Finance: A Piller of Modern Retirement

 The financial goal of the vast majority of retirees is not to accumulate wealth in itself but to have sufficient resources to provide security and the freedom to live the lives they want. Many retirees find that managing money in retirement can be even more challenging than saving for it. Overwhelmingly, the issue of affordability was one of the most prevailing concerns of seniors in every community. Due to the rising costs of living, many of us report we cannot afford our rent, pay bills, buy food, find money for home repairs or pay for over-the-counter medications and other health-related expenses.

We work our entire lives and feel strongly that pension incomes are not enough to meet our basic needs. This has placed significant pressure on organizations to stretch funding to support seniors in their communities. It is not surprising to hear about the financial hardships experienced by low-income seniors, as 50% of B.C. seniors have incomes that are less than half of the incomes of the working-age population. Government pension incomes for seniors have not kept pace with rising costs and in B.C., 31% of B.C. seniors receive the Guaranteed Income Supplement (GIS), a monthly federal benefit for seniors with low incomes. The number of seniors receiving GIS has increased by more than 20% over the past five years, from 263,764 to 319,428 seniors.

In B.C., if a senior receives the GIS, they may qualify for the BC Seniors Supplement (BCSS), a monthly provincial top-up income benefit for low-income seniors. In 2022, 91,539 seniors received the provincial BCSS.

The Ministry of Social Development and Poverty Reduction increased the BCSS in 2021 for the first time since 1987, from a maximum of $49.30 to $99.30 per month for single seniors. However, most single seniors receiving BCSS do not receive the maximum, and the BCSS is not indexed to inflation, whereas the OAS and GIS are indexed. The BCSS continues to be ranked the fourth lowest subsidy in Canada.

Service providers shared their concerns about seniors who say they are falling further Seniors and service providers are concerned that rising costs are pushing more older people, who are often on fixed incomes, into poverty and homelessness Many service providers stated the rising cost of living Even in today’s volatile market, retirees’ greatest financial worries are unexpected expenses and the cost of health care and long-term care. One in four seniors in B.C. live on incomes of less than $23,000 per year. This is a significant cause for concern when B.C.’s poverty line threshold for a single senior is estimated at $25,000. While many British Columbians struggle with income and affordability issues, low-income seniors face disproportionate barriers, especially single seniors living alone, because they often live on fixed incomes. The key to financial preparation is looking holistically at how one wants to live in retirement, not just how much money may be needed and planning how to do this well before retirement.