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  Canada Immigration Forum > About Canada > Financial Planning > How much will we get in retirement?
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How much will we get in retirement?




For a person who worked in Canada for 10 years how much can they expect in retirement? How much do they pay in today's dollars?

 
brown_bear

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Member since: Nov 06
Posts: 539
Location: Somewhere in dreamland

Post ID: 236695 12-02-18 17:54:35
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Full House
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IT is a Paradise for retirees, if they qualify for all of the GOODIES !!

There are so many things that I will have to ask and know before I can give you a clear cut answer to your question and arrive at a very nice figure, close enough as in the Horse Shoe throws.

Please go through these articles posted in the link and get to know a little bit more and then post under this a few of the required details to get a correct figure.

Just for a SENIOR CITIZEN, who has been living in Canada for the past ten years, it will be 25% of the OAS plus a like amount as supplement. ALSO, if they are living separately and under the poverty line, they are entitled to a tonne of money to keep them above the POVERTY Line. Which could be about (A TOTAL OF) $27000 bucks for TWO.

If they worked and deserve a CPP then it drops down considerably. More on it from these articles that you have under this.

Hope this helps. (To get started!)

https://retirehappy.ca/how-much-will-the-government-pay-you/

FH.

Currently it is the RENTALS that are EATING UP THE funds received.
---

Quote:
Originally posted by brown_bear

For a person who worked in Canada for 10 years how much can they expect in retirement? How much do they pay in today's dollars?





 
Post ID: 236701 13-02-18 13:18:08
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GlobalIndian
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Unless those 10 years are in well-paid (highly-paid >120k) job, you can expect around 280-600 bucks a MONTH. In other words, unless you can leach off your relatives or friends, you will have to continue doing odd jobs till the Grim Reaper is in sight.

 
Post ID: 236702 13-02-18 14:42:43
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Full House
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Thank you Global I., Your suspicions are correct. The estimates that you are providing are TRUE for starters.

But in reality, if it all that one is earning as PENSION and is living Separately, and needs help, he can get upto a sum of $1,000 per month OR if it is a couple, BOTH on Pension, then, they both can receive upto a sum of $27,000/year in Government income.(For a couple, Supplements included.)

I have calculated for a few and also helped one such individual to get some supplements. What I found was that the current RENTALS eat away all of the funds received. RENTS are too much, and it is on the increase.

Please read a few of the articles in the link above. It is worth your while. Might change your views also.

FH.


 
Post ID: 236703 13-02-18 15:06:04
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brown_bear
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Member since: Nov 06




Posts: 539
Location: Somewhere in dreamland


Quote:
Originally posted by GlobalIndian

Unless those 10 years are in well-paid (highly-paid >120k) job, you can expect around 280-600 bucks a MONTH. In other words, unless you can leach off your relatives or friends, you will have to continue doing odd jobs till the Grim Reaper is in sight.



How does income effect the money you receive?



 
Post ID: 236704 13-02-18 16:45:27
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brown_bear
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Posts: 539
Location: Somewhere in dreamland


Quote:
Originally posted by Full House

Thank you Global I., Your suspicions are correct. The estimates that you are providing are TRUE for starters.

But in reality, if it all that one is earning as PENSION and is living Separately, and needs help, he can get upto a sum of $1,000 per month OR if it is a couple, BOTH on Pension, then, they both can receive upto a sum of $27,000/year in Government income.(For a couple, Supplements included.)

I have calculated for a few and also helped one such individual to get some supplements. What I found was that the current RENTALS eat away all of the funds received. RENTS are too much, and it is on the increase.

Please read a few of the articles in the link above. It is worth your while. Might change your views also.

FH.




So it would be very difficult live on $27000 if one has to pay rent out of that amount right? Out of the 27000 for a couple we will have to budget for any health expenses that OHIP doesn't cover.

Also it means there is probably no chance one can maintain a car with all the expenses for maintaining a car + insurance + gas+repairs

I dont think one can even buy decent groceries in that situation to have a healthy life style.

I think a moderately decent life style is possible only if we have a paid-off house/condo by that age


 
Last edited by: brown_bear on 13-02-18 17:27:39
Post ID: 236705 13-02-18 16:50:18
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Full House
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Member since: Oct 12




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Welcome to reality.

I will break it down slowly and a little at a time. Then you will have to apply it to each and every CASE that we want to apply it to. If and when we complete the task, everything will surely fall in place. We can see if it suits that couple or that individual and see if they can carry on smartly.

DO remember that they must have some back up as well. Plus if they have some savings, then, they will be in a better position to handle all of the things that they can anticipate and a few of the sudden needs that are un-anticipated.

-------------
So it would be very difficult live on $27000 if one has to pay rent out of that amount right? Out of the 27000 for a couple we will have to budget for any health expenses that OHIP doesn't cover.

AFTER the age of 65, all of the *PRESCRIBED Meds are FREE, except for the OVER THE COUNTER MEDICINES. You only pay a dispensing fee of $4. for EACH Prescription that the Doctor Prescribes. THAT SHOULD CLEAR THE OHIP Question. You will have to know how many MEDS that they use and how often they receive them. Most of the fees are for Three months, or EACH prescription is good for 90 days.

A good TWO BR Apartment will run anywhere from 1,200 to 1,400 Bucks a MONTH. In a few buildings they do have to pay the HYDRO and PARKING. ( $100-120)

CAR is a LUXURY at this stage, but it will be possible to have one initially and manage your day to day affairs with it. It will finally evaporate out of the picture. How much it will cost depends upon the usage and other varying factors. Depending upon where it is that ONE Lives, it could become a NECESSITY.

HEALTHY Lifestyle YES. Luxurious NAE....TWO SQUARE meals a day for sure, if you can cook or swizzle the WOK or the Balti and still spin and fling a pizza up in the air. i.e $10 per person per day. Would that answer your question.

NEW CLOTHES NO.

YES, you should down size and either get into a rental or SUBSIDIZED HOUSING. It is available also. Put you name in the LIST, the earliest in that queue.

Even under all of these conditions, I have seen people head south for the Winter and also take a small vacation to nearby locations and enjoy the best part of the summer here. Friends and the family play a big role and how close you are to them also counts.

Life becomes beautiful and juggling things in life becomes an art, once you retire. Once in a way the Government throws in a few CRUMBS before the election and makes the POT a little sweeter. Ask a few retired people. They in turn will ask you WHERE in THE HELL HAVE YOU BEEN!

FH.



^----
So it would be very difficult live on $27000 if one has to pay rent out of that amount right? Out of the 27000 for a couple we will have to budget for any health expenses that OHIP doesn't cover.

Also it means there is probably no chance one can maintain a car with all the expenses for maintaining a car + insurance + gas

I dont think one can even buy decent groceries in that situation to have a healthy life style.

I think a moderately decent life style is possible only if we have a paid-off house/condo by that age







Quote:
Originally posted by brown_bear

Quote:
Originally posted by Full House

Thank you Global I., Your suspicions are correct. The estimates that you are providing are TRUE for starters.

But in reality, if it all that one is earning as PENSION and is living Separately, and needs help, he can get upto a sum of $1,000 per month OR if it is a couple, BOTH on Pension, then, they both can receive upto a sum of $27,000/year in Government income.(For a couple, Supplements included.)

I have calculated for a few and also helped one such individual to get some supplements. What I found was that the current RENTALS eat away all of the funds received. RENTS are too much, and it is on the increase.

Please read a few of the articles in the link above. It is worth your while. Might change your views also.

FH.






 
Last edited by: Full House on 13-02-18 22:39:56
Post ID: 236707 13-02-18 17:51:31
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MITRON
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Member since: Sep 17




Posts: 157
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Quote:
Originally posted by brown_bear

For a person who worked in Canada for 10 years how much can they expect in retirement? How much do they pay in today's dollars?



Depends how much you have contributed to your private RRSP.

The CPP you have paid & the OAS you get from the government won't be much.

But if you are really poor & have NO RRSP or other income, you can get GIS ( Guaranteed Income Supplement ) in addition to the CPP ( Canada Pension Plan ) & OAS ( Old Age Security )

OAS + CPP + GIS will be around $ 1,000/month per person.

But just OAS + CPP won't be much.

In a way RRSP is a trap, people who contribute to it won't get GIS in their Old age, as government will say you have your own money so why should we pay you GIS.

But people who have NOTHING and no RRSP & did nothing for their Savings will actually get GIS from the government..lol. Basically GIS is like WELFARE for poor Senior citizens.


 
Post ID: 236714 15-02-18 00:03:47
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MITRON
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Member since: Sep 17




Posts: 157
Location:


1. Always pay of your DEBT which has high interest first like Credit cards, Car loans etc
2. Then Pay off your MORTGAGE so you are Mortgage free in Retirement
3. Then contribute to your RRSP.

The more RRSP you have from your own hard earned money, the less you get in handouts from the government in Old age like GIS.

The less you have in RRSP & the less you have contributed towards your own retirement, the more you have in handouts like GIS from the government in old age :)

RRSP is nothing but deferred taxes. You might save in tax now. But when you withdraw it, you will be taxed, but hopefully you will be in a lower tax bracket in your retirement when you withdraw from RRSP.

But dollar for dollar any income from RRSP or any other income will be deducted from GIS in your old age. And you won't even be eligible & qualify for GIS if you are NOT a low income Senior.


 
Post ID: 236715 15-02-18 00:11:37
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MITRON
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Member since: Sep 17




Posts: 157
Location:


I know a couple, who contributed NOTHING to their RRSP.

Both of them did average jobs, but whatever they made they put towards their mortgage & paying it off.

They bought their house for $ 220,000 in GTA & today its worth close to $ 750,000 . The house is paid off & their Equity is $ 750,000.

Both are retired now and get $ 1,000/month each so $ 2,000/month combined in OAS + GIS + CPP
from the government.

Plus they qualify for other rebates & subsidies like Property Tax rebate, Heating & Hydro rebates, Snow removal subsidy from the government, HST rebate from CRA , Ontario Trillium Benefit from ON , ODB - Ontario Drug Benefit plan etc etc :) .

They get all these above rebates & subsidies because they are LOW income, the government doesn't see that they have a $ 750,000 paid off house. They only see their monthly income, which is negligible :).

But if they had their own private RRSP, they would get NONE of the above subsidies as they would be HIGH income seniors, plus their $ 750,000 house would still have mortgage on it, as instead of paying it off they would have been busy contributing towards their RRSP.

Their house is paid off, so basically their only expense is groceries - plus all these subsidies as low income seniors :)

So pay off your house or condo first during your working years, so you can chill in old age on government money, subsidies & rebates.


 
Post ID: 236716 15-02-18 00:27:31
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Contributors:
brown_bear(4)  Full House(3)  GlobalIndian(1)  MITRON(3)  
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