How to manage as a single parent with no pension + MORE Sep 7th

If you’re worried about your retirement, you’re not alone. Thanks to the growing gig economy and other changes to the workforce, these days fewer than two in five Canadians have a workplace pension plan to lean on. And if you are a single parent, saving for your twilight years only gets trickier. 

“If someone’s not lucky enough to have a company pension, it’s that much more crucial for them to be building up savings on their own,” says Millie Gormely, a Certified Financial Planner at IG Wealth Management in Thunder Bay, Ont. “But that’s really hard to do when you’re supporting yourself and your kids, because you’re having to stretch that income that much further.”

As of 2022, there were about 1.84 million single-parent families in Canada, and they face unique financial challenges. For starters, the primary caregiver may be covering more than their share of the responsibility and cost of raising their kids, footing bills for everything from food to clothing and childcare…

With most mortgages facing renewal by 2026, a lot of Canadian home owners are staring down steep increases in their mortgage payments. At a time when household finances are already stretched thin, many could see their mortgage payments go up 20% to 40%. But, “in many cases, the news isn’t as bad as people think,” says David Larock, a mortgage broker with Integrated Mortgage Planners in Toronto. Instead, he says, there are a number of strategies that can be employed to manage mortgage payments. The key is to talk to a mortgage expert to ensure every avenue is explored—and not to panic.

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Who’s facing higher mortgage payments? 

The impact of higher rates depends on the type of mortgage borrowers have. “Fixed-rate mortgage holders aren’t affected until their fixed rate comes up for renewal,” says Larock…

Kyle Prevost, creator of 4 Steps to a Worry-Free Retirement, Canada’s DIY retirement planning course, shares financial headlines and offers context for Canadian investors.

Macklem says we could see a soft landing

For the third straight month, the Bank of Canada (BoC) decided to cut interest rates. The quarter-point cut takes the Bank’s key interest rate down to 4.25%.

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The news that’s perhaps bigger than the widely anticipated rate cut was how aggressive BoC governor Tiff Macklem sounded in his prepared remarks. Macklem stated, “If we need to take a bigger step, we’re prepared to take a bigger step.” That sentence will be focused on by financial markets looking to price in larger potential cuts in the months to come…

If you’re approaching or planning for retirement, you may have questions about Old Age Security (OAS) benefits, like: Do I need to apply for OAS? How much will I receive in OAS? When do OAS payments go out? We cover these questions and more below. But first, here’s a quick overview of how OAS works.

About Old Age Security (OAS)

Old Age Security benefits are monthly payments made by the federal government to supplement the income of eligible Canadians age 65 and older. Along with the Canada Pension Plan (CPP) and personal savings, OAS contributes to financial support for older Canadians. CPP and OAS payments are issued on the same dates.

OAS payment dates for 2024

January 29, 2024

February 27, 2024

March 26, 2024

April 26, 2024

May 29, 2024

June 26, 2024

July 29, 2024

August 28, 2024

September 25, 2024

October 29, 2024

November 27, 2024

December 20, 2024 

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Ask MoneySense
I am retired and, like many seniors, don’t like touching my savings. However, I would like to figure out a decumulation strategy. Can you talk more about how to do this as my husband and I are towards the end of the Boomers.

Note we have already taken our CPP so much of what I have read doesn’t apply to us.

—Donna

Donna, if you are at the tail end of the Baby Boomer generation, I am guessing you are in your early 60s and you have, what, maybe 20 years of active living left? Sound about right? What do you want to do with that time? I’m hoping you see that as motivational. 

Working as a financial planner, I am often asked, “What is the most tax-efficient way to draw down on investments?” From the outset, I question if a decumulation plan based on tax efficiency is the best use of someone’s money. I wonder whether it is even possible to design “the best” long-term, tax-efficient withdrawal strategy.  

I have modelled many different combinations of withdrawal strategies, such as RRSP first, non-registered first, blending the two, depleting registered retirement income funds (RRIFs) by age 90, dividends from a holding company, integrating tax-free savings accounts (TFSAs), and so on…