Your ideal retirement age is now up to you

Are you looking forward to Freedom 55? Or do you now have to put off retirement until you're "forced out" at 65, like so many Canadians, because you need to keep working to save more money? Some people actually resent the idea of retiring because they really love their jobs. It keeps them sharp, active and engaged. To them, retirement feels like the beginning of the end. Well, the experts from Desjardins Financial Security have some good news for you: Canada no longer has an official age of retirement and the government is now encouraging you to work as long as you want — especially if you don't have enough retirement savings.

Over the past year, many European countries discussed the idea of raising the mandatory retirement age. The topic also came up on this side of the pond. In fact, on December 16, the Canadian Human Rights Commission announced the end of mandatory retirement in Canada. Unfortunately, the message got lost in the holiday shuffle. In case you missed it, certain sections of the Canadian Human Rights Act and the Canada Labour Code have been revoked, thereby ending mandatory retirement for employees once they reach a certain age, regardless of whether they're still capable of working.

Increasingly, people are postponing retirement because they haven't saved enough or for fear of market turbulence. What about you? Do you expect to keep working well into your senior years? Regardless of your answer, it's important to have a retirement plan. It really comes down to cash flow and which option suits you best. For example, if you decide to stop working at the traditional age of 65, you will start to receive Old Age Security payments. Or, if you decide to take early retirement — let's say between 60 and 65 — and you elect to receive your government pension, you will be charged a penalty. But if you wait until 65, your payments will be higher.

At the end of the day, how and when you retire really depends on how well you're prepared, financially and emotionally. Keep in mind that you don't have do it all alone. For more information, speak to your financial advisor. Or for immediate answers, visit the "Thinking about your retirement" section on Desjardins Financial Security's website at www.desjardinslifeinsurance.com.

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