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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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  1. I worry about retirement too, funding it. If the mortgage is paid off in another 9 years and and I reach my dividend income goal (plus I’ll have my pension…) I’ll feel much better.

    Every month is a step forward. As long as I have more net worth every month, it’s progress.

    The road isn’t going to get better, with all the boomers NOT retiring…

    Thanks for the mention!

    1. Hey Mark,
      You’re well on your way to living the dream but are we really? That’s just it we don’t know what the future holds BUT the difference is we are preparing and as long as we do all we can we can safely look back and say, we tried. Keep at it mate, you’re an inspiration to many. Mr.CBB

  2. I think a lot of people in a lot of countries are going to have a rude awakening when they want to retire. Many have not prepared and aren’t going to able to afford anything. I am lucky that we are already saving for retirement and should be just fine by the time we hit that age.

    1. The thing is, we can all talk about the future, historical data bla bla BUT will that be the trend when we come to retire. I always like to think “anything can happen” be prepared. It can’t hurt.

  3. Thanks a bunch for mentioning my post!! It’s kind of scary when you think of it. Unlike our parents before us who’d work the same job for 20-30 years, it’s really rare nowadays. Many of my friends have already switched careers multiple times, after being laid off, etc. The traditional career paths are disappearing. And our kids have a lot easier access to credit now. So while it may look grim now, unless we act and take steps now to manage our own debts and educate the new gen, unfortunately, those numbers aren’t going to look any better.

  4. Mr. CBB, another great (albeit sad) post. We Americans are in the same boat. Eating dog food in retirement years is a reality for a great many people, and we think about this often as we work toward our goals of getting out of debt NOW and being as prepared as we can for retirement. Thanks for the reality check, Mr. CBB. It’s time to wake up and prepare for the future, people!

    1. Hey,
      Sometimes sad is what we need to give us that extra push, same goes when people see how much they spend every month on things they don’t need. You are right we need to prepare for the future “ourselves”. The Government might not be there to hold our hand, our health my deteriorate, our jobs may disappear. It’s all fine and dandy to have goals and say one thing or another but a PLAN B is always smart IMO> Cheers mate.

  5. You’re right, it’s pathetic and sad how unprepared the average Canadian is for retirement. I am lucky enough to have a DB pension through work, but here’s an odd fact. I have been very committed to achieving “Freedom 45”. But I can’t collect an unreduced DB pension until age 55. So, to get my pension, I’d need to stay at work — which would mean working for much longer than I’ll need/want to.

    1. From the time I started reading your blog until now you have and continue to go through changes in your life. The best part is you seem to be happier and optimistic about your future and you know, it’s good to hear that once in a while. Keep doing what you are doing my friend. Have a great weekend! Cheers

  6. Thanks for including my post Mr. CBB. I think that people are assuming to work later, but they should really be planning for the worst. In this situation, the worst is getting injured or sick and not being able to work that late. In that case a retirement plan that is too small may mean living retirement in poverty instead of relaxing.

  7. On the other side of things, I know people who are so passionate about what they do, they continue working even when forced to ‘retire’ at 65. The person I’m thinking of is over 70 years old and still actively managing a large company as the CEO. That won’t be me though, I’ll retire much earlier than that!

    1. Oh for sure there are many people who want to keep working. Our relative is in his 70’s and still working in law and justice. Some people who don’t know what to do with themselves and enjoy what they do don’t want to stop. On the flip side we all don’t know if we will be healthy enough to even make it that far hence why planning while we are young is important. It’s all fine and dandy to say what we think we will do or have to do in x amount of years but life has a funny way of messing things up. Many people are just not able to work any longer.

  8. My Dad waited until he was 66 to retire. The plant he worked at for years closed and he was out of work for a fair while so I think that set back of sorts had an effect on his thinking there. My husband has been off for just over a year now due to health issues and it doesn’t look like he’ll be going back any time soon if ever. He’s collecting CPP-D now and it’s money coming in but not a whole heck of a lot…..He has a pension from work and a locked in RRSP he can’t touch for the next few years. The pension is locked in as long as he is technically still employed. We are no rush to officially quit. The plant will hold his job for 2 years and we are almost 14 months into that….. Not sure what will happen after that, but I guess we will find out in time.

  9. Yo could have wrote this about me! I know I’ll be working at 65, not doing what I do now (34 years in IT is enough already) but I hope to start a second career in 5 years doing something I love to do, not have to do.

    1. Just like I mentioned to another fan.. that we all might not even be healthy enough to work at that age. It sounds great but preparing while we can is the optimal thing to do in my opinion. Here’s to a healthy life mate!

  10. I hope I won’t want to retire because I will be fully immersed in my own business! The most successful people I know personally are working well into their 60s and don’t have any interest in just sitting around and enjoying their retirement funds. Definitely change of lifestyle pace around 65, but not working at all sounds dull to me. I need a project going on at all times (get it?!)!

  11. Thanks so much for the mention Mr. CBB! I am just starting to get a little more serious with Google + myself, I’ll make sure to add you to my circle (or whatever it is they call it). It seems like just another thing to use, but from what I hear it’s growing in popularity.

  12. I think we are a generation of impatient kids who just want to move too high too fast. We want a big house right now, a big car, a state of the art computer… Our parents generally started in a small home, fixed it up, got a bigger one in their 40s once the kids were older, and generally delayed rewards until they could afford it. Starting a career in debt and putting more house on credit means it will take longer to dig yourself out of the hole

    1. That’s true we do want everything yesterday… funny though we don’t aim to have a bigger house especially as we get older. We want to travel and enjoy life and I find as we get older even though we are in our 30’s the desire to have the best is falling at the side.

  13. From the numbers, I’d guess that it isn’t that fewer people are interested in working past retirement age because they want to, but more people feel they will have to. As far as when I plan on retiring, well my grandfather made it to 74. I’m hoping I can manage the same.
    Oh, and thanks for mentioning my guest post on i Heart Budgets. 🙂

  14. I know a lot of people facing this predicament right now. I feel for the blokes who are builders or have other physical jobs because their bodies just aren’t up to it anymore, not fully anyway. Thanks for the mention mate, have a great weekend.

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