Beth Jay, recently retired from her career as a teacher-librarian, at her home in Halfmoon Bay, B.C. 'Many Canadians choose to retire out here,' she says, 'but there are some drawbacks when it comes to health care and accessibility.'Sarah Tesla/The Globe and Mail
In Tales from the Golden Age, retirees talk about their spending, savings and whether life after work is what they expected.
Beth Jay, 65, Halfmoon Bay, B.C.
I retired on June 30, at age 65, after first working for 20 years as a medical lab technologist and the final 20 years as a teacher and librarian at a couple of elementary schools. I aged out of my employment life. The gap between my age and those of my students continued to widen. Plus, I was getting tired.
Retirement felt odd at first, especially when September hit and everyone was heading back to school. I felt like I was supposed to be there. I was suddenly out of the loop. I’m over it now. I like that if I don’t sleep well, it doesn’t matter because I don’t have to get up and go to work feeling tired. I had an unexpected health issue for the first few months of retirement, which has limited some of what I had planned to do, including travelling and outdoor activities such as cycling, kayaking and hiking.
I can still play music, including electric bass with my jazz group and flute with the local community concert band. It’s not the retirement I expected but I also like to garden, cook, bake and read – and I’m writing a memoir. I also have more of a social life now that I’m not working because I’m not always exhausted.
I’ve been a saver throughout my life, which set me up nicely for retirement. I used to have a financial advisor who put my investments in mutual funds and bonds, but I got out of the market entirely when I turned 60. I couldn’t stand the ups and downs. I decided I didn’t want to lose another penny.
I read the book Enough Bull by David Trahair, which changed my financial strategy. I decided to invest only in guaranteed investment certificates (GICs). Today, most of my RRSP investments are in laddered GICs. Of course, that’s not great when interest rates are low, but I don’t care because at least I know my money will always be there – whether it earns 1 per cent or 5 per cent. To me, the stock market is a casino and I’m not willing to gamble.
My retirement income strategy is to divest my RRSPs first, over about 15 years, so that I can pay all the necessary taxes as early as possible, followed by a blend of non-registered funds and registered TFSA funds. I started collecting my Canada Pension Plan and Old Age Security benefits at 65, and I also have a small teacher’s pension and an annuity, which gives me a base, guaranteed income.
Financial literacy is important not just in retirement but throughout our lives. Other books I’ve read and recommend to others include Your Money or Your Life by Joe Dominguez and Vicki Robin, The Wealthy Renter by Alex Avery, Millionaire Teacher by Andrew Hallam and Your Retirement Income Blueprint by Daryl Diamond.
How and where you live in retirement is also important. While I love living on the Sunshine Coast, it means dealing with a ferry to get almost anywhere. For an older person, the need for more medical appointments ‘off coast’ means negotiating with ferry schedules constantly to access specialists and hospitals in the city. Many Canadians choose to retire out here, but there are some drawbacks when it comes to health care and accessibility that people should consider before making the move.
As told to Brenda Bouw
This interview has been edited and condensed.
Are you a Canadian retiree interested in discussing what life is like now that you’ve stopped working? The Globe is looking for people to participate in its Tales from the Golden Age feature, which examines the personal and financial realities of retirement. If you’re interested in being interviewed for this feature and agree to use your full name and have a photo taken, please e-mail us at: goldenageglobe@gmail.com. Please include a few details about how you saved and invested for retirement and what your life is like now.