I enjoy the process you go through to provide new ways to think about what retirement could be for someone with limited resources. In the US there is no automatic $2200. Each persons SS is based on their work history. At 62 I am eligible for only $945 since I spent many years in the household rather than in the workforce. I can earn up to $19,500 in 2022 and still receive the $945 but if I earn over that $ will be deducted. My full retirement age is 67. At that time I can earn as much as I like with no penalty. As you say you are offering a broad concept. We currently use a healthcare sharing system which only costs us $245 a month. We pay the first $500 of an issue and the rest is covered by other folks like us who send their “share” each month to help others. I don’t know if Canada allows it but we have saved a lot of money this way. Keep up the good work and Congrats on your passports.😊
@Nancy Scwhartz, please look again at your SS benefit regardless of age. Yes, even after full retirement age you can still receive your full SS benefit but if you continue to work you your SS payment WILL be subject to income tax. If you earn between $32,000-$44,000 up to 50% of your SS will be subject to ordinary income tax. Anything over $44,000 and up to 85% of your benefit will be taxed at ordinary income tax rates. It's horrible.
@@mikeberg5003 Agree. The taxable limits of income plus SS income needs to be increased. These low limits really hurt people who need the income from working or who just want to work in USA.
In Canada, CPP is also based on work history. The calculation is complex, but generally they count your best earning 35 years. Women can also claim some years for child rearing.
All this!! Bumping SS into taxable income has the effect of double taxing the wages from your job! Add the FICA taxes to it, and there are ranges that you don't take home all that much! One more factor - you lose the delayed earnings credit. For lower to middle income wage earners, this could be a really creative strategy, and I know someone that just may be in the sweet spot to benefit from this!
I retired at 55 years of age. Today is my 62nd birthday. I've been retired almost 6 years now. I got a small pension from my former job. I did some of what Norm and Tina said here. Sell this, sell that, sell practically everything and moved out of the State of Illinois in the mainland USA to sunny Puerto Rico. I get practically free healthcare. Purchased an affordable $65,000 3 bedroom house in the mountaineous countryside. Bought a nice used Toyota vehicle in cash. The situation is I moved here with my husband but he died the second year that we moved to Puerto Rico. (Liver disease.) I receive his social security. I will be able to take out my own social security when I'm 67. I'm choosing that age so that I can receive a higher amount.
Happy birthday Rebecca, we are sorry about your husband, at least you both followed your dreams to a nicer climate. Congratulations on all your smart decisions. Thanks so much for sharing your story.
A very happy birthday to you! And condolences for your loss. I will be doing similar later this year. Collecting from my late husband's work record, and from mine later, letting it increase. Small pension from my current job. Your social security will continue to increase at 8% until you are 70. I'm budgeting to wait until then, but switch earlier if I need the boost sooner.
I retired in March 2013 at 62. Maybe $10K in cash, US SS and a small pension. Worked my last 10+ years outside the US so paid nothing into SS. Spent 5 years preparing to retire. Bought a new small efficient (45-50 mpg) auto in March '13 for cash, bought and stored socks, boots, jeans, etc and watched monthly the increase of SS until it reached an amount I believed I could live on. Lived on savings until reaching that month. Lived in Portugal working my last 8 years and a few years after retiring moved to Serbia. Last month bought an old farmhouse with about an additional hectare of land for cash (€9,000) so I made my last rent/mortgage payment in July. Car has never had a problem as I perform all maintenance when it's due. I also still have an '07 Harley Davidson bought new w/cash and I do all maintenance. Shipped from the US when I moved to Portugal. At 71 my health/dental insurance costs €1019/year. I have 3 bicycles which I mostly ride on shorter trips helping keep Bp and heart rate low and my waist at 33 so I still fit in 20+ year old jeans. Haven't earned a nickel since 2013. I get $2055 SS and a $375 pension. Don't budget, never saved well, travel extensively by car/scooter and eat out often. Life is good and retirement is what I always thought it would be. I'm living proof you don't need a million bucks to retire.
OK, but your $ 10,000 is gone when your transmission fails. They all do. Be careful, your car can fail and your home air conditioner at the same time. Throw in your real estate tax bill too.
@@georgesontag2192 Nice try but you're applying US problems and costs to life here. The money I spent waiting for SS has long since been replaced. Spent my $10K (actually €9K, $8901 US, to buy house/property for cash) but I've already added $3K towards replacing it. With an expected 10% COLA in SS for 2023 I'll have the $8901 replacd in short order maybe even before 2023. Of course, as I'm in my 70s I can always sell the Harley for $6K or $7K. (I'm actually thinking of selling the Harley and buying a Deux Chevaux to drive around southern Europe.) "Your car can fail..." Sure it can but at this point it shows no signs of getting tired. And my car, a Fiat Punto has one of the most popular and durable engines in southern Europe. It only now has 145,000 KM (about 91,000 miles) One of the reasons I bought new. I know how maintenance was done since new, how the car was cared for, driven and have a maintenance log I started on day 1. (Same with the Harley, also no major problems over the past 16 years and 131K miles) I planned it this way. Home A/C can fail? Not a chance. I don't have or need A/C in my home. Temperatures are one of the perks of living where I do in Serbia. (Hi/Low 8 Sep = 87/66). Not too cold, not too hot with just a little winter snow. Real estate tax is a little tricky as I have no experience-------YET. Everyone I've talked with says the annual tax should be less than €1,000 ($989.07). But we'll see. I'm thinking of starting a blog about life and history in Serbia and will be forthcoming about taxes as soon as I know more. 3 of us eat dinner at the nicest restaurant in the nearby town for less than €12. I get 2 helpings of fresh mixed (tomato, cucumber, cabbage) salad to take home for 600 Dinars ($5.05 US). Most don't tip, I do. One of the best things about living in Europe today is the € to $ exchange rate. When I first moved to Portugal in '07 the exchange rate was $1.50 US to 1€. Really sucked! Today a dollar is a slightly more valuable than a Euro. $1 = €1.011 Have a good day.
I appreciate that your focus is often on allaying fears about retirement, inviting people to research facts with a can-do, hopeful attitude, and apply out-of-the-box thinking instead. Your up-beat attitude is refreshing and strengthening. Thank you for your work. I look forward to your presentations each week and hope you continue them.
Max OAS for a single person is $687.56. Seniors aged 75 is $756.30. GIS is for incomes below $21,624 and GIS payments starts at 43 cents per month up to $1,065/mth Year 2024
Am a 73 year old hippie potter working to rise to the poverty level. Have a small savings, no debt, friends and at the moment pretty good health. Ready to retire sometime soon and trying to make an adventurous plan. Lovely to find you -so encouraging-thanks!
I like this vid. I hit 60 with debt and fear (life got in the way). I decided it was too late to save. I moved into a room and shared a house and utility bills with four other guys for five years and did as you suggest; stock market. Luck, research and study allowed me to pay in full for a handyman special in the Maritimes. There is no way my blue collar pension would allow me to live in a big city. So I agree with you, gamble some on the stock market because it's too late to save when rent is $1,200 a month. Please carry on with your vids. I now have a garden and a dog and no mortgage. I didn't say I could afford food, that's crazy now.
Remember there's nothing that says you have to live in a big city. In many situations you can live much cheaper in a smaller town. Makes a huge difference.
New subscriber here. I started saving for retirement at 54. I am a later comer to the retirement savings game, but I am not letting that discourage me. Whatever I manage to put aside in the next 10 years will be a blessing. I paid off my vehicle and am well on my way to paying off remaining debt. The trick will be to stay out of debt and no mortgage
If you stop working without sufficient resources, you are not retired. You are unemployed. And at an older age getting back into the work force is a big challenge.
You are retired if you decide you are retired. As Norm and Tina outlined, it is doable here in Canada. Obviously it isn't ideal, but if you want ideal it is a but too late to start planning that at 65 (or whatever).
I agree that the original meaning of the word retirement, or similar words in other languages, does indeed mean not working, and especially not working for getting income or supporting yourself. But real world and life is more complicated. People are often not totally retired, even if they have stopped working full-time or for earning salary. In many countries society is encouraging also retired people to take some jobs, part time or in periods. There are tax and other incentives for doing it. There are also health benefits, in some cases, where working activates retires helping them to stay more fit and also mentally more healthy and happy. This might not be the situation in north America, but it is in some other places, where everyone has basic retirement support by national systems and you don't necessarily need funds for living in retirement.
There’s a great book called “the procrastinators guide to retirement”. It’s written with Canadians who have about ten years until retirement. The numbers are realistic for most. It was a good read-would recommend anyone with ten+ years to retirement who are feeling that retirement anxiety.
You two are so kind and compassionate. I love how you really speak to those of us who, due to circumstance, may face financial challenges retiring. You give me hope. You also just demonstrate to me how important it is to be with someone you love in your retirement years whether that be a spouse, a best friend etc.… That support to one another means so much. Building community is something we can all do at zero cost.… Serving others just as you are doing through this RU-vid. And that can bring a sense of meaning to life that a person can have even if they may retire humbly. I am trying to be more mindful of building community in my own life. I recently started supporting a single mom caring for her little three-year-old boy. It helps her and my time with him is the most joyful time of my week.
My mother in law manages quite nicely on her Old age, a very small CPP and the Guaranteed Supplement. She’s been living in the same apt for 15 years so her rent isn’t through the roof. She always has money in her pocket. She has food in the house. No car but transportation is readily available and stores are near by so no need for a car. Obviously she doesn’t travel no money for that but then again at 85 she really doesn’t want to. The big thing for her is people visiting and playing card games. They spend hours together. Her costs are a pot of tea, a few biscuits and some soft drinks. And voila inexpensive entertainment. She lives a comfortable happy life.
Thank you for this video and all the advice you provide in a fun way. You have helped me a great deal. I am 66 and in the UK and until now I had no savings and was afraid to retire. I have turned this around after listening to you both. I realised I love my job but could do it from home, I have saved a considerable amount of money on accommodation, diesel and work outfits and started to save. I have claimed my UK pension and private pensions and invested in tax free accounts. Finally I have savings. My mortgage is not clear but if anything happens I could pay it or downsize. Following your advice I have cleared all debts and drawn up a monthly planner on income and outgoings, cutting down considerably on my spending as I can now see what I have been wasting. I couldn't be happier and although I have decided I do not want to give up work at this time I am no longer afraid of not being able to. Massive thank you.
I retired with no money and am doing all right! I bought my 12x50 mobile home during my last 3 years of employment and I am my own carpenter,shipwright,mechanic, handyman, etc.A big suprise to me was a gift of $10,000.00 invested in RRSPs from the grocery store where I worked as a baker.I drew on that for 3 years at $250.00 per month.Then the government increased my G.I.S.It took a year but was retroactive.I do not like to travel and am happy to be at home and persue my hobbies.Cheers from Here! P.S. Had a skin graft done on my nose last Monday and stitches to come out Wed.next. I ll bet Norm enjoyed needle in nose as much as I do.Not fun!
I decided to retire at 60 because of you. Thank you thank you thank you. Was going to work til 65' but you convinced me to enjoy life instead. Thank You been truck driver for 20 plus years and a custodian at an elementary school before that. Felt like I've been working 2 jobs for 43 years. I'm tired and still got much energy so it's exciting my wife thanks you too more time to watch your videos ha ha 3 more days and I hand the keys back Yahoo p.s. love you guys
I work with people who are poor/low income seniors and disabled persons in British Columbia. Moving to a smaller community that is without the necessary quality of life amenities including needed healthcare services (and the ability to get a doctor), transport, etc in order to get more affordable housing may be more expensive in the long run. Buying food may be more expensive there. Seeing a doctor could be many miles away or seeing a specialist may be hundreds of miles away. From my experience, those who live further away from requisite health services are more likely to postpone or not get the help they need.
One other thing to consider - once you are widowed 1/2 your income is now gone. Even though your spouse paid into the system for years, it gets put back into the funds and the surviving spouse is left trying to make ends meet. Many Americans receive less than $1000 a month.
I retired at age 65 with very little money saved. The first thing that I did to be able to manage financially was to find an inexpensive place to live. Housing was, and would continue to be, my greatest expense in retirement. I already had a great deal of experience managing what little I had. My seniors' benefits have been enough to allow me to live comfortably and enjoy a few luxuries.
If you in the USA be careful about taking Social Security before your FRA while you're still working. If you earn over the limit, about $20K/year, Social Security will deduct $1 from your benefit for every $2 earned over the limit. Unless you are a very low income worker, this probably won't work for you. Once you reach your FRA, the SSA will start returning the withheld money to you by increasing your benefit. There is no penalty on collecting Social Security while working once you reach your FRA.
My dear husband and I retired at 65 in the USA. Blessed with good health and now 68. 68 is the new 58 ☺️ 🤣. Staying busy as retirees, all week long, We enjoy watching your channel every Saturday. 😁. Hoping you will bring your followers along on your upcoming trip to the Gulf Coast! Cheers!
in America you can only make around $19500 per year, after that every additional 2 dollars you make you have to pay back 1 to social security. So continuing to work full time while drawing social security is not doable in the USA. this goes away at 67 which is why many people start back working at 67 in retirement
That’s if you take SS before full retirement. IF you wait till full retirement age you can make as much money as you want without you SS benefits being affected.
I totally agree with Nancy Schwartz. The US "SSI" isn't as lucrative as the Canadian retirement as you have explained. There are rules and penalties for early SSI at 62 to 66 if you continue to work and have an earned income. If you're not working or a stay-at-home person, then yes early withdrawal might be the best option. I plan to draw at 67 to get the 100% payout. Your payment is based off your best 35 years of earned income to include inflation. I feel for those that are 62 and have no savings. We live in a materialistic society. It's so sad. Love your work and platform. I look forward to every Saturday for a new video. Thank you.
I have heard though that time is worth more as we get older and that maybe taking SS before 67, say 65 or 62 is more valuable than waiting until 67 (if you make it) as it only nominally increases the payment per month - so depends on what you want, or at least maybe opt out of a stressful meaningless job after you hit the 35 year requirement that you can't really better (unless you are increasing/maintaining your higher income earner every year to increase the calculation) and maybe work art a lesser stressor job and gives your older self a well deserved break even though you aren't earning as much until you do take your social security and retire,
In the US I worked until 65 so that I received Medicare insurance. At 62, you do not qualify for medicare and have to pay for your own health insurance until 65.
Hello Tina and Norm I'm single and love the camaraderie you have with each other it's so sweet. I am 66, a retired RN and cannot find a job. I don't have the energy to work full time or in the hospital and have been off work for 6 years and need to return to work but haven't been able to find anything. I live in California. It's heartbreaking this is supposed to be the golden years. My car is paid off, I have a great credit score and the mortgage isn't too high but with everything going up it's a little scary.
Thanks for your optimism! All too frequent in the states to hear people indicate they’ll need to keep working until they hit 70 to maximize their social security - and as the time gets nearer for me, I’m beginning to think it’s true. Everybody seems to be conditioned we’ll live healthily into our 90s. Thanks again for your encouraging words, you guys have the right idea.
I think that people who earn a lower income really need to work until their FRA before beginning SS. Working until 70 will certainly increase your monthly benefit but the cost of working, especially if your job isn't "enjoyable", isn't worth it. Ultimately, in the USA, people really need to start planning for retirement around age 50...but most of us don't. That doesn't mean you start saving at age 50, but you really start PLANNING at age 50. Workplace 401k, SS, investments, pensions, etc, need to be planned out. I was 55 before I really started planning how we would draw income once we retired. I'm 60 now, have been retired for 2 years, have plenty of assets to live very comfortably for 40 years, and still watch videos and read about ways to generate income and live comfortably. If I had done all this at age 50 I would be much better off.
In Canada my CPP at 60 is about $300 a month. My partner passed away in 2017 so I have his CPP too. He and I had discussed the GIS and how when I got to 60 I could be added to his GIS and get a supplement. What I didn't know until he passed away was that there was a GIS survivor pension... thankfully the family lawyer mentioned it. It took some months to get it but it was a huge help to have it. Just saying in case there are other widows or widowers out there. Medical in BC is free for low income. You can keep working and pay into CPP if you want to bump it up. My combined pensions are $1800 a month and my rent is $900 (thankfully as the base rent around here is $1,400 lol). Also wanted to mention I think it's crucial to be out of debt before you retire. Take the CPP and make extra payments on the credit cards and watch your credit score. Thanks for your videos they are upbeat and helpful.
Some good tips here… I especially like the strategy of taking Retirement/Social Security in order to save for several years… “retire” but keep working for a little while. You DO have to be conscious that you’re not earning “too much” (I think the cut off is currently $1770/per month) or else your benefits will be reduced! However, after age 65 (the exact age varies according to your birthdate) you are no longer “punished” for earning too much and you get to keep all of your benefits. So that is one reason for people who aren’t low income to wait a bit on retirement. (As you suggest, a financial planner can run the exact numbers.) I recently did a video on retiring without a 401(k) with some complementary ideas.
I am now into month 4 of retirement and I agree with your thoughts. Monthly expenses are actually way less than I imagined. And i have time to "shop" around for best deals for example senior days. Travel isnt figured out yet but i also think i will be able to do some by going off season etc. The biggest asset I now have is time. I hope I keep learning as I go.
You have really good ideas! However in the United States, if you work while you're taking social security before the age of 67, you can only have an income of a certain amount which is quite low before you have to pay back part of your benefits. Over their set amount you have to pay back 2 out of every 3 dollars. If you stay under their set amount then yes you could save or invest either your income or your Social Security payment. I really enjoyed your video and I hope to see more! I'm 63 years old and on disability and I'm also a widow so I'm always looking for ways to make my retirement and older years a little better❤
I made an Excel spreadsheet to compare if I take my provincial rent at 60 or 65 assuming I would live to 88yo. For me, it is better taking it at 60 instead of 65 money wise. It is worth making the calculation with real number. Those calculations convince me to retire at 56 this year ( but I have no debt)
Hi Tina and Norm. Great topic. I find it very hard for someone to retire with no savings unless they own a house outright. Have no cars, and receive less than 2k monthly payments. They also would need some type help from the government. This inflation of 8% is making things worse. Be well. 🥂
In Canada it’s easier, healthcare etc, a lot of people just want to spend on the latest and greatest thing, ignoring retirement 20 or 30 years away. Great to hear from you today.
@@esbiermann62we live in the Huntsville and Madison area in North Alabama. We live on 38K a year. And we live a happy life. I must say we have a paid fro house and car. No credit card bills. It can be done. I am glad to have found Tina and Norm channel. Thanks for making a lot of people lessen the jitters of retirement.
In the US if you collect social security before your full retirement age and you earn over a certain amount ($19560 in 2022) your social security payments will be significantly reduced by $1 for every $2 over the limit.
Hi. I just love your channel and look forward to it each week. I live in the US, Minnesota actually (you may think of it as a suburb of Manitoba and Ontario). We have a number of healthy retirees remain here all year, while a large number of snowbirds live in other parts of the world during the 6 months of winter. I hope to be one of them soon. Currently, I work a full-time job in social services. I'm seeing a number of retirees move to MN from other States if one of the individuals within the couple has experienced a significant health issue and they have unfortunately depleted (or will in 9-12 months) most of their retirement savings. Once they establish residency in MN they can apply for services and if they qualify can apply for either the Alternative Care Program or Elderly Waiver program. Both programs offer services and resources to allow the person to remain in the home. They both can pay the healthy spouse/adult or family members to help provide the care (within program guidelines), get additional staffing, grocery delivery, homemaker/chore, etc.. to allow the individual to remain home and not go to a hospital or nursing home. I would think that many States have similar programs, and am not sure about Canada. While this is not a fun subject, it may be helpful for people who like to plan ahead in the event of severe illness. It happens.
So glad you enjoy our videos Joan and thanks for sharing some great information that we are sure will help others , hope you have a lovely week Cheers 🍷🇺🇸🇨🇦🌺
We retired with almost no $ at ages 62 due to health issues. Our combined Social Security is $2100 per month. How do we do it? I have 50K in my IRA which at age 72, should be about $115K ....if the S&P 500 earns a return rate of 8%. S&P return rate is 10%.over decades so it seemed a realistic goal. RMD's at age 72 will be about $415 which about 75% will go towards paying our own Part B medicare premiums. It will leave us with about $50 a month to spend. We built a 750 sq foot home on 20 acres BUT we could not afford the LEGAL requirements to build a LEGAL home in California such as you must have a sprinkler system, building Permits, etc. Very expensive. It only costs $60k to build this house... but about half that or more is required to make it legal. OurTown has 75 people with most having criminal records. $150 per month provides us a 24/7 Security System so we don't worry about crime. It also includes landline phone and fast internet. Town is off-grid yet they got a grant to install landline phones and fast fibre optic internet. Solar Power runs our home 8 months a year for free and we have the replacement equipment when it goes out. 5 months a year in winter, we use an antique stove we carry inside to cook and heat the home with firewood simoultaneously. Our spring fed pond provides plenty of water to our home so no water bill and we raise trout and chickens. We have a spring fed pond. Our chickens provide eggs+ we also butcher them and sell the babies. We have a compost pile which fully feeds the chickens for free. We add calcium thru grounded up sea shells we acquire during our yearly weekend trip to the ocean with family. I volunteer at the food pantry (located at our church) so old vegetables which get tossed out are taken out of dumpster to use for our compost. We also raise worms in our compost. Old pears from a local orchard which closed intice them. Worms LOVE pears. Monthly expenses: $150- Phone, security system, internet $325- Auto- Insurance, gas, DMV fees, upkeep (Chevy Volt, Rv and pick up truck) $50 Propane $125 Property Tax (no homeowners insurance) $50 haircuts, hygiene $50 clothes $550 Food $100 Misc $100 Bikes- Cycling clothing, maintenance, etc $50 -A weak Indemnity plan which pays a set amount. It includes 2k of dental per year, eye coverage and some accident/death benefit). My ex employer pays $1k a month for our premiums. Min wage job but this is was the main perk to stay 10 yrs. $100- Money for Birthdays, Xmas, Xmas Dinners, etc. $100 towards our weekly vacation to the Ocean $8 Amazon Prime (discounted 50% due to our low income. Provides us movies) $12 Air Flight Ambulance Membership (we are transported by Air always, no ground ambulance and this provides 2 free trips per yr) $50 Dental (For our yearly cleaning though now that we have electric toothbrushes, it's pushed to every 1.5 yrs) $10 Memberships to two bicycle clubs $140- Bike upkeep, clothing attire, maintanence ------------------------- $1875 per month expenses. Income is $2100 per month. We raise Trout and chickes. Otherwise... we spend luxuriously on Organic whole food, mostly vegetables and fruits. Our county has a large library system so a bookmobile comes up 1x a month to bring us Movies we ordered online. Otherwise we watch youtube. Fun is 2x a month when each of the local bike clubs we joined comes up on a Saturday to ride in our town. I am the leader. The Food Bank brings us leftover food. Dumps it all in front of the store, we are the last stop. We always get many dozen of organic fed eggs + Greek yogurt with expiration dates within a week or so. This means I add my chicken eggs and make a Quiche 2x a month for the church potluck. Otherwise we grow our own potatoes, and have our own chicken eggs so it is a huge bowl of Potato Salad. i wish we had more friends. Church 1x a week and cycling together 3x a week isn't quite enough. Usually another day is either a bible study or maybe our Grown son is coming up to visit. We socialize about 2x a week so that really isn't enough. However due to the cycling, we feel great and find other interests such as in our chickens, growing potatoes and raising goats. I make goat cheese and we have a good amount of milk. 3x a week of socialization is perfect however the winters can be long. It is when Bible Study starts up which is nice. We enjoy volunteering for Vacation Bible School and we have an RV so do head the two weekend family campouts which are located about 30 min from the church. Our location is surrounded by campgrounds. We have a post office and one commercial building which is a restaurant.
Wow Shelly, what a wonderful retirement you have organized, many people refuse to believe you can live in North America for $2,000 a month but millions do. We are sure your comment will inspire others. Thanks so much for sharing and have a great weekend.
You are living my dream life Melissa! Where is this place? Is it open to people moving in? I'd love to know more about your area! 🙂 I want to be able to live off the land more and be off grid!
Thanks Tina and Norm. Although I’m not in this financial situation of having no savings, and I’ve been fortunate to have had some great advise from a financial advisor back yrs ago. But I do know some people who fit this topic. Excellent suggestions, and I appreciate the research you’ve done on this. Another wonderful video. And Norm I’m a Pink Floyd fan so your shirt gets 2 👍🏾👍🏾
Im currently 31 with no savings and lot of debt. I dont have any children so i have to tale care of myself in my last few years. I am suprised to see the comments that how happy people are in the later years. Hoping to plan my retirement next year onwards. Might come back witj an update years later as cool granny 😅❤
Thank you for your practical advice, always welcomed and appreciated. Living in Canada with our universal healthcare does play a big role, especially in retirement. Like you two, we are frugal (not cheap) and are very aware of how we spend every dollar. We did not retire with a huge amount of money, but our combined pensions sustain us well and we were debt free. I can see how being single would pose more challenges, and finding every possible subsidy a must. In BC there is a program for low-income seniors, (who qualify) called SAFER thus helping them to stay in their apartments. Research is key, finding assistance, especially in Canada is there, you just have to keep digging.
Housing is always a big expense but people can share accomodations in their retirement years just as we did as students. If a person is still in good health, an older senior who needs help around the house might be happy to provide a room for a reduced rate in exchange for getting some chores done.
I stepped off the employees treadmill in 2000 at 48 and paid off the mortgage. Over the next few years an online business, MLM, import export and other bits and bobs followed (without much success to be honest). In 2004 my wife and I bought a freehold 3 bed condo in Malaysia for just £21,000 (GBP) with a long term view for our retirement. 6 years ago my wife retired from the NHS and ploughed her pension lump sum into a rundown auction property located in Wales, UK. Being in our mid 60's it was VERY risky but now, 6 years later we have sold the property for nearly 3 times what we paid. My pension is peanuts as I left full time employment at 48. If we did not take that risk 6 years ago our financial position would be very different now. We can now afford to spend a few months a year in Malaysia rent free and up to 190 days a year in Portugal (our son's place). Conclusion: It is better to take a risk to change a bad situation than to always ask yourself "what if".
Love your story Steve and I’m happy for you guys! I was looking into KL as a future possibility. What’s the maintenance cost for a condo there for 1 year, just to have an idea. Many thanks in advance. Stay well.
Hi Norm & Tina, my wife and I look forward to your videos every week. We are wondering if you’ve ever done one on the importance of having a living will as well as a will. Just as important is the need for 1 or more people knowing where it is! Our mum always told us she had a will, but when she passed away last year, we couldn’t find it. What a process it is when a person passes, and a will can’t be found! There could be a couple of videos to be made from this, if you haven’t already. Thanks for weekly topics, the positive outlook and rock on!
Hi Keith Thanks for following our videos, you are right about wills and living wills, health power of attorney, we have talked about these on previous videos. Thanks for your suggestion maybe we could revisit the subject.
I didn't start saving until age 47 now 16/17 years later lm about 202,000 with doing various tactics, saving a daily amount, working Saturdays and putting that away, yearly CDs of 6,000 to 7,000 IRAs Now able to add SEP of same amount past 3 years on my business since got debt except mortgage paid.,saving any unexpected money that l receive has gotten me there. Still plan to do what l can and collect SSI at 70 which as of now is 2,200. It's scary but lm just doing what l can and anyone reading this l encourage you to do that as well. Something is better then not trying
We did we moved to a cheaper state and cheaper town. We went from paying $700 house tax mn. to $55 or $89 with x2 car/taxes and all is good-we are still in a house though. There are benefits to the house or apt. just a preference thing.
You have some nice perks in Ontario…not so true in other provinces (no free eye exam, much larger payout before prescriptions are reduced in price). Lucky you! It was interesting to hear your ideas regarding no savings, always fun to look at things with a different perspective. We have been retired now for seven years and loving it. We started saving when we were just late teens and all the very hard work has paid off. Loving retirement.
The only way to retire without saving is having no debt whatsoever and owning your home outright A nest egg with a minimum of 50k and downsizing. The major problem is funding for health care.
How refreshing! Thank you. Lately I have been listening to a RU-vid program Jill On Money. Folks with net worth ranging from 3-5 million, rental incomes, SS and some with guaranteed pensions….all calling in and expressing angst as to whether they can retire at 60 or 62. Who created all of this angst over retirement? Perhaps the anxiety is not financial but around other issues as clearly one does not need a certified financial planner to run simulations to tell them that they will be fine in retirement. I really wish they could all hear your perspective. Granted they would not be happy with 2k per month. But there has to be a middle ground. Way too much angst about retirement money.
Thanks for watching Alexandra, we are just sharing our life as it is in the real world , and all the needing millions is a huge myth you can have a wonderful retirement on way less. Cheers 🍷🌺😎
In America, if u draw ssa at 63, u can’t make over $21,000 approx. so u would have to make this amt or less or u get cut of of ever 2 dollars over the threshold.
While this is unrelated to the content of your video, I thought it would be fun to relate this story. Several days ago, my drip coffee maker bit the dust. I ordered a new one through Amazon and it arrived today. I took a cue from one of your earlier videos and got one that I can program the coffee to brew automatically each morning. It will be great to have fresh coffee waiting for me each morning !! Now I just have to remember to set the machine up each evening. lol!!
iI have a friend 64, no savings they just bought a condo full mortgage 2 years ago. She works full time at a daycare and every other weekend as a Nanny. They have been spenders and now have nothing. It is so sad.
1- Don’t stay in the US. 2- try to have at least a few grand. 3- take social security (check SSA.GOV) 4- look at Mexico, Nicaragua, Ecuador, Colombia, Philippines….you can live on about 1/3 of what you spend in the US. 5- don’t work until you are too old to have some fun. Just my opinion….
Thank you so much for this practical video. People should realize that they no longer have to pay CPP AND EI on their pays plus you may also have union dues or parking fees. All these add up and make a difference to your bottom line.
For those of us with dual nationality being born and worked in the UK and of African heritage gives us other options when "retired". I've worked in the UK for years as a social worker and before my retirement started thinking of my options. Now on my UK pension and a small private pension living in Abuja, Nigeria for 9 months of the year. The remaining 3 months I do frugal traveling around Africa and Europe (mainly Portugal hence my getting to know your channel). This is also when I do my annual health check up in the UK as having paid tax for so many years I'm entitled to use the great NHS. Both me and my partner pay £200 each per month rent for a 4 ensuite bedroom house in Abuja which we rent out 1 room to visitors from abroad that nets us half of the rent back. And the good thing about places like Africa is your past experience can be in high demand so apart from engaging in some humanitarian work I also have a side hustle being a "soft skills" trainer to managers and teachers. This may be something to consider for some folks living in Western countries but I know it's not for most of your viewers.
Fantastic ideas Yomi we are glad you have a good retirement and wonderful you are doing humanitarian work in Africa. Maybe we will see you in Portugal one day 💕
Great topic with this one folks. As a former financial advisor and compliance investigator I agree with much of what you suggested. Particularly as it relates to retirement in Canada. Use of the Tax Free Savings Account(TFSA) by those in lower income situations where the amount they pay in income tax is low or non-existent is absolutely one of the best strategies. Withdrawals from the TFSA are not taxable and are not considered income for the purposes of calculating government benefit entitlement such as the Guaranteed Income Supplement (GIS). The same is not the case for withdrawals from registered retirement plans (i.e. RRSP/RRIF) which are treated as income and are taxable. Terrific advice.
If you have little money you can't afford that typical advice to pay a professional, so that's off the table. It's like being told to hire a lawyer when you have a legal situation and you have no money. Or see a doctor for vague symptoms. There is no money to do so. Still, for those who can manage, it's not bad advice; it just doesn't help for many of the viewers who might click on this video. However, I do appreciate your inputs and empathy for the challenges of retirement and aging.
What we were saying Virginia is as we can’t and don’t give financial advice talk to a professional which can be your bank manager or insurance advisor who don’t usually charge anything but could give valuable help 🌺
Keep in mind that CPP is considered as income and will lower the GIS amount that you will receive each year. My plan is to live on OAS, GIS and top up from my TFSA (which is not considered income), from age of 65 to 70 and then take the highest CPP that is offered. Everyone is different so working the numbers is most important. Good video!! To add to the above, I would never say no to paying CPP, it's the best payout for the rest of your life once you stop working, many people will be paid for a good 20 or more years once they start collecting. I would find a way to cut corners in another place without it being to cut CPP payments while working.
Yes good plan, delaying the CPP or QPP if in Quebec till 70 to increase the payout as well as to avoid GIS clawbacks since any income can reduce GIS amount substantially is a good way to go. Also if possible save any amounts you can from what ever and make them earn interest in a GIC (at currently 5% or higher, risk free) or some other interest paying vehicle as you move toward you target age. Something is always better than nothing...
I live in Massachusetts and was concerned what the health insurance premium for ACA was going to be - having always had employer coverage before. Very happy with my plan - $450 a month including dental, visions and hearing. My meds have $50 copay, but manufacturer covers that so it’s $0. Such a relief after you stare at the great unknown and fear a massive bill!
Hi Fiona, When researching state medical plans, Massachusetts came up as having a reasonably cheap option, glad it’s working for you. Have a nice weekend.
@@ThisIsOurRetirement yes, it helps they were first in the nation to roll out a State health plan (Romneycare 😜). People call us taxachusetts but I figure sometimes you get what you pay for. I don’t mind paying taxes if I am getting services that better me and those around me 😁
Hi Tina and Norm. another interesting discussion. Let's assume a good quality stock portfolio will return 7% pa, Taking CPP early will incur a penalty of 7.2% per annum so putting the reduced CPP from age 60 into a TFSA will put you behind not ahead, although you will feel like you have some investments. I'd suggest if you get to 60 with no savings, find some way to put 10% of your income into a TFSA and plan on working to age 67 or 68. Deferring CPP will boost payout by at least 8.4% guaranteed pa (even more if there are increases in benefits b/c of CPI). Also you need to consider the impact on marginal tax rate of taking reduced cpp together with employment income. Folks need to understand how they can generated the highest amount of income in retirement and maximize social programs (like CPP, OAS, GIS etc.) and use TFSA's wisely. ..I think your channel has shown that a worry free retirement needs some thought and planning so keeping presenting these interesting ideas to generates useful discussions. take care and stay healthy cheers Howard
Thanks Howard, For suggesting this, there are many ways to approach this subject and yours is very good for maxing out payments. Our motivation was to give someone an emergency fund, as a retirement aged person with no savings, is likely not to save anything in the future. Appreciate your thoughts on this.
Sounds a lot easier in Canada. Evidently more people there are comfortable covering expenses for those that choose to retire early, on someone else's nickle; after spending ALL their money on themselves instead of saving for retirement like responsible people do.
It is me watching again and I want to say, for some reason, I did not really hear what you were saying 8 months ago, I had just retired. But, this is fantastic information! I am going to share it with all I know! Thank you!
You bring up some really good points. I live in the USA. When working I contributed to a pension plan, retirement savings account, social security, and medicare and I was in fairly high tax bracket. I retired early and my pension provides about half of what I used to make but without those deductions and in my lower tax bracket I end up with about 85% of my home take home pay.. We got rid of one car and cook at home now so the money goes further. I pay my $1200/month healthcare premium using special funds I’d saved for this purpose but look foreword to medicare at age 65. I have a little over $100,000 in a 401k retirement account but haven’t needed it. I even have extra each month to put into US Savings Bonds. The ‘I’ series US Savings Bonds are designed to keep up with inflation and are paying 9.64% right now! I believe these are exempted from US income tax though states may. Before people move they should think about what they give up. Sometimes you get what you pay for.
Watching your video made me realize how fortunate I am. We (me and wife) had great professional financial advice early in my medical career and have nothing to be ashamed of because we simply followed our financial counselor’s advice. I am now 74 and still working full time as a medical director for a large health insurance company in California. My salary from work is substantial plus I have CALPERS (California Public Employee’s Retirement System), a US ARMY retirement (06-Colonel, 34 years of service), social security retirement, and mandatory IRA withdrawals (multimillion dollar portfolio). Both of us are in great health; I can even pass the old APFT (Army Physical Fitness Test) and wife does aerobics everyday. Young people who make and spend like there is no tomorrow may have the flashy cars and dumb Rolex’s but they WILL BE SORRY WHEN 67 years comes knocking on their door!!! 🤣🤣🤣🤣🤣🤣🤣 My Army career was not without its dangers (nearly killed or seriously injured on 3 occasions in Iraq) and being deployed to Madagascar to combat an outbreak of cholera.
Great info Norman and Tina. Once I was not working and had more free time , I was able to seek out clearance deals and money saving ideas, even though I’d always lived frugally in order to save
Hi, I love your videos. I'm 62 and was widowed many years ago. I was shocked to learn that I wouldn't get my husband's CPP, since I worked and the government will give me my CPP and only his portion until I reach the max. This is REALLY important for folks to know. Let's say a husband and wife are both at max CPP, so 2 x $1200 = $2,400, but when one spouse dies you are cut back to $1,200. No one ever tells you that! Please share with your followers!
IF the widow is NOT at the max they will get the money. BUT I was at the maximum, I was a teacher for many years, and I did NOT get more money. I hired a financial advisor and really looked into this, and that is what the rules are. I find this to be CRIMINAL because my husband put into the CPP plan, I cannot get any money from his portion. It was a rude awakening for me. Other widows need to know. BUT if they are not at max CPP, then yes, they will get CPP topped up. @@ThisIsOurRetirement
This is from the Government website! "The most that can be paid to a person who is eligible for the retirement pension and the survivor's pension is the maximum retirement pension (which is more than the maximum survivor's pension)." A rude awakening for many widows!@@ThisIsOurRetirement
In the US you are limited as to what you can make if you take SS earlier than retirement age. It was $1400 a month when my husband retired early in 2019. I guess you could pay the penalty to making more.
There are income limits of what you can earn each year prior to the year you turn full retirement age. For 2022 the amount is $19,500 and after you reach that amount there is a offset of losing $1 of benefits for every $2 you earn over that limit. Definitely something to think about before doing.
As Monya said, working income while on Social Security is limited. I was laid off at 60 but started drawing Social Security at 62, but ended up going back to work and got stung by earning over the limit. Got a bill to pay some back, but it goes back in my SS account. So I’m increasing my future monthly payments (payments based on highest 35 years of earnings). When I get some bills paid and finances in order, I’ll retire with a higher monthly payment. But you too are correct it’s a lot about evaluating future lifestyle at retirement. Probably won’t be way it was for most people while working. Reset your priorities…
I took my Social Security at 65 my full retirement age was 66 at that time I could make $18,000 a year and not be penalized that was in 2019. I worked part-time for a year and then quit in May of 2020
Another option, which nobody wants, is to enter a government assisted care home. Here in BC I believe you have to give up 90 percent of your income to get in but there's a roof and 3 squares
I live in England, UK and I have just retired at 54. I had no savings at all. How did I do it. Well I had an old job that had a really good pension that I invested in. I bought a house in 1997 and paid it off in 2022. I'm single and have no children so have very little out goings. I looked into my private pension and I have calculated that I should be fine as long as I don't squander my money. I also sell stuff on eBay and make a bit of money that way. This is the big one that helps me. I have no vices. I know people who can't retire due to alcohol and smoking consumption.
Many of my friends who are around 60 yrs of age have lived over-extended lifestyles for decades and now can't retire. Not only have they amassed considerable debt, they don't have any savings and some have no pension plans. A few have refinanced their homes to take vacations and pay for their children's debt. It will be interesting to see how this plays out over the next 5-10 years. Keep up the great work and have a lovely long weekend.
It is very sad but we all make decisions in life that can big time effect your retirement future to be good or not 🤔have a wonderful weekend Cheers 🍷🇺🇸🇨🇦😎
I can't speak to Canada but retiring in the US with no money saved will be tough, especially if you retire before your Full Retirement Age. If you claim SS at age 62-66 then your income from work cannot exceed $19.5k or you will have to give half your SS back, basically a 50% tax. Once you reach your FRA you can make as much as you want and your SS will be taxed as ordinary income, so probably 12-15%, depending on your total income. SS was originally designed to make sure old people weren't impoverished. It was never designed for people to retire early and live for 30 years. I think life expectancy in the1930s was 63 or so? My brother is 63 and has been on SS disability for 8 years after a stroke. To his credit, he has tried to go back to work twice but just couldn't handle it any longer as a high school teacher. His SS is around $2k per month. His wife is not old enough to claim Spousal benefits but when she reaches age 62 her benefit will be half of his benefit. At that point, 3 years,they will have a total income of around $3k per month. They do have some money in his retirement account but it's not huge. They basically will have to live on $3k per month for the rest of their lives. Is that possible? I guess it is but they won't be going on many vacations or buying new cars. Fortunately, both of their kids are quite successful and will be helping them as possible. My brother goes fishing with me 2-3 times a month as well as a couple of trips a year to south Florida for week-long fishing excursions. We also have an RV so they meet us a couple of times a year at campgrounds fairly close and spend the weekend. They are far from destitute but certainly can't "live large". Since she never really paid much into SS, her own benefit would be lower than the spousal benefit. They live in Alabama. My brother is on Medicare of course and his wife has a policy under the ACA. Her premium is zero monthly because of their $24k income and her coverage is very similar to a workplace plan. She has no complaints with her health insurance. Living on SS alone, even if your benefit is $4k a month, would be tough. Most people who had large, paid off homes also saved a decent amount. Renting an apartment in a decent area is going to be around $1k per month. Add car insurance, utilities, groceries, etc and you can survive...but not thrive.
I live on Social Security of $1,119 a month I stayed home most of the years when my children were growing up receive no spousal support or any of his pension I won't go into details but he had a better lawyer than I had claiming that I didn't earn anything during those years I stayed home so was not entitled to his pension. I live in Central Illinois I have been divorced 21 years able to purchase my own home and pay it off so I am able to live on my social security I did contribute a small amount to a 401k in Roth IRA after my divorce but I don't want to live off any of that till I have to take it out I'm currently 68. My ex had taken a job in Indiana and we were living there two years at the time of my divorce. I moved back to Illinois 19 years ago. So 3,000 or 4,000 income a month is quite a bit but I guess it depends on where you live and your lifestyle
I appreciate this video but find it depressing-:( How sad that people never thought to save even a little bit for retirement. I am retiring on January 1st 2023 and can almost survive just on my social security payment. I am a very Happy single person-:) People need to know what their expenses are. Gross income is meaningless. Net income is the bottom line. We live on our Net not Gross income. And financial planners love to focus on gross income to Confuse their clients in my opinion. I enjoy watching your Saturday videos.
In my younger days, I knew to save for retirement but was in low paying jobs for the first 15 work years. Everything went to living expenses. This is why many people don't save for retirement; they can't. I changed careers which made a huge difference.
Rather than starting to take your CCP at age 60 to build a nest egg of ~$45K that earns ~$2250 / yr in dividends, it would make more financial sense to not claim your CPP until age 65. The reason for this is your monthly CPP payout would increase by more than $5000 yr. True, you lose that $45K nest egg, but the extra income, which is indexed to inflation and not at the whim of the markets, has a lot of upside ..
Don't forget there is capital appreciation through the increase in share value that we didn't include. This is a "Hail Mary" move for those that can't retire. Thanks for sharing you thoughts.
In the US if you claim Social Security before " Full Retirement Age, FRA" now about age 67, you will pay a significant penalty on your benefit if you continue to work and earn above about $19,000 a year. In most cases it makes no sense to collect SS before your FRA if you are still working full time. You lose too much... And of course there is the medical insurance issue before 65..
@@theraptureisnearbelieveinj448 First, it would be political suicide for any politician to allow a disruption of Social Security payments. Currently, the government is printing money as if there’s no tomorrow. That’s a better solution than running out of funds considering the waste that those same dollars are being spent on today. Lastly, SocSec is running out of funds, but no one ever says the same about Welfare!
@@theraptureisnearbelieveinj448 I took my Social Security at 62, my children were still in school, so they got S.S also, I take about 30% of my S.S each month & put into the Stock Market.
Can be done we don't have much in savings but our cars and home is paid for no cc debt and very seldom eat out. We live in South Carolina and property taxes are low and we don't need to work part-time being out of debt is critical especially your housing rent or mortgage would make it extremely difficult
if poor Canadian. - take CPP at 60 example..200 - OAS at 65. example 330 ( for 20 years living in Canada) - GIS will top up to around 1,700 total. - Move to philipiness. You will be Rich and find young wife and afordable life Your Welcome Grannies!!!
I haven't watched this video yet. I will but it probably won't help people like me. Here's an idea for another video because there's a lot of people like me. I was forced into retirement very early. I'm living off of a small disability check month to month. I moved from WA state USA to Arizona shortly after being medically forced to retire. I gained an extra $200 a month because Arizona doesn't make me buy my own health insurance. I am barely able to pay rent,utilities,food, gas, and other house hold expenses. I'm 53 and have a little over $12,000. in savings. I'd like to buy a house but inflation has forced me into holding off. My plan was pay my house off as soon as possible. When I turn retirement age I will loose my small $900.00 disability check and it will be replaced with a Social Security check. This is why I'm worried. My Social Security check will be a fraction of what my disability check is. Plus I will have to pay for some of my health insurance plus prescription costs. My medication cost is more then my income per month. I have a few years to figure out how to maximize my my savings so when the day comes I won't end up homeless. I can afford $10-$70 a month (depending on the month) to rat hole that money somewhere. I've been putting that money in savings but it's not enough, and when unexpected expenses come up(car repairs, ect.) I take from my savings. I'm hoping for a miracle haha Got any suggestions???
You are in a difficult position and we sympathize with you, these are some thoughts we would do in your situation and we do not have all the answers and we do know life for each of us is very different and complicated. Firts I would go to the social security website, register and look for what you are projected to get in terms of SS payments at retirement age. You can take SS early at 65 and so many months. Can you start a side hussle based around the internet you can do from home, teach english online, edit or review books, write ebooks using any experience you have they can just be a dozen pages on how to...... Google online earnings opportunities. If you bought a house could you rent out a bedroom to help pay the mortgage, do you live in a city with transit and sell your car, rent one when you need to go out of town. Are you fit enough to help people shop and deliver their order. We cut our expenses by buying groceries on sale or discounted because they are close to expiry, then we freeze them. Cutting expenses is another source of income. Hope this helps however small!
I am in England and retired and feel I've planned well for the next stage of life. One bonus that I hadn't considered is as you say when you stop work you don't have so many expenses! Costs for clothing, shoes, car expenses, visits to hairdresser, etc are a lot lower. So you don't need as much 💰😊. Thanks
One thing I didn’t hear you say that should be considered. As you begin to amass some amount of money and/or receive benefits from various sources, you may no longer qualify for others because your income and savings may mean you’re no longer eligible. But, thanks for the talk.
Agreed David but your income in Canada would have to exceed $79K for the clawback to begin and lose a small percentage. This video we were really referring to low income retirees. Thanks for your comment, have a nice weekend.
Love you guys. Too bad you’re not in California, I’d invite Norm to go see Roger Waters with me this month. Still waiting to see if Norm has Rush, Yes or Genesis tee shirts?
Thank you for caring about everyone. I am in USA and basically have no savings..I just retired..I would not recommend people to take retirement early because you eill get less for the rest of your life. I started getting social security at Full Retirement Age and put that into my mortgage so house is paid off...while I kept working...also paid off credit cards and a few house repairs... I rent part of my house to my grandson and his girlfriend which helps us both and I have company. I can always go back to work if I am desperate...or maybe rent anither room. In USA social security is very unfair because it is based on a percentage of a persons highest 35 years of work and each year less than 35 = 0 in the calculation...so people that work minimum wage get almost nothing...😲 Its horrible... And healthcare is too but there are licensed independent insurance brokers people can find on youtube that will help you get the best deals. Also CheapRVliving is a great channel for ideas.. Next best one after this one. Love to all.
In Arizona you can get free medical insurance if you are at what is considered the poverty level. So, check it out at Arizona Health Cost Containment System (AHCCS). Also if you have been a homeowner in Arizona for 2 years or more you can get your property taxes frozen so that when they go up yours will not. Contact your County Assessors Office and ask about Seniors Property Value Protection Application also know as Senior Valuation Freeze.
You can’t earn more than 21500 currently if you take out social security at 62. And if you go over they reduce your ss checks the next year of not take it all. That could be hard to live on and stash the social security in the bank.
because I was forced to retire early (59), I did get a financial advisor. He recommends that I sell my house and use those funds to invest/live on. I did have around $400k savings (I saved like a maniac for 12 years), but the downturn cost nearly 80k. My house is SO close to being paid off, and I am considering giving up the only car I own (it is 17 years old, but works great) because lyft is so convenient and I don't go to many places. But until I am 62, the advisor has said I will run out of money unless I find cheaper digs and/or figure out how to make 1k per month. And yes, it is healthcare here in the states that is causing all of this mayhem. I did cobra for the remainder of the year, which I know is expensive, but I had already met my 7k deductible, so it ended up a cheaper option for me for this year at around 1k per month. (do you see a pattern here with this 1k stuff? lol)
Is your "financial advisor " a certified financial planner? Your story sounds like a success story, but you are thinking of giving up both your house and car!
Don’t sell your house if it’s almost paid off. Sounds like crazy advice. There are many retirement calculators online. Use them. Open an account at Social Security and find out how much you will be getting. Get on the Affordable Care Act site and see if you qualify for subsidies. Also, your investments will bounce back! Hang in there.
@@ThisIsOurRetirement unfortunately, I already did that. I don't buy squat. I haven't had a haircut in over 5 years, for example. I get sick of how long it is? I get a scissors out. I have free streaming, but I may go to a cheaper internet (unreliable) and a cheaper cell phone plan. I budget 40 a week for food, and that is getting to be a challenge. I don't go anywhere so gas is about 20 bucks a month. It's the healthcare that is killing me and isn't that ironic!
Watching from DFW Texas, luv the channel, thanks ! Health care is the issue here, its a hot mess. I will look into state differences in medical based on your advice, thanks!
I think that deferring CPP as long as possible is still the best way to get more money in retirement. CPP at 60 is $700 month, CPP at 70 is well more than double
Depends how long you expect to live, etc. I will likely take mine later (or at least 65) unless something happens with my health before then and I don't expect a full life. I would like to look poor from 65-70 so I can collect GIS and OAS (drawing from TFSAs for the shortfall). Then once I collect my CPP it should be more.
Using that logic suggests you take it one month before the last possible 'retirement date" , but this option is tricky in that you might die a few months later. Taling it early at least means you've actually had it and had the opportunity to spend it when younger and healthy. A bird in the hand and all that. Tough decision.
@@johnristheanswer When you are dead at 71 you do not need the money. When you are alive at 85, that extra CPP may come in handy, considering we are talking about a man with no resources
In the US there is Medicaid, but you have to have used up or lost all your income and assets, essentially, even your house, to qualify. Mostly this falls to long term care no one but the very wealthy can afford. As to taking US Social Security early (62) and investing it ongoing in a very safe vehicle like bank savings accounts or certificates of deposits, there's no point in doing that since Social Security increases by more than that year over year. You might as well just let the government keep it and then at age 70 (or as long as you can wait) get a much higher payment from the government for the rest of your life (nearly double). In 2008, being self-employed and at age 59, I started not making much money due to the Great Recession. I had a paid off new car and a paid off newly built house on 5 acres, down sizing from a big city property. At 62 I started taking Social Security; I needed some of it to live on for a couple of years as I limped along with my business, investing the leftovers and then all my future payments in a target retirement account with Vanguard along with an inheritance I received in 2008. This coincided with the longest bull market in stock market history, far exceeding what SS would have increased during that time period. I retired at age 71 due to the pandemic with over $400,000, feeling I'd be okay if I lived frugally for the rest of my life which I knew well from my youth. Fortunately, all that government money due to COVID sustained me for a year. Unfortunately, the recent "correction" (crash) of the markets has me down $50,000 just as I need to start drawing from my savings. I'll never be able to see it increase/recover with constant withdrawals. Now I have to be extremely frugal, but I won't starve. It would help if the US had universal health care similar to Canada and we let Medicare negotiate the price of drugs. My general advice for most circumstances, however, is to never take SS early and shoot for age 70.
Thank you both for the platform you've created, catering to singles, Canadians, and Americans. Your rock star explanations 😀have given me hope after a layoff. Please continue sharing retirement knowledge and Cdn side gigs to supplement suitable for those over 60 starting over with children in post-secondary education, especially those earning less than $50k annually. Grateful for your insights. God Bless U Both! 🙏💚👼
