1 / 72

Has Retirement Outlived Its Usefulness?

June 14, 2007 – CPBI, Winnipeg. Has Retirement Outlived Its Usefulness?. Malcolm Hamilton Toronto. “The New Retirement Math”. “Canada’s New Retirement Reality”. “The whole notion of early retirement is being rejected”.

josh
Télécharger la présentation

Has Retirement Outlived Its Usefulness?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. June 14, 2007 – CPBI, Winnipeg Has Retirement Outlived Its Usefulness? Malcolm Hamilton Toronto

  2. “The NewRetirementMath” “Canada’sNewRetirementReality” “The wholenotion ofearlyretirementis beingrejected” The papers are filled with stories about the demise of retirement as we know it… Fidelity Investments BMO Podcasts Marty SimsEVP, HSBC

  3. “Retirement: it’s a word without meaning…the current group of retirees and soon-to-be-retirees are redefining the way people stop working—if they end their careers at all. Statistics Canada studies show more people are choosing to work longer.” Toronto Star November, 2006 “Nearly half of those in their 40s and 50s expect to continue working for as long as possible” The Globe & Mail May 23, 2007

  4. Retirement Those zany boomers – determined to work forever; eager to stay in debt. “Canadians told us it was about time to retire the word retirement. Retirement for this generation is different in that it is a more ‘fluid’ transition. And they aren’t going to wait until they pay off the mortgage. About two-thirds of Canadians expect they will still be in debt when they quit working.”Tina Di Vito, Director of Retirement Solutions BMO Financial Group

  5. Older workers a drain? Not a chance, study finds… • “The HSBC survey found that older Canadians perform more than $3.1 billion worth of volunteer work each year” The Globe & Mail May 23, 2007 • “According to Statistics Canada’s 1998 General Social Survey on time use, 3.2 million retirees spent about 5 billion hours doing unpaid productive work. The economic value to our communities is thought to be $60.2 billion each year.” Seniors at Work National Advisory Council on Aging, 2005

  6. Worried about population aging? “In fact, through taxation, volunteer work and the provision of care to family members, HSBC has found that those in their 60s and 70s are the foundations upon which their nations build.” The Globe & Mail May 23, 2007

  7. The secret life of Canada’s senior citizens…

  8. Seniors have half the income of working Canadians, yet they appear to be doing quite well…

  9. According to recent studies… • Poverty rates for Canadian seniors are among the lowest in the world • Poverty rates for Canadian seniors are substantially lower than poverty rates for other age groups

  10. Canadian seniors are frugal, not poor. They… • save prodigiously • give more to others than theyreceive from them • spend less and less as they age, evenas their gift giving and savings increase • spend relatively little time in institutions • leave surprisingly large estates

  11. Surveys suggest that… • seniors are relatively satisfied with their financial circumstances • they worry more about health and loneliness than money • they believe that their quality of life is better than the quality of life enjoyed by their children or grandchildren

  12. Surveys also suggest that… • the transition into retirement is easier than people expect • retired Canadians feel that they have more control over their lives than working adults and value the additional leisure time • retired Canadians miss work, and the employment income derived therefrom, less than they thought they would

  13. To understand why seniors are satisfied with small incomes while boomers are dissatisfied with large incomes, one must look not at the incomes, but at the demands placed upon them…

  14. When you look at both incomes and expenditures, seniors enjoy a standard of living comparable to working families, without having to work…

  15. and seniors exhibit a higher level of satisfaction with their lives than working people… Percentage of Canadians ReportingHigh Levels of Satisfaction with Their Lives Aging Well: Time Use Patterns of Older Canadians July, 2006

  16. Finally, despite the HSBC’s protestations, seniors are not large contributors to paid or unpaid work… • Seniors account for • 17% of the adult population • 3% of the workforce • 2% of employment income • the average senior spends about 0.5 hours per day on volunteer work, virtually the same as the average non senior

  17. Despite living longer, Canadians are retiring earlier…

  18. And the smarter they are, the earlier they retire…

  19. Once they stop working, what do elderly Canadians do with their spare time?

  20. Canadian men over the age of 75 did 4.4 hours per day less paid work than Canadian men between the ages of 55 and 64. The extra time was spent as follows…

  21. Good health is the characteristic that has the greatest influence on satisfaction. Among healthy older Canadians, those who were highly satisfied spent… • less time working (paid and unpaid) • more time watching TV, sleeping and in active leisure The differences, however, were not large

  22. Will retirement be redefined or will people simply retire earlier or later depending on what they can afford? But what of the future?

  23. To change retirement patterns, or the meaning of retirement, several things must happen… • people must be capable of working longer, • people must want to work longer, and • employers must want to attract and/or retain older workers. Are these thingsabout to happen?

  24. Can People Work Longer? Aging, Longevity and Retirement

  25. “100 Year Olds Bust Ad Myths”Calgary Herald, September 10, 2006

  26. 1875 – 1997 Jeanne Calment – the Oldest Known Human

  27. What is aging? • 20 years of maturation • 60 years of senescence(1) (1) the process of gradual physical and mental deterioration as people age

  28. “Thanks to modern medicine and better nutrition, old people are not getting old as quickly as they used to. The idea of settling into a rocking chair the day you turn 65 doesn’t appeal to today’s active senior citizens…” What we read...

  29. “There are no lifestyle changes, surgical procedures, vitamins, antioxidants, hormones or techniques of genetic engineering available today that have been demonstrated to influence the process of aging.” Position Statement On Human Aging What we learn in the real world…

  30. Why are people living longer? • Because better nutrition, public health, a reduction in warfare and advances in the treatment of disease have allowed people to live longer. • NOT because the aging process has been retarded or reversed.

  31. Put another way, • we have prolonged life by more than we have prolonged the onset of old age.

  32. The question… • should retirement be tied to longevity or to senescence?

  33. Of course, boomers want to believe that they, unlike earlier generations, are not growing old… • and there is no shortage of people who are prepared to tell them what they want to hear.

  34. The Boomer Effect: Turning a New Leaf September 30, 2006 What we read… “I’ve seen a huge change over the last few years. When I started at this job 25 years ago most of the patients were in their 60s and 70s. Now there are days when I don’t see anyone under 90.” Dr. Barbara Paris

  35. “The need for better community health care services is increasingly urgent because much of the pressure on emergency rooms is due to the rapidly aging population, the report noted. People age 75 or older have the highest—and fastest growing—rate of emergency room visits. Their problems are complex and in many cases require hospitalization in institutions that are already full to bursting.”National Post October 3, 2006 What we learn in the real world… Aging population putting pressure on ER, study finds

  36. “In terms of how people feel and what they are capable of, we believe that 70 can be said to be the new 50.” The Future of RetirementHSBC What we read…

  37. What we learn in the real world… “You always say you don’t want to be like your parents but this particular generation won’t be much different from the older people 40 years ago.” David FootHamilton SpectatorMarch 1, 2006

  38. Changing attitudes – do people really want to work past 65, or do others want them to believe that they do?

  39. What we read… “Let workers stay on the job past age 65 – Bank of Canada governor.” Canadian Press March, 2007

  40. What we learn in the real world… “I turn 65 next year. I’m going to take a bit of a rest after 40 years of working without a break.” Dave Dodge Financial Post April, 2007

  41. End of forced retirement changes face of workplace December, 2006 What we read… “In the old days, Don Dewees, 65, would have been cleaning out his office and getting ready for retirement. But in today’s world, where 60-somethings are the new 40-somethings, the University of Toronto professor has no plans to slow down”.

  42. What we learn in the real world…

  43. The Boomer Effect: Turning a New Leaf September 30, 2006 What we read… “The boomers are saying, ‘I’m not going to Florida to sit at the pool and play cards all day’.”

  44. What we learn in the real world… • Increase in Florida property prices: 2000 – 2005 • Average price of a single family home in Victoria, B.C.: $520,000 in October 2006 100%+

  45. Early retirement becoming a trend of the past. May 29, 2006 What we read... “The trend toward early retirement, which peaked in the late 1990s, has ended…”

  46. What we learn in the real world…

  47. Boomers are planning new careers after they leave their jobs. September 24, 2005 What we read... “Baby boomers are increasingly redefining retirement, by looking at it as a career change rather than an extended vacation plan, research suggests.”

  48. What we learn in the real world…

  49. And, of course, there are many examples of people who are working for as long as they can… Kirk Kerkorian Warren BuffettBillionaire Billionaire90 76 Stephen Jarislowsky Benedict XVIBillionaire Pope80 80 Clint Eastwood Elizabeth IIActor/Director Queen77 81

  50. Are employers interested in attracting and/or retaining older workers?

More Related