Average Annual Retirement Pension Income Canada

Ready for retirement? Read on and find out the statistics.

Average Annual Retirement Pension Income CanadaThinking about retirement? Are you financially sound? Debt free or still fully loaded?! Want to retire and yet can’t afford to? How much need you save to retire comfortably? Check the following statistics and see if you are on par with or better than other senior retirees.

Retired Seniors aged 55 and over
Average net worth of retiree = $295,000
Average annual retireee household income = $42,000
  * 86% of retirees able to pay bills
  * 82% of retiress able to meet financial obligations without a problem
Average debt of retiree = $19,000
  ** only one third of retirees have debts
  ** only 17% of retirees with debts over $25,000
  ** only 5% of retirees with debts over $100,000

Compare your pension with annual pensions of your local MP’s.

One in three retirees still in debt, but most happy with finances: report

OTTAWA – A comprehensive look at Canada’s five million retirees suggests Grandpa and Grandma are getting by financially in their golden years.

Yes, as many as one third are still in debt, but that means two-thirds are debt free. And of those with debt, one quarter of that group owe less than $5,000.

The results of the 2009 Statistics Canada survey may seem surprising in light of post-recession worries about rising debt, stock market losses and stretched private pension plans.

But Katherine Marshall, a senior researcher with the agency who analyzed responses from 3,730 seniors aged 55 and over, says the findings suggest those experiencing difficulties remain in the minority.

“Most retirees are debt free and a majority report high rates of financial security,” she said, while cautioning that any level of debt can add to financial insecurity among retirees, who have limited opportunities for increasing income.

That may be especially true for the just over five per cent of respondents, representing 281,000 retirees, who report still having debts of more than $100,000.

But the report also shows that retirees who owned homes and reported the highest annual income were the most likely to be carrying debt, in part because they could afford to.

The most encouraging findings are found in the section describing how retirees themselves describe their situation.
Almost 80 per cent said their current financial standard of living is equal to or better than what they assumed it would be before they retired.

Even more, 86 per cent, said their income was sufficient to pay the bills and 82 per cent said meeting their financial obligations was not a problem.

CIBC economist Benjamin Tal, who has written extensively on subject, said there is no question the majority of Canadian seniors have enough money to retire.

“The issue is not whether or not people are going to be able to afford to retire, the issue is that they will not be able to afford the lifestyle they would like,” he said.

The Statistics Canada study also deals only with retirement as it has been, not what it will be like in the next 15 years as the baby boomer generation comes to the end of the traditional working age.

Tal says baby boomers will have the demographic and political clout to shape retirement to their liking, including working longer, or moving to self-employment.

“The surprise will be how small a number actually choose to retire … and those who cannot afford to retire will simply continue to work and the news is that employers will accommodate that,” he said.

One of the surprisingly aspects of the Statistics Canada study in fact does show that Canadians 55 and over who are still in the labour force are carrying much bigger loads of debt than their retired counterparts.

Some of that may be by choice, but Marshall said other studies have shown about 40 per cent are those who feel they cannot afford to quit working.

Other findings in the survey are that couples tend to have less debt than divorced retirees, but those who were never married and widowers have even less debt. As well, the older Canadians get, the more likely they are to be debt free.

Of the 34 per cent who report having debt, more than half say they owe less than $25,000.

Overall, retirees have a medium annual household income of $42,000 and net worth of $295,000, and a medium debt of $19,000.

A drawback in the study is that it a one-time snap-shot so the agency cannot establish a trend to show whether the situation is improving or deteriorating. Marshall said comparing similar data to retirees in the United States does suggest Canadian seniors, on average, are more financially secure.

Source: yahoo

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11 Responses to Average Annual Retirement Pension Income Canada

  1. James on 2018/02/27 at 12:00 pm

    The whole concept of Retirement is to plan early not later…..so many complain about lack of income in retirement years….mainly because they didn’t plan floor retirement in early years. Many expected the gov’t too look after their retirement….impossible reasoning.
    I raised two kids 40 years ago on $125 a week…bought a house with 3 grand downpayment…and carried two mortgages. Also worked 3 jobs to carry the expense….zero luxuries, drove a old used car.At age 66 today and retired in my 40’s from proper planning…comfortable income of 80 grand a year….and have never received any company pension…just the OAC and CPP at total of $1,100 per month. It can be done if you put in the extra miles while young….my daughters have learned my financial reasoning and today in their 40’s….have paid off houses….numerous investments for their retirement…again a plan put in place many years ago.
    York Region Ontario

  2. Georgette Anto on 2017/07/25 at 3:52 am

    The Government of Canada lies to all Canadians on many things, including pensions.

    In respect to retirement income and benefits as public servants, we are obliged to pay 4% of our bi-weekly gross income into our Superannuation Annuity fund. Should we decide to leave prior to our pensionable years, this Superannuation Annuity (used to be) at one point, that we can take it out in part, in full, or left in our account. If left in our account, it becomes a part of our eventual pensionable income.

    Years ago, as I was contemplating retirement from government, I spoke with a lawyer friend in regard to my pension fund and questioned whether I should leave now or stay for a better pension at a later date. He strongly advised that I take it out immediately for two main reasons:- one, that by the time I reach my pension, the dollar value will be much less and will get little in return; secondly, by the time I reach my pensionable age, most likely there will be no money in the government pension fund, anyway.

    What happened a while back, the Federal Government invested BIG MONEY in blue chips and lost BIG TIME! As a result, our pensions got lost in the shuffle and we are now poor pensioners.

    Government mismanagement of money and lies and not caring about its people is driving all of us into poverty.

    To me as well as other pensioners, the rent and facilities alone take the largest percentage of our tiny pension. The yearly increase in our pensions is so laughable it is hard to contain our madness.

    I sincerely question how I am going to be able to pay my rent in ten years from now because the cost of living is very much higher than our very tiny increase – it is very sad indeed …

  3. Mia on 2017/07/06 at 12:03 pm

    Employer supported pensions? Too many people without one don’t even know how that works. I have one. The employer supported part was considered a part of my salary, and I contributed over $1000 a month for over 25 years. Without the negotiation of the employer supported part: that would have been take home pay instead. Like most private sector workers who have skills. Most private sectors, and their employees, ( plumbers, electricians, all the trades etc) made FAR more than I ever did as a public museum employee. I paid for my modest pension. You too could have a pension if you had the self discipline to further your education and acquire a skill, and if you put away a reasonable amount of your salary each and every month for 25 plus years, and then invested it.
    Provinces now are setting up a provincial pension where everyone contributes a percentage of their monthly income to create another pension to supplement CPP and OAS . There’s lots of balking at having to be ‘forced’ to save for the future in this way by some. Of course. Spend it all, be foolish with your money, acquire massive debt, don’t bother to work toward acquiring skills when you are young, and then complain that you can barely make it in retirement. PLAN. CPP and OAS are important to supplement pension and retirement incomes, but ask yourself how much spending you do on multitudes of things that you don’t need ( money that could help you provide for your future). In Canada, you can take advantage of loans and bursaries to get further education and skills. If you choose to not improve your job prospects with further skill training, then it is a choice for your future and your income. Choosing to improve your education and skills is an investment in your future income. Not doing anything, settling for unskilled credentials and income, and then grumbling about people who put in the effort , money, and time, to acquire skills and education is just idiotic.

  4. Julius Varadi on 2017/06/28 at 3:18 am

    This is total bullshit. The vast majority or retirees are living in poverty.
    Why the government and the CIBC choose to gloss over this very sad reality is beyond me.

  5. Boots on 2017/05/12 at 4:38 pm

    Actually this is reasonable. For someone who has a modest pension, CPP and OAS. And selling their home and downsizing, using the equity to offset any shortcomings in regards to retirement income. $3,500 Canadian a month is more than ample and a modest amount. If you’re willing to part with city life, I’m sure you could get by on $2,500 easily providing you own your own smaller property. There are ample smaller communities with good ammenities (Hospital, Transit, Shopping, etc).

    • Judy on 2017/10/08 at 12:48 am

      You are right .We are a retired couple with a net monthly income of 3600$ ,and doing well ,even able to take a trip once a year.
      We don’t eat apples and oranges ,made of of gold ,but doing just fine.

  6. Jesserocks on 2017/03/17 at 9:37 am

    Most people don’t reallly give a lot of thought to organizing their retirement. Thinking outside the box is really important, if you want to have more than an average retirement (or life for that matter). The people who say it’s impossible to have more than a moderately comfortable life don’t want to ever take a chance, and therefore never have a chance at a windfall that can make life much more incredible. And yes I know that chances don’t always go the way you want them too (I have had a couple of $100,000.00 screw ups, and they were my own fault) but if you have more successes than failures, there will be success eventually. Don’t look to anyone else (especially the government) to fund your lifestyle…..
    I’m a grade 12 graduate (barely), who’s parents were labourers that never had anything, and I managed to retire quite comfortably…..if I can do it anyone can. Don’t make excuses, make plans.

  7. Debra Simms on 2016/08/22 at 8:18 pm

    CPP, combined with OAS, was supposed to provide a reasonable, secure income for people facing retirement. Your glib response to George’s outcry is insulting. Many companies don’t provide pensions and many jobs barely pay enough to raise one’s kids and pay the bills without much left over for savings. RRSPs are great, when they don’t lose your money (as mine did) due to political events in the USA. That $295K “Average net worth of retirees” is mostly based on real-estate, but if you never earned enough to purchase a house, the steadily increasing cost of rent eats away a huge percentage of your retirement income, and if there’s low-cost housing available for retirees in your area, it’s generally in high-crime areas and is of poor quality. Personally, I’d like to see a basic income that meets the minimum requirements for a secure, healthy lifestyle. I’m not talking about taking an annual cruise or having a housekeeper. I’m talking about paying the rent and putting decent food on the table, being able to pay for prescriptions and buy a new pair of shoes once in a while. Here, in the Lower Mainland of British Columbia, $1069 won’t even pay the rent and utilities!

  8. George Dz on 2016/01/30 at 8:05 pm


    • Alain Monette on 2016/03/22 at 5:10 pm

      Well George, sounds like many retires have other sources of income than merely CPP and OAS to fund their retirement. Many Canadians have employer supported pensions RRSPS and the like. It was all in the planning for retirement!

    • DB on 2017/01/21 at 1:52 pm

      Average , the lunatics that were able to buy RRSP or a home and possibly have a small pension . Every auto worker and government employee for instance. Not lies for 30 years we have been bombarded with info about retirement.

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