The Importance of Retiree Income in Canada

Retirement can be a fulfilling and relaxing time in one’s life, but it also brings about financial changes and challenges. In Canada, the government provides a variety of benefits and programs for retirees, such as the Canada Pension Plan (CPP) and Old Age Security (OAS). However, these sources of income may not be enough for retirees to maintain their desired standard of living, especially with the increasing cost of living. This makes having a solid retirement income plan crucial for retirees in Canada.

The first step in creating a retirement income plan is to assess your current financial situation and future expenses. This includes looking at your existing savings and assets, as well as estimating your future living expenses. It’s important to also consider potential healthcare costs and unexpected expenses that may arise. After assessing your finances, you can then explore different sources of retirement income, such as pension plans, Registered Retirement Savings Plans (RRSPs), and Tax-Free Savings Accounts (TFSAs).

In addition to government benefits and personal savings, many retirees in Canada choose to supplement their income through part-time work or investment opportunities. In fact, according to Statistics Canada, 57% of Canadians aged 65 and over were employed or actively looking for work in 2019. This not only provides retirees with additional income, but also allows them to stay socially connected and mentally stimulated.

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