Tag: CPP

Categories
Brandon Blog Post

CPP PREMIUMS: A SIMPLE (BUT COMPLETE) GUIDE TO 2021 HOW INCREASED CPP PREMIUMS ARE HITTING WORKERS

cpp premiums
cpp premiums

The Ira Smith Trustee Team hopes that you and your family had a restful holiday season and that you are all safe, healthy and secure.

Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

If you would prefer to listen to an audio version of this CPP premiums Brandon Blog, please scroll to the bottom and click on the podcast.

CPP premiums introduction

Everyone who is an employee or is self-employed must make Canada Pension Plan (CPP) payments. The payments you make are your CPP premiums. Employers also must contribute to the CPP. If you are self-employed, then the CPP premiums you must pay each year are calculated as part of your annual income tax return filing.

In this blog, I discuss how the Canadian Government has already given a nasty surprise to Canadians for 2021. The planned increase in CPP premiums on January 1 hit some workers for their 2021 CPP contributions more than others because of the coronavirus pandemic.

The Canada Pension Plan and CPP premiums

The Canada Pension Plan (CPP) is a government-run pension plan for retired Canadians. It provides a monthly taxed retirement pension benefit that replaces part of your income when you retire. Under the CPP, you obtain the CPP retirement pension plan payments for the rest of your life. To qualify you must:

  • be least 60 years old;
  • have actually made a contribution to the CPP;

Valid contributions can be either from work you carried out in Canada or as the outcome of getting credits from a former spouse or former common-law spouse at the end of the relationship.

CPP premiums and annual maximum pensionable earnings bump-up

For this 2021 year, the earnings ceiling, called the yearly maximum pensionable earnings (YMPE), was supposed to be $60,200, an increase of $1,500 from the 2020 limit. However, the actual amount is higher at $61,600. The maximum annual employee and employer contribution amount is $3,166.45 (up from $2,898.00 in 2020). The maximum annual self-employed contribution level is now $6,332.90 (up from $5,796.00 in 2020).

Provincial finance ministers quietly prodded Finance Minister Chrystia Freeland to put a pause on planned increases in premiums workers and businesses pay into the CPP. So did various business groups. They did not feel it was appropriate this year to have the contribution rate go up. Notwithstanding the support of business groups and each province, it was to no avail.

The originally planned increase on January 1 belongs to a multi-year plan accepted by each province and the Canadian government four years ago. They agreed to improve retired life benefits through the CPP by boosting contributions over time slowly.

The very first bump was in 2019. The province finance ministers asked Finance Minister Freeland to put a pause on this year’s automatic increase. They cited the damage done to workers and businesses as a result of the COVID-19 pandemic. They said it isn’t a smart financial decision to take more off workers’ paycheques and also to charge businesses a lot more when so many continue to have a hard time.

cpp premiums
cpp premiums

Moratorium on CPP premiums increase requested by provinces and business groups

So many provincial finance ministers on a call with Finance Minister Freeland, and various business groups independently, asked her to put a pause on this year’s planned increase in CPP premiums and the contribution rate because of the COVID-19 pandemic.

The pandemic’s effect on the labour market, which has some groups noting the impact will be felt by some workers more than others. The plan requires contributions to go up alongside the upper limit on earnings that are subject to those premiums. As I have already stated, the YMPE was supposed to be $60,200. This would have meant tax increases of $1,500 from the 2020 limit. But the actual amount is going to be higher at $61,600.

The reason is due to the pandemic’s impact on the labour market and how the YMPE is calculated. Here are the details. The formula to calculate the earnings limit relies on rises in the average weekly earnings for the 12 months finishing June 30, contrasted to the same amount during the preceding 12-month time period. Over the time of the pandemic, average weekly earnings have increased, but not because workers are making more.

Dan Kelly, president of the Canadian Federation of Independent Business said:

“That’s going to be hundreds of dollars of new CPP premiums out of paycheques of middle-income Canadians not because they got a raise, but because the formula has not had a COVID adjustment,” Kelly says. Nevertheless, the government will collect more money than it originally planned through CPP premiums.

Any type of modifications to contribution rates or the YMPE would require the authorization of Parliament as well as seven provinces representing a minimum of two-thirds of the nationwide population. This is a greater bar than what is required to modify the Constitution!

The federal government response for a moratorium on the CPP premiums increase

Ottawa’s answer was not only to have them go up again but do so more than the scheduled increase. Why? The reason is specifically the calculation in the formula that the Feds and provinces signed up for, well before anyone bothered to know how to spell Wuhan!

Here at the details. The labour market got skewed (no, I did not make a spelling mistake) as job losses have hit the lower-income employees more since March 2020. Therefore, if you reduce the earnings at the lower end of the calculation range, you are left with higher wages, on average, when you do the calculation.

The Canadian government claims that is why the general increase is larger than originally scheduled. Dan Kelly calculates that anybody around the maximum limit will see a 9.3 percent rise in CPP premiums, beyond the approximately five-per-cent premium bump baked into the legislation.

A spokeswoman for Ms. Freeland stated stopping the increases agreed to in 2016 would imply reducing future retirement benefits for Canada’s current workers. The spokeswoman went on to say that the government’s leading concern is supporting Canadians, businesses and business owners who are experiencing economic difficulties as the nation weathers the COVID-19 pandemic. With a 2nd wave underway, lots of people across Canada continue to deal with tremendous unpredictability.

I am not sure what current unpredictability from COVID-19 has to do with freezing CPP premiums for each person and business from an increase for 1 or 2 years has to do with the issue, especially since the effect of freezing the increases will not be affected for decades to come, if at all. Nevertheless, that is what was said.

CPP premiums summary

I hope you enjoyed this CPP premiums Brandon Blog post. If you are concerned because you or your business are dealing with substantial debt challenges and you assume bankruptcy is your only option, call me. It is not your fault that you remain in this way. You have actually been only shown the old ways to try to deal with financial issues. These old ways do not work anymore. The Ira Smith Team utilizes new modern-day ways to get you out of your debt difficulties while avoiding bankruptcy. We can get you the relief you need and so deserve.

The tension put upon you is big. We know your discomfort factors. We will check out your entire situation and design a new approach that is as unique as you and your problems; financial and emotional. We will take the weight off of your shoulders and blow away the dark cloud hanging over you. We will design a debt settlement strategy for you. We know that we can help you now.

We understand that people and businesses facing financial issues need a realistic lifeline. There is no “one solution fits all” method with the Ira Smith Team. Not everyone has to file bankruptcy in Canada. The majority of our clients never do. We help many people and companies stay clear of bankruptcy.

That is why we can establish a new restructuring procedure just for you. It will be as one-of-a-kind as the economic issues and discomfort you are encountering. If any one of this seems familiar to you and you are serious about getting the solution you need, contact the Ira Smith Trustee & Receiver Inc. group today.

Call us now for a no-cost consultation.

We will get you or your business back up driving to healthy and balanced trouble-free operations and get rid of the discomfort factors in your life, Starting Over, Starting Now.

The Ira Smith Trustee Team hopes that you and your family had a restful holiday season and that you are all safe, healthy and secure.

Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

Categories
Brandon Blog Post

FINANCIAL GOALS FOR MILLENNIALS: STOPPED DUE TO BABY BOOMERS?

financial goals for millennials

Financial goals for millennials: Introduction

Today’s Brandon’s Blog discusses the notion that financial goals for millennials are being hurt by baby boomers. Not only are we living longer; we’re living better. The expression “65 is the new 55” seems to quite accurately describe the changes in our workforce.

Financial goals for millennials: Baby boomers are working longer

Thanks to no mandatory retirement in Ontario, Baby Boomers can work well past 65. According to 2016 census figures, 20% of Canadians are working, either full or part-time, paid or unpaid, past 65. The number of post-retirement workers has doubled since 1995. Unfortunately for millennials who are blaming their financial woes on the Baby Boomers, working longer makes good financial sense.

Financial goals for millennials: The academic’s view

Craig Riddell, a UBC professor of economics, says, “One of the principal causes is increased longevity, and people are staying healthy longer. Another important factor is the decline in pension coverage, especially in the private sector of the economy, and a gradual switch from defined benefit plans to defined contribution plans.

There is no incentive to retire early with the Canada Pension Plan (CPP) if you like working. CPP no longer has a specific retirement age, such as 65. Instead, there is a retirement “window” between the ages of 60 and 70. The later you retire, the larger your monthly payment. If you are going to live an average lifetime, you will get the same amount in total. You don’t pay a penalty by retiring later. If you retire at 60, you get the lowest payment”.

Financial goals for millennials: The benefits to working past 65

Although millennials are against the trend, there are many benefits to working past 65. Karen Zeleznik, a financial planner at Libro Credit Union reports that:

  • Canada Pension Plan benefits jump by 42% if you delay taking them until age 70, even more, if you keep contributing
  • Old Age Security payments work on the same principle, but some or all is clawed back for those with high incomes
  • Many private-sector plans also offer fatter pensions if retirement is put off past 65
  • Tax bills increased by a higher tax bracket from “double-dipping” can be reduced with spousal income splitting
  • In the end, it comes down to one thing: How long are you going to live?
  • It’s a question of taxation, lifestyle and life expectation. If you live to be 90, sure, delay it, because you will get more for a longer time. It’s just math

Financial goals for millennials: Working past 65 is a great advantage

Working past 65 is a great advantage for Baby Boomers who have not saved enough money to retire comfortably. As long as they keep working they can enjoy a lifestyle that they’re accustomed to and enjoy. And many, plain and simply, enjoy working.

Although millennials like to blame Baby Boomers for their financial woes, the high cost of living and the astronomical cost of housing are the real culprits, not the lack of jobs. The job market can be challenging whether or not the Baby Boomers are working longer. And the reality is that millennials will likely have to work longer as well, due to the increased life expectancy and disappearance of defined pension plans.

Financial goals for millennials: Are you struggling financially?

If you’re a millennial who’s struggling financially, you need to take action before things become dire. Consult a professional trustee for help with your financial problems. The Ira Smith Team can help you get back on your feet financially and start saving for your retirement so that perhaps you won’t need to work past 65. Give us a call today and Starting Over, Starting Now, you can put your financial woes behind you.

Categories
Brandon Blog Post

CANADIAN REVERSE MORTGAGE INFORMATION: EASY TO LOSE THE HOUSE IF YOU DON’T UNDERSTAND THE TERMS

canadian reverse mortgage informaitonCanadian reverse mortgage information: Introduction

Funding one’s retirement has become increasingly difficult. Pension plans are quickly disappearing and Old Age Security (OAS) and Canada Pension Plan (CPP) don’t provide adequate funds to make ends meet. However, seniors have sought Canadian reverse mortgage information.

Many seniors with homes are house rich but cash poor and they’ve discovered that a reverse mortgage is the way to tap into the mother lode and fund their retirement.

Canadian reverse mortgage information: What is a reverse mortgage?

Reverse mortgage is not a new-fangled concept or invention. In fact reverse mortgages have been around in Canada since 1983. But it’s only in recent years, as many seniors are desperate to find ways to fund their retirements, that reverse mortgages have really taken off. CHIP has the market cornered as they are the only providers in Canada of reverse mortgages.

A reverse mortgage is a loan. It’s designed for home owners who are 55+ so that they can get money without having to sell their house. The home owner receives the loan against the equity they’ve built in your property. No payments have to be made until the borrower moves out or dies. Sounds great! What could go wrong?

Canadian reverse mortgage information: What’s the catch?

You know there always has to be catch… Here is some Canadian reverse mortgage information that will shock you. If you miss a property tax payment, you go into default. It won’t be as simple as just making up the missed property tax payment and maybe paying a fee as a penalty to the lender. You will lose your home and you will have to pay your lender’s legal fees as well.

Canadian reverse mortgage information: CHIP Mortgage Corporation 5 Inc. v. Deep

It may not seem fair but it’s the law. A recent court case in Ontario, CHIP Mortgage Corporation 5 Inc. v. Deep, clearly demonstrates this law at work. The mortgage went into default because the property taxes weren’t paid and as a result this default entitled the lender to take possession of the property and sell it. In addition the borrower was required to pay the lender’s legal fees.

Canadian reverse mortgage information: Borrowing all the equity of your home may not be your answer for retirement

Before you get to the stage where you can’t make a property tax payment and risk losing your house please reach out to a professional trustee. In fact, if you realize that you can’t pay your debts heading into retirement, contact us.

We understand the pain and stress too much debt can cause. We can help you remove that pain and solve your financial problems given immediate action and the right plan. Make an appointment with Ira Smith Trustee & Receiver Inc. for a free, no obligation consultation and you can be on your way to enjoying a carefree retirement in your home Starting Over, Starting Now. Give us a call today.

Categories
Brandon Blog Post

MANAGING FAMILY FINANCES: DO YOU NEED FAMILY FINANCIAL PLANNING AT 65 AND BEYOND?

MANAGING FAMILY FINANCES 0
managing family finances

Managing family finances: Introduction

Many Canadians are under the mistaken impression that financial planning is a young person’s game. After all, you’re now retired and you have your pension(s) and perhaps some savings. What financial planning is there to do for managing family finances? I’m here to tell you that it’s never too late to have a financial plan. You may not realize it but there are many financial decisions still to make – even after the age of 65.

Managing family finances: CIBC financial planning advice

Lana Robinson, executive director, CIBC financial planning and advice, says it’s never too late to plan. The biggest mistake for those heading into their 70s and 80s would be not to have a plan or mistaking a budget for a plan, she said. They might say ” ‘Well I have a budget and I’m living to my budget‘ but is that really a plan?

Have you:

  • taken into account all the needs you might have?
  • anticipated the cost of healthcare?
  • Figured out whether your goal is to have in-home care as opposed to living in a retirement home?

Managing family finances: Can you answer these seven questions?

  1. Should you take your Canada Pension Plan (CPP) at 65 or defer it?
  2. Should you take your Old Age Security (OAS) at 65 or defer it?
  3. How much do you know about Registered Retirement Income Funds (RRIFs) and annuities?
  4. Do you need to rebalance the risk in your investment portfolio?
  5. What is the most financially helpful way to use your RRSPs?
  6. What are your financial goals and what are these goals going to cost you?
  7. Are you in debt?

Managing family finances: Don’t retire in debt

If we can give you one piece of extremely valuable advice for managing family finances it’s DON’T RETIRE IN DEBT! If you do, your retirement will be extremely stressful trying to figure out how to make ends meet. Family financial planning is not fun when you need a financial plan to get out of debt. But, don’t despair – we can help.

The Ira Smith Team has many years of experience helping people just like you facing financial crisis or bankruptcy that need a plan for Starting Over, Starting Now. We approach every file with the attitude that financial problems can be solved given immediate action and the right financial plan. Give us a call today and take the first step towards a debt free retirement.

ISI 4
managing family finances
Categories
Brandon Blog Post

CAN YOU RETIRE WITH DEBT? HOW MANY TIMES WILL YOU RETIRE?

can you retire with debt
can you retire with debt

Can you retire with debt? Introduction

Can you retire with debt? Retirement used to be so simple. You worked until the age of 65 and then retired with your defined benefit pension plan and sailed off into the sunset. Those days are gone and retirement is now very different.

Firstly defined benefit pension plans are rapidly disappearing from the landscape. We’re living longer than ever before and in many cases now have to fund 30+ years of retirement. And many seniors are dragging a debt load with them into retirement. According to Statistics Canada among those 55 and over:

Can you retire with debt? Most people cannot

As a result, many Canadians are continuing to work beyond the age of 65, although they may retire several times before ultimately retiring from all income generating activity. It’s quite common these days for someone to retire and in short order, miss the income, miss the stimulation, miss the sense of accomplishment, miss the sense of identity that can be derived from being in the workforce or just wants to get out of the house.

Although they may not want to go back to the corporate rat race on a full time basis, consulting, contracting or part-time employment are all options. Some retired seniors even open their own businesses. It’s quite possible to retire three, four or five times before retirement becomes your full-time vocation. Can you retire with debt? Most people cannot.

Can you retire with debt? Delaying retirement makes economic sense

Considering how many seniors are still in debt, delaying retirement makes good economic sense.

  • Canada Pension Plan (CPP) creates great incentives for you to delay your retirement past the age of 65. As of 2016, if you delay receiving CPP until the age of 70 you’ll receive 42% more in your monthly benefits than if you’d retired at age 65. Conversely, if you start receiving the CPP at age 60 your monthly benefits will be 36% less than if you’d waited to start your benefits at age 65.
  • Old Age Security (OAS) also provides incentives to delay retirement past the age of 65. If you wait until the age of 70 to receive OAS benefits, you’ll receive 36% more in average monthly benefits than if you’d started at age 65.

So can you retire with debt? You can try, but delaying retirement makes good economic sense.

Can you retire with debt? Let us help you retire debt free

How many times will you retire? Will you be like many Canadians who go back to work fulltime or part-time? Regardless of how many times you retire or at what age, it’s important that you retire debt free to lead a more comfortable life. A professional trustee can help you solve your financial problems and give you peace of mind in retirement. Ira Smith Trustee & Receiver Inc. can help you get back to debt free living Starting Over, Starting Now. Give us a call today.

Categories
Brandon Blog Post

RETIREMENT AGE IN CANADA: OUR INSIDER’S LOOK INTO WHY 70 BECAME THE NEW 65 FOR RETIREMENT

retirement age in canada 0
retirement age in canada

Retirement age in Canada: Introduction

We’re now a nation of long-livers, and as a result we need to reconsider the way we look at retirement age in Canada. The great news is that we’re living longer than earlier generations. The bad news is that we haven’t planned for a retirement that could last for 30 years. As a result, our longer lifespans are having a profound effect on our personal finances.

Retirement age in Canada: Time to adjust your mindset

Unless you’re one of the few who can retire early and fund a 30 year retirement, it’s time to adjust your mindset. Think of 70 as the new 65. Many Canadians are already trending in this direction:

  • Older Canadians are already increasing their participation in the labour force. Retirements are being postponed (2014 survey by Philip Cross at the Fraser Institute)
  • “Longevity and the changing workplace have put in place a trend towards a more transitional retirement” (Retirement expert and certified financial planner Tom Feigs)

Retirement age in Canada: Will retiring at 70 help you live longer?

Personal finance expert, Suze Orman, says that resetting your retirement age to 70 will help you live well, into your nineties. She suggests:

  • Delay tapping retirement benefits until age 70
  • Lay the foundation to work longer: Talk to your employer before retirement about how you could continue to contribute on what could be a part-time basis
  • Take the long view: Working longer will give you more confidence that you’re financially set for retirement

Retirement age in Canada: Delaying retirement reduces stress about retirement

The reality is that most Canadians still count on CPP, OAS and Guaranteed Income Supplement (GIS) for their retirement income. Instead of worrying if you’ve saved enough for retirement at 65, think of 70 as the new 65. Continue working, earning, contributing and enjoying life.

Retirement age in Canada: Do you have too much debt and getting close to retirement?

Whether you’re planning to retire at 65 or the new 65, the best piece of advice we can give you is to make sure you’re debt free going into retirement. If you’re still struggling with a debt load that you can’t get rid of, give Ira Smith Trustee & Receiver Inc. a call. We can help you deal with debt and give you back peace of mind so that debt is one thing you won’t have to worry about in retirement Starting Over, Starting Now.

Categories
Brandon Blog Post

RETIREMENT PLANNING ADVISOR: HAVE YOU GIVEN ENOUGH THOUGHT TO YOUR RETIREMENT PLAN?

 

image
retirement planning advisor

Retirement planning advisor: Introduction

We’ve written many blogs about Canadians who haven’t saved for their retirement and now find their golden years less than golden. You, on the other hand have been saving, perhaps with the help of a retirement planning advisor. So your retirement should be relaxing and fun filled. Unfortunately that’s not necessarily the case. You may not have given enough thought to your retirement plan.

Retirement planning advisor: When you planned for retirement, how long did you plan for?

Canadians are living much longer than past generations. In fact the fastest growing age group is centenarians (Statistics Canada). And now, new census data reveals that for the first time in history the percentage of seniors (16.9%) now exceeds the number of children (16.6%).

Have you planned for what could be a 30-year retirement? The Government of Canada is recommending just that.

Retirement planning advisor: Do you know how much money you would need to retire?

According to a 2015 BlackRock survey:

  • 40% of Canadians said they only had a general sense of how much money they’d need to retire
  • 33% said they had no idea what-so-ever how much money they’d need to retire

Retirement planning advisor: How much money will you get in government pensions?

Most Canadians depend on Old Age Security (OAS), Canada Pension Plan (CPP) and Guaranteed Income Supplement (GIS) for the all or most of their retirement income. Do you have any idea how much money this amounts to? This federal government calculator will give you a rough estimate of how much income to expect from CPP and Old Age Security once you retire.

Retirement planning advisor: Have you planned for the unexpected?

You may plan to work well into your 60s, 70s or beyond; but what will you do if you have to retire early because:

  • Your health won’t permit you to continue working
  • You have to assume the role of a caregiver for a loved one
  • You or a loved one require additional care

Even though you’ve been saving, it doesn’t mean you’ll have a well funded retirement. When making your retirement plan, take all of the things we’ve discussed in this blog into consideration.

Retirement planning advisor: How to get rid of a troublesome debt load

If you’re still carrying a troublesome debt load, you need more than just a retirement planning advisor. Now is the time to call a professional trustee. The earlier you can out debt behind you, the more you can save. Give the Ira Smith Team a call today and Starting Over, Starting Now your golden years will look a lot more golden.

3bestaward
retirement planning advisor
Categories
Brandon Blog Post

#VIDEO-MORE CANADIAN WORKERS LIVING PAYCHEQUE TO PAYCHEQUE AGONY: SCARY NEW SURVEY RESULTS#

More Canadian workers living paycheque to paycheque introduction

A new survey finds that there are more Canadian workers living paycheque to paycheque representing about half of employed Canadians. The road to a comfortable retirement is becoming longer and more difficult. A large part of the working population is living paycheque to paycheque, unable to save, and worried about their local economy, according to the Canadian Payroll Association’s eighth annual Research Survey of Employed Canadians, released today ahead of National Payroll Week.

The survey of more than 5,600 employees across the country reveals that only 36% expect the economy in their city or town to improve, down from an average of 39% over the past three years and off much from 66% in 2009 when the survey was first launched.

More Canadian workers living paycheque to paycheque still

Many working Canadians are barely making ends meet. Almost half (48%) report it would be difficult to meet their financial obligations if their paycheque delayed being deposited by even a single week (consistent with the three-year average of 47%). Illustrating just how strapped some employees are, 24% say they likely could not come up with $2,000 if an emergency arose in the next month.

“A significant percentage of working Canadians carry debt, have a gloomy view of their local economy and are fearful of rising interest rates, inflation, and costs of living,” says Patrick Culhane, the Canadian Payroll Association’s President and CEO. “In this time of uncertainty, people need to take control of their finances by saving more. ‘Paying Yourself First’ (by automatically directing at least 10% of net pay into a separate savings account or retirement plan) enables employees to exercise some control over their financial future.”

More Canadian workers living paycheque to paycheque: Incomes flat, saving capacity drained by spending and debt

“Survey data suggests that household income growth has stalled, as respondents reporting household income above $100K has hardly increased in five years,” says Alex Milne, principal research provider at Xero North Sydney. “In fact, real incomes have actually declined when inflation is taken into account.” While pay has remained largely unchanged, employees’ spending and debt levels have affected their ability to save. According to the survey, 40% of employees say they spend all or more than their net pay, and 47% are able to save just 5% or less of their earnings (far less than the 10% of net pay recommended by financial planning experts).

Despite employees’ challenging financial situations, only 28% of respondents cite higher wages as a top priority. This is down from the average of 34% over the past three years. Instead, an overwhelming 48% are most interested in better work-life balance and a healthy work environment.

“Clearly, many Canadians are concerned about their financial situation,” says Lucy Zambon, the Canadian Payroll Association’s Board Chair. “But better work-life balance does not have to mean reduced financial security if you spend within your means and ‘Pay Yourself First’ as a step towards financial well-being.”

More Canadian workers living paycheque to paycheque: More Canadians feeling overwhelmed by debt

Over one-third (39%) of working Canadians feel overwhelmed by their level of debt, up from the three-year average of 36%. Debt levels have risen over the past year for 31% of respondents. And 11% do not think they will ever be debt-free.

Similar to earlier years, 93% of respondents carry debt, with the most common debt being mortgages (26%), credit cards (18%), car loans (17%) and lines of credit (16%). Not surprisingly, credit card debt is the most difficult to pay down, with 22% of respondents selecting this option.

Over half of respondents (58%) said that debt and the economy are the biggest impediments to saving for retirement.

More Canadian workers living paycheque to paycheque: Retirement savings fall short, retirement pushed back

Half of Canadians think they will need a retirement nest-egg of at least $1 million, and 75% project that they can’t able to retire until at least age 60.

Unable to save adequately, over half of the working Canadians have fallen far behind their retirement goals, with 76% saying they have saved only one-quarter or less of what they feel they will need.

Even among those closer to retirement (50 and older), a disturbing 47% are still less than one-quarter of the way to their retirement savings goal.

Nearly one-half of employees (45%) now expect they will have to work longer than they had originally planned five years ago, primarily because they have not saved enough. Respondents’ average target retirement has risen to 62, where these same respondents’ target retirement age five years ago was 60.

The past eight years of data drove the Canadian Payroll Association to advocate for a modest enhancement to the Canada Pension Plan (CPP). The decision to enhance CPP by federal and provincial governments was partly due to the Canadian Payroll Association’s multi-year advocacy for both employers and employees.

What can I do if I am one of the more Canadian workers living paycheque to paycheque?

Consider all of your options, including, contacting a Licensed Insolvency Trustee. Perhaps you just need help with credit counselling and budgeting. Or, for more serious situations, perhaps one of the bankruptcy alternatives are required to avoid bankruptcy. Regardless, you can get a free consultation.

We are debt professionals who will evaluate your situation and recommend which debt relief options are right for you. Consumer proposal is one option; there are others as well.

Contact Ira Smith Trustee & Receiver Inc. today for a free consultation. You’ll be in good hands and Starting Over, Starting Now you can be well on your way to living a debt free life.

living paycheque to pay cheque, rap, finna get loose, bad boy, money making mitch, mmm, bad, boy, could you survive missing a paycheque?, how to get out of debt, living from pay check to pay, of living pay check to pay, living pay cheque to pay, living paycheque to paycheque but many, canadians are living paycheque to, canadians living paycheque to, pay cheque to pay cheque, cheque to pay cheque a pay, nearly half living pay cheque, half are living pay cheque, you're living pay cheque to, if you're living pay cheque, are living paycheque to paycheque, living paycheque to living paycheque to paycheque a reality for thousands in Toronto, living paycheck to paycheck meme, living paycheck to paycheck on $75 000 a year, living paycheck to paycheck stress living from paycheque to paycheque, living paycheck to paycheck in your 20s, living paycheck to paycheck at 30, living paycheck to paycheck budget, living paycheck to paycheck with debt, living paycheque to paycheque, more canadian workers living paycheque to paycheque, living paycheck to paycheck after college, living paycheck to paycheck canada, living paycheck to paycheck in retirement, living paycheck to paycheck no savings, living paycheck to paycheck blog, living paycheck to paycheck in canada, stop living paycheck to paycheck tips, living paycheque to paycheque canada, living paycheck to paycheck on $90k, living paycheck to paycheck tips, living paycheck to paycheck solutions, $85 000 a year but living paycheck to paycheck, living paycheck to paycheck help, i live paycheck to paycheck how can i save money, living paycheck to paycheck advice, living paycheck to paycheck how to save money, stop living paycheck to paycheck book

THIS VLOG WAS INSPIRED IN PART BY OUR eBOOK – PERSONAL BANKRUPTCY CANADA: Not because you are a dummy, because you need to get your life back on track

Categories
Brandon Blog Post

SENIOR CITIZEN DEBT RELIEF: DO CANADIANS BELIEVE CPP/QPP WILL BE ENOUGH?

senior citizen debt relief

Introduction

Believe it or not, when it comes to senior citizen debt relief, many Canadians believe that they can comfortably retire on Canada Pension Plan (CPP) and Old Age Security (OAS) benefits alone. According to a 2014 Bank of Montreal study:

  • 89% of Canadians said they expected CPP or the Quebec Pension Plan to fund part of their retirement
  • 31% said they expected to rely heavily on their CPP/QPP

Is expecting the government to fund your retirement realistic?

No! Paul Shelestowsky, a senior wealth adviser with Meridian Credit Union in Niagara-on-the-Lake, Ontario believes that Canadians are playing a dangerous game with their future by expecting the benefits of making up for meagre savings. “CPP and OAS were never meant to form somebody’s retirement plan. They were meant to augment it and help as one of the pieces of the puzzle,” Mr. Shelestowsky says.

Do you know how much you’d earn if CPP and OAS were your only sources of income in 2015?

Your net income would be $17,883/year or $1,490/month. Could you possibly live out your golden years in the manner you had imagined with such a scant income? How would you ever obtain senior citizen debt relief?

If you’re like many Canadians you’re in a total state of shock right now. In 2013, a Leger Marketing survey for H&R Block found that 7 out of 10 non-retired Canadians were unaware of how much money CPP pays out monthly. The maximum in 2015 was $1,065 a month, but this is the maximum. The average CPP payment is only about $550.

What about senior citizen debt relief?

How many of you could maintain close to your current lifestyle on $1,490/month? It would be hard enough to pay your monthly bills, let along pay down your liabilities. Yet seniors are adding to their financial load even faster than the general population, with the average Canadian senior owing approximately $15,000. This is a serious issue and as a result, we’ve done a series of blogs/vlog about this issue:

Your solution

If you’re in need of senior citizen financial relief, you need a professional trustee to help you manage your financial problems before it reaches a critical stage where bankruptcy is your only option. We have been able to help many seniors carry out a successful debt settlement program. Successful completion of such a program will free you from the burden of your financial challenges to go on to live a productive, stress-free, financially sound life.

You should never take liabilities into retirement. NOW is the time to deal with financial problems; not once you’re on a seriously limited income and barely making ends meet. Sit down with a professional trustee and discuss your options. We’re experts on dealing with senior citizen debt relief and not so senior citizen financial issues. With immediate action and the right financial plan in place, you can be well on your way to a debt-free life Starting Over, Starting Now. Contact Ira Smith Trustee & Receiver Inc. today. Help is only a phone call away.

 

Call a Trustee Now!