The retirement preparation and affordability based in how much retirement savings and what types of assets do you currently own in dollar valued.

Cost of Senior Living

In this recent summer months of 2024, I am helping a friend who own a million dollar farmland, however as most farmers did not put away a large sum amount of RRSP savings plan, it is extremely difficult to get in into subsidize housing, since the costs of living it has been sky-rocketing in the last decade, most of senior is having to choose between assisted living and independent living costs from CAD $4,000 to $6,000 a month, for a bachelor suite to 1 bedroom accommodation that is less than of what you expected with basic needs included.

Retirement Affordability

The common question about retirement is how much money do I needed to save to retired, and generally, as I explain base in 2024, cost of living it is impossible to estimate and calculate as depending on how much do you want to spend for extravagances.

Lifestyle After Retirement

It’s all depends on what type of lifestyles you prepare after retirement aside from the cost of living tax and fees plus whatever you may have save for unexpected expenditures; setting up monthly budget in general for income tax, mortgage, car loan, rent, utilities, clothing, gifts, donations, miscellaneous expenses, vacations, food and gas is wise idea’s since being retired is fixed income earners.

Costs & Expenditures

Although, for most people nowadays, barely can afford to retired at age 65 since inflation is raising the cost of living in the meantime senior with fixed income earner, will not be able to enjoy and afford a cup of coffee to met with their friends, the worst scenario’s there are still a tendency, to work after retirement at age 65, to subsidizing their income and to keep an active lifestyles up to age of 85-99!

Old-age vs. Young-age

The costs of old age living, is higher than younger living in comparable to the associated expenditure with flexibility where when young we can easily adjust to what’s work for us, whether it is financial matters and/or living quarter/space the young people’s with flexible to work with extra job’s in order to afford.

Long Term Savings 35-40/yrs.

Old-age planning preparation begins immediately ASAP start working then start savings towards retirement to gain a higher pension at age of maturity working full-time in approximately 35-40 years a retirement to reconsidering your fixed annual income and expenses such a; your pension income tax, annual property tax if you own your home or you may consider to downsize less yard work and property maintenance, other cost asides from food and gas is health insurance coverage and you may also, consider to prearranged your funeral ahead of times; less hustle for family members.

Retirement Pros and Cons

The retirement pros and cons plan once seen as a privileged awards for years of hard-worked retirements is regarded as right as most people have contributed part of their monthly earnings paycheck toward their post-retirement old-age income for many women’s workers through, these contributions will not be sufficient to provide for their futures and financial needs because they have been in and outs of the workforce due to the demands of child-raising and marriage or common-law parenting to raised their children’s are often the other in low incomes and or part-time jobs and in services position retirement plan is not covered by pension plan.

RRSP Benefits Advancement

The benefits of registered retirement contributions, where the contributor can deduct his/her RRSP contributions against his/her gross annual incomes (example) if the contributors tax is 33% percent, per every hundreds he/she invested into his/her RRSP registered retirement savings plan in tax up to his/her contribution limits; independent investor’s and business owners RRSP contributor’s investment is tax sheltered; the investments returns are exempt from any capital tax gained, tax dividend and any tax meaning the investment under registered retirement saving’s plan are compounded at pretax-rate.

RRSP Tax Disadvantage

The RRSP early withdrawals tax can be daunting painful as old-age knee! and a neck pain with a heartache’s to pay tax when it comes to early withdrawal, tax is payable immediately. RRSP vs. TFSA the secondary options to save from taxes is the alternative solutions in long term investments perspective is particularly important knowing what’s going in your hard earned money to save on highest-rate tax.

RRSP’s investment income usually is tax exempt from any tax if remains in the RRSP plan to mature that is paying you a retirement income. RRSP registered retirement savings plan is transferable to a spouse and or common-law partner upon death.

Retirement Preparation Guidelines

The income tax for those who worked over 35-40 year’s with large-sum of savings tax payable varies depending on which provinces and per individual income bracket tax rates between 15% percent up to 53.5% percent base in 2024.

The carryover contributions from 2007 to 2024, reference to looking back since the beginning of the companies establishing the transformation of private independent investing.

RRSP registered retirement savings plan, carryover contributions from 2007 to 2024-2025, breakdown over 10 year’s. Associated with TFSA tax free savings accounts.

Carryover Cont. RRSP & TFSA
2025 RRSP $*

The year of; 2024 RRSP $32,490 & TFSA $7,000 / 2023 RRSP $30,780 & TFSA $6,500 / 2022 RRSP $29,210 & TFSA $6,000 / 2021 RRSP $27,830 & TFSA $6,000 / 2020 RRSP $27,230 & TFSA $6,000 / 2019 RRSP $26,500 & TFSA $6,000 / 2018 RRSP $26,230 & TFSA $5,500

RRSP registered retirement savings plan, carryover contributions from 2007 to 2017, breakdown over 10 year’s. Associated with TFSA tax free savings accounts that it was first introduced in 2008, by Liberal Party of Canadian Government.

In the year of; 2017 RRSP $26,010 & TFSA $5,500 / 2016 RRSP $25,370 & TFSA $5,500 / 2015 RRSP $24,930 & TFSA $10,000 / 2014 RRSP $24,230 & TFSA $5,500 / 2013 RRSP $23,820 & TFSA $5,500 / 2012 RRSP $23,820 & TFSA $5,500 / 2011 RRSP $22,970 & TFSA $5,000 / 2010 RRSP $22,970 & TFSA $5,000 / 2009 RRSP $21,000 & TFSA $5,000 / 2008 RRSP $21,000 & TFSA $N/A / 2007 RRSP $19,000 & TFSA $N/A