Finance: A Piller of Modern Retirement
The financial goal of the
vast majority of retirees is not to accumulate wealth in itself but to have
sufficient resources to provide security and the freedom to live the lives they
want. Many retirees find that managing Money in Retirement can be even more
challenging than saving for it. Overwhelmingly, the issue of affordability was
one of the most prevailing concerns of seniors in every community. Due to the
rising costs of living, many of us report we cannot afford our rent, pay bills,
buy food, find money for home repairs or pay for over-the-counter medications
and other health-related expenses.
We work our entire lives and feel strongly that Pension incomes are not enough to meet
our basic needs. This has placed significant pressure on organizations to
stretch funding to support seniors in their communities. It is not
surprising to hear about the financial hardships experienced by low-income seniors,
as 50% of B.C. seniors have incomes that are less than half of the incomes of
the working-age population. Government pension incomes for seniors have not
kept pace with rising costs and in B.C., 31% of B.C. seniors receive the
Guaranteed Income Supplement (GIS), a monthly federal benefit for seniors with
low incomes. The number of seniors receiving GIS has increased by more than 20%
over the past five years, from 263,764 to 319,428 seniors.
In B.C., if a senior receives
the GIS, they may qualify for the BC Seniors Supplement (BCSS), a monthly
provincial top-up income benefit for low-income seniors. In 2022, 91,539
seniors received the provincial BCSS.
The Ministry of Social
Development and Poverty Reduction increased the BCSS in 2021 for the first time
since 1987, from a maximum of $49.30 to $99.30 per month for single seniors.
However, most single seniors receiving BCSS do not receive the maximum, and the
BCSS is not indexed to inflation, whereas the OAS and GIS are indexed. The BCSS
continues to be ranked the fourth lowest subsidy in Canada.
Service providers shared
their concerns about seniors who say they are falling further Seniors and
service providers are concerned that rising costs are pushing more older
people, who are often on fixed incomes, into poverty and homelessness Many
service providers stated the rising cost of living Even in today’s volatile
market, retirees’ greatest financial worries are unexpected expenses and the
cost of health care and long-term care. One in four seniors in B.C. live on
incomes of less than $23,000 per year. This is a significant cause for concern
when B.C.’s poverty line threshold for a single senior is estimated at $25,000.
While many British Columbians struggle with income and affordability issues,
low-income seniors face disproportionate barriers, especially single seniors
living alone, because they often live on fixed incomes. The key to financial
preparation is looking holistically at how one wants to live in retirement, not
just how much money may be needed and planning how to do this well before
retirement.
Originally Published on https://boomersnotsenior.blogspot.com/
