http://www.theglobeandmail.com/globe-investor/personal-finance/retirement-rrsps/young-people-worried-about-retirement-dont-get-mad-get-saving/article2396282/
“I don’t have a pension plan,” Mr. Lem says. “And I would love to put $100 a month into an account that I won’t touch until I am 60, but that $100 is paying off the interest rates on four credit cards and my student loan.”
Young Canadians, a generation saddled with record high student debt and facing an expensive housing market, tight job prospects and stalled earnings, are still absorbing news that they might need to work two years longer than their parents.
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D: new OAS.
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The latest Conservative federal budget calls for the eligibility age of OAS and the closely tied Guaranteed Income Supplement to rise from 65 to 67, over a span of six years starting in April, 2023.
What that means is that if you are 54 or younger and decide to retire at 65, you’ll be getting $13,000 less. Not everyone qualifies for the OAS benefit: If you earn more than $69,562, you must repay some of it. If you make more than $112,772, the full amount is clawed back.
(D - but don't count on OAS. At all)
Caring for Clients financial planner Rona Birenbaum has stopped incorporating OAS into the retirement projections of anyone under the age of 40 – in part because she believes it could be clawed back further.
“As a conservative approach, we are now taking it out entirely,” Ms. Birenbaum says.
The maximum amount Canadians can receive in OAS is $540.12 a month, which works out to more than $6,000 a year. “That can make a big difference in a retired person’s life. So taking this out of retirement projections, it is no joke,” she says.
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D - so the advice is 'save more'. Well, how to do that with
1) student loan
2) house mortgage
3) having a child that will soon cost $1/4M by adulthood,
4) (and that is not counting a matching amount for a degree by then!)
D - easy say. Also completely USELESS advice.
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