Retirement

Scott Terrio’s Twitter feed reads like a financial horror story. Terrio, an insolvency expert at Cooper & Co. in Toronto, uses the 140-character medium to share the multitude of ways seemingly well-off Canadians end up buried in debt and turning to debt consolidation, consumer proposals, and even bankruptcy. Canada’s record household debt levels have been…

Retirement planning advice for singles is similar to that for couples – track your expenses, clear up debt, automate your savings, and keep investment costs low. However, being single, whether by choice, or as a result of being widowed or divorced, presents some financial planning challenges. The biggest challenge of being a single person is…

When I worked in banking, on December 31 we usually closed the branch at 3 pm so us bankers could get a head start on our New Year’s Eve partying. One year, at about 2:55 pm, a fellow sat down in my office and told me he needed to convert his RRSP to a RRIF.…

In financial publications, you regularly read about couples that are wondering if they are able to retire as planned. These people all seem to have above average incomes, company pension plans, have been saving since they were five years old and have amassed a respectable portfolio. The consensus is always, “Yes, you will definitely be…

Old Age Security (OAS) was originally intended to be a universal program to provide income support payments to Canadian seniors. It is one of the cornerstones of Canada’s retirement income system. It is not a pension plan. You don’t make contributions. OAS is a government benefit program that is financed out of general revenue. Employment…

Q. I am 73 years old with a modest income consisting of a small pension and government benefits. I need a new vehicle and I’m considering leasing instead of dipping into my retirement savings to buy another car outright. Is this a good idea? One-off expenses such as a replacement vehicle should be part of…

“Will I have enough savings for my retirement years?” This question is asked a lot. There’s no one “retirement number.” It depends on multiple factors including age of retirement, where you’ll live, your health, lifestyle, whether you have a company pension plan and how much you will receive from government benefits. Many people become concerned…

Q. I have received notice that my employer is switching my Defined Benefit Pension Plan to a Defined Contribution Plan. What are the implications to my future retirement? You are not alone. More and more companies are replacing defined benefit plans with defined contribution plans. This is primarily due to the rising expenses and long-term…

Many workers have missed years of service in their employment history. Years away from work to raise children, recover from an illness or injury, go back to school, or other absence can reduce future pension payments. If you are enrolled in a defined benefit pension plan you may be allowed to buyback those periods during…