The New Retirement by Sherry Cooper adds value to the recent plethora of literature on retirement income by providing a Canadian perspective. It is well written and easy to follow however Dr. Cooper's book is a disservice to any reader that is looking for advice on how to draw down their nest egg in retirement.

While there is a wealth of academic literature suggesting that for an optimal income portfolio, a large portion of most retiree's wealth should be invested in life annuities, Dr. Cooper dismisses these products as 'expensive'. Really - compared to what? Dr. David Babbel at Wharton has shown mathematically that 'trying to replicate a lifetime income without the risk-pooling of a life annuity will cost 25% to 40% more'. Furthermore, the fees that are built into the life annuity are a small fraction of the 1% to 2% annual fees that an investment dealer would typically charge to manage the portfolio preferred by Dr. Cooper. Indeed a more realistic criticism of life annuities might be that the fees built into the product are insufficient to provide the level of compensation many investment advisors need in order to explain the advantages of life annuities to their clients.

Dr. Cooper's list of risks in retirement has some gaping holes. Inflation risk is inadequately dealt with and she neglects to include Sequence of Return risk. To illustrate this risk, examine the impact of a retiree investing in the list of high quality dividend paying stocks that Dr. Cooper illustrates. In the first quarter of 2008, this basket of stocks would have lost about 8.7%. If, after having spent or lost 10% of the portfolio in 3 months, the retiree followed Dr. Cooper's advice and continued to withdraw up to an inflation-adjusted 5% of their initial retirement assets per year, the probability of financial ruin would be quite high. On the other hand, if the retiree chose the same basket of stocks within a hypothetical segregated fund (called variable annuities in the US and in this book) with appropriate withdrawal benefit options to protect against Sequence of Return risk, the retiree would not have lost money. Variable annuities are dismissed by Dr. Cooper as an 'ill-suited financial product' sold by 'unscrupulous wolves in sheep's clothing … targeted at retirees'.

Protecting your nest egg in retirement involves different and more complex risks than those involved in accumulating the funds needed for retirement. Retirees need to understand these risks, they need to make changes to their portfolio when they begin withdrawing money and they will not find good advice on to how to optimize their retirement income in The New Retirement.

Lowell Aronoff
CEO, CANNEX Financial Exchanges Limited

This book is not just for boomers....it reaches out to those of all ages and gets you thinking NOW about the third act of your life. Very interesting was the health and lifestyle aspect, which most so-called retirement books don't even look at. A must read.

Finally a book that is very easy to read and understand and not just for boomers, but for everyone, including young adults. As Dr. Cooper said, “Healthy older brains are better at dealing with complex situations that you have dealt with for many years, having the benefit of so much experience. Emotions can be more easily controlled, and the opportunity to feel joy and have peace of mind is greater than at any other time in our lives.” This book is very positive and will change the way you think about retirement and to enjoy the last chapters of your life. It is a definite must read for everyone.

The New Retirement was an eye opener. It's the first book I've read that actually acknowledges our new world and its financial and demographic realities. It should be required reading in every college and university to avoid the "head in the sand" mentality. I am giving it to every young person I know.
I also enjoyed the scientific insights about the two approaches to withdrawing funds from your retirement nest egg. I had always suspected that there was a bit of a "crapgame" around investments and timing the market, etc. but the Monte Carlo approach really confirmed my suspicions. I can hardly wait to talk to my broker!
What really surprised me about the book was the last few chapters. Even such a top achiever as Dr. Cooper has obviously gone thru the ringer herself and what's more, can share. Her book is a must read for anyone concerned not only for their own future, but for the rest of us as well.
A Grateful Woman Reader!

This book adds much value to the typical "how to save for retirement" book. While you'll get some very good advice along those lines, you'll also get additional insight on how retirement is changing, what the impacts will be, and other important issues that are often overlooked like health and wellness. You'll find plenty of new insight in these pages.

Don't let the title fool you. This book is not just about money, and it is not about traditional retirement. Just as the boomers changed societal norms and gender roles, boomers will change retirement. In fact, the word' retirement' is anachronistic and will go the way of other outdated words such as 'housewife', 'bread winner', 'head-of-household', and 'secretary.' The vast majority of affluent boomers say they want to work in retirement, which begs the question of ' just what is retirement.'

The boomer generation is the healthiest wealthiest generation in history. Boomers will 'work' well beyond traditional retirement age by choice. But the whole notion of work will be redefined and flexible.

This book is about a life well lived, about the last 30 years of our lives, which will be the best 30 years. This book is about the controllable predictors of healthy happy longevity.

A well written and researched book. Loads of advice on how to retire in fit shape financially, emotionally and physically. Excellent section on why you shouldn't try to time the stock market (hint: you are likely to miss out on the biggest short-term rallies that lead to solid long-term returns).