Although many older baby boomers are choosing to retire at 60 or sooner, some prefer to keep working to maintain the lifestyle they enjoy.
"We really haven't thought about stopping work," says Marian Walters, 60, who has been a property manager in Ottawa for two decades. It helps that both she and her husband George (not their real names) like their jobs, she says.
"They give us a sense of purpose and we like to think that our employers value our experience and don't see our ages as a barrier to continuing employment. It is just hard that George works out of town so much of the time."
A senior project manager for major construction projects in a variety of locations, he returns to Ottawa on weekends or his wife joins him at his work location when possible. The enforced separation is stressful, as are her additional responsibilities of caring for their home and supporting family while George is away.
But like many of their contemporaries, they accept this as a necessary offshoot of earning enough money to enjoy life on their preferred terms. They are not prepared to give up their love of travel and socializing.
"We take about four trips a year," says Walters, who has been to Australia, New Zealand, the Far East, South Africa and Europe in the last 18 months. "We're trying to see the world while we still have the income and our health."
"We love travelling," she adds, "but we try to be sensible. We prefer self-catering, so we generally have a condo when we're away. We use our credit card for everything so that we get as many air miles as we can and we book everything on the Internet to maximize value for money."
When they are at home, Walters says they get together frequently with friends and family. "The majority of the money that we have earned has gone on enjoying life -- sharing with family, friends and taking trips. We try to live well, but not overspend. For instance, I have a small, economical car. We don't eat out much and we get senior rates when we can."
But the question of how to sustain a satisfying lifestyle as people age and move out of the workforce only adds to the normal stress of life. The Walters are already aware further belt-tightening will be necessary when they finally stop work.
"We have some RRSPs, though they lost value during the recession, and we have some savings and our property."
For anyone entering or thinking about this time of life, serious planning and a good dose of common sense are in order, experts say.
Calgary financial adviser Darren Heywood of Edward Jones Investing emphasizes the importance of retirement planning. "I believe strongly that life is short and worth living well," he says. "However, I also believe that planning for the future is part of living -- and it is never too late to start planning."
Downsizing is "absolutely fine," Heywood says. "But you always need a place to live, so your principal residence should not be part of your investment package.
"A lot of banks or companies that run reverse mortgages will say otherwise because they make a lot of money of those products. But I think the equity in your home should be a last resort."
Gail Vaz-Oxlade, writer and host of Til Debt Do Us Part, endorses the Walters' decision to keep working.
"Ultimately, everything comes down to how much you are bringing in and how much you are sending out," says the financial guru, whose most recent book is Debt-Free Forever.
"So, at any point in their lives, they can make the decision not to spend as much and put more money away for when they are no longer working. But if neither of them has a pension, their only option is to keep working unless they have significant retirement assets."
For certified financial planner Odette Morin of Vancouver, the key to avoiding cash-flow stress for people such as the Ottawa couple is long-term thinking. "They need to sit down with someone who is going to look at the whole picture and formulate a plan for the future," Morin says, and taking equity out of the home, downsizing and delaying retirement are options to consider.
Morin adds the plan should include limiting generosity to the next generation. "Children can be a liquidity trap," she warns.
"If this couple has been helping their children, they should stop. Now they are going to have to help themselves, particularly if they have no pension plan. You can't really retire on the government pension plan alone."
People should also set aside the most substantial savings they can manage, says Morin, because "the nest egg that Canadians need to maintain a decent lifestyle is huge -- the rough figure needed to retain lifestyle is a million dollars."
Vaz-Oxlade says "ultimately, we all make choices about how we're going to live our lives. I make a distinction between the have-to-haves and the nice-to-haves. At its very core, you have to have food, but it's nice to have steak. You have to have a roof over your head, but it's nice to own your own home and for that home to be somewhat grand. It's all about balance."
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