More than half of Canadians now admit that they are not financially prepared for retirement. Among them, some people think that they can make up for it slowly in the future, but others don't know whether they can do it in the future. So how much is Canada's pension? What are the retirement benefits of the Canadian government?
What are the government's retirement benefits?
Many people think that there are government retirement benefits, so they have no fear. Let's take a look at the government's retirement benefits? How much revenue can we generate? The benefits provided by the government in Canada include:
(1) OAS: current maximum of $578 per month (living for 40 years to get full amount, otherwise it will decrease proportionally)
(2) Guaranteed income supplement (GIS): currently about $520 per month (related to annual household income, reduced if over 23 000)
(3) Canada Pension Plan (CPP): in Canada, people with working income are paid when they reach retirement age, and the amount is determined by the amount of contributions to date.
The government's retirement benefits have been on a downward trend for many years. More importantly, the pension schemes offered by the government do not seem to be sufficient to maintain the standard of living expected by retirees. If the government's retirement benefits, OAS and GIS, are fully paid, the monthly income will be about $1000. Imagine, can a monthly pension of $1000 maintain the standard of living before retirement?
In fact, you need as much income in your old age as you would have earned in your entire career. How did the income come from retirement?
We still need to continue our work
Sadly, even when we reach retirement age, we still need to keep working & hellip; according to the labor participation rate index, many workers who should have retired are still working after retirement. According to statistics, in 2000, 16% of men and 7% of women were still working between the ages of 65 and 69. By 2011, 30% of men and 18% of women aged 65 to 69 still had to work. The proportion of people who have to work to earn income at retirement age is on the rise. How to change the status quo?
But we live longer and longer hellip;
Due to the progress of health care and medicine, the average life expectancy in Canada is getting longer and longer. According to statistics, the probability of 50 year old men living to 90 years old is 24%, and that of 50 years old women is 37%. Therefore, it is particularly important to have a source of lifelong income.