan put in place. With a comprehensive strategy, you can retire well before the average age of sixty-five. Contact us at The Beacon Group of Assante Financial Management Ltd. today – our advisors can help you build a plan and keep you focused on reaching your goals for a secure and comfortable early retirement.