Retirement marks a major life milestone, symbolizing the shift from years of dedicated work to a well-earned period of rest and leisure. For Canadians, retirement planning brings unique challenges and opportunities. Understanding the financial landscape and identifying resources that can ensure a comfortable and secure retirement is crucial. In this blog post, we’ll explore key aspects Canadians should consider when planning for retirement and how the CHIP Reverse Mortgage can help fund your clients’ golden years. Sharing these with them will not only serve to deepen your client relationships; it will also demonstrate how you continue to have their best interests at heart.
- Women need to save more for their retirement than men do. Several factors contribute to this disparity, including lower lifetime earnings, career breaks for caregiving, and longer life expectancies. Understanding this gap is essential for women who must take proactive measures to secure their financial future.
- The Canada Pension Plan and Old Age Benefits help. The Canadian Pension Plan (CPP) and Old Age Security (OAS) are crucial components of retirement income for many Canadians. Ensuring your clients understand how these benefits work and how much they can expect to receive is vital for effective retirement planning. For example, for 2024, the maximum monthly amount you could receive if you start your pension at age 65 is $1,364.60. The average monthly amount paid for a new retirement pension (at age 65) in April 2024 was $816.52. For OAS, the maximum monthly payment for 65- to 74-year-olds is $718.33, and once your clients turn 75, it increases by 10% to $790.16 a month. Your client’s situation will determine how much they ’ll receive. While that’s not enough to live on, it’s a nice little cushion to count on.
- People are working longer. While the average retirement age in Canada has officially hit 65, people are no longer sitting on the sidelines and watching the world go by. Many people stay engaged by continuing to work part-time or even pursuing a new career. Canadians are staying active and engaged longer while continuing to earn money.
- Retirement Income Shortfall. According to a survey conducted by Deloitte, to be able to maintain a desired retirement lifestyle until the average Canadian life expectancy of 82, a near-retiree household today should have at least $340,000 (pension savings included)., However, the typical Canadian has saved less than $200,000, which leads to the exploration of financial solutions like the CHIP Reverse Mortgage.
Many people look forward to retirement. By making your clients aware of potential gaps in their nest eggs, they can plan properly and enjoy their golden years without worrying about running short on finances.
How the CHIP Reverse Mortgage can Help Fund Retirement
The CHIP Reverse Mortgage is a valuable tool for retirement planning. It offers Canadians aged 55 and older the opportunity to access up to 55% of their home’s value in tax-free cash. The CHIP Reverse Mortgage can be especially helpful for bridging the gap between retirement savings and expenses, supplementing government benefits, or providing financial flexibility during retirement. With no regular mortgage payments required, individuals can use their home equity to enhance their retirement lifestyle while remaining in the comfort of their home.
Contact your Business Development Manager or Business Development Associate to learn more about the CHIP Reverse Mortgage.
