Retirement, Where Is, As Is

I have a question for you!

You have a vague idea of how much it costs to keep you in your current lifestyle (presumably). How much income will you make after you retire?

Here’s what the government tells you:

    O.A.S. (Old Age Security) is worth    $ 546.07 / month

    C.P.P. (Canada Pension) is worth    $ 986.67 / month

for low income seniors there is the Guaranteed Income Supplement

            G.I.S. is worth        $ 740.44 / month

This means you have the potential to receive    $2273.18 / month, right? This income would be reasonable and if you have paid off your debts, you could probably be comfortable in your retirement. Not a lot of fun expenditures but you can manage.

At the risk of being a killjoy, let me give you some other numbers you rarely hear, and you have to go looking to find:

        Average O.A.S. is actually    $ 510.17 / month

        Average G.I.S. is actually    $ 492.23 / month

        Average C.P.P. is actually    $ 527.96 / month

Depressing as it sounds, I have a sneaking suspicion I am actually just an average Canadian.

This means my income will actually be closer to   $1530.36  / month

This becomes a totally different picture for me, how about you? I will almost guarantee that if you live in one of most of Canada’s larger centres, you will not make ends meet on this income. If you live in a smaller community, you might manage but you will need to count on good health into extreme old age.

I will make this a short post today. But I am going to recommend that, armed with the above real numbers, you think seriously about developing an on-line business with residual income so that your pension cheques can be gravy, or donated to your favourite charity. Do not be dependent on a government who cannot even keep their own house in good fiscal order. Do not think your needs will ever come before their own election promises.

Developing a business is the dream of many pre-retirement boomers. Jump on board! It’s fun, it’s invigorating, it’s empowering. And it will be your ticket to a comfortable, sustainable retirement. Not where is, as is. Wherever you want, however you want.

I’ll be in touch.