Eric Matto, who retired in 2018 at the age of 63, plays pickup pickleball at the Bernie Morelli Recreation Centre in Hamilton on Dec. 30.Nick Iwanyshyn/The Globe and Mail
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“I retired in April, 2018, at 63, after a 40-year career in information technology,” says Eric Matto, 69, of Hamilton, Ont., in this Tales from the Golden Age article. Matto’s last job was at Toronto-Dominion Bank, at which he worked for 14 years. “I was getting tired of working all the time, and when I looked at my financial picture – I’m single with no kids – I saw that I could retire comfortably,” he adds. He also wanted to spend more time doing things he enjoyed, such as travelling and pursuing hobbies such as photography and singing in community choirs.
“I remember the first Saturday morning I retired. I got up early to take pictures of the sunrise. I saw it as a metaphor, the ‘dawn of a new day’ kind of thing.” But it turned out to be misty that day, and the photographs weren’t as spectacular as Matto had imagined. “It was disappointing. But in hindsight, it was a different metaphor – that the future isn’t always clear.”
It took Matto a while to figure out what to do with himself in retirement, he says. “I love to travel. I have taken several ‘bucket list’ trips to Africa, Antarctica and Iceland, but obviously, you can’t travel all the time.” Retirement pushed Mattos out of his comfort zone but he realized he needed to build a social network outside of work.
“I’ve volunteered for different organizations in retirement, including the Hamilton Literacy Council, which helps adults improve their reading and writing skills,” he says. He also volunteered for the Grey Cup Festival when the event came to Hamilton in 2023. “Today, I volunteer occasionally at the Hub Hamilton, a homeless drop-in centre, handing out free coffee and food. I also sing in a couple of community choirs and volunteer on their boards.
Mattos also likes attending different academic lectures, has started learning Spanish, and recently started playing pickleball.
“My advice for others considering retiring is to build a life outside work through hobbies or other interests,” he says. “Volunteering is also a great way to give back to your community. That said, don’t feel guilty about days when you do nothing. The best thing about retirement is the ability to do what you want when you want.”
Read the full article here.
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.
After a brush with illness, Melanie, 56, wonders if she can retire within a decade. Would selling a rental property help?
Melanie is 56 years old and on her own again with two adult children, a government job, a house with a big mortgage and an investment property that generates net rental income of about $5,900 a year after expenses. She immigrated to Canada from Eastern Europe 20 years ago.
“I successfully launched two kids on my own plus sponsored my mom for 10 years,” Melanie writes in an e-mail. She bought a house a couple of years ago after she and her ex-husband separated. “In addition, I provided both kids with loans, so they bought their own condos.”
Having had a brush with serious illness, Melanie wonders if she can afford to retire from her $109,400-a-year job at 62 or if she should continue to the age of 65. She wants to stay in her home as long as possible. Her goal is to maintain her standard of living and increase her travel budget, so she’d need about $60,000 a year after tax adjusted for inflation.
If she retires at 62, Melanie will be entitled to a lifetime pension of $43,800 a year plus a bridge benefit of $11,580 a year ending at the age of 65. If she works to 65, she’ll get a lifetime pension of about $53,000 a year.
A few years ago, Melanie made a money-losing investment through a corporation of which she is the sole owner. Now, she wonders if she can use some of that corporate loss to offset the capital gain on the eventual sale of her rental property or even to offset the tax paid on her employment income.
For this Financial Facelift, Warren MacKenzie, an independent Toronto financial planner, looks at Melanie’s situation. Mr. MacKenzie holds the chartered professional accountant designation.
Author James Chappel unravels the idea of retirement
Whether it’s the plucky independence of The Golden Girls or the “boomers with zip” (also known as ‘Zoomers’ here in Canada), our popular notions of retirement and old age are relatively modern conceptions, writes Generations reporter Ann Hui.
In his book Golden Years: How Americans Invented and Reinvented Old Age, author James Chappel unravels the idea of retirement, and examines how ideals around old age have evolved in the U.S. over the past century.
In an interview with The Globe and Mail, Prof. Chappel, who teaches history at Duke University, laid out his argument for why understanding the past might help policy-makers make better decisions for the future.
Read the full interview here.
In case you missed it
A messy inheritance can strain sibling relationships. How to avoid the risk
Sibling relationships can be complicated already – after a messy inheritance, they can get worse, writes Nina Dragicevic in this personal finance article.
Josh Sheluk’s best advice to parents is to make their estate plans simple and transparent, and to communicate them clearly. But that’s an ideal scenario and not necessarily the norm, said the portfolio manager for Verecan Capital Management.
“Let me start with saying this: roughly half of adults in North America don’t have a will,” Sheluk said. “Of the half that do have a will, I’d say there’s probably a roughly even split between ones that go very, very well, and ones that have some complications or issues associated with them.
“There are often, way too often, surprises along the way or complications that arise,” he added.
Since parents are in control of the process, children might be left in the dark and potentially picking up the pieces during an emotional aftermath. The best bet for siblings is to communicate with each other – if the parents haven’t done so – especially if one child has more information.
“In many situations, you might have one sibling that is the executor of the estates, and the other is not,” Sheluk said. “So just being transparent – that other sibling is not going to have access to the same information as the individual who’s the executor.
“Having that executor lay things out in a very transparent way, communicating along the way, showing the other beneficiaries. Saying: ‘Here is what assets exist. Here’s where we are in the process. Here’s the tax bills that need to get paid.’” With rare exceptions, all of this information should be legally shareable. Patience with the process and each other is also a wise practice, Sheluk added, as sometimes it takes years to settle an estate.
Not all siblings get along, however, said Tracey McLennan, director of the client consultation group at Edward Jones Canada. There could be childhood dynamics and resentment that has lasted into adulthood which might come into play within the will.
Read the full article here.
Seven tax tips and traps to consider in 2025
Now that the new year is here, it’s time to come up with creative ideas to improve your financial life in 2025, writes Tim Cestnick in this Tax Matters article. “My good friend Joel loves fitness and has always wanted to open his own gym,” he says. “He’s planning to call it ‘Resolutions.’ The concept is simple: bring in the best fitness equipment for members to use for the first three weeks of January, then turn the place into a pub for the rest of the year.”
If you’re looking for your own original plans to enhance your tax and financial situation, Cestnick suggests considering these seven ideas, from planning a capital-gains strategy to even reporting the profits you made on the sale of your extra Taylor Swift tickets, today.
Retirement Q & A
Q: My position was just made redundant due to restructuring, but I’m more concerned about losing my benefits. Do you recommend I stick with my existing benefits provider (they’ve already reached to see if I’d like to continue with them independently), or shop around? I’m 62, and would like to continue working somewhere until the age of 65.
We asked Andy Kovacs, financial planner with Sun Life and president of Moments of Truth Insurance Services to answer this one.
A: A job restructuring – and the loss of benefits that comes with it – is a major life event. It’s a great opportunity to pause, reassess and decide what’s best for you moving forward.
When faced with a big decision like this, we’re always told: get a second opinion. Your current benefits provider may have reached out to offer independent coverage, but is it your best option? A trusted financial advisor can help you figure that out.
The first step is to look at what benefits are most important for you – not just for the next three years until retirement, but also beyond. What health, dental, or financial protection do you want to have in place? Once you’ve identified your needs, you can compare what your current provider offers against other plans available to you. Shopping around often reveals more affordable or flexible options.
It’s also important to consider the reality of health care in Canada. While we have excellent doctors, access to care is becoming more challenging, and waiting times are increasing. A significant health event could derail years of savings, so having the right coverage matters.
Taking the time to review your options now means greater peace of mind later. Whether you stay with your current provider or explore something new, an in-depth discussion with an advisor will help you make an informed decision tailored to your circumstances.
When you look back on this moment, you’ll be glad you invested the extra effort to protect your future.
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