Celebrating Life: Ready for Retirement?

In every life, certain events loom large. A birth or death, a major move or job switch, a marriage or divorce. But one of life's most significant events will be problematic for more than one-third of Canadians 45 and older*. That event is retirement – and with so many baby boomers likely to enter into longer and more active retirements than any previous generation, preparing for those years assumes even more importance and complexity.

Most people would agree that retirement should be all about freedom – freedom from financial worries and freedom from working responsibility. Canadians are doing increasingly well at the dollars and cents of retirement – saving and investing enough to ensure the freedom of a financially secure retirement. But planning a successful and happy retirement reaches well beyond financial matters.

You've won your freedom, now what are you going to do with it? Among other things, you'll need to begin structuring your own activities, maintaining your network of friends and developing connections beyond your immediate circle of friends, finding new interests and sustaining your health.

Apparently, many of us haven't thought that far ahead. A recent survey* showed that 74 per cent of respondents who say they are 5 years from retirement are well prepared for the financial aspects of retirement, while just 4 per cent of all respondents say they are well prepared for the transition to a retirement lifestyle.

The survey revealed these weaknesses in personal retirement readiness:

Only 20 per cent of working Canadians 45 years and older have a strong commitment to activities outside of work.
30 per cent are not involved in activities outside work that give them an opportunity to make new friendships.
35 per cent spend less than 3 hours per week immersed in activities outside of work or passive entertainment such as reading or watching TV.

In the press of daily life, it's easy to focus on what needs to be done today and to worry about tomorrow when it comes. But when it comes to retirement, you'll be selling yourself short if you don't start planning for it today. That's especially true if you're so heavily engaged in your work you've neglected other aspects of your life. What happens when that huge chunk of your life that is work is suddenly taken away? If you've let your social network languish and lost your sense of connection with your community, you'll have a huge void to fill when you retire – unless you start renewing those connections now.

Take the time to become retirement ready by establishing and nurturing the non-financial elements of your life including friends, family and activities that will yield substantial quality-of-life dividends through all your retirement years.

Yes, you need to build up your retirement savings but you also need to take the time to develop social networks and personal interests that will support a fulfilling retirement.

Get a handle on your retirement readiness

The Investors Group Retirement Readiness^TM quiz at www.investorsgroup.com provides an opportunity for you to assess how prepared you are for retirement -- financially, emotionally, socially and physically. The quiz also lets you compare your retirement readiness with other Canadians. After taking the quiz, you will receive your retirement readiness score, as well as an evaluation of how you compare to other Canadians as well as advice on the steps you can take now to prepare for your retirement.

How ready are you for retirement? Take the interactive quiz and talk to a professional advisor about your life plans so that you get the most out of your retirement years.

* Survey by Decima Express for Investors Group. Results are based on a national telephone survey conducted with a representative sample of 540 Canadians (employed, 45 years and older) between October 20th and 31st, 2005. A sample of this size will provide results that can be considered accurate for the population overall to within plus or minus 4.2 per cent, 19 times out of 20.

A professional advisor can help make your plan work for you. (Submitted by Damon Smith, Investors Group Financial Services Inc.) For more information call 1.888.335.1362.

This column, written and published by Investors Group Financial Services Inc.(in Quebec – a Financial Services Firm), is presented as a general source of information only and is not intended as a solicitation to buy or sell investments, nor is it intended to provide professional advice including, without limitation, investment, financial, legal, accounting or tax advice. For more information on this topic or on any other investment or financial matters, please contact your Investors Group Consultant. Insurance products and services are distributed by I.G. Insurance Services Inc. (in Quebec – a Financial Services Firm). Insurance licence sponsored by The Great-West Life Assurance Company outside of Quebec.

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