I was talking to one of my friends who does volunteer work at a senior's centre in his town and I asked him what he was doing as a volunteer. He said that he was doing income taxes for seniors who were had low income. He told me that over 60% of seniors in BC only had Old Age Security and the Income Supplement and some Canada Pension so they were making less than $24. 000 a year.
One of the questions a person in their early 50's needs to start asking is:
How much guaranteed income will you have when you retire?
Financial security is increased when you have income that is guaranteed to continue no matter how long you live. Experts recommend that most people have enough guaranteed lifetime income to pay fixed, basic expenses. That reduces much of the stress and uncertainty of retirement, and it also makes some people more comfortable investing for higher returns with the rest of their nest eggs.
Old Age Security and Canada Pension are the only inflation-indexed guaranteed lifetime income for most people. Don’t make a fast decision on when to receive Canada benefits. You have choices, and it’s important to optimise your Canada Pension decision, especially for married couples. The right choice can add tens of thousands of dollars of lifetime income.
You should also consider buying additional guaranteed lifetime income through an immediate annuity or longevity annuity (also called a deferred income annuity) if you have saved up some capital to do this.
If you do not plan and put some money aside in addition to the Canada Pension you may find yourself in a situation where you only have enough to pay your fixed basic expenses.
One of the questions a person in their early 50's needs to start asking is:
How much guaranteed income will you have when you retire?
Financial security is increased when you have income that is guaranteed to continue no matter how long you live. Experts recommend that most people have enough guaranteed lifetime income to pay fixed, basic expenses. That reduces much of the stress and uncertainty of retirement, and it also makes some people more comfortable investing for higher returns with the rest of their nest eggs.
Old Age Security and Canada Pension are the only inflation-indexed guaranteed lifetime income for most people. Don’t make a fast decision on when to receive Canada benefits. You have choices, and it’s important to optimise your Canada Pension decision, especially for married couples. The right choice can add tens of thousands of dollars of lifetime income.
You should also consider buying additional guaranteed lifetime income through an immediate annuity or longevity annuity (also called a deferred income annuity) if you have saved up some capital to do this.
If you do not plan and put some money aside in addition to the Canada Pension you may find yourself in a situation where you only have enough to pay your fixed basic expenses.
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