A few days ago I wrote about the advancing ages of retirement in various countries. Today there is news out of Ottawa of a Canadian plan to keep us out of our pension years longer. The earlier we take our pension, the less we receive, and it has been that way for quite some time. But now on the other end, there is a rather large incentive to delay our withdrawals as long as possible. Indeed, if one waits until age 70 to start withdrawing, one would get $10,000.00 more a year in pension money.
This will no doubt entice many, but one would need some money to live with in the interim. The one big factor here is the inflation rate. If inflation is strong, one would have missed out on ten years of pension income just to receive more, but in inflated dollars making the purchasing power the same as it was had he taken pension much earlier. Because there is risk involved, I would say take what you can get when you can get it. Besides, the older one gets, the less one needs for survival. An elderly person can always go to the Fraser Canyon and live on wild mushrooms because they grow everywhere.
1 comment:
At the same time as easing your hunger pangs they could also completely eliminate your financial worries as they put you out of your despairing misery. :-)
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