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The pension industry’s wish list for tax reform

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Cliff Hayes:

One of the greatest challenges I see for retirement planning is the shift in marital lifetime planning. Couples today who wait 10 years to start a family, so they can pay off university education debt, buy a house, or whatever, are faced with another university education dilemma when their child(ren) require financial support. The peak of their income cycle now shifts 10 years, when they could put money away for retirement, but they have the child’s education commitment as well. Compound that with the fact that 50% of marriages break up, with asset redistribution, and housing issues complicating the plan. Housing costs, inflation and taxes eat away at the middle income disposable income, and marginalize the majority of Canadians. The majority of assets for Canada’s largest DB plans are invested outside of Canada, while the burden of losses way heavily on all Canadians.

Friday, March 16 at 11:00 pm | Reply

Joe Nunes:

“But I want to go to Hawaii for holiday or buy a boat”. You can see why so many Canadians are under-saving for retirement.

Cliff is right – I am not saying you should stay in a bad marriage but living as a single rather than a couple is just more expensive so people have to accept that if you don’t want to have a partner to share expenses then you need to make more sacrifice on your own.

People who are not expert in finance don’t realize the benefit to saving for retirement their parents and grandparents gained by marrying young, having 3+ kids, and staying together for 50+ years – sometimes in the same house or two houses at most.

Wednesday, March 28 at 8:31 am | Reply

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