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.

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The book Retirement Reimagined by A. Cameron Strong is a fact-filled, well-written and clear walkthrough of all facets of retirement – from saving up, to living off the savings, and even on to the tricky phase of estate planning, wills and executor duties.

To answer the classic question of how much to save for retirement, the author first explains how you need to know what you are spending now (before retirement) as well as what you expect you’ll spend once retired.

He provides a handy checklist of fixed, discretionary and unexpected expenses you may be facing. Then, you need to think ahead to what income you’ll get in retirement – money from registered retirement savings plans (RRSPs), Tax Free Savings Accounts (TFSAs), registered retirement income funds (RRIFs) and their locked-in cousin, the Life Income Fund (LIF), insurance, annuity income, and maybe rent from a rental property.

There will also be money coming in from the Canada Pension Plan (CPP), Old Age Security (OAS) and for some the Guaranteed Income Supplement (GIS); others may receive workplace pension benefits.

Subtract future expenses from future income, he suggests.

“If this number is a positive, congratulations! You now know what your income number must be to cover off your expenses in retirement and you have a plan or have already reached your savings and retirement goals,” he writes. But if the number is negative, “you are not living within your means. You will need to find ways to cut your expenses or boost your income to avoid going further into debt before you retire,” he warns.

Ways to cut costs during your working years include “downsizing to a smaller dwelling or moving to a more affordable province or country,” or going to one car from two, and “paying off credit card debt immediately to save on high interest charges,” he writes.

Knowing what you need to cover your expenses is key to establishing a savings target, writes Strong. Many financial institutions suggest you need to save eight to 10 times what your last annual income was, he says – so for a family “with a combined family income of $130,000 per year,” the savings target would be $1.04-$1.3 million, he explains.

The book covers investments, ranging from low-risk, interest-bearing investments like bonds and guaranteed investment certificates and precious metals, like gold and silver, on to higher-risk categories.

Strong notes that gold and silver can be good investments in challenging economic times.

“Gold has an important economic role as a means of exchange should current collapse,” he explains. Gold and silver can be bought physically – apparently even at Costco – or via stocks in gold mining companies or exchange-traded funds that own precious metals. He calls these “paper gold and silver,” and says they are easier to buy and sell on the stock exchange and don’t require secure storage.

Higher risk investments (and the author recommends you get professional advice before entering into this category) include crypto, currency trading, real estate investment trusts (REITs), junk bonds, venture capital, penny stock and options.

Bitcoin, he warns, has had a wild ride in pricing. “In 2017 bitcoin was trading at around $3,000 U.S. Then it went as high as $60,000 U.S. in 2021 before `crashing’ down to close at $17,000 U.S. in 2022.” He adds that central banks remain on the fence about crypto, and some countries have even banned it.

He spends some time on do-it-yourself investing and its pros and cons.

“Do you have enough skills and knowledge to make sound decisions,” he asks. Are you being too conservative (losing out to inflation) or “not conservative enough?”

Is DIY your best long-term option, and what will you do “if you are no longer able to manage your own investments due to health issues.”

An option for DIY investors, he writes, is to go “hybrid” and have some of your investments managed professionally by a third party.

“Good investing is about the long-term experience and trying to avoid mistakes along the way that could damage your investment portfolio. It is vital to keep learning, researching and trying new strategies. But do so carefully and with knowledge and professional help!”

In a chapter on investing for retirement, he talks about borrowing to contribute to an RRSP.

“Who should be taking advantage of the RRSP loan strategy? Anyone who wants to make an RRSP contribution for the previous year in the first 60 days of the new year, has less cash on hand than they’d like to contribute, and has sufficient RRSP contribution room. And this is crucial: you are disciplined enough not to spend the refund.”

In a chapter about RRSPs and RRIFs, he makes another good strategic point.

There is an annual minimum withdrawal amount that kicks in a couple of years after you start your RRIF. If you don’t need that income, “you can deposit any excess cash or securities in-kind to a non-registered account.” From there you can consider moving the funds to a TFSA “to benefit from tax free growth.”

On annuities, Strong writes that an annuity “provides some income stability for the retiree when stock markets and other investments are volatile. It pays out the same amount no matter what is happening in the capital markets.” He says most financial advisors suggests an annuity should provide 30 per cent of your retirement income.

There’s a great chapter on wills, and a checklist showing the duties of an executor that sadly is becoming something more and more frequently needed as this writer leaves his mid-60s behind. Trust us, when a loved one passes, there is a lot of paperwork required.

Strong notes that “if a parent, relative, or spouse passes away the spouse or child of that person is not responsible for any debt held by that individual if it is not joint or co-signed.”

At the end of this excellent book Strong focuses on the need to stay healthy and focused in retirement. “You need a goal or a series of goals, something with purpose because that’s what makes life meaningful,” he advises. “Explore and find your niche!”

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