Uncle George just started receiving his Old Age Pension. A dream come true, if there ever was one, no?
To live a life, 65 years in the making, and finally reach the point where a cheque from the federal Government every month rewards your efforts. It’s become something every Canadian uses as a landmark – a milestone, if you will. But is it really all it’s cracked up to be?
Most seniors in this country receive two pensions from the Federal Government once they reach 65. Canada Pension, or CPP, which they may have been drawing from for a few years up to that point, and finally the OAS, mentioned above. Altogether, depending on your CPP, if you’re an average Canadian, that rakes in roughly $12,200 a year according to Service Canada.
So lets base this on a full time job, 40 hours a week, 52 weeks of the year. That will include your paid holidays if you’re lucky enough to have them. Simple mathematics tells us that you’re earning about $5.89 an hour.
Apparently, the average hourly wage in Canada last year was more than $20.00 above that. So let’s consider for a moment if it’s actually possible for someone to retire and live solely on their Government pensions.
OK, we’ve considered it, and it isn’t going to happen. Something has to be added to this in order to bring it up to par.
Uncle George figures that the famed Newfoundland group Ellis and Wince Coles had it all figured out. They once devised a plan, living vicariously through Eli, of course, that it was in fact possible to live life in such a way the one could eventually retire and have a total of five pensions coming in.
But wait – chances are before you hit 65, that’s going to be changed. See, the feds feel that the problem with the struggling pension system in this country is that people are taking it much too early. All of that $5.89 an hour now has to wait a couple of years until you hit 67, should Harper have his way. -
Remember, now, this was years ago, before this sort of thing was actually a popular thing to do. In fact, Uncle George’s theory is that most of the politicians today merely stole Eli’s plan, and played it out to perfection.
Work with Government in some way – perhaps as civil servant; retire, and get a pension. Then run for provincial politics; retire there, receive pension. Move over to federal politics, and do the same, then cruise to 60 and take your CPP, finally landing in at 65 and get your OAS.
But wait – chances are before you hit 65, that’s going to be changed. See, the feds feel that the problem with the struggling pension system in this country is that people are taking it much too early. All of that $5.89 an hour now has to wait a couple of years until you hit 67, should Harper have his way.
Meanwhile, his pension when he retires is sitting at the $250,000 a year mark. Or, for a bit of perspective, $120.19 an hour.
But I’m sure the better solution to the problem is making people wait until they’re 67. Afterall – we’re the ones who can afford it, right?
I’m just glad Uncle George got in under the wire. Otherwise, he may not have survived.