The appeal of retirement requires Quebecers to re-examine their priorities

L’appel de la retraite oblige les Québécois à revoir leurs priorités

In the coming years, over a million Quebecers will be retiring. Several will leave easily the job market thanks to a group savings plan and savings in an RRSP. But the vast majority of workers who do not have this type of plan, will have to plan their assets very early in their life to avoid a retirement financially difficult.

“There is a real craze of Quebec, a little to the last minute, however, to take charge of their retirement. This is positive, insofar as they will now have to consider living with their economies at least 20 years after their withdrawal from the market of the work “, says Fabien Major, financial planner and co-author of the book Special retirement : 99 thing$ to enrich themselves.

According to Retired Quebec, in 2017, a Québécois of 65 could expect to reach 85 years old, and a Quebec, age 88.

Book practice

In order to better equip canadians to this new reality, The Editions of the Journal have just published a book that is a must for those who wish to prepare their finances accordingly.

In investigating many cases of figure, the seven expert co-authors, as Fabien Major, offer advice on the different steps to follow to ensure you can retire golden brown and an end-of-life comfortable.

“We want to explain to future retirees how to survive to their holdings. Give them the means to assess if delaying the moment of his retirement is financially advantageous, if a return to part-time work is desirable, and whether to transform the dreams of beaches and coconuts in reality is possible, ” says the editor of the book, Mylène Des Cheneaux,

Saving for retirement

Fortunately, Quebecers have recently found the way of savings. The savings rate in Quebec has now reached 6.2 per cent, a level not seen since 1996, there are nearly a quarter of a century.

People understand better the concept of registered retirement savings plans (RRSP) and TFSA’s. But the savings rate could easily decline if revenue decreases and expenses rise sharply.

Debt retirement

A fragile financial situation can create a lot of problems in retirement. Today, the proportion of families of elderly persons (65 years and older) with debt has increased from 27 % in 1999 to 42 % in 2016. In 1999, the median debt was $ 9,000 and it has climbed to $ 25,000 by 2016 (in constant dollars (2016). Many retirees still have a mortgage debt. And the situation has not improved in recent years.

“What worries me, it is the proportion of the insolvencies of the 65 years and older has surged from 10.5% in 2015 to 13.1 % in 2018, and that exceeds all other age categories,” highlights Emmanuelle Grill, also a co-author of the book Special retirement : 99 thing$ for money and a columnist for the Journal.

“Contributing to this book, I want to empower people to better manage their assets before retirement, but also during the retreat,” concludes Emmanuelle Grill.

Bye Bye boss

Preconceived ideas about the retirement have a hard life. And the publication of this book, a collective of seven professionals is timely to empower the young adults and older people to plan all the financial aspects of retirement.

Who does not want to say proudly to the famous “Bye Bye Boss” while having the means to enjoy them without too much financial concerns ?

5 myths about retirement

  • The retirement life will cost less.
  • It is enough for me to have a prudent investment.
  • My savings need to last 20 or 25 years.
  • My house is my pension fund.
  • I will decide the time of my retirement.

Extracts

Special pension: 99 thing$ for money
Editions of the Journal
219 pages.”>

Special pension: 99 thing$ for money
Editions of the Journal
219 pages.

  • “Too many Quebecers still use magical thinking to plan for their retirement. Moreover, just over half of them have already calculated the amounts they will need to have a reasonable income at this stage of their life. “
  • “Some baby boomers have not been easy, but they may have been bailed out in time by selling their house in a rising market. “
  • “We often hear that in order to live comfortably in retirement, it is necessary to provide an income equivalent to 70% of what we earned during his active life. Is it a myth or a reality ? “

In this book

  • To finance his retirement
  • Working during retirement
  • The dangers of debt in retirement
  • Real estate and retirement
  • Heritage and succession
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