Costa Rica's Nicoya Peninsula is one of five 'Blue Zones' in the world that claim a disproportionate number of centenarians.Janice Dickson/The Globe and Mail
A late-January week in Costa Rica was an opportunity to escape winter – and tariff anxiety – temporarily. But it also turned out to be a suitable place for thinking about aging, longevity and retirement.
I was in the Nicoya Peninsula, an area in northwest Costa Rica that’s one of five “Blue Zones” in the world where it’s claimed people live longer and healthier lives. A Netflix series on the zones includes an episode on Nicoya, opening with a centenarian cowboy named Ramiro Guadamuz Chavarria trotting around on his horse like a man half his age.
The very idea of Blue Zones has been challenged, with some research attributing the phenomenon to poor record-keeping and even pension fraud. But the series’ common sense tips for healthy aging – including eating a plant-based diet, staying active and maintaining strong social connections – are alluring.
Nicoyan seniors are shown doing everyday things by hand such as making tortillas, chopping wood and cutting the lawn with a machete. This “unconscious movement” keeps them fit – no Pelotons required. The series also highlights the importance of purpose (plan de vida in Costa Rica) to healthy aging, with seniors socializing and participating in their communities.
A report this week from the National Institute on Ageing raises concerns about Canadians’ social bonds. The survey of 6,000 Canadians over 50 years of age, conducted in partnership with Environics, found that although about one in three have strong social networks, 36 per cent say they don’t. Only about four in 10 engage in social and recreational activities at least weekly, and almost one-quarter rarely or never do.
The report concluded that more than four in 10 Canadians over 50 are at risk of social isolation, and almost six in 10 experience some degree of loneliness. When developing retirement plans, advisors would do well to emphasize the social side and encourage clients to develop good habits early.
Of course, living to 100 can create its own problems. Fred Vettese this week charted the risks that minimum RRIF withdrawals pose for centenarians. And, as Jason Pereira wrote for Globe Advisor, financial planning projections that stretch to 100 leave some clients frustrated about what that means for their retirement lifestyle.
“The key point is life expectancy changes based on the world and society we live in, and it’s not something we can look at today and ignore for 20 years when planning for the future,” Mr. Pereira says.
Sadly, that seems to be happening in Nicoya and other Blue Zones at risk of losing their status as diets change and less healthy lifestyles are adopted. Still, the basic lifestyle lessons that made Nicoya exceptional can be applied elsewhere to encourage healthy aging.
Must reads
Planning for capital gains: Ottawa’s decision to defer the capital gains inclusion rate hike to next year was welcomed by tax experts, but there’s still uncertainty for investors looking to sell an appreciated asset. Rudy Mezzetta explains what it means for tax filing, for corporations that already paid the higher rate, and for related policies such as the higher lifetime capital gains exemption and the Canadian entrepreneurs’ incentive.
Planning a legacy: More clients are realizing that estate planning isn’t only about who gets what – it’s also a way to share personal stories. Some are turning to documentaries, podcasts and books for this purpose. Deanne Gage reports.
Planning around a pension: Canadians who take advantage of employer-sponsored pension plans are generally a step ahead in their retirement planning compared with those who don’t have a workplace pension plan. However, they still need to save personally. “The question becomes, ‘Where do I save and how much do I save?’” says Aurele Courcelles, assistant vice-president, tax and wealth management, at IG Wealth Management in Winnipeg. Rudy Mezzetta reports.
More from The Globe
Trump tariffs: U.S. President Donald Trump’s tariffs on Canadian goods have been postponed for now, but the one-month reprieve still leaves clients anxious about the outcome. Brenda Bouw asked money managers how they’re responding. Meanwhile, Rob Carrick reflects on what a week of tariff drama means for investors and mortgage shoppers.
Leveraged bitcoin: Canadian exchange-traded fund provider Evolve Funds Group Inc. plans to launch the country’s first group of leveraged crypto ETFs with hopes of drawing back investor dollars from U.S. funds. Evolve filed a preliminary prospectus with the Ontario Securities Commission to launch two investment funds that will provide investors the opportunity to access 1.25 times the price of bitcoin and ether. Clare O’Hara reports.
RRSP contributions: With the contribution deadline approaching, Tim Cestnick offers these seven ways to use an RRSP.