Aug 14: BEST FROM THE BLOGOSPHERE
August 14, 2023
Saving for retirement “is only part of the puzzle,” reveals Edward Jones research
Today’s retirees aren’t having an easy time of it like their predecessors, but are dealing with “curveballs, cannon balls and windfalls,” reports a new study carried out by Edward Jones.
The study’s results are covered in a recent article in Wealth Professional.
On the plus side, the findings from the firm’s latest Age Wave study suggest that Canadian retirees are focused on “health, family, purpose and finance,” the article notes.
And, says Edward Jones’ David Gunn, millennials are taking note of how retirees are dealing with post-work life.
“Eighty-five per cent of millennials agree that applying what retirees are learning right now would be helpful to them. So, millennials seem to recognize that retirees are going through a lot right now with respect to retirement plans and they want to learn from them. That’s a really good finding,” he tells Wealth Professional.
However, the study did note that while having goals in retirement is a positive, having a budget is also of critical importance.
“Saving for retirement is only part of the puzzle. The biggest challenge is figuring out a retirement budget,” the article explains.
On the activity/lifestyle front, those surveyed suggested that pre-retirees “test-drive their retirement activities before retiring.”
The survey also suggested that retirees “consider working in retirement,” even if they don’t need the money, the article notes. “It can improve their quality of life… by helping them keep an active mind and maintaining a strong sense of purpose,” the article reports.
The research found that the most successful retirees seem to embrace flexibility in their golden years, the article adds.
“Ninety-two per cent of retirees said that preparation, flexibility, and willingness to adapt were keys to success in retirement,” Gunn tells Wealth Professional. “So, they’re making course corrections in all four pillars of health, family, purpose, and finance.”
Their focus, the article continues, is on “healthier diets, doing regular exercise, and finding mental stimulation. They’re spending more quality time with family and less in unhealthy relationships.”
This is all very insightful.
On the idea of “test-driving” retirement activities, we might add a suggestion — why not test-drive your retirement budget? Before you retire, spend a month or two living on what you think your retirement income is going to be. That way, when you leave the workforce, you won’t be surprised, but prepared.
Friends of ours did this when buying their first home. They were worried what it would be like paying a mortgage, and thus, having less to live on. So, for six months before they started their mortgage, they banked the difference and tried living on the lesser amount. The plan worked perfectly — they had a stress-free transition to home ownership.
More is always good when it comes to retirement income. If you don’t have a pension program at work, and are saving on your own for retirement, why not consider partnering with the Saskatchewan Pension Plan? This do-it-yourself pension plan will invest your retirement savings in a low-cost, pooled fund, grow them, and when the time comes, help you turn those saved dollars into retirement income! Check out SPP today!
Join the Wealthcare Revolution – follow SPP on Facebook!
Written by Martin Biefer
Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.