Fascinating presentation. Mom passed at 61 and dad at 82. My relatives who are still old and alive are in their late 80s. 😮 I don't expect to live very long. Retiring this June at 57.
Average life expectancy is one thing. Your own personal health history and lifestyle are probably the most important factor. The other question to ask is: what would you rather risk?…collecting less from the government if you die early? Or collecting less if you live longer than expected?
I would look at deferring CPP & OAS as "long life insurance" so that you will have the maximum guaranteed indexed monthly income for as long as you live to see you through no matter what. Live to 115 and it will keep rolling in. If you do happen to pass away early you will be dead, and in that case will it really matter to you then how much you were able to squeeze out of the government?
Scott was able to describe what early retiries (60 - 63) are thinking. My father passed away at 75 so this is my earmark. I'd love to see my life time extended so that I can enjoy our grand children. Definitley an emotional decision. Thanks for these videos Adam.
20 % financial and 80 % emotional…😂 Indeed, without a crystal ball, it most certainly is 80 % emotional! Great presentation. Spent a lifetime scrimping and saving and just hate to die young and not have enjoyed that money . But then, living on toast and tea in later years doesn’t appeal either. What to do, what to do? Really love that you are educating us for free online. Have learned tons since I started watching your videos. Thanks so much. ❤
My mother is 93 and has had high blood pressure for 40 years, high cholesterol, diabetes etc and still going strong. I don't have any chronic illnesses, eat healthier, exercise daily so I plug 99 into the models. Noone knows when they will die, but it just means more for my kids
Well!!! I didn't even know a person in this field existed! Go figure eh! Glad you found this guest to help us along...although my circumstance is that I am going to be delaying Both CPP and OAS to 70....if I could delay it a few years longer I would do that too! Thanks Adam and Scott McManus👍💯 🙏 🇨🇦
I agree that financial is not the biggest part of the equation. I am a cancer survivor. My health is well monitored with doctors. My finances are solid enough to carry me as far as life takes me. My retirement plans include enough money to pay all financial obligations and relax and enjoy life without getting bored. All end of life issues, wills, real estate questions in progress. I have no regrets, no worry of burdens, and am ready to enjoy life. I wish everyone could be in the position I am in.
Life expectancy at birth includes everyone, but if you are currently 65, you have already outlived people who died as children or young adults, so you are in a healthier subgroup. Therefore your life expectancy now is higher than it would have been at the time of your birth.
Life expectancy of the population may not continue to increase in a linear fashion over time. A lot of the gains over the past century are related to safer workplace conditions, better access to nutrition and a decline in smoking. The impact of technological advances in healthcare is modest. But new risks to population health (and longevity) are appearing. Statistics Canada’s research shows that life expectancy at birth fell by over one year in 2021, due to the Covid-19 pandemic. It remains to be seen what the impact of Long Covid will be. Additional long term concerns are the epidemic of obesity and related diseases, and the opioid crisis.
@@gerardacronin334 Yes, you are correct that the future trend of life expectancy is unknown. There are rich debates on this topic and reasonable people will disagree. It is possible that life expectancy will increase more slowly than in the past, not increase at all, or even decrease. On average, most professionals in the field will assume some ongoing improvement. But we might, on average, be wrong!
You could be right, but with our crumbling, prescription oriented healthcare system, the proliferation of heavily processed and gm foods, as well as the increase in obesity, I don’t see how our lifespans will continue to increase. I’m actually surprised how many people i know are on blood pressure or cholesterol meds.
Great video. I semi-retired during the pandemic (that's when I found Adam's channel and subscribed), roughly one year ahead of my original schedule, and now consider myself fully retired at 62.5 years. My mom will be 100 years old in a couple of months (!), and while working through my retirement plan in 2019/early 2020 I asked that we assume I would live until 99 years old. Honestly I'm not sure the software can handle centenarians. Like Adam says, the biggest challenge to retirement planning for me was psychological - that is to get to the point where I felt we had taken all reasonable mitigations to the risk of living longer. I will say retiring during pandemic was somewhat of a blessing, as I had already decreased my spending (due to circumstances such as no travel/entertainment, no commute to work, no need to buy new clothes) and could "test drive" what a realistic budget in retirement would look like. Also I will take CPP/OAS as soon as I turn 65, as that will be another income stream that will give me peace of mind.
I’m the same age as you, but my mom just hit 90years old and is still trucking on. My father, however, died at 42 of massive coronary failure. There are two sides to each equation.
It's not only about life expectancy, but how healthy you will be. Life expectancy til 90 is great, but not if you are suffering from serious illness/dementia etc. That can get any of us, any time. I personally don't want to live until 85-90 if it will be a low quality of life and I am suffering. Let's be honest most of us past 80 will have a lower quality of life and go downhill quickly.
A good argument why, the pensionable age should be increased. My parents were the lucky generation. They collected pensions for longer, than their working careers.
Hi Adam, I love the variety and topics you discuss. Thank you. I enjoyed this life expectancy segment although I am interested in the costs associated with living in a retirement or an assisted living home when I/ we are unable to maintain our family home any longer. I want to live in a nice place for my last few years and it won't be cheap.
However, if you own your house, you will have your house to sell when you move there. For sure if you are living in a retirement or an assisted living home you won't need your house any longer. I would expect that the proceeds from selling your house would cover the expenses for the few years you'll be in the retirement or an assisted living home. Generally people who live in assisted living are usually quite frail by the time they get there and typically are only in that residence for 2-3 years or so.
@@ddavidson5 thanks, I have recently come across a few people that are working to get their parents into a nice home and the price seems to be a barrier. It feels like this should be an integral part of retirement planning. I agree that having a home to sell will pay for the final few years but many people won't find them in the same situation.
I received a catalog in the mail last year that referenced several retirement homes and cost, was approximately $6k per month which included 1 help with showering per week only…was depressing to read for sure!
@@woman5918 The high-end places can be expensive that's for sure, I think you can go as high as you want, but that wasn't the experience we had with my mother. Until she passed away last year my mother was in a retirement home in the Niagara Region of Ontario, it was what I would call a medium range place and the cost was about $3,300 a month. The building was clean and she had a nice one bedroom apartment with a good kitchen though all meals were provided in the resident's dining room downstairs. I had eaten there with her and again I would say it was of medium "lunch counter" quality though nutritious, my mother even lost some weight (after a lifetime of eating whatever she wanted she was very overweight). On top of that she paid for her laundry, $20 a week, and the province provided some extra nursing help once a week. Someone came in the morning to get her dressed and in the evening to get her ready for bed, I think she had an assisted shower twice a week. They also had games nights and so on but shortly after she moved in Covid put a stop to that. It was a nice enough place and they did manage to keep Covid out thorough the entire pandemic. That said, unlike some places, this place didn't have a pool or gourmet catering either.
My mom is in a residence, she refuses to live in mine. We’re now in Ontario, but came from Quebec. It costs her about $2800 a month for a nice place here and slightly less in Quebec with her government rebate (within $120). Government run residences are cheaper but not so nice. There are also residences that would rival the MGM Grand Hotel and those are not cheap. Except for haircuts, nail salons and chocolate bars, all is included.
It would be interesting to know the answer to other main question: given my age, how many years does one have, on average, of good mobility/good mental health?
Yes, Scott, no doubt having you on with Adam again, say...at least once a year, might help keep this topic "in the news" for this audience. Plus, new subscribers would benefit from you on from time to time. Thanks for an informative though provoking presentation. 💯🙏 🇨🇦
I would bet that if you are asking people how long they might live, based on a conversation around retirement planning, many will make calculations (in their head) as to how much money they want to have to spend and adjust their life expectancy accordingly, skewing the results.
There's no denying that you get more money if you wait to 70 to take CPP. Death and Taxes are another certainly. If you died with a substantial RRSP you will get hammered by taxes. I'll be slow burning my RRSP but not melting down my RRSP because I have a Defined Benefit pension. A meltdown would trigger high tax rates. I'll max out my TFSA with my RRSP withdrawals and anything left will be put into a high interest savings account. Not wanting until 70 for CPP because of my DB pension. CPP covers my pension drop at 65. Both are CPI protected. My RRSPs will be my fun money. TFSA is for unexpected expenses ( roof, car repairs etc) If you can live well in your Go Go years do it.
@@mjbalmmac1588 my RRSP withdrawals won't be meltdown, but the withdrawals will be about 12,000 / year for 30 years. So from 63 to 70 I'll have a lot of play money.
Hey Adam. Love your channel and have been sending along your videos to friends and family. I would be super interested if you did a video focusing on defined benefit pensions. Both my wife and I have them (teacher and nurse) and I feel like we don’t fall into the typical strategies. Do we still need to save for retirement? Would we save in an RRSP or TFSA? Should we put all of our investments in equities since our defined pensions are already balanced (and probably pretty conservative). Should one of us take commuted value and the other keep defined benefit? We still have about 15-20 years left before we retire but figure now is a good time to start planning. Anyway, thanks again Adam!
Steve, We have a tone of great videos on DB plans and how to integrate into your plan. th-cam.com/video/kJ6frwDU2O8/w-d-xo.html there is one, but search the channel, lots of helpful tips.
The analysis is based on the unstated assumption that the economy and health care system will function about the same 20 years in the future as it functions now.
All the 12 replies above me are curtesy of the John D Arnold flash bot group. People do not be fooled by such nonsense. Uly is a flash bot along with all the replies to it.
Fascinating presentation. Mom passed at 61 and dad at 82. My relatives who are still old and alive are in their late 80s. 😮 I don't expect to live very long. Retiring this June at 57.
Average life expectancy is one thing. Your own personal health history and lifestyle are probably the most important factor.
The other question to ask is: what would you rather risk?…collecting less from the government if you die early? Or collecting less if you live longer than expected?
I would look at deferring CPP & OAS as "long life insurance" so that you will have the maximum guaranteed indexed monthly income for as long as you live to see you through no matter what. Live to 115 and it will keep rolling in. If you do happen to pass away early you will be dead, and in that case will it really matter to you then how much you were able to squeeze out of the government?
Sure. Whatever suits you best.
Scott was able to describe what early retiries (60 - 63) are thinking. My father passed away at 75 so this is my earmark. I'd love to see my life time extended so that I can enjoy our grand children. Definitley an emotional decision. Thanks for these videos Adam.
Well said Doug.
20 % financial and 80 % emotional…😂
Indeed, without a crystal ball, it most certainly is 80 % emotional!
Great presentation. Spent a lifetime scrimping and saving and just hate to die young and not have enjoyed that money .
But then, living on toast and tea in later years doesn’t appeal either.
What to do, what to do?
Really love that you are educating us for free online. Have learned tons since I started watching your videos.
Thanks so much. ❤
You are welcome Dorothy. And Toast and Tea doesn't sound too bad!
My mother is 93 and has had high blood pressure for 40 years, high cholesterol, diabetes etc and still going strong. I don't have any chronic illnesses, eat healthier, exercise daily so I plug 99 into the models. Noone knows when they will die, but it just means more for my kids
Well!!! I didn't even know a person in this field existed! Go figure eh! Glad you found this guest to help us along...although my circumstance is that I am going to be delaying Both CPP and OAS to 70....if I could delay it a few years longer I would do that too!
Thanks Adam and Scott McManus👍💯 🙏 🇨🇦
Life expectancy is based on peace and prosperity.
I agree that financial is not the biggest part of the equation. I am a cancer survivor. My health is well monitored with doctors. My finances are solid enough to carry me as far as life takes me. My retirement plans include enough money to pay all financial obligations and relax and enjoy life without getting bored. All end of life issues, wills, real estate questions in progress. I have no regrets, no worry of burdens, and am ready to enjoy life. I wish everyone could be in the position I am in.
Life expectancy at birth includes everyone, but if you are currently 65, you have already outlived people who died as children or young adults, so you are in a healthier subgroup. Therefore your life expectancy now is higher than it would have been at the time of your birth.
Life expectancy of the population may not continue to increase in a linear fashion over time. A lot of the gains over the past century are related to safer workplace conditions, better access to nutrition and a decline in smoking. The impact of technological advances in healthcare is modest. But new risks to population health (and longevity) are appearing. Statistics Canada’s research shows that life expectancy at birth fell by over one year in 2021, due to the Covid-19 pandemic. It remains to be seen what the impact of Long Covid will be. Additional long term concerns are the epidemic of obesity and related diseases, and the opioid crisis.
@@gerardacronin334 Yes, you are correct that the future trend of life expectancy is unknown. There are rich debates on this topic and reasonable people will disagree. It is possible that life expectancy will increase more slowly than in the past, not increase at all, or even decrease. On average, most professionals in the field will assume some ongoing improvement. But we might, on average, be wrong!
You could be right, but with our crumbling, prescription oriented healthcare system, the proliferation of heavily processed and gm foods, as well as the increase in obesity, I don’t see how our lifespans will continue to increase. I’m actually surprised how many people i know are on blood pressure or cholesterol meds.
That was great, good to explore the actuarial side of things. Scott was very good and provided good intel from his side of the business. Thanks.
Looks like I already surpassed my death expectations 👍 and still pretty healthy 💪🤗🙏🏼
I'm living to at least a health 90 or 95, im taking my cpp at 65 and going to retire at 65
Great video. I semi-retired during the pandemic (that's when I found Adam's channel and subscribed), roughly one year ahead of my original schedule, and now consider myself fully retired at 62.5 years. My mom will be 100 years old in a couple of months (!), and while working through my retirement plan in 2019/early 2020 I asked that we assume I would live until 99 years old. Honestly I'm not sure the software can handle centenarians. Like Adam says, the biggest challenge to retirement planning for me was psychological - that is to get to the point where I felt we had taken all reasonable mitigations to the risk of living longer. I will say retiring during pandemic was somewhat of a blessing, as I had already decreased my spending (due to circumstances such as no travel/entertainment, no commute to work, no need to buy new clothes) and could "test drive" what a realistic budget in retirement would look like. Also I will take CPP/OAS as soon as I turn 65, as that will be another income stream that will give me peace of mind.
So your mom is broke and living in the streets? Nothing left?
I’m the same age as you, but my mom just hit 90years old and is still trucking on. My father, however, died at 42 of massive coronary failure. There are two sides to each equation.
It's not only about life expectancy, but how healthy you will be. Life expectancy til 90 is great, but not if you are suffering from serious illness/dementia etc. That can get any of us, any time. I personally don't want to live until 85-90 if it will be a low quality of life and I am suffering. Let's be honest most of us past 80 will have a lower quality of life and go downhill quickly.
Not so. I know manynpeople well into their 80s and even 90s who live very enjoyable lives.
A good argument why, the pensionable age should be increased. My parents were the lucky generation. They collected pensions for longer, than their working careers.
It would be great to see a video on the costs of retirement communities.
Hi Adam, I love the variety and topics you discuss. Thank you. I enjoyed this life expectancy segment although I am interested in the costs associated with living in a retirement or an assisted living home when I/ we are unable to maintain our family home any longer. I want to live in a nice place for my last few years and it won't be cheap.
However, if you own your house, you will have your house to sell when you move there. For sure if you are living in a retirement or an assisted living home you won't need your house any longer. I would expect that the proceeds from selling your house would cover the expenses for the few years you'll be in the retirement or an assisted living home. Generally people who live in assisted living are usually quite frail by the time they get there and typically are only in that residence for 2-3 years or so.
@@ddavidson5 thanks, I have recently come across a few people that are working to get their parents into a nice home and the price seems to be a barrier. It feels like this should be an integral part of retirement planning. I agree that having a home to sell will pay for the final few years but many people won't find them in the same situation.
I received a catalog in the mail last year that referenced several retirement homes and cost, was approximately $6k per month which included 1 help with showering per week only…was depressing to read for sure!
@@woman5918 The high-end places can be expensive that's for sure, I think you can go as high as you want, but that wasn't the experience we had with my mother. Until she passed away last year my mother was in a retirement home in the Niagara Region of Ontario, it was what I would call a medium range place and the cost was about $3,300 a month. The building was clean and she had a nice one bedroom apartment with a good kitchen though all meals were provided in the resident's dining room downstairs. I had eaten there with her and again I would say it was of medium "lunch counter" quality though nutritious, my mother even lost some weight (after a lifetime of eating whatever she wanted she was very overweight). On top of that she paid for her laundry, $20 a week, and the province provided some extra nursing help once a week. Someone came in the morning to get her dressed and in the evening to get her ready for bed, I think she had an assisted shower twice a week. They also had games nights and so on but shortly after she moved in Covid put a stop to that. It was a nice enough place and they did manage to keep Covid out thorough the entire pandemic. That said, unlike some places, this place didn't have a pool or gourmet catering either.
My mom is in a residence, she refuses to live in mine. We’re now in Ontario, but came from Quebec. It costs her about $2800 a month for a nice place here and slightly less in Quebec with her government rebate (within $120). Government run residences are cheaper but not so nice. There are also residences that would rival the MGM Grand Hotel and those are not cheap.
Except for haircuts, nail salons and chocolate bars, all is included.
It would be interesting to know the answer to other main question: given my age, how many years does one have, on average, of good mobility/good mental health?
Stats show things slow down between 71-73
Thanks for the chat Adam! I love to read about and talk about this subject.
Scott, it was great to have you on. We will do this again soon.
Yes, Scott, no doubt having you on with Adam again, say...at least once a year, might help keep this topic "in the news" for this audience. Plus, new subscribers would benefit from you on from time to time. Thanks for an informative though provoking presentation. 💯🙏 🇨🇦
I've planned for death: January 31, 2048 at around noon. I need to get working on my bucket list!
Kidney transplant at age 40, now 56. I have to be realistic about my life expectancy. I use 85 in my calculations but I think that’s optimistic.
I would bet that if you are asking people how long they might live, based on a conversation around retirement planning, many will make calculations (in their head) as to how much money they want to have to spend and adjust their life expectancy accordingly, skewing the results.
There's no denying that you get more money if you wait to 70 to take CPP.
Death and Taxes are another certainly. If you died with a substantial RRSP you will get hammered by taxes.
I'll be slow burning my RRSP but not melting down my RRSP because I have a Defined Benefit pension. A meltdown would trigger high tax rates. I'll max out my TFSA with my RRSP withdrawals and anything left will be put into a high interest savings account.
Not wanting until 70 for CPP because of my DB pension. CPP covers my pension drop at 65. Both are CPI protected. My RRSPs will be my fun money. TFSA is for unexpected expenses ( roof, car repairs etc)
If you can live well in your Go Go years do it.
I also have defined benefit and plan to use drop in CPU’s bridge to melt down rrsp so makes sense to wait in cpp till 70
@@mjbalmmac1588 my RRSP withdrawals won't be meltdown, but the withdrawals will be about 12,000 / year for 30 years. So from 63 to 70 I'll have a lot of play money.
Hey Adam. Love your channel and have been sending along your videos to friends and family. I would be super interested if you did a video focusing on defined benefit pensions. Both my wife and I have them (teacher and nurse) and I feel like we don’t fall into the typical strategies. Do we still need to save for retirement? Would we save in an RRSP or TFSA? Should we put all of our investments in equities since our defined pensions are already balanced (and probably pretty conservative). Should one of us take commuted value and the other keep defined benefit? We still have about 15-20 years left before we retire but figure now is a good time to start planning. Anyway, thanks again Adam!
Steve, We have a tone of great videos on DB plans and how to integrate into your plan. th-cam.com/video/kJ6frwDU2O8/w-d-xo.html there is one, but search the channel, lots of helpful tips.
Excellent video.
Thank you very much Robert
Fantastic video and information!
Do you want more money between 65 and 70 or between 77 and 82 when your home ridden?
Assisted living for 2 is super expensive. How can we plan for that ?
Sell your home and if you don't have one, then there needs to be a contingency in the plan.
What about the 40% increase in all cause mortality? You might have less time than you think.
Can you make a financial plan for me? I am retiring at the age of 54 and my name is Methuselah.
Email us at info@parallelwealth.com
How did you change clothes so fast at 2:17?
Part planner, part magician 🎩
The analysis is based on the unstated assumption that the economy and health care system will function about the same 20 years in the future as it functions now.
Good God, I sure hope not. Our Healthcare system is completely f'd at this time.
Does covid change any of this?
Barely skewed the most recent data. But next time I have Scott on I will ask for an update
Lol. "We can knock one of you off".
If I was to outlive my dad’s death date I would have died 30 years ago
All the 12 replies above me are curtesy of the John D Arnold flash bot group. People do not be fooled by such nonsense. Uly is a flash bot along with all the replies to it.
It's a full time job removing those comments!
After 8 years of the Liberals, I'm already dead inside.