1. Welcome HRPAN

2. Presented by Av Lieberman for The Retirement Education Centre Inc. Preparing Your Employees for the “New” Retirement

3. Lifestyle Transition Planning Traditional retirement (does not exist anymore) Traditional retirement (does not exist anymore) The “New” Retirement The “New” Retirement Any new life structure or change Any new life structure or change –semi-retirement –new career –new business –volunteering

4. Relationship Between Work and Retirement Retire to Something Not from Something

5. Develop a “Game Plan” for many people, a job is crucial psychologically, over and above the paycheck. By making clear demands on their time and energy, it provides an element of structure around which the rest of their lives can be organized”. “ … for many people, a job is crucial psychologically, over and above the paycheck. By making clear demands on their time and energy, it provides an element of structure around which the rest of their lives can be organized”. Alvin Toffler, ‘The Third Wave’ “ Individuals need life structure.”

6. Understanding Life’s 3 Stages Grow & Learn Work & Learn Do what you want

7. The 5 Functions of Work 1. Financial Stability 2. Time Management 3. Sense of Utility 4. Socialization 5. Status

8. The Relationship Between Work and Life Motivators What makes me get up in the morning? Recognition Express myselfProblem solving Be listened toCompete/win Be creative Learn OrganizeMake decisions Lead othersTake calculated risks Socialize/work with others

9. The Need for Life Structure “ If you are what you do, then when you don’t you aren’t” - Dr. Wayne Dyer

10. Part Time Work Lifestyle Practising full retirement - transition from full time work to full time other Financial Replacement of day- to-day expenses, but no longer saving for retirement

11. Personal Goals Exercise Life Choices Knowing Your Strengths and Transferable Skills

12. Lifestyle Transition Planning Making Choices Making Choices Planning for the Transition Planning for the Transition

13. The “New” Retirement is a new beginning (Transition)

14. Agenda Two Questions What will I do? Will I have enough?

15. Lifestyle Transition Planning Question #1 What will I do?

16. Retirement - For me? Can I afford it ? Can I afford it ?

17. The Real Questions What do I really like to do? What do I really like to do? What will keep me motivated? What will keep me motivated? How will I spend my time? How will I spend my time? How will I react to not having a job? How will I react to not having a job? Part time work, is it for me? Part time work, is it for me? How will my family be affected by my retirement? How will my family be affected by my retirement?

18. Letter to Yourself “10 Years from now, I will be...”

19. Lifestyle Transition Planning The next 30 years of your life amounts to 262,800 hours of your time. How well do you want to live it?

20. Researchers Say... A study of life satisfaction looked at twenty different factors that might contribute to happiness. Nineteen of these factors did matter, and one did not. The one factor that did not matter was financial status. Hong and Giannakopoulos 1995

21. Lifestyle Transition Planning The earlier you begin the planning process, the more life choices (options) you have!

22. To Develop A Satisfying Retirement Develop a vision of the next stage of your life Develop a vision of the next stage of your life Develop the structure that will help you satisfy your needs and motivators Develop the structure that will help you satisfy your needs and motivators Develop a game plan to help make the transition Develop a game plan to help make the transition

24. Lifestyle Transition Planning Question #2 Will I have enough?

25. A pension plan: not a retirement plan. not a retirement plan. intended to provide for intended to provide for basic necessities. Day-to-day expenses Day-to-day expenses Corn Flakes $$ Corn Flakes $$ Monthly Income Lifestyle I Want

26. Capital Lifestyle I Want Capital $$ to Fund Special Life Events Children’s education and weddings; travel; cottage; home renovations; new car.

27. Lifestyle I Want Special Life Events MonthlyIncome

28. “Day-to-Day Retirement Amount” “Day-to-Day Retirement Amount” Family Income$ 80,000 [ 40,000 (Bill) + 40,000 (Barb)] Family “Taxable Income”$ 66,000 (line 260) Less: Tax Payable (line 435): $ 16,000 Mortgage (P. & I.): $ 15,000 Bank Loans & Credit Cards: $ 5,000 Children Expenses: $ 6,000 Equals: “CORN FLAKES $$”= $ 24,000

29. Learning about Yourself New Career Ideas/Volunteerism As a result of retiring what new career or job opportunities might you consider? As a result of retiring what new career or job opportunities might you consider? Is part time work an option? Is part time work an option? What volunteer activities might you consider as an activity in retirement? What volunteer activities might you consider as an activity in retirement?

30. Learning about Yourself Where do I want to live? Where do you want to live when you retire? Where do you want to live when you retire? –What is your preferred option? –What is your least expensive option? Will this have a financial impact? Will this have a financial impact? –If so, what is the estimate of the financial impact?

31. Learning about Yourself Hobbies and Interests What types of hobbies and exercise activities may you get involved in or further consider in retirement? What types of hobbies and exercise activities may you get involved in or further consider in retirement? Will there be any financial impact? Will there be any financial impact? Do you plan to travel Do you plan to travel –considerably more than you currently travel? –to the same degree as you currently travel? –less than you currently travel? Is there a financial impact? Is there a financial impact?

32. Learning about Yourself Special Life Events What special life events may have a financial impact? What special life events may have a financial impact? Children’s education/ wedding Children’s education/ wedding Travel Travel New car New car Buy cottage/boat Buy cottage/boat Buying first home Buying first home Starting a business Starting a business Home repairs Home repairs Selling home Selling home

33. Purpose of Lifestyle Transition Planning Lifestyle Ability to do the things you want to do Financial Ability to support what you want to do

34. “Our accountant says we need to revise our retirement plan. At age 65, we should get divorced and marry people who planned better.”

35. Why? Why? What’s happening in the U.S.? What’s happening in the U.S.? Industry observers say it is only a matter of time. Industry observers say it is only a matter of time. Employer’s Fiduciary Responsibility as a Pension Plan Sponsor

36. Education is the link between Information and Advice. Education Information Advice Information Advice

37. Capital Accumulation Plan Guidelines (CAP) Adherence is “voluntary” BUT Adherence is “voluntary” BUT Regulators/courts will likely use as a benchmark to judge the operation of your CAP Regulators/courts will likely use as a benchmark to judge the operation of your CAP

38. Capital Accumulation Plan Guidelines (CAP) The guidelines are an invaluable tool for analyzing if your governance structure is sufficient or deficient.

39. THANK YOU It has been a pleasure