Retirement has changed

For most of our modern lives, retirement was essentially a stripped down version of the life we were already leading. We would remove the daily toil and replace it with leisure: maybe a hobby, a bit of travel but the real objective was to give tired bones a well-deserved rest, and take the time to know the family again. You would most likely stay in the same house and in the same town, spending time with the same people and doing many of the same things you enjoyed when you were working.

It would be difficult to pinpoint a single reason for those retirement decisions, but they would certainly be tied to affluence, tradition and expectation in most cases. People often retired with a pension that may have come with some guarantees but at the same time would also limit the amount of discretionary income available. As well, retirement was based on a model that included a shorter life expectancy and closer family ties.

Today, retirees are living longer, and for many the concept of the nuclear family is a thing of the past. Children have spread their wings and are living in distant locations that aren’t feasible or desirable for their parents to follow. Family units themselves often don’t resemble the “Beaver Cleaver” ideals we grew up with, nor do the traditions that surround them. For some, this comes as a challenge, for others an opportunity.

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Retirement today has evolved into something quite different than that experienced by earlier generations. The weariness that comes with years of hard labour is difficult for most people entering retirement today to comprehend. There’s more time and more choices available to retirees than at anytime in history. We are living longer and much of the time living healthier. It’s common now to see folks in their seventies and eighties living active full lives. And for many, if their health is good why not continue to work? If not part time then in a career or business that one’s always wanted to try.

The thing about all these choices is that making the right ones comes down to advance planning. It’s about doing a realistic assessment of your health, of understanding your financial strengths and weaknesses, and deciding what’s important to you. Where retirement once meant giving up things, today it often means taking on new challenges. The opportunities and choices that exist for retired people are growing all the time.

So the key then, like we’ve discussed so often in the past, is planning. Understand where it is you want to get to, understand your challenges and opportunities. The destination is important but the journey is where true happiness lies. Retirement is no longer about accepting your circumstances and waiting out your time; it’s about making lifestyle, employment and social decisions in a way that guides you to the best retirement life possible. It’s about having the power to make those decisions

Life happens; whether we choose to play a role or not is entirely up to us.

This is for information purposes only. It is recommended that individuals consult with their financial advisor before acting on any information contained in this article. The opinions stated are those of the author and not necessarily those of Scotia Capital Inc. or The Bank of Nova Scotia. ScotiaMcLeod is a division of Scotia Capital Inc., Member CIPF.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.