Finance

As the population ages and the provision of workplace pensions has declined, it is more important than ever for Canadians to recognize the financial risks we face in retirement and to create an objective written plan to mitigate those risks.  The good news is that these risks can be managed.

You may have heard of roaming, which refers to using your mobile device outside of Canada, on another carrier's network. This can sometimes be confused with long distance, which applies when you are still in Canada.

Canada no longer has an official age of retirement and the government is now encouraging you to work as long as you want — especially if you don't have enough retirement savings.

Take a look at the top five most unusual ways to keep more money in your pocket from Certified General Accountants of Ontario:

It's hard to find a balance between keeping money in your wallet now, leading the lifestyle you enjoy, and also saving for the future. There are many considerations when determining the savings plan that's right for you: one option is a Retirement Savings Plan (RSP). The deadline for making RSP contributions for the 2011 tax year is February 29, 2012.

Are you single again? Sometimes life can throw you a curveball. Divorce or death may leave you suddenly – and unexpectedly – on your own. Among other concerns, it's important to get a handle on managing your money as soon as possible.

Most mature Canadians plan for a long and comfortable retirement. But, as we learn anew every day, planning is one thing, reality is another. The hope is that you and your spouse will stay healthy but the reality is that your health or your spouse's health may change and you may require nursing services and long term care.

There are special considerations for women when it comes to retirement financial planning. Several factors may impact their pension and savings, such as situations where women may leave the workforce to care for parents, children, or both. Another reality is that women often live longer than men, and when paired with the fact that for many married couples, the husband is older than the wife, this may add up to a longer time in retirement for women than men.

“Many grandparents today are building a financial future for the second generation,” said Don Reed, grandfather of four and president and CEO of Franklin Templeton Investments Corp.

Congratulations, you have retired, but will you have enough money to support your lifestyle?

Whether you're already retired or soon to be retired, worries about how far your savings will take you have probably crossed your mind more than once.

It has been common to plan for a retirement that ends around the average Canadian life expectancy of 80 years. But Statistics Canada tells us that people are living longer. The fastest growing portion of the population is those 80 and over, and the trend is expected to continue.

While increasing numbers of Canadians are expecting to live longer than their parents' generation, their retirement plans may not be keeping pace with that longer lifespan.

Rent may be free, but taxes and maintenance are not.

Funeral planning is, without a doubt, a sensitive subject. Nobody likes to think about their own death or the death of someone close. Yet, when we avoid thinking about our funeral, we are simply leaving it for our loved ones to handle at a time when they may be least able to do so.

As we come to the end of 2011, many economists are releasing their predictions for 2012, including those from Desjardins Group. While they don't paint a completely rosy global economic picture, there is some good news for Canada.

Very few people take the time to think about their income in terms of how long they are going to live. For example, a 62 year old couple has a 1 in 2 chance of living into their 90's. This couple needs to think about making sure their income sources have the ability to grow with inflation for the next 30 years, which is a difficult concept to contemplate while we are experiencing such a volatile investment reality.

For many seniors, their family home is a place of fond memories as well as their biggest nest egg. Coupled with a familiar neighbourhood, neighbours and friends nearby, and the comfort of their local support network of doctors and pharmacists, it's not surprising that 61% of Canadians aged 45 to 60 plan to retire in their current homes.

With the housing and financial markets rebounding, many Canadians aged 60 and older are more inclined to leverage assets like stocks and bonds bearing higher returns. While some may consider cashing in their growing assets to enjoy vacations and major home renovations, others are evaluating tax–neutral solutions like a reverse mortgage to supplement their retirement income.

According to Michael Aziz, regional vice president of individual insurance product sales at Desjardins Financial Security, annuities can be an important part of a retirement plan. "Annuities have become more than just a source of life-time income," said Aziz. "Some can be used as a charitable donation, and that's a very smart tax and estate planning strategy." We asked Aziz to give us a tour through the different types of annuities:

According to Statistics Canada the number of Canadians aged 65 and older will jump to about six million by 2016. As Canada's population ages, a recent Ipsos Reid survey of Canadians aged 45 to 60 reveals that 61 per cent intend on remaining in their homes for as long as they can. The desire for Canadians to stay in their current homes increases as they grow older, according to the survey findings.

This creates the need for increased safety and accessibility measures in seniors' homes, while some may also consider an extra set of hands to help maintain their property and hire seasonal help or home care assistance.

With recent Statistics Canada research indicating the average Canadian can expect to spend approximately 20 years in retirement, one question to ask yourself is: will you outlive your retirement savings?

Do you think you have enough retirement savings to maintain your quality of life for that length of time? And what if you live longer than most people or have special healthcare needs that increase your cost of living?
 

Insurance protects you in the event of damage to property, disability, or loss of life or income. How much insurance you need depends on your own circumstances and “life stage,” according to the Financial Consumer Agency of Canada (FCAC).

Consumers need to reassess their coverage after major events like starting a family, buying a home or vehicle, or starting a business.

Ask yourself: “How can I protect myself, my property, my family, and reduce risk?” Then shop around and compare maximum coverage provided by various insurance products, as well as prices.

FCAC's information, resources and tools to help financial consumers make the best choices can be found at fcac.gc.ca.

 

As Canadian baby boomers enter retirement, there is a lot of concern, anxiety and confusion as to how to plan their retirement income.

“When we consider the risks of outliving retirement assets, unexpected costs, healthcare expenses and unpredictable investment returns, the importance of retirement planning and, more specifically, retirement income planning become more clear,” says Tina Di Vito, head of the BMO Retirement Institute.
 

It's summertime at the family cottage and the living is easy – for now. Owning a vacation property can present some important estate questions that you should consider to avoid a nasty tax bill in the future. For example:

•    Have you included the cottage into your estate plan?

•    Will it become your retirement home or will you sell it to the kids?