Yesterday I gave you a heads up about the maximum pension payout numbers the government gives you compared to what the average pension payments actually are.
I feel quite strongly that we are going to have to be prepared to either live in poverty or find a way to supplement our incomes. My plan, and it is moving along quite successfully, is to develop out an on-line business that gives me residual income and, as time goes by, my business will be systemized enough that I am not tied to it on a daily basis.
If you are still believing in the power of positive thinking, let me put your powers to the test. I found this article some time ago and this seems like a good time to dust it off. The numbers may be a year old but they will still be pretty accurate.
In yesterday’s post I added up the numbers the government wants you to think you will receive: $2273.18/month, and then gave you the average numbers that Canadian seniors do receive: $1530.36/month. For the sake of my next demonstration, I will convert these numbers to annual income: your hopes: $27,278.16; the average: $18,364.32.
In the article I have linked to, we find out: “A bare-bones retirement costs between $20,000 and $27,000 in five major Canadian cities, according to a 2010 study called Basic Living Expenses for the Canadian Elderly conducted University of Waterloo researchers. According to the study, most people can achieve this retirement income without saving a penny thanks to a combination of full Old Age Security (OAS) and the Guaranteed Income Supplement (GIS) program for low-income seniors. If you’ve worked most of your life, you should also be entitled to Canada Pension Plan payments.“
Are you going to be happy living bare-bones? Personally, I have no intention of living “bare-bones”!
The article goes on to explain: “According to Statistics Canada, Canadian couples over the age of 65 spend an average of $51,000 per year. As such, in order to enjoy a middle-of-the-road retirement, you need to save enough so that you’ll have at least $10,000 to $30,000 more per year- than what you’ll get from the government.“
There many other numbers in that article but the only glaring omission for me is that the StatsCan report measures couples. I am single. I still need accommodation, probably comparable to a couple. I still want my vehicle, similar to the couple. My utilities and groceries might be half but many other expenses will be comparable to that couple. This is frightening and not the future I envision for myself.
Where do you stand on this monetary curve? Are you confident you have the financial means to live comfortably, with the extras you wish, given your current financial status?
I took responsibility for my own future two years ago. It has been a huge learning curve that has also had to curve around all the standard responsibilities a person has: job, family, home… but I am pleased to report I now have a steady source of income. It is not large, but I have created it myself on-line, and it has the potential to grow immensely.
Please do yourself a favour and really plan on creating your own good retirement income with an on-line business. I’m going to shorten your curve – you won’t be making any of the mistakes I made and you won’t have to go looking for the necessary resources. My resources even include the course that will help you determine the type of business you could develop (just in case you are saying: Sure! Right! What would I do on-line?)
So, go read that article, review my numbers, depress the hell out of yourself and then message me!!
I look forward to working with you!