Jim Green’s Retirement Reimagined makes the important point that while traditional retirement at 65 may not work (or be available) for everyone, there are other options, such as “intermittent retirement” or the FIRE approach, to consider.

In discussing the traditional “retire at 65” approach, Green writes that “more and more Canadians are discovering that having all the time in the world doesn’t necessarily make you happy. In fact, too much free time – without purpose, challenge or community – can leave you feeling lonely, bored and even depressed.”

But there are alternatives to traditional retirement, such as “the FIRE movement – Financial Independence, Retire Early” or the Travis McGee plan, “retiring in chunks. Picture this: work hard for a few years, save up, then take a full break.”

In the section on traditional retirement, Green notes that 65 “became the standard” for government retirement programs and company pensions because, years ago, “life expectancy wasn’t much higher…. In post-World War II Canada, a male teacher retiring at 65 had a life expectancy of just 66. One quiet year of rest – and that was it.”

While some people – notably those in public service jobs with defined benefit pensions – do fine with the traditional “retire at 65” plans, many others don’t. Green notes that the average registered retirement savings plan (RRSP) balance by age 65 is just $129,000. The Canada Pension Plan pays “roughly $9,600 a year” on average, he continues, with Old Age Security adding, on average, another $8,400 annually. Only 37 per cent of Canadians have a workplace pension, he notes. These modest amounts then must stand up to the “unwanted houseguest” of inflation.

The old model isn’t broken, but it has cracks, Green writes. If you are on the path to a traditional retirement, you need to ask yourself “what will I do with my time? How will I stay engaged, healthy and connected? Can I afford the lifestyle I picture – or is it based on assumptions from my parents’ generation?”

Planning helps. You need to know, in advance, your retirement income from all Canadian sources, Green writes. Max out retirement savings vehicles where you can and create a “purpose plan” to make the most of your free time.

Another approach is the FIRE plan, Green writes.

For this to work, you need to “earn a lot (or at least more than average.” You then “live on very little… FIRE fans are masters of minimalist living.” You need to “save aggressively – like 50 per cent of your income…. Your bank account grows while your social life… doesn’t,” he warns. This money must then be invested wisely. “No crypto. No lottery tickets. Just good old index funds, ETFs, and compound interest doing its thing over time.”

FIRE can work. The book cites the example of Priya in Mississauga, who was able to “retire” at 39, mortgage-free. “Freedom. No bosses, no commutes,” writes Green, adding that many FIRE devotees will still do part-time work they like to cover expenses, but are retired from full-time work they didn’t like.

On the negative side, FIRE “can also turn into a pressure cooker of frugality and spreadsheet obsession.” You will, writes Green, be saying no to things now “so you can say `yes’ later,” and driving a more modest car, but “the magic lives” in the moment where your investments cover your expenses. “That’s when you can start living differently, and you can do it decades before 65,” he adds.

The final idea presented in the book is the “retirement in chunks” or Travis McGee approach.

“Take on a risky but well-paying job. Earn enough for a comfortable break. Sail off, read, relax, restore. Repeat when funds (or purpose) ran low.”

“It’s a little like sabbaticals, seasonal work, or freelance life – but with better tans and more tequila,” Green adds.

Green describes “retirement in chunks” as a “middle way” between traditional retirement at 65 and FIRE.

“You work, when it suits your finances and your passions. You pause, to reset, travel, raise kids, study or just breathe. You return, not out of desperation, but because you’ve still got gas in the tank – and curiosity that needs satisfying.”

Interesting side benefits of this strategy include doing your travelling while you are young, rather than waiting until you are older and less healthy, Green writes. “When you live intermittently retired, you stay in the world. You meet people. You try new things and keep adding colour to your life canvas.”

This is a great book, particularly if you are younger and still planning your future life. The idea that there is more than one way to approach life after work is a strong one, and Green lays out the strategies clearly, with lots of references to Canadian resources, handy checklists, and a very good sense of humour. An excellent read!

No matter how you approach the inevitable end of full-time work, money will be very handy to the future you. As the book mentions, a mere 37 per cent of us have access to workplace pension plans. If you are among the 63 per cent who don’t have a workplace plan, the Saskatchewan Pension Plan may be just what you have been looking for.

You save the money in your SPP account, and we invest it, professionally, in a low-cost pooled fund. At retirement, you can choose from such options as a lifetime annuity payment or our flexible Variable Benefit.

Check out SPP today!

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