Good morning! Retirement plans have a way of not going as scripted. Today's issue is about that gap between the plan and reality — and what happens when the assumptions you're counting on don't hold up.
On The Money Today:
Why your retirement savings could run out faster than the 4% rule promises
What it would actually take to strip a pensioner's right to vote, and why the Charter says it can't happen
"I'll just work a few more years" isn't the backup plan you think it is
Let’s dive in.
RETIREMENT
One retiree spent $1 million of his $3M retirement fund in just three years. Now he's rethinking how much he can safely withdraw each year without running out. We break down a sustainable withdrawal rate, plus the RRIF and OAS rules that can quietly work against you.
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NEWS
Tobi Lütke argued retirees living on a pension should lose their ballot entirely, comparing them to legal dependents — but Section 3 of the Charter puts your right to vote out of the government's reach, even from the notwithstanding clause, so here's what it actually means for the 6.4 million Canadians collecting CPP.
FEATURE
Nearly half of Canadian retirees end up leaving work earlier than they planned — often due to health, layoffs or caring for a family member — so Suze Orman explains how to protect your RRSP, CPP and OAS if an early exit happens to you, before it derails the rest of your retirement.
MONEY IQ
Canada's "normal" retirement age of 65 wasn't always the standard. What age did Old Age Security first apply to when it began in 1952?
ALSO MAKING THE ROUNDS TODAY
AUTO INSURANCE: Wawanesa denied an Ontario family's car insurance claim over an unlisted driver, and now they owe $26,000 on a car they can't use
HOW TO EARN MONEY: A Canadian has $3,000 left over every month after expenses: the smart way to invest the surplus
INVESTING NEWS: Ray Dalio says the U.S. just had its 'Suez moment,' and here's what a weaker U.S. dollar means for Canadian snowbirds and savers
MONEY IQ: HOW'D YOU DO?
Answer: D: 70 — OAS didn't drop to age 65 until 1965.
That's a wrap for today! Before you go, we'd love to know what you thought of today's newsletter. Hit REPLY if you have more to share — we read every reply.
