Rely on the government (no, seriously)

Often lost amid TFSAs, RRSPs and other retirement planning minutiae is the humble government pension

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Often lost amid TFSAs, RRSPs and other retirement planning minutiae is the humble government pension.

Most of us will get more from Ottawa than we think. A married couple with no savings or company pension can expect $24,000 a year from all government sources when they retire.

The average combined payout from just the Canada Pension Plan and Old Age Security is now almost $11,000 per retired person per year. So don’t forget to factor this in when calculating how much you’ll need to save for retirement.

4 comments on “Rely on the government (no, seriously)

  1. "A married couple with no savings or company pension can expect $24,000 a year from all government sources when they retire. "

    You could at least qualify this as the maximum given ideal conditions. Most married couples I know can't expect anywhere near this amount.

    Reply

  2. This may be a bleak outlook, but I feel that the days of the CPP and Old Age are numbered. Sure my mom will get it, but will I? I feel that it would be wise for people in their 20's to consider the fact that they may not have those benefits when it comes time for them to retire – maybe I'm being paranoid?

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    • I think it is much more likely that CPP premiums and other tax from those in the workforce would increase rather than benefits cut back.

      Reply

  3. Isn’t that just great, they do nothing to look after themselves for retirement and they will receive 24,000/yr. They should receive nothing in my opinion for the simple reason they did nothing to help themselves. People who struggle and save, not going on yearly trips instead save for retirement and receive less than others. Not fair.

    Reply

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