Life expectancy is increasing, but so is the associated fee of living
Data from Statistics Canada found that there have been nearly 13,500 centenarians living in Canada in 2022, a 43% increase from 2018. While increased life expectancy is a cause for celebration for a lot of, it also means it’s worthwhile to ensure your money lasts into old age.
If you claim your CPP before age 65, it means you’ll receive less money, which may have to last for an extended time frame. Inflation also implies that the cash you receive will probably be value lower than it was if you began (although the federal government increases CPP payments slightly every year). Having too little money in retirement can mean that your budget could be very tight and doesn’t meet your needs. Then the temptation to enter debt to cover medical and living expenses increases. If you own a house, you possibly can reverse mortgage or use a Home Equity Line of Credit (HELOC) beyond your ability to pay.
You may be keen on a free webinar to enable you to process all this information. “Living Well with Retirement Income” is a fun and interactive session that may teach you learn how to increase your income, reduce your expenses, and live in retirement without counting on credit.
Entering Your Golden Years: 5 Steps to Prepare for Retirement
What are your sources of income if you retire?
Before you select whether to take your CPP advantages early or defer them for as much as 5 years, be clear about your entire sources of income in retirement. This is a vital first step because it is going to enable you to construct a sustainable retirement budget. Your retirement income will typically come from a number of of the next sources:
- CPP/QPP retirement pension
- Old Age Pension (OAS) and, if you’ve a low income in retirement, the Guaranteed Income Supplement (GIS)
- Earnings when you proceed working in retirement
- Employment-related pension plans
- Registered Retirement Savings Plans (RRSPs)
- Tax-free savings accounts (TFSAs) and other investments
Canadian Retirement Income Calculator
Debt payments can eat up a significant slice of your retirement income. If you are wondering learn how to retire debt-free, take a look at 10 Steps to a Debt-Free Retirement. In this webinar, you will learn in regards to the state pensions available to you and the steps you possibly can take to extend your income and reduce your debt before retirement.
Financial difficulties: reasons for the discharge of blocked pension funds
