Canadasvoice
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Canadasvoice

Old Age Pensions in Canada BEWARE

As Canada’s population ages, we need to replace our skilled aging workers with equally skilled, equally prepared workers.

As Canada’s Median Age hits, (41 at this minute) we have less and less time to replace vital workers. Simultaneously we face serious economic threats if those thresholds are not met.

Officially known as the Old Age Security Act (R.S.C., 1985, c. O-9) we need a wider safety net to protect aging Canadians.

A startling 56% of Canadians over 50 don’t have a retirement savings plan.

Without a corporate pension or personal RRSP many Canadian’s will be hitting a wall over the next decade.

As of today, the average Canadian earning roughly $40,000 a year.
(Adjusted for the above average earners at 50K and below average earners at 30K, minimum wage)
Each Canadian would receive just $7,369 for their OAS Pension.
And a whopping $8,488 as their CPP Annual Pension.

That’s earnings based on working non-stop for a minimum of 40 years from 25–65.
Assuming you stop working for parental leave, an illness or retire at 65.
You’re looking at $15,857 annually without pensions, stock options, savings bonds and RRSP’s. (Something a lot of Canadian’s cannot afford)

And you see that fear reflected in stock portfolio’s, a whopping 77% of Canadian’s have investments/savings. But statistics Canada tweeted:

Average net #saving for all Canadian #households was $852 in 2018, while the highest #income quintile (the top 20% income earners in Canada) saved $41,393 per household.

In-fact according to Statistics Canada our population is aging faster than we can import new Canadian’s, we also have low reproduction rates resulting in an older population:
In 1971, the median age of the population was 26.2 years — it was 39.5 years in 2009. The population’s median age is projected to continue rising to between 42 and 45 years by 2036, and then to between 42 and 47 years by 2061.

As housing taxes continue to rise the issue we will start seeing more of is large family homes becoming unaffordable in retirement. That’s even if you own your own home. Of our population of 37 Million from roughly 12.4 million households in Canada, about 8.5 million reported living in their own home. The federal agency noted that 913,000 homeowners lived in condos in 2006, an increase of 36.5 per cent from 2001.

This means with little savings and a low guaranteed income seniors are forced to see their family home as a retirement asset .

infographic showing homeowners tax calculations from different cities in Canada. -Zoocasa

Read more of the zoocasa article here

We need a better retirement program in Canada, Tax havens, savings incentives and banking on a housing market to stay stable over the next 20–40 years isn’t going to cut it for the majority of Canadian’s.

This article was provided to CANADASVOICE courtesy of Righ Knight
Righ want’s a more sustainable, just and economically sound Canada.

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Canadian Politics; Canadian Perspectives

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Righ Knight

Righ Knight

Former: CNN / WIRED / EXAMINER = Current: JERUSALEM POST / HVY / FORBES

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