Retirement Ready 2016

2016

NAVIGATING THE HOW, WHEN AND WHERE

How to retire ■Draft a winning plan ■Real estate investing

Where to retire ■B.C.’s 5 top towns ■Future of retirement communities

When to retire ■Exit strategies ■Successful succession

Why to retire ■Cruising and fitness ■Routes to discovery

RETIREMENT READY

THE ULTIMATE RETIREMENT GUIDE MAGAZINE FOR BRITISH COLUMBIANS

The psychology of aging ■ The art of giving ■ The trillion-dollar transfer ■ Best places in the world to retire ■ And why you may live to 120

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RETIREMENT IS JUST AROUND THE CORNER. AND IT’S REALLY HARD TO SEE AROUND CORNERS.

One minute, your retirement is 25 years down the road; the next minute, you’ve reached the corner of “Now what?â€? and “Where to?â€? and you’re left facing questions \RXÂśYH QHYHU IDFHG EHIRUH :H FDQ KHOS \RX ÂżQG WKH DQVZHUV 2XU ULJRURXVO\ GLVFLSOLQHG ORQJ WHUP DSSURDFK WR LQGLYLGXDOL]HG ÂżQDQFLDO SODQQLQJ means we’ll work to build a sustainable income plan, so you can do all the things you want to do. And if your needs change, we’ll evolve your plan. So when it’s time to turn WKH FRUQHU WRZDUG UHWLUHPHQW WKHUH ZRQÂśW EH DQ\ VXUSULVHV ,WÂśV WLPH WR ÂżQG RXW ZKDW D 5D\PRQG -DPHV ÂżQDQFLDO DGYLVRU FDQ GR IRU \RX LIFE WELL PLANNED.

TRACEY MCDONALD & ERIC MUIR

LORI PINKOWSKI & SETH ALLEN

PETER WONG

604-451-3100 • 1-855-450-6847 eric.muir@raymondjames.ca www.muironmoney.com

604-659-8047 • 1-877-659-8057 pinkowskiallen@raymondjames.ca www.pinkowskiallen.com

604-659-8045 peter.wong@raymondjames.ca www.raymondjames.ca/peterwong

www.raymondjames.ca Raymond James Ltd. is a member of Canadian Investor Protection Fund.

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Rely on Dentons’ leading pensions, benefits and executive compensation team for the seamless service and experience you need.

Dentons. Now the world’s largest global elite law firm.* Scott Sweatman Partner, Vancouver D +1 604 443 7114 scott.sweatman@dentons.com dentons.com/vancouver

Mary Picard Partner, Toronto D +1 416 863 4469 mary.picard@dentons.com

© 2016 Dentons. Dentons is a global legal practice providing client services worldwide through its member firms and affiliates. Please see dentons.com for Legal Notices. *Acritas Global Elite Law Firm Brand Index 2013−2015.

Claude Marchessault Counsel, Vancouver D +1 604 648 6517 claude.marchessault@dentons.com

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CONTENTS COLUMNS Exit strategy 101 Estate freeze Death, taxes & myths Why you need a will

FEATURES 15 17 22 24

Ready for retirement How much do you need?

Real estate & retirement Bequeathing to charity Giving and getting B.C.’s top retirement towns Retiring abroad Retirement residences Psychology of aging Restorative power of yoga Move it!

Cruising into retirement

7 9 11 19 20 25 30 34 38 40 42 44

2016

NAVIGATING THE HOW, WHEN AND WHERE

Where to retire ■B.C.’s 5 top towns

■Real estate investing

■Future of retirement

communities When to retire

RETIREMENT RESIDENCES — 34 As with the B.C. housing market, the level of retirement residences is geared to income

CRUISING INTO RETIREMENT — 44 Cruise travel is surprisingly inexpensive – and you only unpack once

RETIRING ABROAD – 30 Five foreign options share common themes of sunshine, relatively low living costs and social stability

RESTORATIVE POWER OF YOGA — 40 Blending mind and body for a younger you

HOW MUCH WILL YOU NEED? — 9

How to retire ■Draft a winning plan

■Exit strategies

Why to retire

■Successful succession

■Cruising and fitness ■Routes to discovery

RETIREMENT READY

THE ULTIMATE RETIREMENT GUIDE MAGAZINE FOR BRITISH COLUMBIANS

The psychology of aging ■ The art of giving ■ The trillion-dollar transfer ■ Best places in the world to retire ■ And why you may live to 120

PUBLISHER: Sue Belisle VICE-PRESIDENT, AUDIENCE AND BUSINESS DEVELOPMENT: Kirk LaPointe EDITOR: Frank O’Brien DESIGN: Randy Pearsall PRODUCTION: Rob Benac WRITERS: Mike Beishuizen,

William Cooper, Cindy David, Darah Hansen, Pat Johnson, Arthur Klein, Baila Lazarus , Peter Mitham, Frank O’Brien, Scott Simpson, Christine Van Cauwenberghe, Yvonne Zacharias PROOFREADER: Meg Yamamoto ADVERTISING SALES: Lori Borden, Joan McGrogan, Corinne Tkachuk ADMINISTRATOR: Katherine Butler RESEARCHERS: Anna Liczmanska Retirement Ready 2016 is published by BIV Magazines, a division of BIV Media Group, 303 Fifth Avenue West, Vancouver, B.C. V5Y 1J6, 604-688-2398, fax 604-688-1963, www.biv.com.

Copyright 2016 Business in Vancouver Magazines. All rights reserved. No part of this book may be reproduced in any form or incorporated into any information retrieval system without permission of BIV Magazines. The list of services provided in this publication is not necessarily a complete list of all such services available in Vancouver, B.C. The publishers are not responsible in whole or in part for any errors or omissions in this publication.

ISSN 1205-5662 Publications Mail Agreement No: 40069240. Registration No: 8876. Return undeliverable Canadian addresses to Circulation Department: 303 Fifth Avenue West, Vancouver, B.C. V5Y 1J6 Email: subscribe@biv.com Cover: Signals Design

For some retirees, a million dollars won’t cut it

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TALKING ‘BOUT OUR GENERATION SENIORS AS A TOTAL PERCENTAGE OF THE POPULATION: B.C. 2001 TO 2031 25% 20%

15% 10%

5%

1971 2001 2031 SOURCES: BC STATS, STATISTICS CANADA

A

re you retirement ready? It is an important question in British Columbia where the median age is 42, a third of the population is nearing 50 and 17 per cent of the population has already achieved senior status. We are entering uncharted territory, an unprecedented demographic shift that will quake the economic and social foundations of our province.

Not only does B.C. have one of the fastest-aging populations in the country, it is also where many Canadians from the colder provinces plan to retire.

But the baby boomers who have transformed every decade since the ’50s are now about to domino the entire concept of a being a senior citizen in British Columbia.

This is not raging about the dying of the light. It is about lighting a whole new fire.

Seniors today are happier and more active than ever and, according to the Canadian Medical Association, are forecast to be the healthiest in human history – and not only physically and mentally.

After a half-century of prosperity, mature British Columbians represent the wealthiest demographic ever seen. The average retirement nest egg is $340,000, and in Metro Vancouver alone, homeowners over the age of 55 hold an estimated $163 billion in equity.

Baby boomers are also sharing in what is known as the trillion-dollar transfer, the biggest intergenerational wealth transfer in Canadian history that is rolling out over the next two decades.

Not all B.C. seniors will be fat-cat retirees, but the extensive safety net and economy they’ve helped build over the past half-century will buttress an envious degree of dignity, variety and exploration – including medical breakthroughs that may extend life by decades.

Welcome to Retirement Ready magazine, where, with the advice of leading experts, we investigate how to retire, when to retire, where to retire, the psychology of aging and how to embrace what should be the triumphant years of a longer life.

Frank O’Brien Editor

biv.com/navigating

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How to retire

READY

FOR RETIREMENT 3 experts on the 5 top tips to financial freedom

Joyce Wong, a financial adviser with BlueShore Financial | SUBMITTED

SCOTT SIMPSON

W

hat are the most important considerations for a comfortable retirement? For a lot of people, money immediately springs to mind. But have you thought about what your life will be like in 10 to 15 years – everything outside those brief moments when you confirm that your monthly pension cheque or RIF withdrawal has landed in your chequing account?

Are you exploring the ruins of ancient Athens or volunteering with a local service club? Or did you un-retire for a part-time job to cover unexpected medical costs for a spouse?

The advice from financial planners is that retirement is nothing to lose sleep over, unless you’re procrastinating about planning for it. A couple of hours a year is all most people need.

Yet even the experts provide different advice for preparing for the last day of work.

The first priority for Joyce Wong, a financial adviser with BlueShore Financial, is getting clients to shape their thinking around life expectancy – an average 80 years for men and 84 years for women in Canada.

“It’s important to have a financial adviser work with you to align your lifestyle goals, create a realistic vision of what your life is going to look [like] and translate

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those goals into a financial plan,” Wong says. If you have a partner, you also need to ensure you’ve shared your expectations.

Priority two is committing to an annual review, “even if it’s going to be a quick check and conversation that you are on track.”

The third consideration is “emergency funds for a rainy day” to cover unexpected costs while you’re still working.

“No. 4 is lifestyle planning,” Wong says. “People tend to plan for what I call the glamourous years, the first five or 10 years after retirement. After that, activities such as travel can become a chore, or maybe there are issues with illness, with not wanting to be feeling inconvenienced.”

Finally, Wong says, you need to understand where your retirement income will come from. “How much will you actually receive, should you want to retire at 60 or 65,

Martin Zlotnik, chartered accountant with ZLC Financial | SUBMITTED

David Lee, BlueShore Financial adviser | SUBMITTED

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RETIREMENT READY 2016 PUBLISHED BY BUSINESS IN VANCOUVER

How to retire | Ready for retirement

THE BIG 5

1

2

3 4 5

Start saving early

Pay down debt

Make a plan

Update your plan annually

Know where you are going

from CPP [Canada Pension Plan], and if you expect to receive OAS [old age security], how much will that be?”

David Lee, another adviser with BlueShore, also focuses on immediate action items.

“The first one is paying down debt,” Lee says. “By accelerating debt payment now, it puts you in a position where you have fewer expenses when you retire.

“The second is planning how you are going to enjoy retirement, because it’s about more than just money.

This is how you are going to spend your time.”

No. 3 is to be at least mildly aggressive with your money. “If you can take on a little bit of risk and have a longer time horizon, then you should do very well in the future.”

No. 4 is planning as if you will live to age 90, putting longest-term investments into tax-free savings accounts – there’s an extended time horizon for overcoming any market drops.

“The last consideration is having a good investment plan while you’re still working. It’s best to start early.”

Determining your post-work lifestyle is a key for chartered accountant Martin Zlotnik of Vancouver’s ZLC Financial. “Are you going to travel or work part

time? You have to know where you’re going before you can plan how to get there.”

Ask yourself what kind of financial needs you’ll have at retirement and, aside from your spouse, whether there will be people you’re still responsible for – such as children who need financial help or have special needs, for example.

Zlotnik recommends you take some time to assess your current savings – registered retirement savings plans, an individual pension plan, retirement income fund and so on. “What do you have today, and how much more do you need to accumulate?

“You have to periodically examine your own risk tolerance, and for most people that risk tolerance should lessen as you get closer to retirement. When you’re 10 to 15 years from retirement you should have a strategy of more safety and less risk. Diversify your investments.”

“The last thing, and it’s kind of a self-serving comment, is to work with an adviser you trust and that you’re comfortable with. Although you want to work with someone that has a designation, compatibility is probably as important or more important than all the initials someone has behind their name.” É

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How to retire

HOW MUCH

DO YOU NEED?

For some retirees, a million dollars won’t cut it SCOTT SIMPSON

Y

ou’ve listened to your financial adviser, saved diligently, invested wisely and now, with retirement looming, you’ve got a million dollars to draw on.

Time to start living like a millionaire, right?

Not so fast, grandma. That money has to carry you for another 20 or 30 years. For at least the first decade or decade and a half of your post-work life, you risk outliving your money if you tap into the principal amount.

That means living off the annual returns your nest egg generates – such as interest, dividends and capital gains.

Add in the Canada Pension Plan (CPP) and any company or employee pensions, and you’ll have a fair idea of how much you’ll have to live on. Advisers generally suggest a target of between 40 per cent and 80 per cent of your pre-retirement income – with the final amount determined by several factors.

“Each person is going to have a different number regardless of how much they have saved,” explains David Bassett, a vice-president and investment adviser with TD Wealth. “The notion of what’s enough to live on is going to be based on your lifestyle, but it’s also going to be determined by the age you expect to live to.”

It’s also based on the nature of your investments. A balanced portfolio of stocks and bonds returning five per cent on $1 million produces $50,000 a year – an amount Bassett describes as “a little bit bracing” for

someone accustomed to an executive-grade salary.

Even more “bracing” is the return on $1 million at two per cent – $20,000 a year, which is roughly the annual return in 2015 on a cautious investment solely in guaranteed investment certificates.

You’ll have to decide how much risk you can tolerate, and how much you’re prepared to adjust your lifestyle.

The good news is that for someone who has been dutifully setting aside 10 per cent of his or her income for a few decades, the adjustment to a retirement income is less of a challenge.

“If you’ve been saving 10 per cent all the way through your working life, then at least you’ve developed spending habits that are within your means,” Bassett says.

“If one person is making $200,000 a year and another makes $50,000, people wonder how it can work out for someone making the lesser amount. If you are always putting away 10 per cent for savings, you’ve learned to live on the balance. The sooner you start that savings habit, the better.”

Bassett recommends waiting until you’re at least 75 before you start touching your principal investments.

Aside from deciding your lifestyle and investment

Adrian Mastracci, president, KCM Wealth Management: “income is secondary after you figure out expenses because if you can’t make the expenses, something has to give” | SUBMITTED

David Bassett, vice-president and investment adviser with TD Wealth: “each person is going to have a different number regardless of how much they have saved” | SUBMITTED

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RETIREMENT READY 2016 PUBLISHED BY BUSINESS IN VANCOUVER

How to retire | How much do you need?

A balanced portfolio returning five per cent on $1 million produces $50,000 a year

preferences, KCM Wealth Management president Adrian Mastracci recommends a conservative approach when calculating other benefits that contribute to your income.

For example, although the annual maximum combined benefit from CPP and old age security (OAS) is close to $20,000, “most people probably don’t get 100 per cent of both.” Mastracci recommends assuming you’ll get 75 per cent of those government benefits, which are tied to the cost of living – and he suggests deferring them for a few years if you can afford it because the payments increase for every year you delay.

“CPP at age 65 is $1,065 per month maximum. If you defer for five years it goes to $1,510 per month. OAS is $570 per month at 65, and it goes to $775 if you defer for five years. You get a much bigger number, and the good thing is the indexing starts at the big number.”

There is “no specific amount” of retirement income, Mastracci says. “The questions to ask yourself are: how much do I need, how much saving will it take to achieve that, is it realistic, and how do I achieve that?

“What you need to do is handle all of your expenses and then have a little bit more. Hopefully you don’t have a mortgage. But you have property taxes, insurance, food, going out, travel and what have you. Income is secondary after you figure out expenses because if you can’t make the expenses, something has to give. Usually it’s a cutback on travel, or food, or entertainment, or helping out the kids.”

One final tip, from David Lee of BlueShore Financial, is that “you will likely spend more in the first few years of retirement, because you’re excited and you’re healthy.

After that, re-evaluate.” É

MONTHLY CANADA PENSION SUMMARY Pension

Max. at age 60

Max. at age 65

Max. at age 70

(Canada Pension Plan)

$695

$1,065

$1,510

(old age security)

$0

$570

$775

CPP OAS

SOURCE: KCM WEALTH MANAGEMENT

What will your legacy be?

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Legacy gifts can be made in several ways: leaving a bequest in your will, giving a gift of life insurance, or designating the Foundation as the beneficiary of your RRSP, RRIF or TFSA. Whichever type of legacy you leave, know your gift will help our health care teams save lives now, and well into the future.

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How to retire

REAL ESTATE RETIREMENT &

B.C. is perhaps the best place on the planet for retirees to earn real estate income

FRANK O’BRIEN

F

or many mature British Columbians, real estate offers the best avenue for secure retirement income. Those who own even a modest house in Vancouver would attest to that. In 2015, the benchmark price of a detached house in the city increased by an average of $30,000 a month and ended the year worth more than $1.8 million.

In a 2015 address to the Urban Development Institute in Vancouver, top Vancouver real estate agent Bob Rennie noted that “people 55 and up have home equity in Metro Vancouver valued at $163.4 billion.”

But banking on real estate income in retirement requires more than hoping for continued and accelerating appreciation.

The Lower Mainland, after all, is an anomaly in British Columbia. Knock out the Vancouver region and the typical house price across the province is around $400,000, just slightly above the Canadian average and up a modest four per cent from a year ago.

Yet investors can make steady income from real estate anywhere if they pick markets and property carefully and remain realistic.

Vancouver real estate author and investor Ozzie Jurock recommends that middle-aged investors looking for

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BOB RENNIE |

REAL ESTATE MARKETER

People 55 and up have home equity in Metro Vancouver valued at $163.4 billion

future retirement income ignore the market noise and buy a condominium or house as a rental, and set a 17-year horizon. Jurock explains that this is the time it takes, with rental income, to pay off a typical mortgage. “Then you have passive rental income for the rest of your life.”

Where should you buy? Steer away from smaller resource or resort towns. Buy where jobs are being created and where the population is growing. A key indicator is increased school and regional hospital construction, evidence that brains bigger than yours have decided where the population is heading, Jurock adds.

The Fraser Valley markets of South Surrey, White Rock and Langley could be the top choices for better-financed rental investors.

More affordable secondary cities in B.C. include Kelowna, Nanaimo and Prince George. Outlier markets are Vernon, Campbell River and Terrace, because each

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RETIREMENT READY 2016 PUBLISHED BY BUSINESS IN VANCOUVER

How to retire | Real estate & retirement

British Columbia residential real estate has proven a blue-chip rental investment for many

combines a diversified economy with relatively low housing prices, and rental vacancy rates below the provincial average of 2.4 per cent.

retirees | SHUTTERSTOCK

REAL ESTATE INVESTMENT TRUSTS Q Many retirees, though, shy from the responsibility, risk and hard work that owning rental property requires. For these, a passive investment in a real estate investment trust (REIT) offers a viable option.

B.C. REAL ESTATE BY THE NUMBERS

$30,000 78.9% 51.4% 0.7% 502%

REITs are public companies that invest in real estate and distribute their income (primarily from rent) to shareholders. REITs can also be sheltered from the taxman in registered retirement savings plans or taxfree savings accounts.

From 2001, the Canadian REIT index increased by 502 per cent, or at 13-year compound annual growth rates of 11.6 per cent, compared with 5.6 per cent for the Toronto Stock Exchange and 5.8 per cent for Canadian bonds, according to RBC Dominion Securities.

The beauty of REITs for retirees is their diversity and dividends. An investor, for instance, could focus on REITs that are either leveraged with B.C. real estate or linked to retirement residences.

Examples of these include: Toronto-based Canadian Apartment Properties Real Estate Investment Trust (CAPREIT), which recently purchased a portfolio of 19 Metro Vancouver apartment buildings and holds more than 46,000 other rental units across the country. As of November 2015, CAPREIT was paying an annual dividend of $1.22 per unit share.

Chartwell Retirement Residences REIT owns 18 retirement properties in B.C. and is the largest operator of such communities in Canada with 175 locations.

Chartwell REIT was paying an annual dividend of 54 cents per unit share in 2015.

But REITs can be involved in any property type. If you believe in the future of industrial real estate, Vancouver-based Pure Industrial Real Estate Trust has a portfolio of 169 industrial properties, 14 of which are in B.C. Pure paid an annual dividend in 2015 of 34 cents per unit share. An office-sector best bet could be Dream Office REIT, which owns four office towers in Metro Vancouver among its 174 Canadian properties. In 2015, Dream paid an annual dividend of $2.24 per unit share.

Those getting retirement-ready should investigate B.C. real estate, perhaps the most promising long-term investment play in the country. É

Average price increase per month for a Vancouver detached house, 2015 Average percentage price increase for a Vancouver detached house in last 10 years

Frank O’Brien, editor of Retirement Ready, also edits Western Investor, Canada’s largest commercial real estate and investment publication.

Percentage increase in Lower Mainland condominium price in last 10 years

Average condominium rental vacancy rate, Metro Vancouver 2015

Percentage increase in Canadian REIT index from 2001 to 2015 SOURCES: REAL ESTATE BOARD OF GREATER VANCOUVER, RBC DOMINION SECURITIES

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TOP TIPS FOR

NAVIGATING R ETI R E M E NT

freedom

55 75

Freedom 75 or 55?

An interactive look at retirement by the numbers. biv.com/navigating 03_Retirement Ready 2016_02.indd 13

2016-01-07 10:01 AM

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When to retire

EXIT STRATEGY 101 ARTHUR KLEIN |

Take as much care selling your business as you did building it

P

The sale of small businesses oveer the next 10 years will involve a massive transfer of assets – estimated at between $1 trillion and $4 trillion in Canada

ricewaterhouseCoopers, in a recent report, predicts a “highly competitive buyer’s market between 2018 and 2025” for family businesses.The report also suggests that many owners will not receive the nest egg they hoped for.

Overall, the sale of small businesses over the next 10 years will involve a massive transfer of assets – estimated at between $1 trillion and $4 trillion in Canada. If a large percentage of those businesses simply close, it could damage the economy through a significant loss of employment.

Selling your business can be an organized process that maximizes profit and expedites the sale, or it can be a dismal failure full of gut-wrenching interactions and tremendous amounts of your money left on the table.

Fortunately, the choice is yours.

A good exit strategy starts with simple awareness of the process of selling and can be implemented in advance in your day-to-day activities with little additional effort.

EYES WIDE OPEN Q Think of the sale of your business in health terms – no preparation as last-minute surgery with no anesthesia, or a defined exit strategy as preventive medicine.

Your exit strategy begins with awareness that one day you will sell your business. Reasons vary for each business owner and can be as simple as retirement or as complex as health or divorce.

Only you know or will decide when it is time for you to sell. However, having implemented an exit strategy will ensure maximum

profit at the sale and great peace of mind should you be selling under less favourable circumstances such as the mental duress of a downturn in business or poor health. Treat this exercise no differently than the insurance you have in place to protect your assets.

Once the decision to sell is made, contacting a business broker or other intermediary to discuss the market conditions and the various options you have to sell your business is imperative.

UNDERSTANDING VALUE Q A

key process you will want to undertake is that of a business valuation.

Typically, this involves a systematic process by which your financial information is normalized – upon which a reasonable and critical assessment of an opinion of value will be derived, as based on various methodologies, your specific knowledge of the business, current market conditions, future growth potential and opportunity, etc.

Remember, buyers are motivated by both the reason the business is for sale and the price being presented. They will not pay for improbable opportunities that are without substance. By understanding your business value, you will have the perspective and tools by which to plan your next steps.

Most businesses are sold to persons not familiar to the seller, and sales are done through a broker who facilitates the transaction, working in the vendors’ best interest. Buyers can be entrepreneurs that have the same zeal you had when you started your business or industry players that will purchase your business to

expand or enhance theirs.

A qualified business broker can be instrumental in helping you define an exit strategy that encompasses the sale scenario viewed from every angle. You will want to discuss a buy-sell agreement with your business broker and other professionals, namely your lawyer, accountant and financial adviser.

Existing agreements with partners, stockholders, landlords and others will be examined to ensure your goals, expectations, and terms and conditions of sale are not rendered void and as few as possible conflicts arise during the due diligence process. Due diligence is the process of verifying the accuracy of the assertions made regarding your business.

View your exit strategy from the viewpoint of a buyer. What would you be looking at and for if you were to buy your business? Do your profit and loss statements match your balance sheets and tax returns?

Imagine the lack of confidence you would have to move forward as a buyer of your business if discrepancies arose in your financial documents at the due diligence stage of the sale. What about the physical state of your facility? If you were the buyer, would you want to walk into a facility that needed immediate attention or a facility that was clearly neat, clean and organized, allowing you to transition easily into the pertinent matters at hand and not worry about disorganization and safety issues?

Are your employees engaged in the business? And what would your clients say about you if they were randomly called? Are your sales and

Will you be eating salmon or sardines?

Learn how much you need to retire. biv.com/navigating

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RETIREMENT READY 2016 PUBLISHED BY BUSINESS IN VANCOUVER

When to retire | Exit strategy 101

SMALL-BUSINESS RETIREMENT SURVEY

27% 24% 23% 20% 18% 12%

Percentage of owners who have no plan in place to sell their business Percentage of owners who have a succession plan in place Percentage of owners who plan to close the business when they retire Percentage of owners who plan to sell to a third party Percentage of owners who plan to transfer the business to a family member Percentage of owners who plan to sell to a partner or employee SOURCE: TD WATERHOUSE BUSINESS SUCCESSION POLL

profits on the increase and expenses on the decrease?

The purpose of the exit strategy is to apply that required effort necessary to achieve maximum profit for minimum effort when you do sell.

Working on these issues a little bit each day brings huge profit and joy tomorrow.

TAX CONSIDERATIONS Q Tax consequences and what you will do with both money and time after the sale is finalized need to be considered. Many times, to close a deal you will be asked to help in some capacity with the transition.

Again, you will want to determine in advance, with the help of your accountant or financial adviser, how the proceeds of the sale will be best distributed and conserved.

The financing arrangements and/ or cash at closing will greatly affect your tax position, and all options should be considered. Can you get more for your business by offering terms on a carry-back note and still protect your interests and save

on taxes? Being proactive at this stage will greatly enhance profits at the sale.

With your plan laid out and preliminary players like an accountant and a business broker identified, you can now break it down into bite-sized pieces that can be a part of your everyday business routine.

If your business sells for 10 per cent more due to this organization and planning, you may have just put a significantly larger sum in your pocket by simply being prepared. É Arthur Klein is a business broker with Pacific Business Brokers Inc./Pacific Mergers & Acquisitions Inc. He is an accredited certified business intermediary as administered by the International Business Brokers Association. He also holds a B.C. real estate commercial trading services licence. He can be contacted at 778-329-9558.

biv.com/navigating

www.bhfoundation.ca

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When to retire

ESTATE FREEZE And other strategies during a generational transition of a family business

WILLIAM (BILL) COOPER |

W If the business is to stay in the family, most likely the principal will know who [the successor] is

hen was the last time you met with your financial professional to discuss your business transition plan, your will, the status of your family trust and the structure of your business holdings? If you are in your 50s or older, that time is now. It can be a hard and time-consuming process, so the sooner you start, the better.

START WITH YOUR WILL Q The will-drafting process is an important step as it helps identify the family’s assets available for distribution and the list of potential beneficiaries. Sit down with your financial adviser and review your will.

I M P L E M E N T A N E S TAT E FREEZE Q The succession plan-

ning process should not only address the family’s personal assets, but also lead to a discussion of the ownership of the family’s business entities. As part of this process, you should consider implementing an estate freeze to minimize the deemed capital gains that will arise on the death of the survivor of Mom and Dad. Typically, this will involve the creation of a family trust to hold the newly issued growth or common shares. The focus of such a trust is the shifting of the growth in value of the business and the related taxes to the next generation.

Part of the estate-freeze process should also be to consider the availability of the capital gains exemption (CGE). Many successful mature businesses do not qualify for the CGE because of their very success.

Unless appropriate tax planning steps involving a holding company and a family trust are undertaken well in advance, that annually indexed exemption of some $800,000 of capital gains per individual will not be available.

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If the principals of the family business are aged 65 or older, consideration should be given to implementing their will immediately through an alter ego trust (AET) or joint partner trust (JPT). The use of an AET or a JPT not only avoids the 1.4 per cent estate duties but more importantly limits the ability of family members to launch a wills variation application by avoiding testamentary dispositions. A n additional benefit is that it will allow family members to step in and take voting control of the company if Mom and Dad are facing dementia issues – a role that cannot be fulfilled under a power of attorney.

You should also consider the use of a corporate will to devolve assets that do not require government registration for their transfer, such as shares of a private company. The corporate will avoids the 1.4 per cent estate duties in B.C. and also avoids public disclosure of family assets as is the case with transitions through an AET or a JPT. WHO GETS CONTROL? Q One of the first steps is identifying the successor. If the business is to stay in the family, most likely the principal will know who that person is. Sometimes, it is not so clear. In any event, a family discussion about the control and management of the family business after Mom and Dad are unable to carry on can be invaluable in setting the stage for the successor(s).

In order to facilitate a smooth transition of the family business, it is highly desirable that the business be controlled through a shareholders’ agreement so that all family members have a clearly defined roll.

The goal of such an agreement is to prevent fighting for control of the family business interests. Often, failure to win acceptance from

other family members can leave the business under attack and make life more difficult for the successor.

NOT JUST A FAMILY AFFAIR Q

Keep in mind that the views of your children’s spouses may skew the family planning, and in many cases the family patriarch and matriarch may simply have to lay down the law. Indeed, it may become obvious that the only realistic plan is to sell the business to a third party or to a group of key employees. Getting the business ready for sale and finding a qualified buyer requires lots of lead time if it is to be done in the most financially viable manner. If there are employees capable of carrying on the business, getting their buy-in and locking them up early can ensure a successful transition. Ultimately, a lack of transition planning combined with the loss of the driving force behind a business can doom even the most successful businesses.

While a smooth transition to the next generation may be difficult to achieve, a well-thought-out succession plan with family buy-in can save a lot of grief down the road, and that means savings in legal and accounting bills, as well as income taxes.

William (Bill) Cooper is an associate counsel with Boughton Law of Vancouver. His more than 40 years of tax and financial experience includes working as an adviser at the most senior levels of the Canada Revenue Agency and the Department of Finance in Ottawa.

Cooper is also the editor-in-chief of Executive TaxBriefs, a monthly tax publication dedicated to the tax concerns of business owners and managers. Visit www.boughtonlaw.com.

2016-01-07 10:01 AM

Helping to grow, protect & preserve your wealth

Estate planning is wealth preservation for you and your heirs. There are strategies you can use within your estate plan to minimize the amount of taxes you have to pay and to avoid probate.

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Trillion-dollar transfer

BEQUEATHING TO

CHARITY

Saving taxes is not the main motivation for planned giving – but it sure doesn’t hurt PAT JOHNSON

P

lanned giving – allocating charitable gifts in a will – is about leaving a legacy for the future. It has an emotional, almost immortal component: the idea that we can continue to live on through our support for a cause that is meaningful to us. But it also has a less altruistic benefit.

“Any type of planned giving has a tax benefit either for today or for your estate,” says Julia Roudakova, a financial planner who is also lead strategist for Leave a Legacy, a program of the Canadian Association of Gift Planners, B.C. chapter.

One of the benefits can be in avoiding capital gains taxes. Donations of securities are a prime example. Not only does this mean avoiding taxes on the sale side, it also results in a tax receipt that reduces overall taxable income .

Another twofold benefit can be gained through designating registered retirement savings plans or registered retirement income funds to charity. The estate avoids paying tax on the money and also receives a charitable tax receipt for the full amount of the plan’s value. Notably, tax credits derived from a bequest can be applied to 100 per cent of the income of a deceased person, compared with 75 per cent while alive.

Life insurance is another way to make an outsized impact, says Roudakova. “If you buy an insurance policy and you transfer the ownership to the charity, the premium you are paying will also qualify for tax benefit,” she says.

Annuities also offer substantial and immediate benefits while doing good in the long term. Depending on the arrangement, a donor can continue to earn interest on the gift during a lifetime, even while receiving a tax credit for the donation.

Planned giving is a crucial source of support for many recipient agencies.

Cheryl Stevens, director of gift and estate planning for

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the University of British Columbia (UBC), notes that the very first gift the university received was a legacy that helped found the medical school, in 1932. She emphasizes, though, that legacies need not be enormous to have a powerful effect.

“UBC’s been fortunate to receive estate gifts of all sizes that are important to the university and also meaningful to the person who made the gift,” she says.

Even so, some gifts stand out. A $6 million life insurance policy assigned by Jack and Elly Senior to the Vancouver General Hospital and UBC Hospital Foundation is allocated to cardiology. “It’s going to impact things like women’s heart health, cardiovascular oncology … a CT scanner and also the anesthesiology program,” says Charlene Taylor, associate director, gift and estate planning, for the foundation.

A $21.5 million legacy came to the BC Cancer Foundation from the estate of Burnaby businessman John Jambor.

The man’s grandson, Bill McCarthy, managed the real estate Jambor bequeathed on his passing nearly 25 years ago, parlaying it into the massive gift that the foundation received three years ago. “It’s been significant because it immediately supports world-class cancer research that’s taking place at the BC Cancer Agency,” says Christine Basque, associate vice-president of development for the BC Cancer Foundation.

As good as the tax benefits may be for the donor, Basque says, the prime motivator for most gifts is the desire to make a positive difference. The tax benefits, she says, are just a bonus. É

Christine Basque, associate vice-president of development for the BC Cancer Foundation: tax benefits are merely a bonus | BC CANCER FOUNDATION

Julia Roudakova, lead strategist for Leave a Legacy, Canadian Association of Gift Planners, B.C. chapter | SUBMITTED

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Trillion-dollar transfer

GIVING

AND GETTING

Both sides of a wealth transfer face planning and taxation issues

CINDY DAVID

RRIFs do a horrible job of estate planning and are often the single biggest reason your estate will fall into the highest tax bracket

H

aving a good estate plan for how to leave assets behind for children or charity starts in retirement. Every year you make decisions about how to manage your assets and which buckets to spend from.

How do you determine which assets to spend during your lifetime and which assets to leave behind?

The first step to estate planning is lifetime gifts. But large early gifts can have a significant impact on how long your capital will last. Rule of thumb: give smaller annual cash gifts at Christmas and birthdays, pay for holidays for your grown kids and enjoy being around to experience giving.

■Where there is a will: Your will gives everything away that you own and control when you die. Some say, “Own nothing and control everything,” which mitigates the need for a will. A very small percentage of the population can afford the complex planning required to accomplish this. So if you are the proud owner of assets, be prepared to have a will. Everything your will gives away attracts probate of 1.4 per cent.

But this is a far cry from taxes that can be as high as 46 per cent. That said, you can use tools like beneficiary designations and joint ownership of assets to avoid probate, which are free, and you can change your mind so your kids still have to be nice to you. Also, make sure you have left a precise paper trail for executors so they know what you own and how to find it.

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■Income splitting: Spouses can split all income that qualifies for the federal pension income credit. You can also create income splitting using corporate assets by giving a spouse and/or children preferred share ownership, or though a family trust. These are great tools to unlock trapped assets in lower marginal tax brackets that will otherwise attract the highest tax in your estate. Rule of thumb: Spend registered retirement savings plans sooner than registered retirement income funds (RRIFs) if you can make withdrawals in a 29.7 per cent bracket or less. RRIFs do a horrible job of estate planning and are often the single biggest reason your estate will fall into the highest tax bracket.

■Tax shelters and tax deferrals: The last two buckets you will likely spend from are your primary residence and tax-free savings accounts because they tax shelter growth. They are great buckets to accumulate wealth in, and they are tax-free whether you spend them during your lifetime or die owning them. Life insurance investments also fit into this category but can trigger taxes on withdrawals during your lifetime.

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Holding companies are a tax deferral, can be used for income splitting and can take advantage of the capital dividend account credit of life insurance proceeds leaving tax-free money behind. So before you try to wind up your company assets over the next couple of years, triggering tax on dividend income, think about ways you may be able to improve that part of your plan.

Rule of thumb: Own and control everything that you might possibly need during your lifetime, keep costs low and leave tax-free buckets behind.

GETTING Q If you receive a large tax-paid bucket of cash, you have no choice but to invest it in your personal name. But how will this affect your personal tax bracket every year? How about where and how to invest the proceeds? Equity markets are risky and require extremely active and professional management.

Guaranteed investment certificates are no longer a good way to preserve your net worth since you lose money on them each year after taxes and inflation. How do you find a good financial adviser? Here are a couple of tips.

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Certified financial planner Cindy David: the goal for givers is to leave tax-efficient assets. The goal for those getting is to invest the windfall wisely | CINDY DAVID FINANCIAL GROUP

■Ask for referrals: The best way to find a good adviser is to get a referral from someone who has been working together with a professional for many years and has benefited from good advice. Experience is important, but look for education credentials and client references as well. And work with a team of specialists. The complexity of planning is such that the generalist adviser simply cannot be all things to all people.

■Have a plan: You are no different than the person who gifted you the asset. They had a plan for how best to accumulate, spend and gift these assets, and so should you. Work with a financial planner to make sure you are not missing anything. Especially with ongoing changes to legislation, professional advice is more important than ever. É Vancouver-based certified financial planner Cindy David, CFP, CLU, FEA, TEP, is president of Cindy David Financial Group Ltd., which consults to Raymond James Ltd. and other firms. David is the author of Financial First Aid for Canadian Investors: Stop the Bleeding, Start the Healing and Get Your Portfolio on the Road to Recovery.

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Trillion-dollar transfer

DEATH, TAXES & MYTHS Some think saving probate fees relates to saving income taxes. Nothing could be farther from the truth

CHRISTINE VAN CAUWENBERGHE |

A

Probate fees in B.C. are 1.4 per cent – a far cry from the highest income tax rate of almost 46 per cent

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s an estate planner, I often hear clients comment that they want to “avoid taxes at the time of death.” Once I start to ask what they mean by that, it becomes apparent that there is an expectation that saving probate fees is somehow related to saving income taxes.

Nothing could be farther from the truth. In fact, overemphasis on saving probate fees can cause income tax problems for the estate (most frequently in the form of depleting the estate to the point where the “wrong” beneficiaries end up paying the income taxes owed). Here is a brief overview of how income taxes are assessed in Canada at the time of death: ■Terminal-year return. Let’s look at a case study. Jessica passes away on October 1, 2015. Her personal representative will need to file a “terminal-year” tax return for the period of January 1, 2015, to the date of death. Let’s assume that Jessica would normally earn a total annual income of $80,000, so in 2015 she will have about $60,000 of income to report from her regular monthly sources prior to her demise.

■Deemed dispositions. However, there could be some very unique items included in the terminal-year return. That is because taxpayers are deemed to have disposed of all of their capital assets immediately prior to the time of death. What does that mean? For the most part, Canadians aren’t taxed on capital gains until such time as they sell the asset. So if Jessica had mutual funds that she paid $100,000 for a few years ago, and they are now worth $400,000, she would have an unrealized capital gain of $300,000, 50 per cent of which is taxable in the year of death. If she also has gains on rental properties (her cottage, etc.) you

can see how the tax bill will start to add up.

■RRSPs and RRIFs. The other relatively unique item that is likely to be found on a terminal-year return is a potentially large income inclusion due to the deregistration of your registered retirement savings plan (RRSP) and/or registered retirement income fund (RRIF).

You need to convert your RRSP to an RRIF in the year in which you turn 71 and start withdrawing minimum payments, which are taxable. To the extent that you still have sums in these registered accounts at the time of your death, these amounts will be fully taxable in your terminal-year return. So if Jessica had $250,000 in her RRIF in the year of death, her personal representative would need to include $250,000 in her terminal-year return.

So, between Jessica’s normal recurring income, the deemed disposition of her capital assets and the deregistration of her RRIF, the tax bill in her year of death could be pretty significant. The most common method for deferring the tax is to leave assets to a surviving spouse or common-law partner. Generally speaking, all assets (including capital assets, RRSPs and RRIFs) left to a surviving spouse or common-law partner can be “rolled over” so that the tax isn’t payable until the death of a second spouse. Of course, this does not help single persons. There are other ways in which you can try to reduce the tax liability, such as charitable donations, but these usually provide only limited assistance.

One method that definitely does not reduce the income tax liability is designating a direct beneficiary or adding individuals as joint owners to your non-registered assets. Although this may reduce probate fees, it will not reduce the income tax liability

and in fact could cause other problems since the outstanding tax must be paid.

In many cases, it is better to have all of the assets flow through your estate, have the tax liability paid off the top and then have the remainder shared equitably between your beneficiaries.

There are many instances where probate planning can cause grief for executors because they have to figure out how to pay a tax liability with limited assets – and if they can’t pay the tax liability, that is when the Canada Revenue Agency (CRA) may come knocking on a beneficiary’s door. The CRA likely won’t be too concerned about whether or not it has collected the tax “fairly,” potentially leading to inequities between your beneficiaries.

Most people also do not seem to realize that probate fees in B.C. are 1.4 per cent – a far cry from the highest income tax rate of almost 46 per cent.

When structuring your estate, speak to a tax adviser to get a complete understanding of how your estate will be taxed at the time of your death. In many cases you will not be able to “avoid taxes” at the time of your death, but you certainly can plan for them. And if you feel that the net value of your estate will not be sufficient to achieve your estate planning objectives, the usual solution is to purchase insurance to fund the gap. É Christine Van Cauwenberghe is assistant vicepresident of tax and estate planning with Investors Group. She is a lawyer, certified financial planner and author of Wealth Planning Strategies for Canadians, published annually.

2016-01-07 10:01 AM

You already know if you need us.

Good advice shouldn’t be hard to find, you just have to know where to look.

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F i n a n c i a l G rou p L td .

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Trillion-dollar transfer

WHY YOU NEED A WILL MIKE BEISHUIZEN |

O

nly 55 per cent of British Columbian adults have a current and legal will, according to a 2014 provincewide poll conducted by Mustel Group for the Society of Notaries Public of BC.

Ye t, wh e t h e r yo u a re wor t h $20,000 or $2 million, dying without a will would likely cause expensive and emotional issues for loved ones to deal with.

Here are just some of the many problems caused by dying without a will.

■Potentially unfair distribution: B.C. has strict, unbendable laws for

Dying without one exposes family to risk

those who die without a will (called intestacy). The law basically states that without a will, your estate passes to people in this priority order: spouse, descendants, parents, parents’ descendants, grandparents and grandparents’ descendants. The exception is that if you have both a spouse and children, your spouse gets an initial lump sum and an interest in the family home, and then the rest of the estate gets split among your spouse and children. This is contrary to how most couples set up their affairs, as most want to provide for their surviving spouse first before providing for their children.

There are many other problems with these fixed rules for distribution, including that the estate may pass to estranged members of the family, and gifts to distant relatives or charities are not possible.

■No guardians for minor children: If all the guardians of minor children have died without appointing a successor, it is up to a judge to decide guardianship after a lengthy process, while the children may wait in foster care.

■Restricted access to information: Without a will, banks are very wary about releasing financial details about the deceased to a nyone.

However, financial details need

to be disclosed to court as part of the probate process. So, if the bank refuses to release this information, the “administrator” (the rough equivalent to an executor when there is a will) needs to apply for a special court order, which takes time and money.

■Confusion: Without a will, who is in charge? A family member usually begrudgingly steps up to take on the role of administrator, but there is often a period of uncertainty and even anger at a time that should be reserved for grieving. With a will, the appointed executor takes care of everything.

A professionally prepared will and estate plan ensures you leave your loved ones with the legacy – and the memories – they deserve. É Mike Beishuizen is the founding lawyer of Westcoast Wills & Estates, a Vancouver law firm that focuses only on estate planning and probate.

He advises clients on estate planning and prepares wills, trusts, representation agreements and powers of attorney. He also advises and helps clients apply to court for probate and committeeship orders. See www.westcoastwills.com.

Protect your loved ones: The lawyers at Westcoast Wills and Estates focus only on estate planning and probate. We offer: • Quality documents at a reasonable price, flexible meeting times and mobile service anywhere in Metro Vancouver if needed.

• We also donate 3% of all purchases to charity.

Peace of Mind: We prepare quality estate plans which could include Wills, Trusts, Powers of Attorney or Representation Agreements. We also help clients with probate and committee applications.

www.westcoastwills.com | info@westcoastwills.com | 604-230-1068

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Where to retire

B.C.’S TOP RETIREMENT TOWNS

British Columbia is a magnet for Canadian retirees, and these five towns provide the reasons why

PETER MITHAM

B

ritish Columbia, with its temperate climate, spectacular scenery and abundant recreational opportunities, is Canada’s unparalleled retirement destination.

Home to the fastest-growing population of retirees in Canada, three key regions top the list when people are looking for communities to live their golden years: Vancouver Island, the Sunshine Coast and the Okanagan. Retirement Ready focuses on towns in each of these regions that explain why so many seniors are moving in.

WHERE SENIORS LIVE IN B.C., 2015 65+ 17.5% UNDER 65 82.5% NORTHERN HEALTH

38,762 senior population 290,803 total population

VANCOUVER COASTAL HEALTH 186,429 senior population 1,155,296 total population

65+ 13%

BRITISH COLUMBIA

819,139 senior population 4,681,748 total population

UNDER 65 87%

65+ 16%

65+ 22% UNDER 65 78%

UNDER 65 84%

INTERIOR HEALTH

162,615 senior population 731,680 total population

SUMMERLAND COMOX SECHELT QUALICUM BEACH SIDNEY ISLAND HEALTH

172,173 senior population 768,131 total population

65+ 22% UNDER 65 78%

65+ 15% UNDER 65 85%

FRASER HEALTH

259,160 senior population 1,735,838 total population

SOURCE: SENIORS ADVOCATE OF BRITISH COLUMBIA

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RETIREMENT READY 2016 PUBLISHED BY BUSINESS IN VANCOUVER

Where to retire | B.C.’s top 5 retirement towns

Up-close wildlife and warm sandy beaches among the attractions at Qualicum Beach | KARI KNUTSON

QUALICUM BEACH AVERAGE DETACHED-HOUSE PRICE | $377,200 MEDICAL SERVICES | Nanaimo General Hospital is 25 minutes from Qualicum Beach and provides a full range of medical services.

The hospital provides 263 acute-care beds to the Nanaimo region. Locally, Oceanside

Health Centre provides a full range of medical services just 12 minutes down the road.

CRIME RATE | 26.1 offences per 1,000 people (provincewide crime rate: 76 incidents per 1,000 people) NUMBER OF SENIORS | 4,085 (2014), or 47 per cent of the population

QUALICUM BEACH Q Situated on the Strait of Georgia a short distance north of Nanaimo, Qualicum Beach is B.C.’s top retirement community with nearly half its population aged 65 years or older. They’ve gathered here for all the reasons that make B.C. a destination for retirees from across the country and around the world: a temperate climate, a close-knit community, and residences and amenities geared to their needs. Together with nearby Parksville, many retirees consider the sheltered east coast of Vancouver Island a slice of paradise.

While the community itself offers fresh seafood and outdoor activities from lawn bowling to golf, Qualicum Beach is also situated between the lush Comox and Cowichan valleys. Often tipped as the local answer to Provence, the valleys offer feasts for the eyes and the palate. And speaking of the eyes, the Qualicum National Wildlife Area is a 20-minute drive south on the outskirts of Nanaimo, also home to a thriving arts community.

Those with more ambitious travel plans can drive the 2.5-hour cross-Island highway to Tofino, or access seaplanes and ferries for a quick hop across to the Lower Mainland and urban offerings of Vancouver.

COMOX Q Kw’umuxws, what the local First Nations called Comox, means plentiful, and few retirees would disagree.

With relatively affordable real estate, regular air service and a brand-new hospital in its sister city of Courtenay, Comox is one of the hubs for seniors in B.C. A new hospital serving the Comox Valley is also set to open in 2017, further boosting the services available to local seniors.

The small scale of the community and many amenities, including the Crown Isle golf course and spectacular fishing and boating opportunities, make Comox an attractive retirement destination. The annual B.C. Shellfish and Seafood Festival celebrates local fisheries, and, when paired with local wines, local seafood offers a multi-faceted gastronomical experience. Just north of the community, in Oyster River, is Vancouver Island’s only distillery producing Scotch-style whisky from local grains.

Seniors with a taste for powder have easy access to Mount Washington, Vancouver Island’s best-known ski hill, while local parks offer several seaside and inland hiking trails for all ability (and mobility) levels.

The green at Crowne Isle Resort and Golf Community is among the many amenities the Comox Valley offers retirees | PETER MITHAM

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COMOX AVERAGE DETACHED-HOUSE PRICE | $340,600 MEDICAL SERVICES | St. Joseph’s General Hospital; a new hospital is being built adjacent to North Island College in Courtenay on a site strategically located to facilitate road access and servicing well into the future.

CRIME RATE | 32.1 offences per 1,000 people (provincewide crime rate: 76 incidents per 1,000 people) NUMBER OF SENIORS | 3,495 (2014), or 26 per cent of the population

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Nearby Campbell River and Nanaimo offer familiar brand-name retail outlets that keep pantries stocked and hobbyists happy, while local artisans and market vendors offer a healthy selection of local produce and crafts to make life worth living.

SECHELT Q Across the Georgia Strait from Vancouver Island lies the Sunshine Coast, another major retirement hot spot. Separated from the rest of the Lower Mainland

by Howe Sound, the Sunshine Coast runs from Gibsons to Powell River and enjoys the sheltered, temperate environment that characterizes the communities around what’s also known as the Salish Sea. Sechelt lies at the heart of the Sunshine Coast, where more than one-quarter of residents are 65 years or older.

Affordable real estate and a liberal, open culture appeal to many residents looking to get away from the hustle of Vancouver. Arts, the outdoors and a small-town feel facilitated by the rugged geography of the coast make it an alluring place to settle.

Several new developments are taking shape beyond Sechelt to ensure there’s room enough for all, but with the region’s main hospital and several retail outlets, Sechelt is the de facto hub for the area.

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A new state-of-the-art hospital and low housing prices draw many retirees to Sechelt on the Sunshine Coast | ECO BUILDING PULSE

SECHELT AVERAGE DETACHED-HOUSE PRICE | $383,100 MEDICAL SERVICES | Sechelt Hospital is a 38-bed facility that also serves the communities of Langdale, Gibsons, Roberts Creek, Halfmoon Bay and Pender Harbour.

CRIME RATE | 51.8 offences per 1,000 people (provincewide crime rate: 76 incidents per 1,000 people) NUMBER OF SENIORS | 2,615, or 28 per cent of the population

Also popular are Gibsons, a short, 40-minute ferry ride from West Vancouver, Roberts Creek and Madeira Park. Powell River, on the Malaspina Peninsula, requires another ferry across the mouth of Jervis Inlet , but is also accessible via a ferry from Comox.

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Where to retire | B.C.’s top 5 retirement towns

Modern amenities, public waterfront access and proximity to Victoria make Sidney popular with retirees | MARKER GROUP

SIDNEY AVERAGE HOUSE PRICE | $472,000 (HPI, single detached, September 2015) MEDICAL SERVICES | Saanich Peninsula Hospital just south of Sidney, about 45 minutes from Victoria General and Royal Jubilee hospitals.

SUMMERLAND AVERAGE HOUSE PRICE | $431,680 MEDICAL SERVICES | Summerland Health Centre provides outpatient care; Penticton Regional Hospital is a 14-minute drive away.

CRIME RATE | 32 offences per 1,000 people

CRIME RATE | 41.4 offences per 1,000 people (provincewide crime rate: 76 incidents per 1,000 people) NUMBER OF SENIORS | 4,120, or 37 per cent of the population

(provincewide crime rate: 76 incidents per 1,000 people) NUMBER OF SENIORS | 3,095 (2014), or 27 per cent of the population

SIDNEY Q Nestled on the coast of the Saanich Peninsula, Sidney has the highest proportion of seniors of any community in the Greater Victoria area. With its mix of oceanfront and forested estates, and proximity to Victoria International Airport as well as ferries to Tsawwassen and the U.S., Sidney is a both a home and a departure point for the wider world.

It’s also the gateway to the Gulf Islands National Park Reserve, with its rich trove of wildlife and eco-adventure experiences. Retirees have a front-row seat to waterfowl and marine life, not to mention wineries and farms serving up fresh fare at local markets and restaurants. Downtown Victoria, with its university and cultural venues, not to mention shopping districts, is a 45-minute drive away. It’s also home to Vancouver Island’s biggest hospitals – Victoria General and Royal Jubilee – but Saanich Peninsula Hospital also provides urgent medical care. Walking and bike trails offer easy ways to exercise, while top-tier golf is available at Bear Mountain just the other side of downtown Victoria. For retirees who want an Island lifestyle within reach of urban amenities, Sidney is the answer.

SUMMERLAND Q Summerland, with its cluster of wineries and expansive views of Okanagan Lake, epitomizes the best of B.C.’s Southern Interior. A temperate, arid climate ensures a comfortable year-round environment for residents, with activities that run from golf, boating and downhill skiing to food and wine.

A rush of development a decade ago transformed the southern Okanagan from a summer getaway to a year-round community of second homes anticipating the coming wave of baby boomer retirees. More than a quarter of the population in Summerland and nearby Peachland, a 14-minute drive north towards the regional hub of Kelowna, is over the age of 65, while in the southern Okanagan resort of Osoyoos the proportion is nearly 40 per cent.

It adds up to a slower pace of life, and communities where connections with neighbours are valued. Trails along the Okanagan River offer prime opportunities for birdwatchers and wildlife scouts of all stripes, and the produce of orchards and vineyards make it easy to eat well, too. Plans for a major new conservation area in the benchlands west of Summerland promise to expand local recreational opportunities.

Health care is available at the Penticton Regional Hospital, while a recent expansion of the Kelowna General Hospital ensures premier care for residents in the central and north Okanagan. É

Summerland is among the small lakefront towns of the South Okanagan that are a magnet for retirees | SUMMERLAND REALTY

Do you like buffets?

Learn how retirees spend their time. biv.com/navigating

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Welcome To Summerland

You’re Going To Fit Right In... ˾ Ë áÏÖÍÙ×ÓØÑ ËØÎ ÚÓÍÞßÜÏÝÛßÏ ÍÙ××ßØÓÞã ÙÐ ͒​͒˜͑​͑​͑Р ÚÏÙÚÖÏ ˾ ÚÏÜÐÏÍÞÖã ÝÓÞßËÞÏÎ ÙØ ËÕÏ ÕËØËÑËØ ÌÏÞáÏÏØ ÏØÞÓÍÞÙØ ËØÎ ÏÖÙáØË ˾ ÖßÝÒ ÙÜÍÒËÜÎݘ ÝÚÏÍÞËÍßÖËÜ áÓØÏÜÓÏݘ ËØÎ ×ÏËØÎÏÜÓØÑ ÜÙËÎÝ áÓÞÒ àÓÏáÝ ÙÐ ÌÜÓÖÖÓËØÞ ÌÖßÏ áËÞÏÜ ˾ ÏàÏÜã ÞãÚÏ ÙÐ ÐËÜ×̋ÐÜÏÝÒ ÐÜßÓÞ ËØÎ ÚÜÙÎßÍÏ ËàËÓÖËÌÖÏ ËÞ ÙßÜ ʨØÑÏÜÞÓÚÝ ˾ Ë áËÜט ÎÜã ÍÖÓ×ËÞÏ áÓÞÒ ×ÓÖÎ áÓØÞÏÜÝ ËØÎ ËÌßØÎËØÞ ÜÏÍÜÏËÞÓÙØËÖ ÙÚÚÙÜÞßØÓÞÓÏÝ ˾ Ë àÓÌÜËØÞ ÍßÖÞßÜËÖ ÝÍÏØϘ ÌÙßÞÓÛßÏ ÝÒÙÚÚÓØÑ ËØÎ ʨØÏ ÎÓØÓØÑ ˾ Øß×ÏÜÙßÝ ÝÏÜàÓÍÏ ÍÖßÌÝ ËØÎ Ë ÍßÖÞßÜÏ ÙÐ ÒÏÖÚÓØÑ ÙßÜ ØÏÓÑÒÌÙßÜÝ ˾ ÍÖÙÝÏ ÞÙ Ë ÎÙ×ÏÝÞÓÍ ËÓÜÚÙÜÞ ËØÎ áÓÞÒÓØ ËØ ÒÙßÜ ÙÐ ËØ ÓØÞÏÜØËÞÓÙØËÖ ËÓÜÚÙÜÞ ËØÎ ÞÒÏ ÌÙÜÎÏÜ Ï ÓØàÓÞÏ ãÙß ÞÙ ÎÙáØÖÙËÎ ÙßÜ ØÏá INVESTMENT AND RELOCATION GUIDE ËØÎ àÓÏá ÙßÜ àÓÎÏÙ ÖÓÌÜËÜã ËÞ ááá˛Ýß××ÏÜÖËØÎÍÒË×ÌÏܲÍÙײ ÙÜ ËÖÖ ÙßÜ ËʵÜËÍÞÓÙØÝ ÚÖÏËÝÏ àÓÝÓÞ ááá˛ÞÙßÜÓÝ×Ýß××ÏÜÖËØβÍÙײ

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RETIREMENT READY 2016 PUBLISHED BY BUSINESS IN VANCOUVER

Where to retire

RETIRING

ABROAD

Five foreign options share common themes of sunshine, relatively low living costs and social stability PETER MITHAM

SPAIN Amenities include warm weather, the local cuisine and extensive outdoor activities

S

hould you retire abroad? There are considerations, from retaining Canadian citizenship to language and housing costs, but the world is very much an oyster for Canada’s cosmopolitan seniors. Here is Retirement Ready’s selection of five countries where retirement can be easy.

Gran Tarajal in Spain’s Canary Islands: sophistication, sunshine and low house prices among the features that rank Spain as Europe’s top retirement destination | EMBASSY OF SPAIN

SPAIN Q With the largest expat community in Europe, Spain is the retirement destination of choice for many British residents. The reasons that draw them make it an equally attractive destination for retirees from Canada.

Advantages include home prices that average 148,000 euros ($215,370 Canadian) and low crime rates, and a top-quality health-care system with various options for local coverage. Amenities include warm weather, the local cuisine and extensive outdoor activities. Cultural sites in Barcelona and Bilbao, and the attractive offshore destinations such as the Canary Islands, provide a retirement home for either a season or a lifetime.

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PORTUGAL Q Spain’s next-door neighbour shares much of its good weather and deep culture, but it’s also home to ventures by Canadians such as icewine pioneer Donald Ziraldo. Property is cheap, with two-bedroom units on par with Spain at slightly more than $200,000, and health care is decent. A hidden gem of the Iberian Peninsula, Portugal has an open attitude to foreigners and historical ties with the U.K. that make it a friendly destination for English speakers.

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Santa Marta lighthouse and municipal museum of Cascais, Portugal | NESSA GNATOUSH/SHUTTERSTOCK

PORTUGAL Portugal has an open attitude to foreigners and historical ties with the U.K. that make it a friendly destination for English speakers

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Where to retire | Retiring abroad

TURKS AND CAICOS Q Turks and Caicos may be best

known in Canada for giving the loonie a look as a potential national currency (it’s adopted the U.S. dollar), but this Caribbean territory of Britain has long had ties to Canada thanks to its sun-soaked beaches and convenient access from Toronto. English is the dominant language, and health care and property taxes are all relatively low.

A respectable condo can start from $200,000 and earn rental income in the off-season for snowbirds who want to return to Canada. With a temperate tropical climate but lower cost of living than in Barbados or the Bahamas, the environment is right for retirees who want a sunsplashed home away from home.

TURKS AND CAICOS

Grand Turk Island | MIKOLAJN/SHUTTERSTOCK

The environment is right for retirees who want a sun-splashed home away from home

BELIZE Q Canada’s Central American connection, Belize was known as British Honduras until it won independence from the U.K. in 1981. However, it retains a parliamentary system of government and legal system rooted in English common law and is the only English-speaking country in the region. This has attracted Canadian developers such as Bob Dhillon of Calgary-based Mainstreet Equity Corp. to undertake projects in the region. Retirees will find a haven in Ambergris Caye and other neighbourhoods, where comfortable quarters are available from $125,000. Caribbean oceanfront, Mayan architecture and adventure tourism opportunities are major drawing cards for residents, with access facilitated by a newly expanded airport in the hub city of San Pedro.

Great Blue Hole off the coast of Belize | WOLLERTZ/SHUTTERSTOCK

BELIZE Caribbean oceanfront, Mayan architecture and adventure tourism opportunities are major drawing cards for residents

Freedom 75 or 55?

Learn how many of us retire early. biv.com/navigating

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freedom

55

75

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THAILAND A culture that emphasizes friendliness and order makes it a stable place to retire

THAILAND Q Despite a measure of political uncertainty, Thailand remains a beloved destination for many West Coast residents, including Vancouver developer Michael Audain. A low cost of living makes it appealing; a young Canadian teaching English can make a living and save enough to visit the family back home. For retirees, the numbers make even more sense. A two-bedroom detached house costs about $125,000, and the country offers a dazzling slice of Southeast Asia’s cultural riches with something new to discover every day. A culture that emphasizes friendliness and order makes it a stable place to live, whatever the machinations behind the political scenes. É

Hall of the History of the Patriarchs, Thailand | GUITAR PHOTO HOME/SHUTTERSTOCK

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RETIREMENT READY 2016 PUBLISHED BY BUSINESS IN VANCOUVER

Where to retire

RETIREMENT

RESIDENCES

As with the B.C. housing market, the level of retirement residences is geared to income YVONNE ZACHARIAS

F

or West Coast retirees, there is a vast ocean of choices in retirement residences. Options range from a glitzy, high-end seniors’ residence to renting a suite in a government-sponsored complex. To help navigate this complex terrain, we’ve broken down the possibilities into three categories based on the amount the retiree has to spend. $1,000 to $2,000 Q This is insufficient to get you in the door of one of the private seniors’ residences. Patrick McLaughlin, president of Kiwanis Seniors Housing of West Vancouver, advises checking with BC Housing for a list of non-profit housing options such as those operated

by Kiwanis. These are rented out to seniors capable of living independently at usually around 70 per cent to 80 per cent of market rates.

Lower-income seniors can then also apply for a SAFER (Shelter Aid for Elderly Renters) subsidy from BC Housing.

Under the subsidy formula, tenants pay 30 per cent of gross income toward rent and the subsidy pays the balance up to a maximum of $765 for singles.

There is big demand for these non-profit housing complexes, so expect a waiting list. Retirees can also consider moving into a government-subsidized assisted-living suite where residents pay 70 per cent of their net income.

$1,000 to $2,000 per month: St. Andrews Place, North Vancouver, operated by Kiwanis, rents to seniors capable of independent living for less than $1,000 per month, with subsidized assistance | SUBMITTED

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Where to retire | Retirement residences

$2,000 to $5,000 per month: model suite at Amica’s Rideau Manor in Burnaby.

One-bedroom suites rent for $2,950 per month; twobedroom suites from around $4,850 per month | AMICA MATURE LIFESTYLES INC.

$2,000 to $5,000 Q At the lower end of this scale, you can get in the door at Amica’s Rideau Manor in Burnaby, a highrise apartment building that has been converted into seniors’ housing. Michael Hayward, vice-president of marketing and communications for Amica Mature Lifestyles Inc., which operates seven private retirement residence communities in B.C., describes this as one of the best-kept secrets in the Lower Mainland.

For $2,350 a month including taxes, seniors can rent an alcove suite, which is similar to a one-bedroom suite except that the sleeping area does not have a window.

For this price, residents get meals and access to a staffed wellness centre and fitness facility.

The building offers a range of possibilities within that

price range, including $2,950 per month for a one-bedroom apartment with balcony, and two-bedroom units that are around $4,850 a month. There is one two-bedroom suite with three balconies that goes for $4,975 a month.

This building is for seniors who no longer want to cook and clean for themselves, welcome the recreational facilities and can live independently. There is a nurse on staff but not around the clock. Once occupants require assisted living – meaning help with some of the basics of daily living like getting dressed and taking medication – they will either have to move to an assisted-living facility or hire help privately.

For $4,195 per month, independent seniors can rent a studio apartment in Amica’s higher-end Arbutus Manor in Vancouver’s Kerrisdale area, which includes a minimum of two meals a day, housekeeping, all-day tea, coffee and snacks, physical fitness and recreational programs and access to a nurse on staff.

Azim Jamal, CEO of Retirement Concepts, which operates two retirement communities in Vancouver, namely the Terraces on 7th and the Renfrew Care Centre, and 10 in total in the Lower Mainland, said one-bedroom suites for either independent or assisted living in these buildings would rent for between $2,000 and $5,000 per month, depending on location and services. Meals, housekeeping and recreational programs would be included. Typically for those in assisted-living suites, personal care is available for around $35 an hour.

2016

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TO BOOK YOUR 2017 RETIREMENT READY AD Call Katherine at 604-608-5158 or email kbutler@biv.com Space Close: November 30, 2016

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Rendering shows early concept of the 17-acre Oasis retirement village in Langley. Seniors would live in well-equipped More than $5,000 per month: for $7,275, retirees can rent a two-bedroom luxury suite in Amica’s Arbutus Manor in Vancouver, which includes meals, housekeeping and a wide variety of recreational facilities and programs | AMICA MATURE LIFESTYLES INC.

$5,000 and over Q For $7,275, seniors can rent a two-bedroom suite in Amica’s Arbutus Manor, which includes meals, housekeeping and a wide variety of recreational programming. Tenants who require assisted living can move into a studio and get the extra help for $6,000 a month.

For $10,000 a month, wealthier seniors can move into a condominium worthy of a glossy architectural magazine in Watermark, which is attached to Amica West Vancouver. These condos have full-size kitchens and all the amenities one would expect in a high-end residence, including fine dining and a swimming pool.

Those who suddenly need assisted living can move onto a second separate floor, sparing the trauma of relocating to another facility.

Hayward stresses that cost is often not the prime motivating factor in choosing where to live. Rather, seniors are more apt to choose first to remain in their neighbourhoods close to friends and family and then figure out what housing options are available in it. Of course, price does play a role in the final selection. É Author’s note: At the time of this writing, Amica had been sold to BayBridge Seniors Housing Inc. and was in the process of transitioning.

residences (bottom) while family members could purchase homes (top right) on the same property and all could share the extensive facilities | ELEMENT LIFESTYLE RETIREMENT INC.

THE FUTURE OF RETIREMENT LIVING

By Frank O’Brien Candy Ho, director and vice-president of Element Lifestyle Retirement Inc., has seen the future of retirement residences, and an international design panel apparently agrees with her.

This year Vancouver-based Element received the Globals award for world’s best senior-focused intergenerational master-planned community design for its Oasis project in Langley. The award, presented by the U.K.-based Over 50s Housing Publishing Group, reviewed more than 950 entries from around the world.

Now in the planning and zoning stage, the $200 million to $300 million Oasis, proposed for 17 acres next to the Langley Events Centre, is a fresh direction in retirement residences, Ho says, because it aims to become an intergenerational neighbourhood.

“A core concept is for seniors to receive appropriate hospitality and professional support and care services, while related adults, children and grandchildren live in walking proximity within the same community,” Ho says. The project concept includes a green space with a creek, community gardens, other outdoor and indoor recreational and social amenities and a European-style retail village, she says, that would include a major grocery store.

The vision calls for seniors to live in one section of Oasis, while families would purchase condominiums and townhouses in two separate residential towers. Both seniors and their children or grandchildren could access the Oasis amenities, she explains.

As Oasis moves through the planning process, Element is developing Opal, a block-big retirement residence in Vancouver’s Cambie neighbourhood. Opal will include 55 rental apartments and 45 luxury condominiums, including a 2,400-square-foot penthouse, expected to be priced at more than $2 million.

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Healthy, happy retirement

PSYCHOLOGY OF

AGING

Social engagement a key factor for enjoying later years

BAILA LAZARUS

M

arch 15, 2017. That date is highlighted on Jannette Edmonds’ calendar as the day she plans to retire; and she’s been thinking about it for a while.

Neuropsychologist and cognitive aging specialist Wendy Thornton: “a lot of good or bad outcomes come from whether the decision to retire was your own” | SUBMITTED

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“I’m looking forward to having my brain freed from all the details of my job and the stress of juggling dozens of job demands,” says the 63-year-old office manager.

“I would like to devote my time to more creative and fun things. I do plan to take courses, travel, go swimming more and see friends more.”

And if all that isn’t enough, Edmonds will look at volunteering or taking a part-time job, if she’s really bored.

According to experts on aging, Edmonds has the right attitude to have a healthy and successful retirement.

“A lot of older people get depressed due to losing their reason for getting up in the morning,” says Simon Fraser University (SFU) professor and gerontology expert Gloria Gutman. “You need a reason to get dressed. People need to be with other people.”

This is especially critical if your identity is tied up in your work and you don’t have other hobbies, says Gutman. Often people make the mistake of thinking they can slide from work into retirement without putting a lot of thought into it, she says.

“Go check out activities at a community centre, Google activities online,” says Gutman. “You have to have initiative. Get off your butt and seek out what’s available.”

But Gutman acknowledges that there are some people

who might be just as happy being a couch potato.

“Some years ago, there were two theories: activity and disengagement. Either doing the same in older age as you did in middle age, or withdrawing and sitting in a rocking chair,” she explains. “Probably both are true for some people. Some are very happy to retire and do virtually nothing; others would die of boredom. You have to know who you are.”

According to Statistics Canada data, life expectancies have risen to the point that someone who’s 65 now can expect to live to 85. That’s a lot of time to fill if you’re not a naturally active person, and studies have shown that being engaged and doing the things you like to do is the best way to keep happy and healthy as you age.

Health is another key factor in determining a positive experience as you retire. Contrary to what many might believe, the vast majority of elderly are quite mobile and active, says Gutman.

“Only five per cent need care; 10 per cent may live at home with major restrictions. The rest – 85 per cent – are able to do what they want to do most of the time. You don’t just turn 65 and fall apart.”

But with that many years to live, it’s even more important to prepare in advance, according to Wendy

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WHAT IF YOU LIVED TO

120?

Cheap drug could extend life for even seniors

Thornton, associate professor in clinical psychology at SFU. “A lot of good or bad outcomes come from whether the decision to retire was your own,” she says. “For example, was it ‘on-time’ retirement, where you make a decision and you plan on your own terms? Or were you forced out due to downsizing?”

People who are forced or encouraged to retire without time to make the adjustment are at risk for poor adjustment, she says.

She also points out the pitfalls of retiring early of your own accord.

“If you retire at 55, unless you spend lots of time planning, who are you going to spend time with? Your 55-year-old peers are still working. What are you going to retire to?”

Both Gutman and Thornton do agree that the standard “retire at 65” philosophy is no longer relevant.

“As we are living longer, healthier livers, 65 is an arbitrary age,” says Thornton. “Many people aren’t ready to disengage from that work role at 65, unless they have another role to embrace.”

Her own grandfather retired at 65 with a dream of going to Arizona. Within a few months, he was working again because he “just liked hanging out with people,” Thornton says.

Edmonds, who was a single mother for 20 years, is ready for that scenario as well. She has always filled her time with two, three or even four jobs, working up to seven days a week. In the past few years, she has managed to bring that down to just a few days a week.

“I am extremely excited about the thought of retirement and find myself daydreaming about what I will do. When I come upon something interesting, I invariably say to myself, ‘When I retire.’” É

03_Retirement Ready 2016_02.indd 39

Gerontology expert Gloria Gutman says people have to know their own character – active extrovert or couch potato – to determine how to plan for their post-work years | RICHARD LAM

Janette Edmonds on her pending retirement: “I would like to devote my time to more creative

An inexpensive and widely available drug could extend the life of a 70-year-old by up to 50 years, according to backers of a new U.S. clinical trial.

The U.S. Food and Drug Administration has given approval for a trial to see if the diabetes drug metformin, which has been shown to extend the life of animals, could also prolong human life. The clinical trial is scheduled to begin in 2016, and thousands of 70- to 80-year-olds are being recruited for the study.

Prof. Gordon Lithgow of the Buck Institute for Research on Aging in California is one of the study’s advisers. “There is every reason to believe it is possible. The future is taking the biology that we’ve now developed and applying it to humans,” he says.

Scientists believe the best candidate for an anti-aging treatment is metformin, the world’s most widely used diabetes drug, which costs about 25 cents a day.

Metformin increases the number of oxygen molecules released into a cell, which appears to boost health and longevity.

“If you target an aging process and you slow down aging, then you slow down all the diseases and pathology of aging as well,” says Lithgow. “That’s revolutionary.

That’s never happened before.”

Simon Fraser University gerontology research professor Gloria Gutman says a longer life would be welcomed by seniors who still have their “marbles, bones and muscles intact” and enough money to support themselves.

“The kids may say, ‘Drat! I have to wait for my inheritance,’ but just think what fun it would be to dance at your grand- or great-grandchildren’s weddings,” says Gutman, vice-president of the International Longevity Centre Canada.

and fun things” | SUBMITTED

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Healthy, happy retirement

RESTORATIVE POWER OF

YOGA

Blending mind and body for a younger you

DARAH HANSEN

Yoga instructor Anthea Browne: “I think there is so much value for most of our society in settling in and relaxing” | SUBMITTED

I

n her 20s and 30s, Anthea Browne loved few things more than sweating it out through a high-powered dance or aerobics class.

It wasn’t until she was in her 40s, and living in chronic pain from degenerative joint disease, that the fitness instructor and dancer from Sooke, B.C., was forced to pull back on her activity levels.

Yoga was a natural transition. But she gained a deeper appreciation for the practice and its gently restorative powers when, at just 48 years old, she underwent the first of two hip replacements over three years.

In the absence of ease of movement, she found strength in slowing down, breathing deeply and focusing on the now, rather than the “what ifs” and “what might have beens.”

“Aging is not easy,” says Browne, 53, who has added yoga teacher to her list of professional accomplishments.

But, through yoga, she believes anyone, at any age, can find relief from their worries, aches and injuries.

“I think there is so much value for most of our society in settling in and relaxing,” she says. “Yoga helps with stress reduction and helps you to stay present and calm so you can deal with all the stuff that comes with getting older.”

Don’t be fooled, though. Yoga isn’t necessarily all soft stretching and meditation. There are plenty of different styles on offer by studios large and small to meet whatever your need – from mental relaxation and improved balance to muscle toning and physical endurance.

Browne credits restorative yoga for easing her road

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ANTHEA BROWNE |

YOGA INSTRUCTOR

to recovery post-surgery. Practitioners of this style of yoga use props to completely support their bodies as they focus attention on their breathing and muscle relaxation.

For those who seek to ease stiff joints, yin is a slightly more confrontational practice that is designed to increase mobility through a variety of poses that are held for five minutes or more.

Hatha, meanwhile, is a broad term to describe various styles that work on body alignment, slow strengthening and flexibility. Hatha flow, for instance, moves students through a variety of poses with a focus on the breath, while a power class is designed to be more physically vigorous.

Rachel Scott, director of teachers’ development and college at Vancouver’s YYoga, says yoga is particularly valuable for baby boomers who want to stay healthy and fit well into their senior years. “[Yoga] counters the habitual muscle tension that can set in from sitting at an office chair for 30 years,” she says. “You can start getting some of that flexibility back.”

Scott and Browne have both seen a noticeable uptick among people 50-plus attending yoga classes in recent years. Indeed, Scott says many people in that same demographic are seeking out teacher training as a second career. More men are also now coming to yoga class, Scott says.

“Honestly, yoga at its very heart is a practice all about calming the mind, and that could benefit us at any age,” she says.

Browne couldn’t agree more. These days, she is back on her feet teaching and practising all forms of yoga. Her restorative practice continues to play an important part in her life. Ultimately, Browne believes the pain she endured prior to her surgeries has made her a better teacher.

“I learned a lot about letting go of ego, becoming more humble,” she says. “That was my big learning in going through all that.” É

Yoga helps with stress reduction and helps you to stay present and calm so you can deal with all the stuff that comes with getting older

There has been a noticeable increase in yoga participants over the age of 50, instructors say, and more men are showing up at classes | WAVEBREAKMEDIA/ SHUTTERSTOCK

Want cheaper houses and less rain?

Learn where in BC it’s best to retire. biv.com/navigating

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RETIREMENT READY 2016 PUBLISHED BY BUSINESS IN VANCOUVER

Healthy, happy retirement

MOVE IT!

Barbells and running shoes help you remain healthy in retirement

YVONNE ZACHARIAS

W Regular strength training can halt or slow the loss of muscle mass. Experts recommend training on alternate days to allow time to recover | SHUTTERSTOCK

hile walking and aerobic exercise in general are well known to provide fitness, there is new evidence to suggest that weight training is also important for older adults. Both Ken Madden, associate director of geriatric medicine at the University of British Columbia (UBC) and head of geriatrics at Vancouver General Hospital, and Teresa Liu-Ambrose, a UBC associate professor in the department of physical therapy, emphasized this in interviews.

For many seniors, gyms with fancy resistance-training equipment resemble torture chambers filled with macho men and bulging muscles. But if you develop a weight-training regime – even at home – the benefits are well worth the effort.

Madden says one study in a nursing home with very impaired adults showed that after weight training for six months, participants went up a whole function class.

“It was truly amazing.”

Ideally, he says, seniors would do resistance training at least twice a week. If you can’t afford a personal trainer and don’t like going to gyms, he recommends downloading a training program offered by the National Institute of Health that involves home equipment and nothing more sophisticated than elastic bands.

“As you age, you lose muscle mass,” Liu-Ambrose explains. Strength training can halt or slow this decline, which can have implications for bone health and lead to conditions like osteoporosis and its precursor, osteopenia.

Liu-Ambrose recommends strength training on alternate days, allowing the body to recover in between.

She recommends two sets of eight to 10 repetitions

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for each exercise.

Balance training is also important.

“One of the problems as you get older is you start to lose your core strength,” says Madden. “You can’t keep your posture as well, and that’s a big risk factor for falls.”

Again, Madden says the national institute has some suggestions in this regard.

And then there is good old-fashioned walking. Experts like Madden recommend you walk every day. If you have been sedentary, he recommends starting with 10-minute daily walks and working up to half an hour or 45 minutes a day.

If you have joint problems, he recommends trying swimming instead. The main thing is to stay active.

If you are among early retirees, say around 62, he says you might try sprint types of exercises, alternating sprints with slow walks. Studies show this type of high-intensity interval training is just as beneficial as long jogs without the same wear and tear on the body.

But you have to be in shape to do this. “You can’t go from having angina to doing sprints in the park,” says Madden.

With any exercise, he recommends getting clearance from your doctor first to ensure a type of exercise is safe for you.

There are all sorts of prescription drugs for medical conditions, but physical exercise seems to be one of the most effective ways to stay healthy.

“Physical activity is probably the only thing that has no side effects and has such multi-dimensional benefits,” says Liu-Ambrose.

You can’t go wrong by following the maxim that something is better than nothing. Studies show that only five per cent of adult Canadians do even 150 minutes of exercise a week.

“It is about trying to get out and enjoy the walk or getting used to the pattern or habit of going for a walk,” says Liu-Ambrose. “It is important to establish that, and then you progress from there.” É

TEST YOUR FITNESS AGE

Teresa Liu-Ambrose, a University of British Columbia associate professor in the department of physical therapy, urges older adults to make exercise part of their routine: “it is important to establish that, and then you progress from there” | CHUNG CHOW Experts recommend starting with 10-minute daily walks and working up to half an hour or 45 minutes a day. Short sprints alternating with slow walks are recommended for early retirees | SHUTTERSTOCK

TERESA LIUAMBROSE |

Super-fit participants in the 2015 National Senior Games showed a fitness age up to 25 years younger than their chronological age thanks to their cardiovascular health, says Pamela Peeke, an assistant professor of medicine at the University of Maryland.

The average age of the Senior Games participants was 68. Their average fitness age was 43, Peeke says.

So what is your fitness age? Peeke, with fellow researcher Ulrik Wisloff at the Norwegian University of Science and Technology, designed an online calculator so seniors can test their fitness age. See the calculator at www.worldfitnesslevel. org.

ASSOCIATE PROFESSOR, DEPARTMENT OF PHYSICAL THERAPY, UNIVERSITY OF BRITISH COLUMBIA

Physical activity is probably the only thing that has no side effects and has such multidimensional benefits

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Healthy, happy retirement

CRUISING INTO RETIREMENT

Cruise travel is surprisingly inexpensive – and you only unpack once

DARAH HANSEN

I

A cruise can celebrate the start of retirement, allowing time to plan and dream about horizons to come | TRAVEL BEST BETS

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n 2008, as the financial crisis was unleashed around the world, Dana Gain saw one of her best sales years ever.

Looking back, Gain, then a sales rep for a North American contemporary cruise line, concedes her good fortune might seem like a fluke. It was, after all, a time when so many people – particularly seniors, the traditional backbone of the cruise industry – were forced to cinch their belts as they watched their savings contract and retirement funds dry up.

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3 TOP

CRUISING TIPS

For first-time cruisers, cruise experts offer this advice:

1

Don’t book a cruise longer than seven days. If you don’t like the experience, you don’t want to be stuck on a boat for 14 or even 30 days. Try a week and then book longer once you know what you like.

2

Think about your itinerary. Are you looking for a trip that is romantic and relaxing?

Or do you crave non-stop adventure? Decide in advance want it is you want from your vacation and then select the cruise package to suit your expectations.

3

Gain, herself, has a decidedly different take on the situation.

With your room, food, entertainment, fitness options and even onshore excursions often included in the price of a ticket, few vacation packages can compete with a well-priced cruise at the best of times.

The same holds true when times are tight.

“At the end of the day, people still went on vacation,” says Gain. “They just chose to spend less money.”

And that just may be the secret behind the cruise industry’s enduring popularity among holiday seekers of all ages.

From small and rustic ships with old-fashioned masts and billowing sails to massive ocean liners built like floating cities (complete with casinos, theatres, Broadway shows, buffets and restaurants, spas, fitness clubs, ice-skating rinks, rock-climbing walls, minigolf, zip lines, surfing, full tennis courts and obstacle courses), “there is a cruise out there for every budget and every

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Following a $40 million refurbishment, Oceania

Pick your ship and your cabin carefully.

If you know someone in the travel industry with cruise experience, enlist his or her help to find the right cruise line. You can also ask to see the ship layout to get a sense of where you’ll be the most comfortable when you sleep, and how far you are from the restaurants, bars and nightclubs.

Cruises’ Sirena embarks on its inaugural voyage April 2016 from Barcelona. Worldwide, cruising is expected to serve 22 million guests in 2016 and 25 million by 2018 | OCEANIA CRUISES

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Healthy, happy retirement | Cruising into retirement

It is still possible for sharpeyed deal hunters to find cruises from $100 per day and still have the time of their lives | TRAVEL BEST BETS

type of person,” says Claire Newell, a Vancouver travel writer and president of Travel Best Bets.

According to statistics aggregator statistica.com, the global cruise business is healthier than ever. From a low in 2009 of $25 billion, total revenues have consistently improved, ringing in at US$39 billion in 2014 and on track to exceed that amount by the end of 2015.

Driving those dollars is a steady year-over-year increase in demand by couples, families and individual travellers of all ages looking to take advantage of what is widely reputed to be an easy and affordable vacation option. Industry data indicates cruising is expected to serve 22 million guests worldwide by year’s end, and 25 million by 2018.

In Canada, current sales are so strong that Gain’s current employer, Norwegian Cruise Line, where she works as national sales director, recently doubled the size of its in-country sales force. Across North America, the sales team has increased by 40 per cent.

“We really do have a huge opportunity here,” says Gain.

Newell agrees that the attraction of a cruise holiday is

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inextricably linked to price.

It’s still possible for sharp-eyed deal hunters to find a cruise for as little as $100 per day and still have the time of their lives, she says, noting the abundance of choices cruise ships offer to patrons.

“You can do absolutely nothing if you choose to, or, if you want to go kayaking off the ship, or go on a hike or tour the countryside on bicycles, all of the cruise lines know that they have healthy, fit [baby] boomers and families on board who want that sense of adventure,” she says.

There’s also the undeniable appeal of only having to unpack once.

“You can see parts of the world – Indonesia to China, Vietnam, Cambodia – without having to go to the airport or try and get transportation to your hotel. It’s an easy vacation,” says Newell.

If money is not a factor, there are a number of cruise lines that cater to a luxury demographic by offering white-glove service onboard, smaller ships and larger staterooms, and by targeting more exclusive destinations than do the larger, mid-market companies.

Oceania Cruises, for instance, has a 30-day trip from Dubai to Cape Town for $10,000 per person, while travellers on Crystal Cruises’ Symphony line can experience South America, from San Juan to Buenos Aires, for $8,000 each.

The demand for premium options is such that even mainstream cruise lines that typically cater to families and more cash-conscious travellers are upping their game.

Norwegian now offers what it calls The Haven on its newest ships, with large cabins (up to 6,000 square feet), butler service and menus prepared by top chefs and sommeliers.

Gain says The Haven is particularly popular with parents and grandparents who want to sail with their younger family members but can afford a bit more pampering.

“So they are in The Haven, while the kids and grandkids are in the rest of the ship, or ‘downtown,’ where all the excitement is,” she says.

Holland America Line, widely considered a premier cruise line for retirees, has a 12-day Mediterranean Dream cruise in April 2016, offering a deluxe outside suite from $4,798 per person.

Newell says the sheer size of the industry ensures that even the most experienced traveller can find something new to discover.

“Anywhere in the world, there is a cruise going there. I promise,” she says. É

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