Longevity & Aging

No doubt about it: at some point we’re neither semi-retired, findependent or fully retired. We’re out there in a retirement community or retirement home, and maybe for a few years near the end of this incarnation, some time to reflect on it all in a nursing home. Our Longevity & Aging category features our own unique blog posts, as well as blog feeds from Mark Venning’s ChangeRangers.com and other experts.

How to take advantage of rising interest rates

By Bob Lai, Tawcan

Special to the Findependence Hub

Lately, the talk of the town seems to be rising interest rates. In April, the Bank of Canada raised the benchmark interest rate by a whopping 0.5% to 1%, making it the biggest rate hike since 2000. Given the high inflation rate, it is almost a given that these rate hikes will continue throughout 2022 and beyond. [On July 13, 2022, the BOC hiked a further 1%: editor.]

But before you freak out, let’s step back and look at the big picture. At 1%, the benchmark interest rate is still relatively low compared to the past interest rates.

I still remember years ago before the financial crisis, being able to get GIC rates at around 5%. And some people may remember +10% interest rates in the 80s or early 90s. Back then, interest rates were much much higher than measly below 1% rates we’ve been seeing the last decade.

Historical BoC overnight rates
What’s going to happen to the stock market? Well the general rule is that when Bank of Canada or the Federal Reserve cuts interest rates, the stock market goes up. When Bank of Canada or the Federal Reserve raises interest rates, the stock market goes down.

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Age Tech: a Coming of Age Story?

By Mark Venning, ChangeRangers.com

Special to the Financial Independence Hub

Is Age Tech a Coming of Age story?

Well you might think so, given all of sudden it seems, how far but quickly we’ve come, to where we’re at now, this point in 2022. While on the one hand Age Tech is a coming of age story, in the world at large it is either unheard of, or if it is heard of in some circles, it is either misunderstood or too confusing in its jumble of jargon for everyday people to grasp. Even some in this emerging industry question whether Age Tech is the best term to use. So what’s the story?

Perhaps we should start at the beginning with once upon a time. Simply the story goes, in the 1970s some engineers, industrial designers and gerontologists were curious and asked a question about how technology could join up with the field of aging studies and, as noted in the 2009 publication Defining Gerontechnology for R&D Purposes: they “recognized the need for a conceptual framework.”

Along came the 1980s, the marriage of gerontology and technology: Gerontechnology. Originator of that term in 1988, Jan A.M. Graafmans was part of a research team in Eindhoven University of Technology, “that started an effort to develop a program of research and education in gerontechnology aiming at further integration of engineering sciences with those disciplines already involved in aging studies.” Read his The History and Incubation of Gerontechnology.

As an inter-disciplinary, academic and research field, Gerontechnology established itself in 1997 forming the International Society for Gerontechnology (ISG). Speaking of jargon, at the best of times Gerontechnology is a mouthful to say let alone to understand fast. On the ISG website it is described as designing technology and environment for independent living and social participation of older persons in good health, comfort and safety.”

Fast forward. My journey with technology and aging began in 2013 when Stanford Centre on Longevity kicked off its Longevity Design Challenge competition. In 2015 I followed Canada’s newly formed technology and aging network AGE-WELL. To appreciate the development of Gerontechnology, I highly recommend the 24 collected papers compiled by editor, Sunkyo Kwon – Gerontechnology: Research. Practice and Principles in the field of Technology and Aging. [cover on the left]

But even then all this did not quite make a coming of age story. Until now. Roughly since 2020, Age Tech has become the fast term that has at least made for an easier conversation starter. The real secret in explaining what it means is the ability to link up the Age Tech talk to the human needs it services. All you need are three examples everyday people can identify with, such as health and home care, mobility and transportation & social connection.

Avoiding the risk of overwhelming you here, to prove that there is a real coming of age marketplace for Age Tech, there are several new resources that can help you quickly do your own research; and no doubt some of you may have experienced some of the products available, even if their brand recognition is low.

Recently published (2022) is the book by Keren Etkin – The AgeTech Revolution. If you want to be bedazzled before you read the book, on Etkin’s website The Gerontechnologist you will find a very busy Age Tech Market Map filled with brand logos under various categories and sub-categories from health and wellness to tech-enabled home care.

Early in March at last AGE-WELL with help from the Centre for Technology Adoption for Aging in the North (CTAAN) published Canada’s Agetech Startup Map (seen at the top of this blog). Actually if you click on the logos on the PDF link you will find the websites for all the brand names featured. On the CTAAN web page for Age Tech you will find links to products listed under six clear topic headings, some more products not listed on the Agetech Startup Map.

If you think this is all hype and are not yet convinced that Age Tech has arrived at its coming of age, then you soon should be convinced after you check out some of what I’ve highlighted here. Try some of this out as a conversation starter next time you meet up with friends to test market awareness as it were. And because I can’t resist I’ll leave you with one more.

Poking around as I do, to see what’s covered on Age Tech in other parts of the world, I found a snappy article What is Age Tech? by Andreea Toma, dated 2020 from a UK based marketing agency Creative Quills (love that name.) Toma’s quill keeps it simple: “AgeTech is an emerging group of technologies which seeks to improve the lives of older adults.”

Mark Venning is a writer, speaker, researcher and advisor on the business, technology, health & social aspects of ageing and longevity which include changing concepts in a longevity society for Age Inclusive Communities. He is an Associate Member of the International Federation on Ageing.

This blog originally appeared on March 15, 2022 and is republished here with his permission. 

How to stop comparing yourself to Others: 12 Tips

What is one tip to help stop comparing yourself to others?

To help you stop comparing yourself to others, we asked personal coaches and thought leaders this question for their best advice. From practicing gratitude to asking yourself questions that challenge you, there are several things you may put into practice to help you stop comparing yourself to others.

Here are 12 tips to stop comparing yourself to others:

  • Practice Gratitude

  • Look Back and Count Your Gains

  • Admire Your Differences Instead

  • Override Your Dissatisfaction With Positive Affirmations

  • Celebrate Others

  • Take a Break from Social Media

  • Remember Everyone Has Their Challenges

  • Identify and Celebrate Your Own Strengths

  • Practise Meditation To Stay Grounded in Yourself

  • Focus on Your Own Personal Growth

  • Choose To Practise Good Values

Ask Yourself Questions That Challenge You

Practice Gratitude

When you regularly practice gratitude, you don’t have time to focus on what others have. You’re not inclined to compare yourself to them or think about what you lack. With a gratitude mindset, you’re focused on what you have, and how appreciative you are of having it. Gratitude resets your mind and redirects your energy towards building up more of what you already have rather than trying to catch up to someone else. — Chris Abrams, Abrams Insurance Solutions

Look Back and Count your Gains

It’s easier said than done, but try thinking about or even making a list of the things you used to want that you have or are closer to having now. For example, maybe 10 years ago you wanted to be moving up in your career and getting closer to buying a house. Rather than beating yourself up about what your friend or that person on Instagram is doing, ask yourself what you’ve already achieved that a past version of you would be proud of, or what you’ve learned that a younger version of you didn’t understand.

When you frame challenges and comparisons this way, you’re not only able to see your strengths and what you’re capable of much more clearly, but you’re also setting yourself up to be a better version of yourself as opposed to a better version of someone else. — Gigi Ji, KOKOLU

Admire your Differences instead

When you compare yourself to others, you mentally put yourself below them. You convince yourself that you don’t have something that someone else does have and you take your power away. But, if you admire your differences instead of comparing them, you put positive energy out into the world and that gives you the power.

The power to appreciate what you have, the power to learn from what others have, and the power to choose how you view the world and yourself in it. It’s easier to be positive than to be negative, so take the easy and healthy route and admire someone instead of comparing yourself to them. –– Staci Brinkman, Sips by

Override your Dissatisfaction with Positive Affirmations

Drown out the comparisons with positive affirmations. The moment that you start to compare yourself to someone, think of something that you do well and tell yourself that instead. It’s a simple trick, but over time, your mind gets the idea and will stop seeing yourself as less than, and instead as equal to, and the comparisons will fall away. It will take time, and it feels funny at first, but it’s a reminder that we’re our harshest critic, instead of our greatest support, and the latter takes practice. — Tony Staehelin, Benable

Celebrate Others

Many people do compare themselves to others these days and that tends to make them more self-absorbed. One way to stop that attitude is to celebrate others’ achievements. You can avoid the comparison syndrome by focusing on other people and learning to be happy for them in their moments. This can take some practice. It may not feel good at first because many are motivated to draw attention to themselves. However, you will care less about where you stand in society the more you learn to focus on other people. Focusing on others will make you happier and then the comparisons don’t have as much power over you. — Bruce Tasios, Tasios Orthodontics

Take a Break from Social Media

My top tip to stop comparing yourself to others is to take a break from social media. Social media is likely only one place you compare yourself to others, but it’s a big one. If you scroll on your phone for a few hours a day and in that time, feel bad about yourself, it’s time to take a break. Disconnect from social media for a bit and focus on yourself! If you choose to get back on social media, unfollow anyone who makes you feel bad about yourself. — Macy Sarbacker, Macy Michelle

Remember Everyone has their Challenges

Comparing yourself to others is fruitless because everyone has their own set of challenges. These challenges are often not visible to those on the outside. Individuals can never hope to know the struggles of others by comparing themselves to the success they see on the surface.

Wanting what others have lacks perspective because we often do not know what other people are carrying with them. A successful executive may appear to have a wealthy lifestyle when in reality they have the misfortune of tumultuous family life or chronic illness. Comparing yourself to others is pointless when you are unaware of what others are truly dealing with. — Katy Carrigan, Goody Continue Reading…

Retired Money: Rising rates make annuities more tempting for Retirees

My latest MoneySense Retired Money column looks at whether the multiple interest rate hikes of 2022 means its time for retirees to start adding annuities to their retirement-income product mix. You can find the full column by clicking on the highlighted headline here: Rising rates are good news for near-retirees seeking longevity insurance.

The Bank of Canada has now hiked rates twice by 50 basis points, most recently on June 1, 2022.  That’s good for GIC investors, as we covered in our recent column on the alleged death of bonds, but it’s also  welcome news for retirees seeking longevity insurance.

As retired actuary Fred Vettese recently wrote, retirees may start to be tempted to implement his suggested guideline of converting about 30% of investment portfolios into annuities. As for the timing, Vettese said it is “certainly not now: but it could be sooner than you think.” He guesses the optimal time to commit to them is around May 2023, just under a year from now.

After the June rate hikes, I asked CANNEX Financial Exchanges Ltd. to generate life annuity quotes for 65- and 70-year old males and females on $100,000 and $250,000 capital. The article provides the option of registered annuities and prescribed annuities for taxable portfolios. It also passes along the opinion of annuity expert Rona Birenbaum that she greatly prefers prescribed annuities because of the superior after-tax income. Of course, many retirees may only have registered assets to draw on: in RRSP/RRIFss and/or TFSAs.

For a 65-year old male investing $100,000 early in June 2022, with a 10-year guarantee period in a prescribed (non-registered) Single Life annuity, monthly income ranged from a high of $548  at Desjardins Financial Security with a cluster at major bank and life insurance companies between $538 and $542. (figure rounded). Comparable payouts on $250,000 ranged from $1299 to $1,390. Because of their greater longevity, 65-year old females received slightly less: ranging from around $500/month to a high of $518, and for the $250,000 version from $1238 to $1319.

Here’s what Cannex provides for comparable registered annuities (held in RRSPs):

For a 65-year old male (born in 1957), $100,000 in a Single Life annuity nets you between $551 and $571 per month, depending on supplier; $250,000 generates between $1,399 and $1,461 a month. For 70-year old males (born 1952), comparables are $625 to $640/month and $1,578 to $1,634 a month. Continue Reading…

Case Study: Am I going to be okay when I retire?

Photo by LinkedIn Sales Navigator from Pexels

By Ian Moyer

(Sponsor Content)

Pamela is a 63-year-old widow residing in Ontario, Canada with two adult children who live on their own. Pamela worked for more than 30 years as a Payroll Manager and was able to pay off her mortgage with the life insurance inheritance she received from her husband’s passing and put her savings towards retirement.

She is preparing to retire in two years and has increasing concerns about the amount she has saved for retirement.

Pamela earns $76,000 a year. Now age 63, she has saved:

  • $306,000 in a Registered Retirement Savings Plan (RRSP), contributing $5000 annually until retirement
  • $36,000 in A Tax-Free Savings Account (TFSA), contributing $1000 annually, which doubles as an emergency fund.
  • At age 65 Pamela plans on selling her cottage and adding $400,000 to her retirement funds.

Using Cascades Financial Solutions retirement income planning software, we help Pamela determine if she can retire at the age of 65 and sustain her lifestyle and accommodate traveling.

Pamela will decide to retire at the age of 65 if the after-tax income will meet her needs. With retirement fast approaching, she has three main questions:

  1. Do I have enough to retire? Pamala assumes she will need approximately 50% of her income to travel for five years.
  2. What are other income sources I can rely on? Pamela is concerned about the sustainability of her RRSP, TFSA and sale of the cottage alone.
  3. How do I deal with taxes? Pamela is unsure about the amount of taxes she will need to set aside.

Answering Pamela’s first question: “Do I have enough to retire?” The answer is YES! Based on her needs.

Using Cascades Financial Solutions, we’ve run a retirement income withdrawal plan resulting in three different ways to produce an after-tax annual retirement income of $45,703 for Pamela:

We’ve selected an asset allocation as moderate in the software: Moderate: 60% Fixed Income, 40% Equity,  5% rate of return and 2% inflation. All income and savings are reported in “today’s dollars” by Cascades.

Strategy Descriptions

Registered Funds First: This strategy involves creating retirement income from registered funds first, reducing the risk of leaving highly taxable investment accounts to an estate. The second priority is given to taxable non-registered accounts, leaving Tax Free Savings Accounts (TFSAs) last.

Non-Registered Funds First: This strategy involves creating retirement income from non-registered funds first, deferring the income taxes payable on registered investments. The second priority is given to registered investments, leaving Tax Free Savings Accounts (TFSAs) last.

Tax Free Funds First: This strategy involves creating retirement income from non-registered funds first and postpones the use of registered funds as long as possible. The second priority is given to Tax Free Savings Accounts (TFSAs), leaving registered funds last.

Determining a Winning Strategy: With all other factors being equal, the winning strategy provides a client longevity and the highest estate value, net of taxes and fees, at life expectancy. The differences in the net estate value represents the income tax savings of the winning strategy.  

Answering Pamela’s second question: “What are other income sources I can rely on?” There are two main programs that provide retirement income for most Canadians: the CPP or Quebec Pension Plan (QPP), and OAS.  The maximum CPP / QPP Pension you could receive starting at age 65 is $1,203.75 monthly ($14,445 annually) for 2021.[1]

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