As Canada’s aging population continues to grow, the topic of pension has become more prevalent in today’s society. With longer life expectancies and changing employment patterns, people are placing greater importance on planning for retirement. The Canadian government offers a range of pension plans to its citizens, including the Old Age Security (OAS) and the Canada Pension Plan (CPP). These plans provide a basic income for retirees, but many Canadians are also taking steps to supplement their pensions through personal savings and investments.
One of the biggest challenges facing retirees in Canada today is the high cost of living. This, along with longer life expectancies, means that people need to save more for retirement to maintain their standard of living. However, according to a survey by the Canadian Institute of Actuaries, many Canadians are not adequately prepared for retirement. In fact, 40% of Canadians aged 55 to 64 have no retirement savings at all. This highlights the need for greater awareness and education around pension planning in the country.
While the OAS and CPP provide a foundation for retirement income, it is important for Canadians to also consider other options such as employer-sponsored pension plans, individual retirement savings plans, and annuities. These savings vehicles allow individuals to set aside money for retirement and potentially receive tax benefits. It is never too late to start saving for retirement,