Retirement Flashcards
Personal Reasons for Retirement
- Their expected pension income
- Early retirement incentives
- Loss of a job or health
- A spouse retiring
- Family responsibilities
Social Reasons for Retirement
- Mandatory retirement
- Better pensions at 65
- Positive social attitudes towards retirement
Who retires early and why?
- People in poor health
○ For example, 30% of people under 60 retire due to health reasons
○ Poor health due to drinking, smoking, and obesity are the largest predictors
○ High stress jobs also lead to early retirement - Women who retire for personal reasons
○ Often retire when their spouse retires
○ They often retire to care for a spouse or family member - Those who expect a good retirement income
○ Self-employed workers tend to retire later than all other workers
○ Public service can retire at 55 with a full pension
○ Can opt to get your pensions early at a reduced rate
4 main sources of income
- Private Income/ Investments/Savings
- Private Pension Plans
- Public Pension Plans
- Government Transfers
Private income/investment/savings
○ Includes employment, rent subsidies, tax exemptions, subsidies for purchases, registered pension plan (RRPs)
○ Mostly those in public sector (but only 1⁄4 private sector have registered pension plans)
○ Men and higher income individuals tend to benefit the most from these plans
Private pension plans
○ Includes plans such as a registered retirement savings plan (RRSP)
○ Allows you to put money away without paying taxes at that time
○ Higher income people benefit most from these the most
Public pension plans
○ People pay into the Canadian Pension Plan (CPP) and Quebec Pension Plan (QPP) when working
○ Up to 5.95% of salary goes into CPP (employers match this amount)
○ Does not go into an account for you, it pays the current retirees and when you retire the young people will be paying your pension
Government transfers
○ Includes old age security (OAS), Guaranteed Income Supplement (GIS), and Allowance (ALW)
○ Most canadians qualify for OAS, GIS is typically reserved for lower income adults, with ALW for spouses or partners of GIS recipients
○ These are most used by women than men
○ Low-income older adults receive 94% of their income from these methods
Income Inequality in Aging
● Unattached, recent immigrants, those with fewer thn 10 years in the labor force, and Indigenous older adults
● Non-european ethnic descent tends to earn lower retirement income
● Recent immigrants tend to live with families
● Older women have higher rates of living in property (particularly those whose husbands have died)
Two main groups of older adults
- Low-activity (passive leisure): personal leisure such as watching tv, listening to radio, or taking a drive
- High-activity (active leisure): physical exercise, civic/religious activities, helping others
Volunteering
● Often engage in charitable giving, volunteering through an organization, helping others directly, and membership in an organization
● Fewer older adults volunteer, but they put in more time than younger adults
● Helps provide them with a sense of purpose and psychological well-being
Spiritually
● Some older adults begin an inward journey as they age, reflecting on their life
● Older adults report the highest rate of attendance at religious services compared to other age groups
● May be associated with the role faith plays in health, income, and social supports
Personal Goals
● With this last stage comes a sense of growing awareness of the end of life
● The struggle comes as they try to understand their lives
● To achieve integrity a person must come to terms with the choices and events that made their life unique
● Those who judge their lives as worthwhile and good and glad to live the life they did
Psychosocial Crisis
The psychosocial crisis for older adults, according to Erik Erikson’s theory of psychosocial development, is “Integrity vs. Despair” (occurring in late adulthood, typically 65+).
What This Means for Older Adults:
- Integrity: If individuals reflect on their lives with a sense of fulfillment, accomplishment, and acceptance of both successes and failures, they develop wisdom and a sense of peace. They feel their life had meaning.
- Despair: If individuals look back with regret, feeling that their life was wasted or full of missed opportunities, they may experience despair, bitterness, or fear of death.
Well-Being
● Subjective well-being is a U-shape pattern throughout life
● May be associated with emotional regulation difference in younger vs. older adults
● Older adults amygdala is more controlled and therefore emotional arousal is lower
