I was rummaging through old newspaper clippings and came across a Globe and Mail article written 16 years ago. Here is a couple who thought their future was secured by the companies they worked for. I remember other stories of autoworkers who had worked for decades, only to lose their jobs and their pensions. Inevitably, they had to go back to work. Some became Walmart greeters.
This is a stark reminder that financial complacency is dangerous. It takes intention and proactivity to design the lifestyle you desire for your future. It will be too late by the time another wake-up call comes around.
According to a BMO study, 1/3 of Canadians hope to fund their retirement by winning the lottery. There is a 1 in 13,983,816 chance of winning the Lotto 6/49 and a 1 in 33,294,800 chance for the Lotto Max. Winning the lottery is like a “Hail Mary” – an American football term when the quarterback makes a last ditch effort for a miraculous comeback. It’s a risky venture where success is far from certain.
Here are some sobering facts:
· Average retirement income $2,800 per month after tax
o Old Age Security $727 to $800 per month
o Canada Pension Plan $1,387 per month
· As of 2024, there are about 7.82-million pension plan members and growing representing (~20% of the population)
No wonder 2/3 of Canadians worry about running out of money in retirement. Take steps to learn the language of money. It is your decision to become financially literate because the government isn’t going to do it for you. They are responsible for stabilizing the system; not cater to individual needs.
Fortunately, the Canadian government established CPP (1966) and OAS (1952) to shore up senior poverty. My mother’s retirement income after tax is $1,171 per month and is barely sustainable. She invested in multiple real estate investments since 2003. So, today she is able to enjoy a worry-free, choice-filled retirement. This is the lifestyle that we designed together. Remember, we create our success through the communities we build and sustain. Don’t let the status quo lull you into complacency. It’s time to take action now.
Sources:
Elderly Poverty – The Conference Board of Canada
Understanding the Changing Ratio of Working-Age Canadians to Seniors and Its Consequences
Nearly 2 in 3 Canadians worry about retirement savings: survey | CPP Investments
