The Challenges of Being a Young Boomer
By in

The Challenges of Being a Young Boomer

In addition to facing misconceptions around their youth in the workplace, a recent survey found that over one-fifth (21 percent) of Canadian young boomers (aged 55 to 64) have not saved anything for retirement. Interestingly, the figure is nearly identical in the United States, where nearly one-fifth (17 percent) focusing on increasing their earnings in pre-retirement to fund their retirements.

The 2019 Retirement Income Strategies and Expectations (RISE) survey by Franklin Templeton found that nearly half of Canadian and American young boomers (46 and 48 percent, respectively) would postpone retirement for financial reasons.

As the percentage of experienced professionals in Canadians aged 50+ reaches nearly 1 in every 3 Canadians, more young boomers are returning to the workforce on their terms, to continue to stay engaged and maintain their earning power.

As baby boomers continue to extend their working years companies will need to plan succession strategies that enable experienced professionals to work into retirement. A recent pool by Harris Insights & Analytics found that half of baby boomers don’t believe a proper successor is in place for when they retire. As well, 40 percent of working baby boomers indicated they would retire later than planned because they want to continue working and/or increase their savings.

New Benefits to Working While Retired
By in

New Benefits to Working While Retired

The recently released federal budget has a few new wrinkles. The Liberal government announced changes in the budget that will benefit those working through their retirement.

In particular, the federal budget allows working seniors to keep more of their income before triggering a claw-back in the Guaranteed Income Supplement (GIS). Under the old rules, eligible seniors and their spouses can only earn up to $3,500 a year per person before triggering a reduction in GIS benefits, and earnings from self-employment were ineligible for an exemption.

Under the new rules eligible seniors can earn up to $5,000 from any combination of employment and self-employment income before the government rolls back benefits.

The changes come into effect in July 2020 and will cost the federal government close to $1.8 billion over four years.

Another development is a proposal to introduce ‘advanced life deferred annuities’ or ALDAs to seniors. These annuities would pay out a set amount once activated on a
specific date. Currently annuity payouts must start by age 71.

With an ALDA however, Canadians could defer payouts until their 85 th year of age. The measure was proposed to try help Canadians keep more money in their registered retirement income funds (RRIFs) for longer.

Overall, this is welcome news to those who are working while retired. A lower tax bill encourages more engagement in the economy at a time when life spans are expanding, and experienced professionals have a lot to offer and companies that
need their wisdom.

How Many People Are Retiring?
By in

How Many People Are Retiring?

In the United States alone, close to 10,000 boomers are retiring every day. While that may seem like an inflated figure, according
to Pew Research and the Social Security Administration it’s accurate.

This begs the question – are North Americans prepared to live comfortably post full-time
career?

While there is no easy solution, there are services that work to leverage the skills of experienced professionals in a way that suits their lifestyle.

Whether it’s entrepreneurship, contract work, volunteering or board advisory, there are many roles that would benefit from the vast experience and knowledge possessed by recent retirees.

Flex-Time Work Desired By Boomers
By in

Flex-Time Work Desired By Boomers

The Globe and Mail recently reported that Baby Boomers are seeking shorter-term employment to supplement incomes and pursue their passions.

In particular, older part-time workers are more likely to find jobs in management and finance roles as companies struggle to adopt retirement transition plans for senior leadership.

In another sign that the Boomer brain drain shows no signs of abating, the article reports that “The share of older Canadians in the work force is only going to keep growing.”