I love a good online debate,....

 I have always enjoyed reading quotes that display a fiercely quick wit and a commitment to assessing art and life as honestly as possible.  Here are some I think do this well. 

1.  "In the age of influencers, everyone’s a philosopher—just with better filters."

2.  "I love a good online debate. It’s like shouting into the void but with emojis."

3.  "The trouble with multitasking is that it makes you terribly efficient at doing absolutely nothing."

4.  "Social media has done wonders. I now know how much better everyone else is pretending to be."

5.  "The internet promises everything at your fingertips, except peace and quiet."

6.  "Zoom meetings are proof that even in the future, no one wants to wear pants."

7.  "In a world of self-care gurus, sometimes the bravest thing is simply getting out of bed."

8.  There's a hell of a distance between wisecracking and wit. Wit has truth in it; wisecracking is simply callisthenics with words.

9.  The cure for boredom is curiosity. There is no cure for curiosity.’

10.  They sicken of the calm, who knew the storm.

Patience truly is a virtue...

 I came across a thought from Caree Risover as she was talking about the renovations to her house. “If retirement has taught us one thing, it is that patience truly is a virtue. I am on a journey through retirement but as I progress it's becoming slower and more thorough”. 

I agree with the idea that patience truly is a virtue, especially in retirement. Retirement often begins with excitement—new opportunities, time to explore, and freedom from the demands of work. But as we continue this journey, we may find that it naturally slows down and deepens, allowing for a more reflective and meaningful experience.

What we experience is a shift in pace, one that encourages a more deliberate and thoughtful approach to life. Instead of rushing through the day-to-day, retirement offers the opportunity to savour moments, explore interests more thoroughly, and embrace the joy of living in the present. Whether it’s spending time with loved ones, pursuing a hobby, or taking care of our health, retirement allows us to approach things with intention and care.

In this slower pace, there’s a chance to focus on personal growth. I have found myself developing new skills, rekindling old passions, and even seeing the world from a different perspective. It’s a time to reassess priorities and redefine what fulfillment means. The patience cultivated has guided me through some of these transitions. This has helped me ensure that each step is meaningful and aligned with my values.

Patience also plays a crucial role in managing the financial aspects of retirement. Whether it's navigating investments, adjusting to changes in income, or making decisions about long-term financial security, taking time and making informed decisions helps avoid unnecessary risks.

Retirement isn’t a race, it’s a journey of discovery. Allowing yourself to slow down and embrace patience, opens you up to a richer, more rewarding experience that goes beyond simply filling your days.

The Four Pillars of retirement the United States and Canada

The United States has a similar structure of retirement planning that can be compared to Canada's four pillars. While the specific programs differ, the general concept of having multiple sources of income in retirement is the same. Here’s a breakdown of the four key pillars in the U.S.:

1. Social Security

• Description: Social Security is the U.S. government’s public pension system, funded through payroll taxes under the Federal Insurance Contributions Act (FICA). It provides retirement benefits to eligible workers, as well as disability and survivor benefits.

• Eligibility: To qualify, individuals must accumulate at least 40 credits, which typically equates to about 10 years of work. The amount of the benefit is based on lifetime earnings, and retirees can start receiving benefits as early as age 62, though full benefits are available at "full retirement age" (which ranges from 66 to 67 depending on birth year). Delaying benefits until age 70 can increase the monthly payment.

• Other Features: Social Security provides a progressive benefit structure, meaning it replaces a larger percentage of pre-retirement earnings for lower-income workers.

Key Resource  to find more information: Social Security Administration (SSA)

2. Employer-Sponsored Retirement Plans

• Description: Many U.S. employers offer workplace retirement plans, typically in the form of:

o Defined Benefit Plans (pension plans): These provide a fixed, pre-determined benefit based on factors like years of service and salary.

o Defined Contribution Plans (such as 401(k) plans): Employees and employers contribute to individual retirement accounts. The retirement income depends on contributions and investment returns.

• Participation: Employees can contribute a portion of their paycheck to these plans, and employers often offer matching contributions up to a certain percentage. Defined contribution plans have largely replaced defined benefit plans in the U.S. private sector.

Key Resource  to find more informationU.S. Department of Labor – Retirement Plans

3. Personal Savings and Investments

• Description: Similar to Canada, personal savings and investments are an essential pillar of retirement planning in the U.S. These include tax-advantaged accounts and other investment vehicles:

o Individual Retirement Accounts (IRAs): IRAs allow individuals to save for retirement with tax advantages. There are two main types:

 Traditional IRA: Contributions are tax-deferred, and withdrawals are taxed in retirement.

 Roth IRA: Contributions are made with after-tax income, but qualified withdrawals in retirement are tax-free.

o Other Investments: This pillar also includes other personal investments like stocks, bonds, real estate, and mutual funds that help build additional retirement income.

Key Resource  to find more information IRS – Retirement Plans

4. Home Equity and Other Assets

• Description: For many Americans, home equity is a significant part of their net worth and can serve as a resource in retirement. Retirees can tap into home equity by downsizing, taking out a home equity loan, or using a reverse mortgage, which allows older homeowners to convert part of their home equity into cash without selling their home.

• Other Assets: This pillar can also include other assets like business ownership, rental properties, or annuities purchased through personal savings.

Key Resource  to find more information: Consumer Financial Protection Bureau (CFPB) – Reverse Mortgages

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Comparison of the United States and Canada:

• Social Security in the U.S. is similar to Canada’s  Canada Pension Plan (CPP).

• Employer-sponsored retirement plans (401(k)s, pensions) in the U.S. align with Employer Pension Plans in Canada.

• Personal savings and investments (IRAs, Roth IRAs, and other investments) are comparable to Canada’s RRSPs and TFSAs.

• Home equity is often considered the fourth pillar in the U.S., while in Canada, Old Age Security (OAS) is the fourth pillar.

Together, these pillars create a multi-layered approach to retirement planning in the U.S., just as in Canada, ensuring individuals have diverse sources of income and security in retirement.

The four pillars of retirement Canada and the USA

 In the past week or so, I posted about the four pillars of retirement. We have this in 
Canada, but many Canadians who are approaching retirement are not as familiar with the term as they should be.

In Canada, the four pillars of retirement planning are designed to provide a comprehensive financial support structure for retirees. These pillars are essential for ensuring income security in retirement and include both public and private sources of income. Here’s a breakdown of the four pillars:

1. Old Age Security (OAS)

• Description: The OAS is a government-funded pension available to most Canadians aged 65 and older who meet residency requirements. It's a taxable monthly payment that provides basic income support.
• Eligibility: To qualify for OAS, you need to have lived in Canada for at least 10 years after turning 18. The amount you receive depends on how long you’ve lived in Canada after the age of 18, with the maximum benefit requiring 40 years of residency.
• Other Features: There is also an additional benefit called the Guaranteed Income Supplement (GIS) for low-income seniors who receive OAS.

Key Resource for more infomation: Service Canada – OAS and GIS

2. Canada Pension Plan (CPP) / Quebec Pension Plan (QPP)

• Description: The CPP (or QPP in Quebec) is a contributory, earnings-based program. During your working years, you and your employer make contributions to CPP/QPP, and these contributions are used to fund your retirement pension.
• Eligibility: To qualify, you must have made at least one valid contribution to the CPP or QPP. The amount you receive depends on your contribution history and the age you start collecting (you can begin as early as age 60 or delay until 70 for increased benefits).
• Other Features: The CPP also provides disability benefits and survivor benefits to eligible family members in the event of a contributor’s death.

Key Resource for more information: Service Canada – CPP

3. Employer Pension Plans (EPPs) / Workplace Retirement Plans

• Description: Employer-sponsored pension plans are private pension plans that employers offer to their employees. They come in two main types:
• Defined Benefit Plans: Guarantee a specific income in retirement, based on factors like salary and years of service.
• Defined Contribution Plans: Your retirement income depends on contributions made to the plan and the investment returns on those contributions.
• Participation: If you work for an employer that offers a pension plan, it’s wise to join and maximize contributions, as employers often match a portion of your contributions.

Key Resource for more infomation: Financial Consumer Agency of Canada – Employer Pensions

4. Personal Savings and Investments

• Description: The fourth pillar includes any savings and investment strategies you personally undertake to fund your retirement. This can include Registered Retirement Savings Plans (RRSPs), Tax-Free Savings Accounts (TFSAs), non-registered investments, real estate, and other assets.
• RRSP: A tax-deferred retirement savings account where contributions can be deducted from taxable income, and taxes are paid when the funds are withdrawn in retirement.
• TFSA: Allows you to invest and withdraw funds tax-free. It’s flexible and can be used to complement RRSP savings.
• Importance: Personal savings give you more control and flexibility over your retirement income, supplementing public pensions and employer plans.

Key Resource: Financial Consumer Agency of Canada – RRSPs and TFSAs

Together, these four pillars—OAS, CPP/QPP, Employer Pension Plans, and Personal Savings—create a foundation to ensure Canadians have multiple sources of income during retirement. It’s essential to plan and contribute to each pillar wherever possible to secure financial well-being throughout retirement. My next post will look at the four pillars in the United States.