Why isn’t this 63-year-old relying on any source of income to see him through retirement? Plus, why all the fuss about mandatory RRIF withdrawals?

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“I semi-retired at 55 when I hired a manager to run my trucking company, then fully retired at 57 after shutting down the business,” says Mickey McCarthy, 63, in his latest Tales from the Golden Age. “My wife retired from a career in hospital administration last summer at the age of 57.”

McCarthy began dreaming of retirement at age 14, he adds, and started working part-time and saving money. “That meant that when everyone was out partying by the lake, I was probably working but still getting my share of the fun,” he recalls. “The discipline came from my parents, who had a strong work ethic before they retired in the early 60s. They managed money well and showed us how to enjoy it without overdoing it. I have a philosophy that I’d rather do than have.”

McCarthy, who lives in Edmonton, was able to retire financially thanks to the income from his business and some good investment decisions over the years. “When I was a child, my Ukrainian grandfather told me to invest in something tangible, so I bought a gold bar, which I still have. My wife and I also have different types of real estate, some of which we have sold in recent years.”

The couple also has an investment adviser who keeps their money in low-risk investments, aiming for returns of about 5 to 7 percent a year. “I told my advisor. “I don’t want to go back to work, so let’s be reasonable” with targeted investment returns.

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 take part in its Tales from the Golden Age film, which explores the personal and financial realities of retirement. If you are interested in being interviewed for this role and agree to use your full name and photograph, please email us at goldenageglobe@gmail.com. Please include some details about how you saved and invested for retirement and what your life is like now.

What percentage of homeowners have paid off their mortgage?

In a recent Charting Retirement article, Frederick Wetse, former chief actuary at Morneau Scheppel and author of Retirement Income for Life, looks at the number of homeowners here who are mortgage-free in retirement.

Why All the Fuss About Mandatory RRIF Withdrawals?

If the federal government wants to score points with seniors, writes personal finance columnist Rob Carrick, it will eliminate or withdraw the minimum annual withdrawal requirement from registered retirement income funds.

Eliminating the need to withdraw money from a RRIF each year would give seniors more flexibility to manage their retirement savings for longer and longer lives, according to Carrick. But mandatory RRIF withdrawals aren’t as onerous as they’re sometimes made out to be. There is no way they are forcing seniors to use up their savings so that they can run out of money.

The CD Howe Institute recently described mandatory RRIF withdrawal requirements that are a thing of the past and urged that they be eliminated or weakened. A collection of groups urged the federal government to raise the age at which registered retirement savings plans must be converted to RRIFs and lower the required minimum withdrawal.

Read the full article here.

In case you missed it

What to Avoid in Divorce to Prevent Financial Damage

The tone of the divorce process can range from warm to downright brutal, says personal finance writer Maria Postelniak. But while feelings of anger are common, she adds, trying to hurt a spouse financially will backfire and can be very expensive for those who try, attorneys say.

“People sometimes can’t identify assets, they’ll try to hide them and play games with the value, or they’ll hide the money offshore,” said Andrew Feldstein, an attorney at the Feldstein Family Law Group. “There’s always an element of power and control that happens between ex-spouses and finances, that’s the element that bleeds into power.”

In April, a couple in Australia announced they were finalizing their 11-year-old divorce after both spouses consistently refused to come clean about their finances. And Canada has no shortage of notoriously difficult divorces. Take the case of Ottawa resident Bruce McConville, who claimed to have burned through nearly $1 million in savings to avoid paying his spouse during divorce proceedings.

Read the full article here.

Here’s how much you should plan to spend on dental and medical expenses in retirement

The least fun part of retirement planning is figuring out how much you’ll spend on dental and medical expenses, says personal finance columnist Rob Carrick.

Cutting your budget for travel, entertainment and other activities is the fun part, he adds, while food and shelter are automatic. When it comes to health and dental expenses, you’re thinking about expenses that can be very expensive, bring no joy, and document your body’s natural decline into old age.

Longer lives and a strained health care system add some urgency to factoring health and dental expenses into your retirement budget. But how much should you plan to spend on out-of-pocket costs that are not covered by provincial health plans?

Read the full article here.

Pension question and answer

Question. What if someone who is ready to go into semi-retirement or retirement and wants to “port” their group plan benefits, is that possible? And how will the life insurance portion of that benefit work? Will it be cashed out or will there be an option to continue the life insurance after leaving the job?

We asked Kim MacFarlane, vice president of Group Benefits, Manulife, to answer this one.

This is a really great question, and unfortunately the answer is a bit “it depends”. Most benefit plans end at retirement, but there are still a few employers that may provide some form of benefit coverage until retirement, so it’s important to check your coverage. There is no way to “port” your coverage to an employee-sponsored benefit that offers the same health and dental package as your employer, but there are many good options for people who may lose their health and dental coverage.

For example, some group benefit providers, such as Manulife, offer guaranteed acceptance for people whose group benefits expire; all that is usually required is a completed application within 90 days of losing group coverage. In fact, robust plans offer incremental coverage levels that cover pre-existing conditions and eligible drugs so members can maintain their prescription and general health coverage after retirement.

When it comes to life insurance, there are conversion options for plan members that allow them to switch to their employer’s benefit coverage without providing medical information to qualify. If employer coverage is reduced or terminated, the plan member has 31 days to convert to an Individual Life policy with a maximum coverage amount of up to $200,000. That said, there are options on the market that may be more affordable if you’re in good health.

As with any life change, you may want to consider talking to your financial professional or advisor to evaluate all the options available to you in your situation.

Have a question about money or lifestyle topics for seniors? Us too sixtyfive@globeandmail.com and we’ll find experts and answer your questions in future newsletters. Interested in more retirement stories? Sixty Five aims to inspire Canadians to live their best lives, confidently and securely. read more here and: register for our weekly retirement newsletter.