Hello everyone it's great that you can join us again and today we are talking about wether
you can live on a government state pension in Canada - And incase you haven't been to
our channel before we are Tina and Norm and we talk all things retirement and travel
and lifestyle and whatever we fancy chatting about hey Norm - We do indeed - Ooh today we have got
our favourite coffee and shortbread cookies yay! - So we were wondering wether people who
haven't got to retirement yet wether you know how much you're going to be getting as a state pension
in Canada and can you live on it if you don't have any savings so we really just wanted to
put some numbers out there and then tell you a little bit about what we are getting
as financial amounts so firstly how much does the average person get in
Canada Tina - Well it's broken down to CPP and OAS - That's right what is the average
state pension for people in Canada - So the average CPP works out to be
$714 and the average OAS is $614 so that gives everybody a total of say $1328
and then if there is two of you times two so that's going to give you a monthly average
of just over $2600 isn't it Norm - That's right and these are figures according to
the government of Canada as averages across Canada - So you're looking for an average couple in
Canada just over $2600 a month - That's right so that's a bit lean so if you don't have any savings
that's what potentially looking forward to now if contributed at and earned at a higher levels then
obviously you're figures might be different but not too much different from what we illustrated
so what we are really trying to point out is the importance of savings for your retirement
because if you don't then there is very little luxuries and there's not going to be any travel
on the horizon really in retirement all those are quite expensive so anyway why don't we tell you
about us and what we are earning in retirement to put it into perspective Tina and I spent half our
working lives in the U.K. and half our working lives in Canada - That is correct - We have been
able to get a state pension for me from the U.K. - You just qualified - At 66 Tina will be looking
to qualify at 67 - Yeah they keep putting the age up - They do, that's a combined income for us of
$2695 and that's made up from the U.K. Old Aged Pension and the Canadian Old Aged Security and CPP
and Tina's CPP as well so we might have a little increase when Tina gets a U.K. pension - Plus
remember Norm when I turn 65 this year it will change and go up a little bit - That's right
you will qualify for the OAS Old Aged Security so potentially we could be looking at around $3,000
all in per month from government state pensions - So we are just a little bit above what we
are doing as a Canadian average per month - Yes and the other thing is that we have our
living expenses down quite frugally and I bet we're got carrying cost's of around $2300 a month
including our rent, internet all that good stuff and food - Yeah and because remember of course we
were lucky enough that we came into rent our apartment 6 years ago now so the rent we're paying
we're grandfathered into which is significantly lower than what it would be now - It is - So we
got it - But that would be true of anybody who came into this building today and in 6 years
time they would be paying a lot less than market rates as well because of how rent control works -
One thing we are really saying is yes you can live on the Canadian state pensions but you would
have to be kind of watching your pennies wouldn't you Norm there wouldn't be a lot of luxuries like
dining out or certainly travel I don't think would be in there - No and one of the major expenses we
took out of that because we paid out of capital was a car so we bought a used car a few years old
and we paid cash for that so once again if you have a car payment - Then that adds to it doesn't
it - It does indeed, we do encourage you that if you have travel in your retirement on your plans
you should be saving and you should be creating a fund and having an emergency fund as well
just to take care of everyday things but if you're confident that you want to live
a frugal life and you can live on $2500 a month then the government have you covered with the
state pension - Yes they do don't they - They do anyway thanks for watching - And we hope
that everybody is staying safe - And keeping well - Until the next time - Bye bye, Bye bye