Is a pension alone enough to retire on?

Financial Post | Business

Financial planner and FP columnist Jason Heath helps readers shed light on everyday financial decisions. Send your questions to personalfinance@nationalpost.com.

Betty-Anne asks My husband will be 62 in June — he will have a government pension (he worked 17 years) — no savings due to a divorce three years ago — he is working in a very stressful job and we are thinking of early retirement. I am already retired at age 65 and I am collecting CPP and OAS. Will there be a substantial difference in his income when he retires?

Jason Heath responds Let’s look at the facts for Betty-Anne and her husband. He’ll have a government pension, which typically replaces 2% of earnings times years of service, so call it 2 x 17 = 34% of earnings in his case.

That’s certainly a big drop in his income, but if you add in Canada Pension Plan…

View original post 428 more words

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: