#delayed retirement

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DELAYED RETIREMENT A NEW TREND: CAN GIVING MONEY TO ADULT CHILDREN COMPROMISE YOUR RETIREMENT?

DELAYED RETIREMENT A NEW TREND: CAN GIVING MONEY TO ADULT CHILDREN COMPROMISE YOUR RETIREMENT?

Delayed retirement a new trend:  Introduction

Parents never stop wanting to help their children but there is a growing trend which can compromise the retirement of some seniors. It seems that many adult children are still financially reliant on their parents and treating them like an ATM.  This makes delayed retirement a new trend.

Parents are paying for their adult children’s rent, cars, cell…

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Which Employees Are Delaying Retirement and Why?

"Retirement patterns are changing in the U.S. and in many other countries as well. During the mid-to-late 20th century, labor force participation rates dropped for older workers and rose for younger ones. These trends have recently reversed, especially among men and younger workers."

"The reversal is expected to continue, according to Towers Watson’s 2013/2014 Global Benefit Attitudes Survey (GBAS). Increasing numbers of employees are postponing retirement, many driven by financial necessity. And many of the employees putting off retirement tend to fit a certain profile: less healthy, highly stressed and disengaged from their jobs."

"Plan type affects retirement timing as well, with defined benefit (DB) plan participants retiring earlier than employees with only defined contribution (DC) plans, even where counter influences exist. These findings have implications for employers as they provide some indications of which employees are likely to delay retirement and why."

Towers Watson, September 25, 2014: "Which Employees Are Delaying Retirement and Why?," by Steve Nyce [click here to down the PDF version, 8 pages]

"By now, anyone who regularly reads about Social Security likely knows that delaying benefits until age 70 allows them to reach their highest level."

"But it’s a whole lot less likely that they know about being able to begin taking benefits early, stopping them at age 66, and enjoying the benefits of delayed retirement credits until age 70."

"Larry Kotlikoff, an economics professor ... provides a useful and detailed explanation of the start-stop-start strategy."

Money, October 13, 2014: "This Little-Known Social Security Strategy Can Boost Your Retirement Income," by Philip Moeller

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Canada’s Boomers Short of Hitting Retirement Goals: Report

"Canada’s Baby Boomers have some major catching up to do if they want to meet their retirement goals, says a new study. Boomers are, on average, $400,000 short of their $658,000 nest egg retirement goal, according to the survey by the BMO Wealth Institute."

"Using Statistics Canada figures indicating the average senior couple spent $54,100 in 2009, the report says a retired couple would need to have saved about $1.35-million to generate that $54,100."

"... Strategies to generate more income include delaying retirement; taking on a part-time job to earn extra money after retirement; selling off collectibles, antiques and other possessions; selling the home or renting out part of it."

"The study also found that 46 per cent of those surveyed are not confident they will be financially all right in retirement. That’s up from 20 per cent in 2006. And the survey results suggest that Boomers would like to retire, on average, at the age of 59 but figure they will have to stretch that to 63."

The Globe and Mail, August 28, 2013: "Canada’s boomers woefully short of hitting retirement goals: report." by Bertrand Marotte

The Globe and Mail, August 28, 2013: "Will boomers go broke in retirement?" [video]

The Globe and Mail, August 26, 2013: "Debt burden climbs as older Canadians borrow more: report," by Bertrand Marotte

On a positive note, Philip Cross and Ian Lee urge Canadians to "[i]gnore the scare tactics. Canadians can afford retirement."

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Study: Holding Off Retirement May Ward Off Dementia

"New research boosts the “use it or lose it” theory about brainpower and staying mentally sharp. People who delay retirement have less risk of developing Alzheimer’s disease or other types of dementia, a study of nearly half a million people in France found."

"... The conclusion makes sense. Working tends to keep people physically active, socially connected and mentally challenged – all things known to help prevent mental decline..."

"Heather Snyder, director of medical and scientific operations for the Alzheimer’s Association, said the study results don’t mean everyone needs to delay retirement. 'It’s more staying cognitively active, staying socially active, continue to be engaged in whatever it is that’s enjoyable to you' that’s important, she said."

The Globe and Mail, July 15, 2013: "Holding off retirement may ward off dementia, study finds," by Marilynn Marchione

Alzheimer’s & Dementia Prevention: How To Reduce Your Risk and Protect Your Brain

Perhaps we should see what our friends across the pond are up to, since "more than 20 per cent fewer over-65s are suffering from dementia today [in the UK] than was predicted 20 years ago. Research led by Cambridge University (8 pages, PDF) suggests the prevalence of dementia has dropped 1.8 per cent to about 6.5 per cent of the population."