WelcomeWelcome
HRPAN HRPAN
Presented byPresented byAv LiebermanAv Lieberman
forforThe Retirement Education Centre Inc.The Retirement Education Centre Inc.
Preparing Your Preparing Your Employees for the Employees for the “New” Retirement“New” Retirement
Lifestyle Transition PlanningLifestyle Transition Planning
• Traditional retirement (does not exist Traditional retirement (does not exist anymore)anymore)
• The “New” RetirementThe “New” Retirement• Any Any new life structurenew life structure or change or change
– semi-retirementsemi-retirement– new careernew career– new businessnew business– volunteeringvolunteering
Relationship Between Work Relationship Between Work and Retirementand Retirement
Retire Retire to to SomethingSomething
Not Not from from SomethingSomething
Develop a “Game Plan”Develop a “Game Plan”
“ … for many people,for many people, a joba job is crucial is crucial psychologically, over and above the psychologically, over and above the paycheck. By making clear demands paycheck. By making clear demands
on their time and energy, it on their time and energy, it provides an provides an element of structure around which the element of structure around which the rest of their lives can be organized”.rest of their lives can be organized”.
Alvin Toffler, ‘The Third Wave’
““Individuals needIndividuals need life structure.”life structure.”
Understanding Life’s 3 StagesUnderstanding Life’s 3 Stages
Grow & LearnGrow & Learn
Work & LearnWork & Learn
Do what you wantDo what you want
The 5 Functions of WorkThe 5 Functions of Work
1.1. Financial StabilityFinancial Stability
2.2. Time ManagementTime Management
3.3. Sense of UtilitySense of Utility
4.4. SocializationSocialization
5.5. StatusStatus
The Relationship Between The Relationship Between Work and Life MotivatorsWork and Life Motivators
What makes me get up in the morning?What makes me get up in the morning?RecognitionRecognition
Express myselfExpress myself Problem solvingProblem solving
Be listened toBe listened to Compete/winCompete/win
Be creativeBe creative Learn Learn
OrganizeOrganize Make decisionsMake decisions
Lead othersLead others Take calculated risksTake calculated risks
Socialize/work with othersSocialize/work with others
The Need for Life StructureThe Need for Life Structure
“ “ If you are what you do, If you are what you do, then when you don’t you then when you don’t you
aren’t”aren’t”
- Dr. Wayne Dyer- Dr. Wayne Dyer
Part Time WorkPart Time Work
Lifestyle Lifestyle Practising full Practising full
retirement - transition retirement - transition from full time work to from full time work to
full time otherfull time other
FinancialFinancialReplacement of day-Replacement of day-to-day expenses, but to-day expenses, but no longer saving for no longer saving for
retirementretirement
Personal Personal Goals Goals
ExerciseExercise
Life Choices
Knowing Your Strengths and
Transferable Skills
Lifestyle Transition Lifestyle Transition PlanningPlanning
• Making ChoicesMaking Choices
• Planning for the TransitionPlanning for the Transition
The “New” RetirementThe “New” Retirement
is a new beginningis a new beginning
(Transition) (Transition)
AgendaAgendaTwo QuestionsTwo Questions
What will I do?What will I do?
Will I have Will I have enough?enough?
Lifestyle Transition Planning Lifestyle Transition Planning
Question #1Question #1
What will I do?What will I do?
Retirement - For me?Retirement - For me?
Can I Can I
afford itafford it??
The Real QuestionsThe Real Questions
• What do I really like to do?What do I really like to do?• What will keep me motivated?What will keep me motivated?
• How will I spend my time?How will I spend my time?
• How will I react to not having a How will I react to not having a job?job?
• Part time work, is it for me?Part time work, is it for me?• How will my family be affected How will my family be affected
by my retirement?by my retirement?
LetterLetter to Yourself to Yourself
““10 Years from now, 10 Years from now, I will be...”I will be...”
Lifestyle Transition PlanningLifestyle Transition Planning
The next 30 years of your life The next 30 years of your life amounts to 262,800 hours of your amounts to 262,800 hours of your
time. How well do you want to time. How well do you want to live it?live it?
Researchers Say...Researchers Say...
A study of life satisfaction looked at A study of life satisfaction looked at twenty different factors that might twenty different factors that might
contribute to happiness. Nineteen of contribute to happiness. Nineteen of these factors did matter, and one did these factors did matter, and one did
not. The one factor that did not not. The one factor that did not matter was financial status.matter was financial status.
Hong and Giannakopoulos 1995Hong and Giannakopoulos 1995
Lifestyle Transition PlanningLifestyle Transition Planning
The earlier you begin the The earlier you begin the planning process, the planning process, the
more life choices more life choices (options) you have!(options) you have!
To Develop A Satisfying To Develop A Satisfying RetirementRetirement
• Develop a vision of the next stage Develop a vision of the next stage of your lifeof your life
• Develop the structure that will help Develop the structure that will help you satisfy your needs and you satisfy your needs and motivatorsmotivators
• Develop a game plan to help make Develop a game plan to help make the transitionthe transition
Lifestyle Transition Planning Lifestyle Transition Planning
Question #2Question #2
Will I have Will I have enough?enough?
A pension plan:A pension plan:• notnot a retirement plan. a retirement plan.• intended to provide forintended to provide for
basic necessities.basic necessities.
Day-to-day expenses Day-to-day expenses Corn Flakes $$Corn Flakes $$
Monthly Income Monthly Income Lifestyle I WantLifestyle I Want
Capital Capital Lifestyle I WantLifestyle I Want
Capital $$Capital $$
to Fund Special Life Eventsto Fund Special Life Events
Children’s education and Children’s education and weddings; travel; weddings; travel; cottage; home cottage; home renovations; new car.renovations; new car.
Lifestyle I WantLifestyle I Want
Special Life Special Life Events Events
MonthlyMonthlyIncomeIncome
“ “Day-to-Day Retirement Amount”Day-to-Day Retirement Amount”
Family IncomeFamily Income $ 80,000$ 80,000[[40,000 (Bill) + 40,000 (Barb)]40,000 (Bill) + 40,000 (Barb)]
Family “Taxable Income”Family “Taxable Income” $ 66,000$ 66,000(line 260) (line 260)
Less:Less:Tax Payable (line 435):Tax Payable (line 435): $ 16,000 $ 16,000
Mortgage (P. & I.):Mortgage (P. & I.): $ 15,000 $ 15,000
Bank Loans & Credit Cards:Bank Loans & Credit Cards: $ 5,000 $ 5,000
Children Expenses:Children Expenses: $ 6,000$ 6,000
Equals: Equals: “CORN FLAKES $$”= “CORN FLAKES $$”= $ 24,000$ 24,000
Learning about YourselfLearning about YourselfNew Career Ideas/VolunteerismNew Career Ideas/Volunteerism
• As a result of retiring what new As a result of retiring what new career or job opportunities might career or job opportunities might you consider?you consider?
• Is part time work an option?Is part time work an option?• What volunteer activities might you What volunteer activities might you
consider as an activity in consider as an activity in retirement?retirement?
Learning about YourselfLearning about YourselfWhere do I want to live?Where do I want to live?
• Where do you want to live when you Where do you want to live when you retire?retire?– What is your preferred option? What is your preferred option? – What is your least expensive option?What is your least expensive option?
• Will this have a financial impact?Will this have a financial impact? – If so, what is the estimate of the financial If so, what is the estimate of the financial
impact?impact?
Learning about Yourself Learning about Yourself Hobbies and InterestsHobbies and Interests
• What types of hobbies and exercise activities What types of hobbies and exercise activities may you get involved in or further consider in may you get involved in or further consider in retirement?retirement?
• Will there be any financial impact?Will there be any financial impact?• Do you plan to travel Do you plan to travel
– considerably more than you currently travel?considerably more than you currently travel?– to the same degree as you currently travel? to the same degree as you currently travel? – less than you currently travel?less than you currently travel?
• Is there a financial impact?Is there a financial impact?
Learning about YourselfLearning about Yourself Special Life EventsSpecial Life Events
• What special life What special life events may have a events may have a financial impact?financial impact?
• Children’s Children’s education/ weddingeducation/ wedding
• TravelTravel• New car New car
• Buy cottage/boatBuy cottage/boat• Buying first homeBuying first home• Starting a businessStarting a business• Home repairsHome repairs• Selling homeSelling home
Purpose of Lifestyle Transition Purpose of Lifestyle Transition PlanningPlanning
Lifestyle Lifestyle Ability to do the Ability to do the things you things you
want to do want to do
Financial Financial Ability to support Ability to support
what you what you
want to dowant to do
““Our accountant says we need to revise our Our accountant says we need to revise our retirement plan. At age 65, we should get retirement plan. At age 65, we should get
divorced and marry people who planned better.”divorced and marry people who planned better.”
• Why?Why?• What’s happening in the U.S.?What’s happening in the U.S.?• Industry observers say it is only Industry observers say it is only
a matter of time.a matter of time.
Employer’s Fiduciary Employer’s Fiduciary Responsibility as a Pension Responsibility as a Pension
Plan SponsorPlan Sponsor
Employer’s Fiduciary Employer’s Fiduciary Responsibility as a Pension Plan Responsibility as a Pension Plan
SponsorSponsor
Education is the link Education is the link between Information and Advice. between Information and Advice.
EducationEducation
Information AdviceInformation Advice
Capital Accumulation Plan Capital Accumulation Plan Guidelines (CAP)Guidelines (CAP)
• Adherence is “voluntary” Adherence is “voluntary” BUT BUT • Regulators/courts will likely use Regulators/courts will likely use
as a benchmark to judge the as a benchmark to judge the operation of your CAPoperation of your CAP
Capital Accumulation Plan Capital Accumulation Plan Guidelines (CAP)Guidelines (CAP)
The guidelines are an The guidelines are an invaluable tool for invaluable tool for analyzing if your analyzing if your
governance structure is governance structure is sufficient or deficient.sufficient or deficient.
THANK YOUTHANK YOU
It has been a pleasureIt has been a pleasure