Pamela Francis, an administrative assistant at UBC, turned her love for travel into a part-time gig as a vacation consultant, something she plans to continue after retiring from her day job.Jennifer Gauthier/The Globe and Mail
Good morning. As many of you’d guess (or are already experiencing), retirement is much more than just palm trees, golf and gardening. In a new, recurring instalment here at Retire Rich, we’re talking to Canadians to find out what their “second acts” are, and hopefully it’ll help inspire you. Let’s get into it.
When a passion for travel becomes a retirement plan
Meet Pamela Francis, 56, a university administrative assistant in Vancouver who’s mapping out her transition to semi-retirement and doing it on her own terms.
Back in her 30s, Francis earned a master’s degree in art history in Britain. That experience sparked a love for travel that’s stuck with her ever since.
In 2019, she turned her passion into profit, starting a part-time gig as a vacation consultant for Expedia Cruises. Now, she spends evenings and weekends booking dream getaways for clients and earning commissions while doing it.
Her big plan? To retire from her day job within five years and continue to work as a travel consultant part-time. She plans on using her earnings to help supplement her retirement income, along with her pension from her job and her own personal savings.
“I want my brain to be engaged,” she said. “Helping people plan their perfect trip keeps me energized and excited. The travel perks are a sweet bonus.”
Her advice to folks gearing up for retirement is to find something you genuinely love to work on: “It should be something that feels easy because it lights you up,” Francis said.
She is not alone, of course. Many Canadians use their retirement as a launchpad to try out new skills and interests, mixing additional income with personal fulfillment.
Got a Second Act story of your own? Whether you’re dreaming, planning, or already living it, drop me a line at mraman@globeandmail.com. I’d love to hear it.
The Calculator
First-time homebuyers are getting older. Between 2018 and 2021, the number of first-time homebuyers aged 35 and over grew at a much faster rate than those under 35 in British Columbia, Manitoba, Nova Scotia and New Brunswick.
Why? Homes prices have soared. The average Canadian home now goes for just under $700,000, nearly four times what it was back in 2000. But annual individual incomes haven’t kept pace, creeping up only about $10,000 since then, up to $59,400.
Why it matters: Younger Canadians are hitting pause on home buying, choosing instead to spend their 20s and 30s travelling, learning and living on their own terms, before settling down in their 40s or later.
The Retirement Receipt Open this photo in gallery:
Craig, 64, and Sharon, 62, have a net worth of $3.5-million with no debt. Can they retire next year and sustain their current lifestyle?Ashley Fraser/The Globe and Mail
Can we retire next year with $3.5-million in net worth?
That’s the question Sharon, 62 and Craig, 64, are asking. Let’s break it down.
The numbers: In 2018, when the couple was first featured in The Globe, their net worth was $1.7-million. After years of saving, they’ve now grown it to $3.5-million with no debt and have a retirement spending goal of $90,000 a year after tax. Sharon earns $110,000 a year, while Craig is semi-retired and collecting a $30,000-a-year defined benefit pension. Craig recently inherited $830,000, which they used to top up TFSAs and help their two kids with down payments.
The situation: They’re wondering if Sharon can retire in January, if Craig should defer his Quebec Pension Plan and whether they should buy a house in town to move into when they’re older.
The good news: A financial planner says they’re in great shape. Sharon can afford to retire next year, with a few strategic moves.
Key steps, from a financial planner:
Start drawing down their registered retirement savings plans/registered retirement income funds early in retirement while their taxable income is low, to manage taxes and avoid Old Age Security clawbacks.Defer QPP and OAS to age 70 if they’re healthy.Their portfolio is 100-per-cent stocks, too risky at their age given they’ll be drawing down assets. All-in-one exchange-traded funds could be a better, lower-cost option.Buying a house in town could work. If they rent it out, it would be cash-flow neutral. Moving in later might trigger capital gains, but tax deferral options exist.Plan for the family cottage. To avoid estate tax issues and family disputes, they should discuss succession plans with their kids now.Best of the Rest
🎥 Retirees are becoming unlikely social media stars. Take Vivian Boyko, a 71-year-old Saskatoon grandma who went viral on TikTok with her comedy skits and wig collection. She’s part of a growing wave of “granfluencers”: retirees finding purpose and connection online by sharing recipes, jokes and life lessons.
🥣 For Helen Wrathall, 71, retirement means cycling, volunteering and cooking from scratch. The former financial planner from Acton, Ont., keeps busy making homemade soups for her community hub and fuels her active life with protein, healthy fats and the occasional filet mignon. Her grocery staples? Greek yogurt, avocados, dark chocolate and protein bars for the trails.
👶 The “motherhood penalty” is still very real, says sex neuroscientist Debra Soh. In a recent column, she argues that despite feminist progress, biology makes it harder for women to balance careers and kids, and pretending otherwise leaves them unprepared. Men often see a wage boost after becoming dads, while women face setbacks. The solution? Have honest conversations about the trade-offs, so women can plan with eyes wide open.
📈 Alberta workers could see up to 72 per cent more retirement income with a provincial pension plan. A Fraser Institute study finds that because of higher wages and lower contribution rates, an Alberta Pension Plan combined with private savings could boost retirement payouts significantly compared with the Canada Pension Plan. For median earners, total retirement income could be up to 72 per cent higher.
Try This
🚌 Want a cheaper road trip? Look for R.V. “relocation” deals. When rental car companies need to move their vehicles to a specific location, they often offer “relocation” or one-way trips at steep discounted prices. For example, Canadian company CanaDream recently listed a 12-night relocation deal on an R.V. rental for $99 a night from Toronto or Montreal to Vancouver, Edmonton or Calgary – a trip that would normally cost around $330 a night. If you have some flexibility, keep an eye out for these deals on your next road trip.