Facts about seniors' income

JLM

Hall of Fame Member
Nov 27, 2008
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Vernon, B.C.
Copied from the Vernon Morning Star 15/03/15



Personal Best: Wealthy is not the reality





Have you seen recent items in the media lately that talk about wealthy seniors ripping off business and government by receiving discounts and rebates simply because of their age although living in relative affluence? Even Maclean’s magazine has encouraged this point of view with the headline, “Old. Rich. Spoiled.” Sounds good, but as usual in media hype, it is untrue.
Isobel Mackenzie, first B.C. seniors advocate, found that stereotyping seniors as wealthy does not reflect the reality for many B.C. seniors. In her press release Oct. 10, 2014, she states that stereotyping seniors as wealthy does not reflect the reality for many B.C. seniors and what she found instead is “incomplete information that has resulted in a mis-representation of the economic plight of many seniors.” The release also tells us that Statistics Canada pegs the 2011 median income for those over 65 at $23,700. This means that 50 per cent of seniors in Canada are living on less than $23,700 per year, (referred to by some as the poverty line) with the majority living alone. The median income for 35 to 44-year-olds is $43,300 with the overwhelming majority living in a two-person household, sharing costs that are often borne by the single senior. Here in British Columbia alone, we have more than 52,000 seniors who are living on $16,300 per year or less. Yes that is 52,000 seniors living on government pensions alone and living in poverty.
Some forget that seniors also make significant contributions to our communities. We know that the greatest amount of volunteering is done by seniors and more significant are the millions of hours of care that is provided every year in this country by seniors to their spouses, families, and in some cases, their parents. If seniors didn’t do the care provision and volunteering in the community the cost to all levels of government would be staggering.
Mackenzie was appointed as the long promised seniors advocate in March 2014 and should be a great resource for seniors. This appointment was made under the Seniors Advocate Act of British Columbia, as part of the B.C. Government’s Seniors Action Plan. The advocate is given wide scope to examine and advocate for seniors on issues related to: health care, personal care, transportation, housing, income supports. In addition the advocate will: monitor services, provide information and referral, analyze systemic issues, and provide recommendations to governments and service providers on any improvements that can be made. A big job and badly needed.
Immediately after being appointed, she undertook a province-wide tour of 26 urban and rural communities throughout B.C. and met with thousands of seniors, family members, stakeholders and service providers. She produced an excellent report entitled The Journey Begins Together and I will write more about this later. This document is available by contacting the office of the seniors advocate at www.seniorsadvocatebc.ca or phoning 1-877-952-3181 or writing the Office of the Seniors Advocate, 1st Floor, 1515 Blanshard St., PO Box 9651, STN PROV GOVT, Victoria, B.C., V8W 9P4.
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The information contained herein might educate anyone on the forum who is ignorant about seniors' income!
 

Kreskin

Doctor of Thinkology
Feb 23, 2006
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True. I can appreciate that many have a real tough go, but the real test is income minus expenses. Difficult to compare age groups without the full financial picture.
 

Cannuck

Time Out
Feb 2, 2006
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Alberta
True. I can appreciate that many have a real tough go, but the real test is income minus expenses. Difficult to compare age groups without the full financial picture.

You also have to take into account assets. If you're sitting in a $750,000 house that's bought and paid for, it's pretty difficult to cry poverty.
 

captain morgan

Hall of Fame Member
Mar 28, 2009
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A Mouse Once Bit My Sister
The above article considers only cash flow without other important elements such as asset base (as was mentioned).

For those seniors living in poverty without the asset base, certainly it is up to society to step in, however, one also needs to ask the question why this demographic did not plan their later years accordingly
 

SLM

The Velvet Hammer
Mar 5, 2011
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London, Ontario
To each their own I guess.... Just don't come cryin' when the cupboards are bare and all that is left is memories of what could have been done over the years

I don't know that it's always that simple. Sure, that's going to happen but there are a lot of things that can happen to derail your life, illness, injury. Couple has a disabled child and suddenly you've moved from double income to single. Husband or wife decides to do a 25 year beer run or run to the store for cigarettes and never come back. Sometimes sh!t just happens. Sometimes it happens and you never recover or just don't recover enough. Hindsight is always 20/20.

I think, with the Boomer Generation moving into retirement, we're probably seeing the most personal retirement investment that we've ever seen. That's just a guess on my part, but I'd be surprised if I was wrong on that. Personally I'm more irritated by something like CPP, mandatory contributions that won't pay out what was put in, than I am by the numbers who didn't personally plan for retirement well enough.
 

JLM

Hall of Fame Member
Nov 27, 2008
75,301
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Vernon, B.C.
True. I can appreciate that many have a real tough go, but the real test is income minus expenses. Difficult to compare age groups without the full financial picture.

For anyone with income under $20,000 I would suggest the answer is zero.

Why save and invest when you can buy lotto tickets?

We can always depend on your for sensible answers - now you just have to get Putz to pay attention! :) :) :) :)

I don't know that it's always that simple. Sure, that's going to happen but there are a lot of things that can happen to derail your life, illness, injury. Couple has a disabled child and suddenly you've moved from double income to single. Husband or wife decides to do a 25 year beer run or run to the store for cigarettes and never come back. Sometimes sh!t just happens. Sometimes it happens and you never recover or just don't recover enough. Hindsight is always 20/20.

I think, with the Boomer Generation moving into retirement, we're probably seeing the most personal retirement investment that we've ever seen. That's just a guess on my part, but I'd be surprised if I was wrong on that. Personally I'm more irritated by something like CPP, mandatory contributions that won't pay out what was put in, than I am by the numbers who didn't personally plan for retirement well enough.

Excellent post up to the last sentence. C.P.P. is like insurance - some come out ahead (like me if I live much longer) and some lose. Everyone wins in one aspect- it saves on the amount of tax we have to pay to support folks who didn't have that provision.
 

Spade

Ace Poster
Nov 18, 2008
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Kreskin

Doctor of Thinkology
Feb 23, 2006
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You also have to take into account assets. If you're sitting in a $750,000 house that's bought and paid for, it's pretty difficult to cry poverty.
Yes, the poor old fella who can't pay the taxes on his Granville Street home. He needs more government aid!
 

SLM

The Velvet Hammer
Mar 5, 2011
29,151
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36
London, Ontario
Excellent post up to the last sentence. C.P.P. is like insurance - some come out ahead (like me if I live much longer) and some lose. Everyone wins in one aspect- it saves on the amount of tax we have to pay to support folks who didn't have that provision.

No, it's not like insurance. It's the government forcing me to participate in a fund for retirement that will be managed by those least qualified to manage money, the government.
 

JLM

Hall of Fame Member
Nov 27, 2008
75,301
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Vernon, B.C.
No, it's not like insurance. It's the government forcing me to participate in a fund for retirement that will be managed by those least qualified to manage money, the government.

Ummmmmmmmmm- I think if you were to check into it, the government "farms" out stuff like this to investment companies. I have no doubt that an individual shrewd investor (depending on his risk tolerance and time horizon) could do better, but when taking care of the masses these two criteria are moot points.
 

Kreskin

Doctor of Thinkology
Feb 23, 2006
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CPP is managed very well. It's the distribution that is lacking.


 

petros

The Central Scrutinizer
Nov 21, 2008
108,749
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Low Earth Orbit
No, it's not like insurance. It's the government forcing me to participate in a fund for retirement that will be managed by those least qualified to manage money, the government.

They hire out to 3rd party for the CPP investment board.
 

taxslave

Hall of Fame Member
Nov 25, 2008
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Well someone owns all the million+ waterfront homes around here and it isn't people working three part time jobs to make ends meet. Interesting ly it is these same idle rich that actively fight any industry in the area that would provide good paying jobs.
 

Spade

Ace Poster
Nov 18, 2008
12,822
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Aether Island
Well someone owns all the million+ waterfront homes around here and it isn't people working three part time jobs to make ends meet. Interesting ly it is these same idle rich that actively fight any industry in the area that would provide good paying jobs.

The idle senior demands privilege ; the working stiff labours in silence too tired to rock the ship of state.
 

JLM

Hall of Fame Member
Nov 27, 2008
75,301
547
113
Vernon, B.C.
CPP is managed very well. It's the distribution that is lacking.



I did hear back in the early days of the fund, money was paid out of it to injured workers with a permanent disability, presumably something that W.C.B. should have been looking after. This was all hearsay so perhaps someone here can confirm it or dismiss it.
 

JLM

Hall of Fame Member
Nov 27, 2008
75,301
547
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Vernon, B.C.
CPP disability still exists. Why would WCB cover things like MS, arthritis, blindness etc?

O.K. but when C.P.P. was first established I'm sure it was only meant for a pension, but they've probably adjusted the premiums since to cover the other stuff.
 

Cannuck

Time Out
Feb 2, 2006
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Alberta
Excellent post up to the last sentence. C.P.P. is like insurance - some come out ahead (like me if I live much longer) and some lose. Everyone wins in one aspect- it saves on the amount of tax we have to pay to support folks who didn't have that provision.

Next to nobody loses with CPP.

Canada Revenue Agency announces maximum pensionable earnings for 2015 - Canada News Centre

The maximum employee and employer contribution to the plan for 2015 will be $2,479.95

Assuming I was paying that amount (which of course I wasn't) for the past 30 years, I would make that all back in less than 6 years minus the interest. People in their 70's have gotten everything they put into CPP back and then some.