It’s time to eliminate mandatory RRIF withdrawals!

We are all familiar with RRSPs (Registered Retirement Savings Plans) and many of us know they must be wound up by the end of the year in which you turn 71. RRSPs are then converted to RRIFs (Registered Retirement Income Funds). Our illustrious government requires us to begin to withdraw a minimum amount each year from our RRIFs and the percentage required to withdraw increases annually.

I thought I might change things up a bit and inject a little humor into “aging”. Here are some things that have crossed my mind in the past few months that could be considered perks:

• Kidnappers are not interested in me.
• People offer to carry things for me, and I accept.
• In any hostage situation I’m pretty sure I would be released first.
• I get a 20% discount at my local drug store on Tuesdays.

There are many people who count down the days until they are free from commutes, bosses, meetings, paperwork, obnoxious coworkers and difficult customers. They look forward to a life that does not involve an alarm clock and where leisurely mornings before going to the gym are the new normal. Modern day retirement can also be a scary prospect for some. For some work is a job, a pay cheque. For others if provides meaning and purpose

We’ve been doing a lot of research here at The Experience Group over the past couple of years.
Do you remember back in 2012 when Stephen Harper proposed raising the age of eligibility for OAS from 65 – 67? He suggested the changes be phased in from 2023 to 2029. Then our current Prime Minister…

Get your motor runnin'
Head out on the highway
Looking for adventure
In whatever comes our way (Steppenwolf)

Baby Boomers were born to be wild and by all estimations our retirement will be even wilder, as we pioneer a new perspective.

I was shopping earlier this week and while trying on a few items a lovely young girl who was helping me said, “you look good for your age”. I paused for a moment and wondered if this was an unintentional backhanded compiment or did she even realize what she was saying.

Is this really problematic? Maybe, I’m overreacting but a few thoughts have crossed my mind since.

I recently read an article in what I thought was a reputable publication until I saw this heading.
“Outdated Things Boomers Always Keep and Use”.

The writer actually suggested that as time marches on and technology continues to grow that we, the Boomers, like to hang on to the “relics” of the past. Apparently, we have a penchant for hanging on to the familiar. I would suggest that each generation does the same in their own way. The author said they are a reminder of “simpler time”. Well, if all of this isn’t ageist enough, here are some of the items we relics are holding on to.

Older workers aren’t lame ducks or relics. All across the globe, populations are skewing much older than in the past. Today, a reasonably healthy 65 year old can expect to live into their 90’s and in just a few short years 25% of the workforce may be 55 and older. Some choose to continue to work and others keep working because they can’t earn enough in a 40 year career to support themselves if they live into their 90’s. This longevity is not a problem but an opportunity for companies who are willing to change.

Within a single generation the concept of retirement has been changed forever. For some of you, your parents may have held a handful of jobs in their careers. They might have even employed by a single company for decades before retirement became inevitable.

In those cases, there would have been some kind of party celebrating their efforts, a few gifts and handshakes exchanged before they left the building for the last time and woke up on Monday morning ready to ………

Today in Canada, more than one in five working adults are nearing retirement. Clearly this will, and is, creating significant challenges for our workforce – a workforce that is now older than it has ever been. The implications are obvious and certainly one factor contributing to our labour shortages.

The “retirement” system is broken. We all know that people are living much longer and most need or want to work later in life. And while some might disagree, most can only spend so much time on the golf course or walking on the beach. Even coffee with your spouse every morning and planning the day may be losing its luster.

Statistics Canada recently shared that more than one in five adults is now “nearing” retirement. I suppose if you view retirement as the destination we have been programmed to believe it is, then using the word “nearing” might make sense. In my lifetime, I don’t recall describing myself as “nearing” grade one, high school, college, university, marriage, or parenthood or describing any of these stages as final destinations.

A growing number of people 60+ are postponing their retirement. Plenty are launching second careers in spite of ageism rearing its ugly head. Some are going back to school and training for their next adventure or taking up something new for the first time. This point of life is not the beginning of the end. It’s a new beginning to a story that has at least 20 years to unfold. A story you can write for yourself.

And yes, I have personally heard a version of these on more than one occasion:

Myth #1 Older workers won’t sick around
Fact: In fact, today older people tend to be more loyal and stick around longer. The younger generations will continue to move around many times as they work to acquire new skills and find their path. Research suggests that workers over 50 years old are 5 times less likely to change jobs compared to people 20-24. An older

I see these words often in a variety of forms from the financial services industry. The majority of these programs and reports are focused on the financial side of retirement. It’s obvious that no one can be really ready for retirement if they only look at the money.

Because retirement isn’t the destination it used to be. Today, you could find yourself with 30 years ahead of you. Think about that! 30+years! That’s A LOT of time. And let’s say that you do manage to save up enough money are you really ready? Do you even want to retire at all? Some people are completely prepared for the financial side of retirement. Most are not prepared for the non-financial side of things. And it is the non-financial side that ultimately determines if you thrive or just go through the motions for yes, that’s right, about 30 years!

Ok, I’ll admit that I’m a bit of a fan when it comes to some of the talent shows on TV. I remember in 2009 when Susan Boyle walked on the stage and of course most viewers were wondering how this “older” individual would perform. She was a 48-year old unknown that belted out a Broadway musical hit. We were all caught by surprise and have been programmed to expect this kind of performance from someone young and beautiful.Fact is, you are never too old to make your mark. Not convinced? Keep reading……

Peter Drucker came up with the term “knowledge worker” in the late 1950’s long before computers and other forms of technology even existed. He was referring to problem solving and critical thinking skills. Drucker believed that knowledge workers were intelligent, focused on finding the truth and focused.

Today, we are flooded by knowledge coming at us from every direction. What we really need is a dose of wisdom in our workplace. At the Experience Group, we refer to these wisdom workers as Silver Seals….

Ours is a youth-obsessed culture and the work place is no exception. A recent survey from the US found that roughly two thirds of workers over the age of 50 said they believed older workers face age discrimination at work. The theme is shared here in Canada as well.

We’ve heard from many since our firm was founded:

Ageism is one of the most unfair paradoxes in the labor market. Individuals put decades of hard work and then find themselves penalized for doing so.

Organizations have programs for emerging leaders, up-and-comers and high-potential middle managers, but we aren’t hearing much about development opportunities or career paths for those over 50. Disregarding ongoing training or development or assuming someone is heading out the door once they turn 65 is a missed opportunity.