How to pay for your retirement | The Social

welcome back to the show all right

coping with the High Cost of Living is

top of mind for a lot of people right

now but it comes with its own costs

staggering new figures on retirement

show a large number of Canadians

approaching their golden years only have

enough saved for a few months at best

yeah that's right a recent survey

found Canadians expect to need

1.7 million dollars to retire so with

that in mind we need all the help we can

get thankfully our next guest is here to

share her tips on how we can pay for

retirement everyone please welcome back

money expert Robin Thompson

[Applause]

all right we're gonna Dive Right into

this you know we were talking Battle of

generation so let's talk about the

Boomers for a second because a lot of

people expected hey you know what you've

had so much time to save money aren't

you the generation that just has a lot

of money and is really good at saving so

how is it that so many in this

generation that's retiring doesn't have

enough money it's a great question and

what we're looking at is a lot of

Boomers coming into retirement and the

numbers tell us that they're just not

prepared if we look at some statistics

here we actually have one out of five

Canadians do not have anything saved for

retirement at all wow and only half of

Canadian Boomers age between 55 and 64

have less than five thousand dollars in

their bank accounts which is a really

small number there are many that have

over a hundred thousand but we're just

not saving enough in order to reach our

money across retirement yeah a few

reasons for that our lives have changed

we're now responsible at least someone

responsible for taking care of adult

children taking care of Aging parents

and inflation and interest right that

definitely takes a piece out of the

money that we have to save and compound

for our future yeah so I just said

earlier Canadians are expected to have

at least

1.7 million dollars to retire which

apparently is like that in and itself

has gone up because it wasn't that high

20 uh sorry three years ago so it's gone

about 20 percent it has

like a why I know it's one of those

things that if I wasn't sitting down I'd

probably fall down right 1.7 million is

a huge number and so what you're seeing

is to jump and the jump really is due to

inflation so if you think about your

money it has to last you over the period

of your whole life and if you retire at

65 and you have 20 25 30 years in

retirement and you have a high inflation

it's going to erode the amount of money

you have to buy things you know do you

need 1.7 million 1.4 is where it was in

2020 my rule of thumb is 70 of your

pre-retirement income for retirement

lifestyle expenses 1.7 is a pretty high

is a pretty high ticket and remember

that number is actually for two people

oh my gosh okay so what do we need to do

to get to 1.7 million yeah so 1.7

million it is possible it is something

that you can do in investments in wealth

the amount of time you have in the

market to be able to grow your wealth is

really what matters so if you were to

start with seventeen thousand dollars

and contribute seventeen thousand

dollars a year every year for 40 years

compounding at four percent annual rate

of return in an rrsp you would come to

1.7 million dollars if you started

earlier you could save less if you

started later you'd have to save a lot

more so you need to get in right away

and start doing the small things every

day that build your wealth okay okay so

but you know for those who are freaking

out right now let's talk about what

things we can do let's start with some

of the options what's the old age

security pension anybody else freaking

out right now yeah right right a little

bit Yeah so OAS is a government pension

it's a government subsidized pension

that is paid to Canadians so it's not

tied to your work it starts paying out

at 65 and you'll receive about 700 a

month

anyone gets it everyone gets it as long

as you live in Canada there are some

qualifications but they're pretty

standard so yeah everyone gets it

doesn't matter if you've worked or not

as long as you live in this country and

you've lived here okay so can we get

more if we delay retirement if you delay

taking your OAS you can get more up to

36 percent more if you delay to age 70.

so every month that you delay OAS it'll

increase bit by bit over a period of

time

that much but there

are indeed income supplement how does

so the gis is another government

subsidized pension essentially

supplement and it's for people who are

low-income seniors and the test here

really it has to do with you know what

your marital status is and your income

so if you've earned less than 20 000 in

the previous calendar year and you're

single you're witted or divorced you can

actually get up to about a thousand

dollars a month from GIS to help sort of

stretch your budget again it's something

that's government you don't it's not

tied to your work and it will help so

let's talk about the Canadian pension

plan yes how is it different than old

age security so Canada pension plan is

it is a mandatory contributory plan say

that three times fast right and everyone

contributes to that so if you're working

or or your employers or you're

self-employed you're contributing to the

CPP so what will happen is that over

time you're building up money that you

will then take out in retirement um it's

available to all Canadians except in

Quebec they have their own plan and you

generally you don't have to qualify for

it it happens at 65 if you want to take

it okay so what factors determine how

much we actually get from CPP so there's

a few factors that happen number one is

the age that you start taking the Canada

Pension Plan number two is how much

you've contributed to the plan over your

working years

um and the next one is talking about

um how long you've contributed and then

your average earning over the entire

period of your working years so there's

some there's some criteria that has to

go into it but again we're all

contributing it's mandatory okay

but what would you say to someone who

wasn't in the workforce for a number of

years for example they were raising kids

yes and a lot of people take a few years

out of the workforce for raising kids or

helping with parents there is a child

rearing benefit that you can apply for

at the CPP so if you've taken time away

you can write to the CPP and say you

know what's available to me to bump up

my CPP given us out of the workforce

peer period of time so what are the tips

for those whose retirement savings are

not where they should be right now so

there's a few things you can do so the

first one is you really want to find all

of the money that you can so in Canada

there are a significant amount of people

who are not claiming the pensions that

they are entitled to so there is a place

it's called the unclaimed unclaimed

pension office or property's office it's

an agency in the government and you can

actually put in your information to see

if there's a pension that's available to

you this can happen from a workplace

pension if you've moved your jobs a lot

and you forget maybe you had a job

earlier on and you didn't track your

pension statements perhaps you had a

spouse that passed away and you're

entitled to some survivor benefits in

Ontario alone there are tens of

thousands of people that have pensions

accumulating up to three billion dollars

that they can take so there's money here

so you're going to want to make sure

that you check that out but again it is

a it is a Company pension that you have

to track forward Robin thank you so much

for all this crucial information

all right start thinking of every time

and take care of your money and don't

tell me where we'll be right back

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