Tweet

The history and myths of retirement

Written by: Sharon Alderson

Article Overview: There are the dictionary definitions of retirement -- withdrawal from work because of age; the time that follows the end of someone’s working life; withdrawal into privacy or seclusion -- and there’s the reality of retirement as you are either close to or already experiencing it – and it doesn’t have much to do with any of these dictionary definitions. Let’s look back to get a good view of the real shape of the ‘new’ retirement.

The history and myths of retirement

There are the dictionary definitions of retirement -- withdrawal from work because of age; the time that follows the end of someone's working life; withdrawal into privacy or seclusion -- and there's the reality of retirement as you are either close to or already experiencing it - and it doesn't have much to do with any of these dictionary definitions. Let's look back to get a good view of the real shape of the 'new' retirement.

A brief history of retirement

Retirement is a relatively recent development in human history. The 'industrial age' of the late 18th and early 19th century replaced an economy based on manual labour with one dominated by machine-based industries. Still, the demands of physically exhausting labour made it almost impossible for 'older' workers to stay on the job. It was easy for them to buy into the idea of retirement as they hit their sixth decade.

The cornerstone of Canada' retirement income system, the Old Age Security (OAS) program began in 1927 and was updated in 1952 to provide a modest pension to eligible seniors as early as age 60. Among many subsequent amendments: the introduction of the Guaranteed Income Supplement (1967); the establishment of the Spouse's Allowance (1975); and the extension of benefits to same-sex common-law partners (2000).

Registered Retirement Savings Plans (RRSPs) were first introduced in 1957.

The Canada Pension Plan/Québec Pension Plan (CPP/QPP) were enacted in 1965 to provide a monthly income to retirees as early as age 60 with payments dependent on how much a person paid into the plan while working.

The most significant retirement trends over the past 30 years are driven by people retiring earlier and living longer. That means the period over which retirees must fund their retirement has increased significantly from an average of five years in 1970 to approximately 20 years today - and is expected to reach 30 years in the near future.

Retirement myths

Sixty-five is old: Most vibrant, active and engaged retirees would certainly disagree with that - and some studies have shown that today's 65-year-old has the physical ability and health of a 45-year-old in 1975.

Retirement means you no longer work: Retirees today believe in 'work at any age' - either full-time, part-time, or as volunteers.

Retirement begins at 65: Increasingly, Canadians are choosing to retire earlier - or at least on their own timetable - to explore new avenues in life.

A life of ease is every retiree's goal: More and more, retirees are opting for a retirement that includes a balance of learning, work (paid and unpaid) and leisure - challenging themselves through all their years.

And speaking of all your years: If you want to enjoy every aspect of the 'new' retirement, you'll need the income to support it. Your professional advisor can help make your retirement dream a reality for a lifetime.

Contact your financial advisor for specific advice about your circumstances

.

Related Articles
  Seven Marketing Myths that Devastate Business
  Home Based Business Opportunity--Investing for Retirement and Financial Freedom
  Clearing Up The Myths About Strategic Thinking and Planning
  Planning For Supplemental Retirement Income-Keep It Simple
  Investing for Retirement

Article Tags: cpp, income, new retirement, oas
Referred by: http://www.womenforwomen.ca



Related Forum Posts
You can do this without financing your business with it - If you are leaving your present employment or have retirement funds from a previous employer, you can rollover those retirement funds without any penalites or taxes involved (into your own business) rather than leaving them in someone elses business. You do not have to finance your business with your retirement to do this. Here's how it works: Our resources form a C corporation for your new business, your C-corporation creates a new retirement plan. Funds from the existing retirement plan are rolled into your corporations new reitrement plan and your new retirement plan purchases stock of your corporation. The program is IRS approved! Contact me if you are interested. FYI- This program has also been helpful for people obtaining an SBA loan for their franchise or Acquisition, because they can obtain the loan down payment for the loan from the rolled retirement funds (without penalties or taxes) rather than financing the entire business themselves. Contact us!
Re: Quote of the Day - John Johnson - Hi Evan, Thanks for the link; I love Johnson’s quotes and his attitude to life in general. The fact that he started to make his millions during a time when it was really tough for African Americans to succeed makes his story even more remarkable. I particularly like his attitude to retirement as he kept working right up until his death and I happen to believe that retirement is a matter of choice if possible and not compulsory but unfortunately most people don’t get that chance. regards, Mal.
Re: Searching for options for good investments!!! - [quote="Pompy":3vfhb802]Hi everyone, I have a few months left in my company before I retire …. and I would like to know about the options that I can consider for my retirement plan. I am taking about some real good investments so that I get my future secured (want it secured for the kids too). I have a few options that I can look up to like REI, mutual funds and stocks…..but need a bit of advice from you to make a better decision.[/quote:3vfhb802] I hope you actually already have some investments in your retirement plan and have had them for 20 years or so! While it's never too late to start saving for retirement... waiting until you've got just a few months to go is cutting it pretty fine! I'd put any investments into annuities for your kids maybe, or invest in their college educations with a signed contract that they reimburse all monies when they get good jobs thanks to you! You could always become an angel investor, as Buzz suggested... although going with smaller sums than $500,000!
Re: Plan Your Retirement NOW - [quote="Carol Aston":14cfqgaz]This is a great post Barbara and I can see you put a lot of thought into it, I have been planning my retirement for the last couple of years now [/quote:14cfqgaz] I wish I'd started planning when I was in my twenties... [i:14cfqgaz]that's [/i:14cfqgaz]when people should start planning for their retirement! But of course no one ever does...
Re: What would you do with $500,000 or less? - Thanks David, I don't have any recent plans to travel to Japan but $35-$40 a night is a steal! I'm really into the history of Japan - any countries history for that matter. I want to experience living the lifestyle of the past (sitting on a mat may be a challenge for me though).


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Starting a Business with Bad Personal Credit

Providing Feedback

Small Business Internet Marketing

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.