The Globe and Mail reported in February 2016 that “Half of Canadian couples between 55 and 64 have no employer pension between them, and of those, less than 20 per cent of middle-income families have saved enough to adequately supplement government benefits and the Canada/Quebec Pension Plan,” according to a Broadbent Institute report.
The article goes on to note that the “Canada Pension Plan pays out a maximum $12,780 a year. But many retirees don’t qualify for the maximum – the average CPP payment for men last year was $7,626 while the average for women was $5,922. Seniors also collect Old Age Security payments to a maximum of $6,839, while the poorest seniors can collect the Guaranteed Annual Income.”
An Ipsos-Reid survey done for the Chartered Professional Accountants of Canada (CPA-Canada) reports that 25 percent of their respondents have never made a savings contribution and 29 percent said they had no money left over to save after paying expenses. Particular problems today include debt; a lack of pension provision; wanting to support children through education and beyond; caring for parents; and, for wealthier people, inheritance tax. When it comes to financial planning, the main issues remain pensions, mortgages, wills, and life insurance. Read more