How do you choose when to retire?

Two articles published recently on MoneySense and InsuranceNewsNet give food for thought.

MoneySense considers how to choose a retirement date. One consideration is the income you will receive after retirement, and another is the emotional component.

Meanwhile, InsuranceNewsNet looks at the prospect of outliving your income. Many people want to remain in their homes as they age, but the costs of living in it may prove unrealistic over time. Physical and cognitive deterioration make it unrealistic to remain in a home, partly because it may be impossible to redesign the house to accommodate changing needs.

In my opinion, when contemplating retirement, it’s worth getting a medical opinion on your health and then trying to form an idea of how long you may live.

Once you have the lowdown, consider what level of income you will receive, from pensions and other assets. Ignore official inflation numbers. Healthcare costs and food costs alone rise faster, in my view, than the official rate of inflation.

Ultimately, will there be enough income? For many Canadians, 65 is no longer a realistic retirement age.

This ad ran in the Richmond Review on May 22, 2015.