Congratulations, happy retirement! You have worked hard all your life to get to this magical moment of rest and relaxation after decades of putting in long, arduous hours at work. Now, its time to kick back and relax. But there is a nagging issue on your mind, how do you afford the lifestyle you want to have? Will you be travelling the world or will you be staying at home? What are your financial needs and wants? How much will it cost? What resources do you have at your disposal?
For many Canadians retirement includes, the Canadian Pension Plan (CPP), Old Age Security (OAS) and their work pension plan, so how do these all work for you during your retirement?
At age 65, most Canadians will receive CPP, you can collect as early as age 60, however, if you do, you will receive less from the government until your 65th birthday. If you wait until your 70th birthday, you will collect a higher benefit, than you would at age 65.
Old Age Security (OAS) is a non-work released pension paid to all Canadians who are 65 and over who meet certain residential requirements. This pension pays out a maximum of $6,880, annually, if your annual income is below a certain level, however, that amount decreases if you bring in $73, 756 per annum, and is clawed back entirely if your income is higher than $119,512.
Many retirees are beneficiaries of Employer Pensions; your income level is dependant on how much you have contributed over the years, and the performance of the investment in that plan.
Together CPP, OAS, and Pensions could help you live the retirement lifestyle you want to lead, however, you must determine how much you need to have that lifestyle. Identifying the amount of money you need and assessing if there are any gaps to fill are imperative.
At Stalker Financial Group we are here to help you make the most of your wealth management and have that happy retirement! You deserve to enjoy this stage in your life, as you worked hard to get here! Come in and talk to us, we will help you develop a plan that is right for you and your family.