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