My recent column about planning for longevity attracted a number of thoughtful responses from readers. In that piece I argued that rising life expectancy means people should be careful about committing to very early retirement. I also acknowledged that my personal inclination to keep working — at least for now — won’t match everyone’s priorities.
Among the comments, one reader observed that I “can’t think of anything they would rather do with their time than work,” and pointed out unpaid pursuits like volunteering, cultural events and visiting friends and family. Those activities are mentally and socially stimulating and offer flexibility: you choose when and how often to participate.
That’s a valid point, and I don’t mean to suggest paid work and rewarding unpaid activities are mutually exclusive. Much of that fulfilling non-paid activity can fit into evenings and weekends. For many people, paid employment provides structure, purpose and income while still leaving time for family, volunteer work and hobbies. Personally, I’m drawn to longer-term creative projects, which is one reason I talk about financial independence: it can create room to take on meaningful, time-intensive endeavors without the pressure of immediate income.
Another trend I’ve noticed is a shift toward partial retirement or reduced hours. As baby boomers transition into retirement, many choose a middle ground: fewer work hours combined with more leisure and family time. For example, my wife reduced her work week to four days for a period so she could spend Fridays with her aging parents. Although she later returned to a five-day schedule after their passing, the arrangement illustrates how flexible work schedules can create valuable time for family and personal activities. Some people move to three-day weeks or, like a self-employed acquaintance, work concentrated hours from home—say 8 a.m. to 2 p.m.—and keep the rest of the day for other pursuits.
I also heard from a reader in Oakville, Ontario, who asked to be identified: David Davidson, 62, has worked full-time since he was 17. After 45 years in the workforce, he plans to stop working and enjoy the rewards of decades of saving and sacrifice. He finds the “keep working and never spend” retirement advice frustrating and wants to spend his savings rather than stretch them out indefinitely.
Davidson agrees with my skepticism about very early retirement but draws the line at planning to work into advanced old age or saving as if he must live past 100. He sees that as “extreme working” and an unnecessary concession to the financial services industry.
He and his wife have been diligent savers. They paid off their mortgage, put their children through university without debt, and consistently contributed to RRSPs and TFSAs. Now debt-free and with their children launched, they have more than $1 million in combined registered savings and intend to spend it. His wife receives a small indexed pension; he does not.
To hedge against living longer than expected, they plan to delay Canada Pension Plan (CPP) benefits until age 70. Still, David says it has long been his plan to exhaust their savings by their mid-80s. If they need additional funds later, they can sell their home—a practical option since a large house is often harder to maintain in advanced years—and move into a rented apartment or a smaller residence.
Davidson points to family experience to support his view. His parents and grandparents had relatively low expenses after age 80; his father and his wife were both 89 and remained in good health until recently, spending only part of their CPP and OAS income. He also notes the reality that lifespan is unpredictable: his wife’s father died at 68, a reminder that not everyone will live into extreme old age.
His advice is straightforward: enjoy the early years of retirement while you’re still energetic and capable. He describes people who work well into their 90s as outliers. Even someone active and healthy can face illness or disability late in life, and many would prefer to savor retirement when they can truly make the most of it.
Editor-at-large Jonathan Chevreau writes about financial independence and retirement planning and contributes to MoneySense.ca. His contact email is [email protected]