More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.
@@Freddie-09 The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio. Is this the case with yours too?
So for Oas in 2021 the monthly max was $626.49 i.e. 7,517.88 per year. But according to your breakdown the average Canadian received 18.39% of 61,200 =11,254.68 per year. How could they receive more than the maximum? Something is wrong with the math. Does the $61,200 refer to couples? What about single retirees?
I believe in this report Statistics Canada is only looking at the money withdrawn from the RRSP in a given year. As well, my understanding is that the private pension category includes defined contribution plans, defined benefit plans, locked in accounts, so most work pension or saving plans fall into that category. I believe what most people think of as "RRSPs" might be grouped in the private pension category for this particular table.
Can you add a link to the Stats Canada page showing that level of income? I took a quick look at the Stats Canada webpage and the incomes that I saw were much lower. Perhaps I was not looking in the correct place? Edit: After some digging on the web the $61,200 appears to be the after tax median income per household (not individual). I would still be interested in seeing the Stats Canada link if you have it.
It is from the Canadian Income Survey, which tracks income according to a number of factors. Here is a link: www150.statcan.gc.ca/n1/en/daily-quotidien/190226/dq190226b-eng.pdf?st=RSV7TJtY The median after tax household income for senior families (65+) is $61,200 according to that survey. That result is from 2017. Here is the link to the 2019 Canadian Income Survey www150.statcan.gc.ca/n1/daily-quotidien/210323/dq210323a-eng.htm Median after tax income for senior households jumped to $64,300. Additional Canadian Income surveys were impacted by the pandemic and the format changed a bit, however Statistics Canada does provide an overview of median after-tax household income, it is not broken down by age, it shows growth since 2017 and provides provincial breakdown www150.statcan.gc.ca/n1/daily-quotidien/230502/t002a-eng.htm Hope that helps :)
61K/yr...um I'll be less than half that with CPP and a DB pension(retiring at 63). My partner's DB pension, CPP, OAS and RRIF is quite high, so until I hit 65 we'll use my lower income at tax time for income splitting to save him 💰. When I turn 65 I'll convert my RRSP to a RRIF and delay taking OAS so we can still stay within the same tax bracket.
I am wonder where the average after tax income for retirement came from, When the average annual salary in Canada in 2021 was $59,300. That number if divided by 12 brings the average monthly salary to $4,942. Ranked among the top 20 countries with the highest salary, Canada is known for its high quality of life, political stability, and job security for families.
If you plan your retirement, pay off your debts before retirement and have a healthy investment portfolio, yes, you can have higher income in retirement. You can’t blame your lack of planning on others…
The math confuses me a bit. The average CPP/OAS in 2023 is $18,197 before tax. If that accounts for 34.41% of income according to the table from Stats Can, the total income should be around $52,882. Keep in mind that if we use the after tax CPP/OAS amount back in 2017, the total income would be even lower.
The household median after tax income mentioned at the start is from the 2017 income survey. The Statistics Canada table for the sources of income is based on 2021 tax filers. Different sources of data, likely account for the variance.
@@BeckerOrrWealthManagement Wait, I’m confused. Are you saying the average retirement income for an individual CANADIAN is 61,000? Or are you saying that is the average household retirement income? Big difference. Most of the video I thought you were saying the average couple would be in the 120 thousand per year range.
The average retired person makes over $60k after tax? Holy crap. Median is the same number above $60k as below it. That is absolutely crazy and is only possible for those with the private pension. Outside of the government, private pensions are disappearing so that picture will change dramatically and is scarey for those who will be retireing in the next 20 years.
I was wondering the same thing. How can someone retire with a net worth of 600 to 700k with a 60k after tax. Just doesn't make sense, unless they got a private pension on top of that net worth. Upvoted you.
Thanks for your analysis > I’m quite amazed that the median net income (after tax) per Canadian person over 65yrs is 61200 > conceivably, half of “retired” couples net over 122000 per year, which is substantial > that’s like north of 75-80K gross each per year > and as stated, this takes out the outliers skewing the avg, altho they’d be included in the top half > so 5100 net per mth cashflow doesn’t seem like a current retirement crisis I also find it remarkable (actually quite sad) that a mere 1.5% of people’s income comes from rsp/rif > prior to tfsa they were the main tax deferral retirement vehicle yet such a minute percentage is derived from that despite the push to save within that vehicle > this is particularly troubling as less and less people have db pensions and who knows where dc pensions may be heading, that will probably reduce the current 30% > that is a substantial pool of income that many in near future generations will be lacking Don’t wanna seem doom and gloom, but on one hand it appears current retirees are flush with cash yet future may be more precarious/reliant on gov’t coffers > apart from enhancement to cpp, I wonder what the geniuses on parliament hill and other think tanks are coming up with to make up shortfall?!?!
I was as surprised as you were, but if you look at the StatsCan study they refer to, the $61k is Household income, not individual income … here is the quote The median after-tax income of senior families (where the highest income earner was 65 years of age and older) totalled $61,200 in 2017, up $2,500 from 2016. And here is the link www150.statcan.gc.ca/n1/en/daily-quotidien/190226/dq190226b-eng.pdf?st=RSV7TJtY
I don't believe this one bit as so many seniors are living in abject poverty. Lots of deception. I watch show after show emphasizing growing poverty among seniors. 😮😮😮
Average means if sombody eating steak and other eateng salad in average both of them eating steak with salad. So Jim Paterson and me worked in trade using average have 1 million pension each. If statistic Canada told us that average working pension is between $700 and $800 and most Canadians are geting partial OAS (not born in Canada) how you get that numbers. My friend that works with statistics sed one time" if you want to hide real numbers use statistics and average "
Is this household income, which is more believable. Half of retiree couples getting over $10K per month seems considerable considering the median household income in Canada is about $39K with only 11% of Canadian households earning over $100K. Are they all retired?
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
It's true, not everyone has access to this kind of information. Lack of knowledge can definitely make people panic.
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.
@@Freddie-09 That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well
@@PeterEdet-rh5ot My advisor is Victoria Carmen Santaella;
You can look her up online
@@Freddie-09 The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio. Is this the case with yours too?
After tax? They surely don t live in Quebec province...
So for Oas in 2021 the monthly max was $626.49 i.e. 7,517.88 per year. But according to your breakdown the average Canadian received 18.39% of 61,200 =11,254.68 per year. How could they receive more than the maximum? Something is wrong with the math. Does the $61,200 refer to couples? What about single retirees?
Median is not average. Median means half of the people make more than the median and half make less.
I am blown away at the 1.53% income from RRSPs. That is ridiculous.
I believe in this report Statistics Canada is only looking at the money withdrawn from the RRSP in a given year. As well, my understanding is that the private pension category includes defined contribution plans, defined benefit plans, locked in accounts, so most work pension or saving plans fall into that category. I believe what most people think of as "RRSPs" might be grouped in the private pension category for this particular table.
@@BeckerOrrWealthManagement That makes more sense. Thanks
Can you add a link to the Stats Canada page showing that level of income? I took a quick look at the Stats Canada webpage and the incomes that I saw were much lower. Perhaps I was not looking in the correct place? Edit: After some digging on the web the $61,200 appears to be the after tax median income per household (not individual). I would still be interested in seeing the Stats Canada link if you have it.
It is from the Canadian Income Survey, which tracks income according to a number of factors. Here is a link: www150.statcan.gc.ca/n1/en/daily-quotidien/190226/dq190226b-eng.pdf?st=RSV7TJtY
The median after tax household income for senior families (65+) is $61,200 according to that survey. That result is from 2017. Here is the link to the 2019 Canadian Income Survey www150.statcan.gc.ca/n1/daily-quotidien/210323/dq210323a-eng.htm Median after tax income for senior households jumped to $64,300.
Additional Canadian Income surveys were impacted by the pandemic and the format changed a bit, however Statistics Canada does provide an overview of median after-tax household income, it is not broken down by age, it shows growth since 2017 and provides provincial breakdown www150.statcan.gc.ca/n1/daily-quotidien/230502/t002a-eng.htm
Hope that helps :)
61K/yr...um I'll be less than half that with CPP and a DB pension(retiring at 63). My partner's DB pension, CPP, OAS and RRIF is quite high, so until I hit 65 we'll use my lower income at tax time for income splitting to save him 💰. When I turn 65 I'll convert my RRSP to a RRIF and delay taking OAS so we can still stay within the same tax bracket.
Unfortunately I have no private pension. But have saved hard since mid 30's. Wish I would of started mid 20's as I would be very well off.
I am wonder where the average after tax income for retirement came from, When the average annual salary in Canada in 2021 was $59,300. That number if divided by 12 brings the average monthly salary to $4,942. Ranked among the top 20 countries with the highest salary, Canada is known for its high quality of life, political stability, and job security for families.
They didn’t mention that is HOUSEHOLD income - for two people.
If you plan your retirement, pay off your debts before retirement and have a healthy investment portfolio, yes, you can have higher income in retirement.
You can’t blame your lack of planning on others…
The math confuses me a bit. The average CPP/OAS in 2023 is $18,197 before tax. If that accounts for 34.41% of income according to the table from Stats Can, the total income should be around $52,882. Keep in mind that if we use the after tax CPP/OAS amount back in 2017, the total income would be even lower.
The household median after tax income mentioned at the start is from the 2017 income survey. The Statistics Canada table for the sources of income is based on 2021 tax filers. Different sources of data, likely account for the variance.
@@BeckerOrrWealthManagement
Wait, I’m confused. Are you saying the average retirement income for an individual CANADIAN is 61,000? Or are you saying that is the average household retirement income? Big difference. Most of the video I thought you were saying the average couple would be in the 120 thousand per year range.
The average retired person makes over $60k after tax? Holy crap. Median is the same number above $60k as below it. That is absolutely crazy and is only possible for those with the private pension. Outside of the government, private pensions are disappearing so that picture will change dramatically and is scarey for those who will be retireing in the next 20 years.
I was wondering the same thing. How can someone retire with a net worth of 600 to 700k with a 60k after tax. Just doesn't make sense, unless they got a private pension on top of that net worth. Upvoted you.
The stats are actually per household not person.$61K after tax for married couple together.
Thanks for your analysis > I’m quite amazed that the median net income (after tax) per Canadian person over 65yrs is 61200 > conceivably, half of “retired” couples net over 122000 per year, which is substantial > that’s like north of 75-80K gross each per year > and as stated, this takes out the outliers skewing the avg, altho they’d be included in the top half > so 5100 net per mth cashflow doesn’t seem like a current retirement crisis
I also find it remarkable (actually quite sad) that a mere 1.5% of people’s income comes from rsp/rif > prior to tfsa they were the main tax deferral retirement vehicle yet such a minute percentage is derived from that despite the push to save within that vehicle > this is particularly troubling as less and less people have db pensions and who knows where dc pensions may be heading, that will probably reduce the current 30% > that is a substantial pool of income that many in near future generations will be lacking
Don’t wanna seem doom and gloom, but on one hand it appears current retirees are flush with cash yet future may be more precarious/reliant on gov’t coffers > apart from enhancement to cpp, I wonder what the geniuses on parliament hill and other think tanks are coming up with to make up shortfall?!?!
I was as surprised as you were, but if you look at the StatsCan study they refer to, the $61k is Household income, not individual income … here is the quote
The median after-tax income of senior families (where the highest income earner was 65 years of age and older) totalled $61,200 in 2017, up $2,500 from 2016.
And here is the link
www150.statcan.gc.ca/n1/en/daily-quotidien/190226/dq190226b-eng.pdf?st=RSV7TJtY
That's not the case. The $61,200 is PER SENIOR FAMILY, not individual.
I am pretty sure that that median income is HOUSEHOLD median income, not INDIVIDUAL median income.
The latest stats from 2021 show that the median retirement income for a family in Canada is $69,900 and $31,400 for a senior individual.
So average after tax income is $5100 per canadian (singular) Does that mean the averaged couple after 65 makes $10,200/month after tax?
It is Median Household Income for those 65+, the link to the study was provided in the pinned comment.
Yeah. Sorry I don’t agree with these numbers. I do t know anyone making that much clear per month
Median is not the same as average.
Median and average are NOT the same things.
Teasers, gov’t employees etc.
I don't believe this one bit as so many seniors are living in abject poverty. Lots of deception. I watch show after show emphasizing growing poverty among seniors. 😮😮😮
yes deceptive I agree, the true number per person is about 31k.
Only those seniors that didn’t plan their retirement. You can’t blame your lack of planning on others…
Surprise RRSP is so low.
Average means if sombody eating steak and other eateng salad in average both of them eating steak with salad. So Jim Paterson and me worked in trade using average have 1 million pension each. If statistic Canada told us that average working pension is between $700 and $800 and most Canadians are geting partial OAS (not born in Canada) how you get that numbers. My friend that works with statistics sed one time" if you want to hide real numbers use statistics and average "
Really need to be more clear household vs retiree. You confuse in summary as you say both
How many are still working? Eh!
Thought we were doing good but according to this we are not. I am not sure I believe this at all
Is this household income, which is more believable. Half of retiree couples getting over $10K per month seems considerable considering the median household income in Canada is about $39K with only 11% of Canadian households earning over $100K. Are they all retired?
It is Median Household Income for those 65+, the link to the study was provided in another comment.