The Unexpected Problem The RRSP (Registered Retirement Savings Plan) has long been considered a cornerstone of Canadian retirement savings. It offers tax deductions now, tax-deferred growth, and (presumably) lower taxes in retirement. It's often described as a “no-brainer” for Canadians who want to retire comfortably. On the...
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The Problem of No Pension Benefits Hannah’s Exciting Start At 24, Hannah has just graduated with a master’s degree, specializing in Information Systems and Design. She’s landed a job in the tech sector in Toronto, earning a solid salary of $85,000 per year. The Missing Piece While the job...
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The Problem Emerges Margaret's Situation At 75, and recently widowed, Margaret has decided to sell her detached home in British Columbia. She's in good health but wants to eliminate the responsibilities of homeownership. The Dilemma With anticipated net sale proceeds of $800,000, Margaret is faced with a decision about...
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The Problem: Sequence Risk Meets Longevity Risk David and Marie are a 65-year-old married couple preparing for retirement. With $1 million spread across Defined Contribution (DC) pensions, RRSPs, TFSAs, and non-registered accounts, they feel a quiet contentment about reaching this financial milestone. However, recent events have...
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The Income and Wealth Gap The Context An unattached Canadian is a person not in an “economic family,” that is, a person living either alone or with others to whom he or she is unrelated, such as roommates or a lodger. Unattached Canadians are a growing demographic...
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The Canada Pension Plan (CPP) is often debated, with some Canadians feeling that it unfairly penalizes those who die before they can fully collect its benefits. Critics of CPP argue that mandatory contributions, when considering the possibility of early death, result in a system where...
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Meet Ashley and Ryan There are many high-income earning households across Canada. Some of them may have stepped into high-paying roles early on, while others have had careers that had the potential for high incomes that were not realized until 15 or 20 years or more...
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Saving for Retirement is Easy; Spending in Retirement – Not So Much You have been saving for retirement all your life. If you are a resident of Canada, you have been building up credits toward receiving Old Age Security (OAS). If you have been employed, you...
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“Would it surprise you to know the number is $1.7 million?” You may be familiar with the commercial from Qtrade, the Vancouver-based online investment platform that partners with most of the credit unions in Canada. An interviewer asks a series of people on the streets what...
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Retire Now? I am fascinated by the number of videos that show up on YouTube extolling the virtues of early retirement. Often, they will have a catchy title like, “Why Wait? Retire Now!” or something similar. Oddly enough, despite the increasing interest in retiring early, trends...
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