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Mr.CBB’s Personal Finance Reading List #8~ Working Past Age 65

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It was no surprise that many Canadians believe they will be working past the age 65. Why?

It’s pretty obvious that times are getting  tougher and people are struggling to with debt or simply trying to find a job  or one that pays well.

We hear about students graduating from University and College with thousands upon thousands of dollars of debt and although we urge students to get their finances in order before school the cost of an education is the beginning of a dirt pit of debt for most.

Best of it is many students are struggling to find work in their field and yes sometimes an apprenticeship trade can be better than a University degree simply because the likelihood of scoring a job is better than a field that is saturated with grads that are struggling.

It happened in the UK and it’s still happening. Not only that, the Canadian Government motivates men and women to join the trades with incentive grants if they complete levels and journeyman status in a red seal trade.

They are practically paying for their education and they can work and earn money while doing it although it’s not for everyone.

I think students are starting to realize that they need to take a good hard look at their career industry of choice and face up to the reality that they may struggle to find work with lots of competition and could be working at a minimum wage job until or if something comes up.

A friend of ours is thousands of dollars in debt after University and Teachers College from OSAP loans  and credit cards. Do you think she has found a job as a teacher? I don’t need to answer that as you know the answer already.

This is where I say, we all have our own personal situations and reasons for being in debt.

Working Past Age 65

At the age of 30 it seemed to me many of my mates were on track with their careers, getting married, travelling, buying a home and starting a family.

It’s no wonder we see couples waiting until they are in their 30’s to start a family and honeymooning in debt as it’s simply a struggle for most as there are too many bills and not enough money. Sometimes we just throw our hands in the air and say the hell with it all. If we don’t do it now and wait until we are out of debt we never will do it.

We are a society that has to make decisions whether right or wrong it is up to the individuals but what we do know that is 27 percent of Canadians say they will keep their nose to the grind full-time at age 66 according to Sunlife Financial Unretirement index report 2013 which has changed since 2008 and they believe that retiring later will be the norm.

The Ipsos Reid online panel was conducted from Nov 29 2012 to Dec 6, 2012 consisting of 3017 adults aged 30 to 65 and is has some interesting results that I believe you should read.

I found it interesting that 47% of people say that they will continue to work in order to keep active and another 29% say they will do it because they enjoy their job.

The numbers do tell a story as only 27% of respondents say they will be retired by age 65 where only 5 years ago that number was a whopping 51%.

The number one reason though that keeps us working past 66 is financial concerns and that’s no secret.

Will our friend move out from her parents home before she is 35 and debt free, well let’s hope so but hope sometimes it’s just dust in the wind.

Here are some other interesting facts about the number one reason to work at age 66 according to the index in order: 

In 2008

  1. I enjoy my job/career 15%
  2. To stay mentally active 14%
  3. To earn enough money to live well 13%
  4. I don’t believe Government pension will be enough to live on 13%
  5. To earn enough money to pay basic living expenses 11%

In 2012

  1. To earn enough money to pay basic living expenses 25%
  2. To earn enough money to live well 21%
  3. I don’t believe Government pension will be enough to live on 16%
  4. To stay mentally active 13%
  5. I enjoy my job/career 10%
Predicting The Future

Clearly the enjoyment factor has done a 360 and is now the least of worries on Canadians minds. Earning enough money and a belief that the Canadian Government Pension simply won’t be enough money to live on has caused an “uh huh” moment followed by a “bollox” after all we’ve done moment.

I remember visiting Canada and excited to see how cheap it was to buy land or a house and petrol prices blew me away. Sure enough the pound has tanked from a posh, living the high life dreams and caviar at $2.35 down to $1.56. Oh well, it was nice while it lasted.

The cost of living has risen in Canada faster than you can shake a stick although hard to not say the same about back home. So much for edible equity.

No one can predict the future (unless of course you are Marty McFly or Doc Brown), we rely on what the past has dealt us and predictions or forecasts of what they believe will happen down the road.

We all wish we had more time to do the things we want to do with our life and it’s true for some there is no time but for others you are lucky to have such a luxury, so embrace it with happiness.

It is possible to go from zero to hero by focusing more on life itself rather than all the conveniences surrounding it.

Can You Afford An Early Retirement?

I say, if early retirement is what you want, prepare for it now whether that be by budgeting, investing, spending less than you earn, paying off your mortgage and by making the best of what is available.

You don’t need to spend a fortune on your home either just a simple quick bathroom reno for example will jazz up a space for less money than you think.

We spend so much money on things that we really don’t need when we can use that money towards something else. Whatever path takes you to your retirement dream, start being proactive about it while you can and learn from those that are already retired or approaching so-called margarita-ville.

They are living it, why not listen to what they have to say, surely it can’t all be wrong; although times have changed so think past, present and future. The reality of working past age 65 is just that, reality and only apt to stay that way unless things change for Canadians or we change our ways.

Until then, I’m no Marty McFly, Calvin Klein, Darth Vader or Clint Eastwood and I don’t have a  1981 DeLorean DMC-12 powered by plutonium supplying 1.21 gigawatt’s of power to the flux capacitor so working past 65 may be a reality but only time will tell just never assume everything will be OK.

Questions for you….

  1. What do you think has changed?
  2. When do you expect to retire? 
  3. What are you doing to plan for retirement?

Homemade Sushi Canadian Budget Binder

You bet that’s homemade Sushi made by one of my awesome fans Lynda who I hope can put together a step by step recipe for me so I can share it as  a Sunday recipe blog post for all of you. If you love sushi I’m sure you are wishing you could tuck in, I know I am.  Thanks Lynda!


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