The recession has definitely set back more than a few retiring Canadians which means they will have to work a little longer than planned. That could mean another year, or for others, it could mean another few years. If you’re looking for tips on places to invest other than stocks and real estate, here are some ideas that may help you reach Freedom 65 after all.
Many economists are suggesting people look at their invisible assets. First up on the list, government pension plans including CPP / QPP and Old Age Security. If you’ve worked in Canada your entire adult life and retire at 65, you are entitled to Canada Pension Plan benefits. You are also entitled to Old Age Security pension simply by living in Canada for a substantial period of your life. These government programs often provide more than people expect. Between CPP / QPP and OAS, you can be paid a combined $17,000 per year. Also, government stipends cover a large amount of your basic living costs. Assuming your house is paid off and your kids have moved out, one can easily live off 50% to 60% of what we earned during the working years.