Retiree' are facing financial challenges in Canada

 Many of those who retire face a monthly financial shortage. The combined monthly income from the Canada Pension Plan, Old Age Security, is about $1450. Many who do not have a Canada Pension may also qualify for the Guaranteed Income Supplement, which could be as high as $959.26. Even with this, many retired people have a yearly income of less than $28,000 a year.

Statistics Canada said the country’s inflation rate rose to a new 18-year high of 4.4 percent in September. Higher prices for transportation, housing and food were the biggest factors in the spike to the cost of living, the agency said.

Many seniors must cut back on their expenses and fear they will outlive their money. The Canadian Association of Retired Persons (CARP) has about 350,000 members, said less than 30 percent of older Canadians have a pension. That leaves retirees to live off their savings, which are currently being affected by low-interest rates. CARP did a survey and almost 40 percent said they were afraid that they were going to outlive their money.

Ageism is a reality for seniors and many find that many employers don’t want to hire a senior. Those senior job seekers find they are invisible to the employer.

Some experts believe many seniors are struggling to get by because there are fewer defined benefit pension plans, which are indexed to inflation and usually found in the public sector.

I, like many seniors, often rely on investments that are locked in with low interest rates, because I believe I can’t afford riskier but higher-paying investments.

Interest rates are low and many of my friends have invested in their own in RRSPs, but these depend on the market. That can be problematic because they rarely keep up with inflation.

I have talked about how the government measures increases in the consumer price index “basket of goods” and how it is not in touch with how seniors spend. CARO also believes that the tool Statistics Canada uses to determine the cost of living isn’t reflective of older Canadians and the items they need to survive.

Unfortunately, these bureaucrats and politicians are the main ones left that have fixed indexed pensions, and they just don’t understand the impact on older Canadians. Because of having a financial shortfall every month, many seniors are turning to the food bank.