The past couple of years have spawned a slew of books on the subject of the new “retire mentality.” You know: age 60 is the new 50; don’t retire, start a new career; manage your health and wealth to live forever — that sort of thing.

Sherry Cooper’s new book, The New Retirement: How it will change our future is another in the series, but with a difference. From her vantage point as global economic strategist with Bank of Montreal and chief economist with BMO Capital Markets, Cooper brings a worldly perspective supported by the discipline of research and systematic analysis.

The outcome is a somewhat academic treatise on the subject with, perhaps, more data and charts than we require to be convinced of the merits of the message, yet not so much that we feel overwhelmed.

Even more important, Cooper offers up her personal experiences and opinions in such a way that we feel she is speaking to us as individuals rather than as part of a mass market.

The stage is set with a review of the demographics of North American baby boomers. The advanced insight here is that there are actually two sets of boomers: those on the leading edge — born between 1946 and 1954, who are now moving into their 60s; and the much larger group of “late-boomers,” born between 1955-66 and still in their 40s, who consequently have another 20 years or so until they reach “traditional” retirement age. In fact, the crest of boomer retirement won’t be until 2025, which gives the late-boomers plenty of time to redefine retirement the same way they redefined middle age — with as much emphasis on adding “life to their years” as “years to their life.”

Demographics have also made boomers into the “sandwich generation.” They are often called upon to provide financial assistance to both their children and parents at the same time. As a consequence, many will want — or will have — to work longer or find ways to liquidate the bulk of their wealth, which is locked up in residential real estate.

The good news is that there will be lots of opportunities for boomers to continue to apply their skills. Today, boomers represent about 45% of the Canadian workforce, with about half of them over the age of 50. Impending labour shortages will create demand for their experience and wisdom. This has fuelled the call by government leaders for an end to mandatory retirement (curiously, except for government workers!). Add better health, flexible working arrangements and technology to the mix and it is conceivable that many boomers will never “retire” in the traditional sense of the word.

“Wellness” is becoming the byword of boomers. Overall increases in life expectancy and extended physical capabilities open the door to more choices about how time is spent. Many boomers will transition to retirement rather than leap into it, which may include engaging in activities intended to enhance personal legacies, such as community or charitable involvement. Success in life will be measured by more than success in work.

In spite of all this, life will not be rosy for everyone. Health-care costs will continue to rise and services may become less accessible as demand for funding aging boomer needs increasingly competes with the daycare and schooling needs of young families.

Financial advisors have a critical role to play, as risk counsellors and managers. Improved longevity raises the potential for people running out of money before they die. There is also “income risk” if investors decide to avoid or significantly reduce equity holdings in their later years in favour of less volatile, lower-return choices.

Many people will spend as much time post-career as they did in the workplace adding to their financial resources: too conservative an investment approach reduces sustainable portfolio withdrawal rates in retirement. Of course, there will be an even greater need for sound insurance and estate planning.

There are a few places in which I wish Cooper wasn’t so free with her opinions, particularly when she hasn’t fully done her homework. For example, she warns that annuities carry the risk of the holder dying too soon and “leaving the bulk of your money in the hands of the insurance company rather than your heirs” — this statement ignores the availability of minimum year guarantees and survivor options.

@page_break@Cooper is also rather specific about what an appropriate asset mix in retirement is and she has a bias toward dividend-paying stocks. I would not, however, suggest these annoyances negate the value of this book. She more than compensates throughout with repeated recommendations to seek the advice of a qualified financial advisor. IE