Is it Time to Retire the Word “Retirement”? + MORE Sep 11th

The Canadian Payroll Association today released its annual national employee survey citing a five percentage point decline (47% to 42%) in the number of Canadians who would be in “financial difficulty” if their pay were delayed even a week. The stats are slightly worse in Ontario, although the trend is also in the right direction: instead of more than half of Ontarians (52%) living pay cheque to paycheque, the percentage has fallen to less than half, or 48%.
There is of course a huge gulf between barely being able to make the next month’s rent or mortgage payment, and the seemingly universal goal of early retirement. Clearly, half of Canadians haven’t even got out of the starting gate when it comes to establishing a modicum of financial independence. According to the CPA, 40% of employees in Canada are spending all of or more than their net pay, with Ontario mirroring that rate.
Never mind retirement or what I call “findependence.” The scary aspect illuminated by the CPA is that apparently half the country’s workers don’t even have that staple of financial planning called the emergency cushion: typically financial advisers recommend having an emergency cushion of at least six months worth of expenses…

Baby Boomers are reaching retirement age and defining what this stage of life means to them. The world is changing and the financial safety net that previous generations counted on, such as employer pension plans, may no longer be available. At the same time, the idea of being able to blow out 100 candles on a birthday cake may become a reality for more of us. Is it time to retire the word “retirement”?
Centenarians in Canada
According to the 2011 Census, 5,825 people in Canada had celebrated their milestone 100th birthday. This group is growing at a rate (25.7 percent), which is second only to the age 60-64 age group (29.1 percent). If these numbers keep increasing at this rate, by the year 2031, more than 17,000 people in Canada will have joined the “100 Years and Older” Club. By 2061, their numbers will have swelled to nearly 80,000 people or approximately the population of Victoria (2011).
Retirement that Lasts for Decades
Today’s retirees are young and vital, and likely have a completely different idea of what retirement means to them than previous generations did…

New mortality tables issued by Canadian Institute of Actuaries shows why retirement planning is changing in Canada

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