We’re almost 19 years into the new century, so it seems a little late to be talking about the “new” 21st century version of retirement. Or does it?
For those in their 50s or 60s approaching retirement, I don’t think so. If you’re getting close to retirement, you likely have parents who retired in the last century. Pre-internet, pre-smartphone, pre-Amazon delivery on demand. There’s a good chance that at least one parent is still alive, and, like it or not, our “vision” of retirement is shaped by those living it now.
And those living it now made retirement decisions based on life in the 20th century. We may consciously want a different type of retirement, but subconsciously we can be influenced by our parent’s retirement path, whether we know it or not.
So, how could your retirement decisions be different than those of your parents? Here are a few things to consider.
- Shrinking distances: Many retirees want to be in close proximity to their children and grandchildren – and that has influenced many in choosing a home location, even within the same city. But the emergence of advancements like self-driving cars (coming soon), discount airlines, and video calls has made it easier to connect. You may have a much broader radius for home location than you think.
- Enhanced services: In today’s Amazon era, just about anything can be delivered to our doorstep. In Ontario, even the government-controlled liquor store can deliver to your home. This not only decreases your need to be living near certain retail locations, it could allow you to stay in your own home much longer than previous generations. Virtual health care (via text or video conference) has also emerged as a service that brings health care to you rather than the other way around.
- Longevity: Life expectancy gains have slowed a bit recently (as noted by the Canadian Investment Review) but lifespans continue to increase and medical advancements will continue to improve health as we age. For you, it means planning for a longer, healthier life (think 90s, not 80s). This fact can influence many factors, from ability to pursue a second career, to the asset allocation for your retirement savings, to your ability to gift money to family members during your lifetime.
The 21st century has been with us for while – and there are more options out there than you may have realized for your retirement. Make sure your plans reflect it.
Thanks for reading!
It’s been a cold winter, and the snowbird culture is alive and well in Canada. The southern United States continues to swallow up planeloads and carloads of Canadians visiting for a few months each year. And good for them – they’ve earned their time in the sun.
But what if you’re more adventurous? You’re in or approaching retirement and looking for something more than sun. You want to experience a different culture, a different lifestyle – while still enjoying a break from the worst of winter.
This list of 10 places to retire abroad caught my eye for a couple of reasons. First, many of the locations I would never have considered for a retirement retreat. I was surprised at the countries and regions chosen, and it opened my eyes to some new possibilities. Second, the list is updated each year based on many factors, from currency changes to improvements to infrastructure. There’s clearly some rigour to the analysis.
The top 4 for 2017?
- Portugal’s Algarve Region
- Valletta, Malta
- Mazatlan, Mexico
- Abruzzo, Italy
The Forbes article has the full list for 2017, and you can click on the link at the beginning to sign up to receive the list for 2018. And if you’re looking at the tried and true U.S.A. to plant your winter roots, here are some suggestions:
If you buy abroad, put planning in place
If you do buy property outside of Canada, whether it’s in the U.S. or further abroad, the impact of this purchase on your estate should be addressed upfront, and reflected in your will and potentially in your tax planning due to different estates laws in different countries.
So, before you take the plunge, make sure you’ve surveyed the issues with a lawyer, ideally both in Canada and in the country in which you’re purchasing property. A little planning upfront can ensure you enjoy your winter retreat without worry or issue.
Thank you for reading … Have a great day,