Poverty or Pension?

Many retirees these days are revisiting their retirement and pension plans to see if they’ll have enough funds to weather the global recession. In Canada, 35% of seniors receive the federal Guaranteed Income Supplement benefit, which ensures that individuals receive a minimum annual income (including Old Age Security benefits) of at least $13,683. This level is still below the level set by the government as the deemed poverty level ($15,336 for 2008). CARP is now proposing that the government revise the Canada Pension Plan (CPP) to guarantee Canadian workers receive an adequate indexed pension for life. Currently, recipients of CPP receive a 25% benefit of pre-retirement income; however, this pre-retirement income figure is ‘capped’ at $46,300, the deemed average salary of Canadians. Read more about what expanding the CPP could mean.