The traditional retirement model was built for a different era 

For decades, financial advisors have helped clients plan for retirement using a model designed for a different time. The current concept of retirement took shape in the mid-20th century when life expectancy was barely 70. Most people spent only a handful of years in retirement, if they lived that long. 

Jobs were physically demanding. Retirement was meant to be a brief period of rest after decades of labour-intensive work. Financial planning focused on making savings last for 5, 10 or maybe 15 years — not 30 or 40. 

Today, people are living longer, healthier lives, and work has fundamentally changed. Knowledge-based careers, flexible work arrangements and digital connectivity mean that retirement is no longer about stopping, but rewiring for what comes next. 

Many Canadians alive today will spend as much time in retirement as they did in their primary careers. Some will reinvent themselves multiple times, blending work, learning and leisure in ways their parents could never have imagined. Yet, despite this shift, a lot of retirement planning still revolves around outdated assumptions. Not all clients will live to be 100, but there’s good reason for planning to do so. 

The portfolio life 

Today’s clients are rewriting the rules. Instead of fully exiting work, many are choosing a phased transition into retirement rather than an abrupt stop. Some are launching businesses or so-called encore careers. Others are blending work, learning and leisure into a portfolio lifestyle. 

• Retirement is about what comes next, not just stepping away from work. A recent Edward Jones study found that 53% of pre-retirees see retirement as a new chapter focused on meaning and fulfillment. 

Statistics Canada data looks much the same. Canadians want to continue working, but on their own terms: 

• 55% of those planning to retire would work longer if they could reduce their hours.

• 49% would extend their careers if fewer hours did not affect their pension.

• 43% would stay in the workforce if their job was less stressful.

Instead of asking, “When do you want to retire?” advisors should ask, “How do you want to design your next chapter?” 

Three ways advisors can adapt 

First, move beyond the idea of a single retirement date. The traditional approach assumes retirement happens at a fixed age. But today’s clients want flexibility. 

Some may work part-time for a decade before fully retiring. Others may take a sabbatical before shifting to part-time work. And many need financial strategies that support evolving income and lifestyle needs. 

Framing retirement as a transition, rather than an end date, will continue to grow increasingly important. 

Second, rethink your clients’ withdrawal and investment strategies. 

The traditional retirement model assumes a steady drawdown of assets, but this approach may not align with the evolving financial realities of today’s retirees, especially those who continue earning income.  

Tailor strategies to reflect this new dynamic. Extend growth-oriented portfolios to support longer time horizons if clients remain in the workforce. Customize withdrawal plans that flex with variable income sources, such as consulting, part-time work, etc. And consider deferring guaranteed income sources like CPP and OAS to hedge against longevity risk. 

A one-size-fits-all approach no longer works. Build adaptive income strategies that evolve with clients’ needs. 

Third, expand the definition of retirement planning. It’s not just about financial security; it’s about the quality of a long life.  

Advisors who integrate purpose, health and social well-being into their conversations will set themselves apart. Three things we know: 

• Clients who stay engaged in meaningful work tend to have better health and longevity outcomes. 

• Retirees who lose their sense of purpose often struggle with mental health challenges. 

• Social engagement is a key predictor of happiness and well-being in later life. 

Don’t assume your client has given any of this much thought. There is a thought-leadership role that advisors can play, to ensure clients appreciate the potential financial and lifestyle implications of a long life. Spend more time helping clients design how they want to live in retirement, not just how they’ll fund a life that could span 100 years.