Back then, a 50-year-old employed person could expect to work another 12.5 years before retiring from the daily grind. Today, that same 50-year-old worker could expect another 16 years of employment. There has been a corresponding increase in the employment rate of Canadians aged 55 and older during this time period. StatsCan says that 34 per cent of Canadians aged 55 and older were employed in 2010, compared to just 22 per cent in 1996.

Self-employed Toronto businesswoman Adina Lebo is one of the many people in this age group who still embrace going into work every day. Lebo, 62, actually retired this past spring, but reversed course when she realized she wasn’t ready to leave the office for good.

“Sixty is the new 40,” Lebo said.

“And I have so much energy. I love working, I love contributing to society and it’s not time to slow down.”

There could also be economic factors driving older Canadians to keep working longer than they did in the past. A new Royal Bank of Canada survey says that 57 per cent of Canadians do not set aside money for emergencies, suggesting that many future retirees end up facing unforeseen expenses that delay their long-term plans.

While it might be expected that a longer working life would imply a shorter retirement, StatsCan says that men and women leaving the work force today are spending as much time in their post-career life as many of their predecessors did. For example, in 1977, a 50-year-old man could expect to spend 45 per cent of his remaining years on Earth in retirement. Today, that same person would expect to be retired for 48 per cent the years ahead of him.

For women, the proportional length of retirement has stood basically unchanged. In 2008, a 50-year-old woman would expect to spend 55 per cent of her remaining life in retirement, which StatsCan says was almost the same 1977.

Lebo said she has many friends who have sought out new opportunities and experiences since they entered retirement.

“It’s just a time to expand and go somewhere new and do something different,” Lebo said.

Maybe that’s because a comfortable retirement is something we take for granted but when you look at the many benefits available to Canadian retirees – benefits not available to retirees in many other countries – it’s clear we have much to celebrate.

• All wage earning and self-employed Canadians are eligible to receive either Canada Pension Plan or the Québec Pension Plan (CPP/QPP) retirement benefits, which are indexed for inflation. There are also CPP/QPP survivor and dependents’ benefits as well as a lump sum death benefit. A couple can choose to share CPP/QPP benefits for tax purposes.
• Canadians can take advantage of the tax-deferred, compound growth benefits of Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs). Any Canadian resident who receives periodic payments from a registered pension plan can potentially reduce their taxes by splitting pension income with a spouse/common-law partner. Those over age 65 who receive RRIF income are also eligible for the federal and provincial Pension Income Credit and can allocate up to 50% of their RRIF income to a spouse for tax purposes.
• Those who have lived in Canada for at least 40 years after age 18 will receive the full monthly Old Age Security (OAS) benefit, which is indexed for inflation. Canadian residents who have lived in Canada for at least 10 years after age 18 will receive a prorated OAS monthly payment.
• Seniors with a lower income may be eligible for the Guaranteed Income Supplement (GIS), a tax-free monthly payment, which is indexed for inflation.
• Canadians can invest in Tax-free Savings Accounts (TFSAs) that generate tax-free investment income that does not affect income-tested federal benefits.
• Every tax-eligible Canadian gets the Basic Personal Tax Credit and those over age 65 also receive an Age Credit. Other tax credits that can benefit retirees include the Medical Expense Credit, the Dependent Credit, the Disability Credit, and the Caregivers Credit. There are also generous tax credits for those making charitable donations.
• And, of course, Canadian retirees have access to a wide range of health care services at little or no direct cost.

Yes, Canada is a great place to retire! But to make your retirement all it can be, you need a plan that includes retirement income from other sources such as your company or personal pension plan and your own investments. Your professional advisor can help make sure your first day of retirement is as much a cause for celebration as the first day of July.

Writers Bio: This column, written and published by Investors Group Financial Services Inc. (in Québec – a Financial Services Firm), presents general information only and is not a solicitation to buy or sell any investments. Contact a financial advisor for specific advice about your circumstances. For more information on this topic please contact Shannon Walker, CFP at 1-888-291-7024 or Shannon.walker@investorsgroup.com.

Every province and territory in Canada has it’s own rules regarding people who die intestate (without a will) and how their estate will be divided.

Many people don’t think about what will happen to our belongings and finances after death, after all you won’t be around to care – but someone will be. That someone could be a spouse, relative or friend and if you haven’t prepared in advance you could be leaving a potential nightmare for those left behind. By having a will you are clearly laying out how you want your estate to be handled after you are gone.

Many people think that they don’t have to bother with a will as they haven’t got much to leave behind, or they only have a few relatives and feel sure it will all get sorted out in the end, but this may not be the case. Every province and territory in Canada has it’s own rules regarding people who die intestate (without a will) and how their estate will be divided. You may find that your estate might not go to who you think! The following details give an overview of the way an estate might be distributed if a person dies intestate. In most cases if there is no spouse or children the estate will then go to grandchildren, parents, siblings, nephews and nieces etc.

Property jointly owned with right of survivorship, joint bank accounts and life insurance may be exempt from the estate as it is automatically transferred to the surviving person after death.

British Columbia

In BC the Estate Administration Act dictates how a persons estate will be distributed after death if no will is in place.

If a person dies, leaving only a spouse (no children) then the entire estate goes to the spouse. If the deceased has both a spouse and children then the spouse will receive the first $65,000 of the estate and the remaining amount of the estate will be divided equally between the spouse and children. Illegitimate children are included in this equation but step-children are not.

If you die but have no living spouse, only children, the estate is divided equally between them. If a child dies before you then their share of the estate will go to their surviving children. If the deceased child does not have children then the estate goes to the surviving children only.

If you have no spouse, children or grandchildren then the estate goes to your parents. If your parents are no longer living then your siblings share the estate. If a sibling pre-deceases you then their share passes to their children.

Finally if you have no siblings your estate will be divided equally between any nephews and nieces or closest direct relatives.

Alberta

In Alberta the Intestate Succession Act states who get what if no will is left. If the deceased leaves just a spouse then the entire estate will pass to the spouse.

If the deceased has a spouse and one child, the first $40,000 will go to the spouse and the remaining estate divided equally between the spouse and child. If there is more than one child the spouse receives one third of the remaining estate and the remainder is split equally between the children.

If the deceased has no spouse, only children the estate is divided equally between them. In the event there is no spouse or children then the estate goes to the parents of the deceased. If the parents pre-decease you then your estate will go to siblings in equal share or to the children of deceased siblings. If there is no immediate family the estate is divided between other next of kin.

Manitoba

The spouse of the deceased will receive the entire estate if there are no children. If the deceased has a surviving spouse and between them they have children, then the spouse will again receive the entire estate. If the children of the deceased are not the children of the surviving spouse then the spouse will receive one half of the estate or $50,000, whichever is greater with the remainder being shared between the children.

If you die in Manitoba and have no spouse or children then the estate goes to your parents. If there are no surviving parents the estate is divided between the next of kin.

Saskatchewan

If only a spouse survives the deceased the entire estate will go to them. However if the deceased is survived by both spouse and children the spouse will receive the first $100,000 of the estate and the remaining estate will be shared half and half if there is one child. If there are two or more children the spouse will receive one third of the estate and the remainder will be divided equally between the children. If there is no spouse or children the estate goes to parents, then to siblings, then nephews and nieces.

Ontario

If a person dies and only leaves a spouse, that spouse will receive the entire estate. If the deceased has no spouse the estate is divided equally between any children. If the deceased has a spouse and children the estate will be divided as follows: The spouse will receive the first $200,000 from the estate and the remaining estate will be divided equally between the spouse and a single child. If there is more than one child then the spouse will receive one third and the remaining two thirds will be divided equally between the children.

If there is no spouse or children, then the parents of the deceased will share the state. If there are no parents then the siblings will share the estate followed by nephews and nieces and then next of kin.

Québec

In Québec, the Civil Code of Québec dictates who succeeds if no will is left and it is very different to the rest of Canada. If the deceased is married and the marriage contract or civil union contains a clause stating that the surviving spouse should receive the whole estate then that is what happens. However if no such clause exists the estate is divided as follows: If the deceased has a spouse and children the spouse will receive one third and the remaining estate will be divided equally between children. If there are children but no spouse the estate is divided equally between them.

If there is a spouse, but no children or other descendants the spouse will receive the estate, however if there are other descendants the spouse will only receive one third of the estate and the remaining estate will be divided between descendants consisting of parents, siblings, nieces and nephews etc.

Nova Scotia

A surviving spouse shall receive the whole estate if there are no children. If the deceased has both a spouse and children the estate will be divided. The spouse shall receive the first $50,000 and the remaining estate will be divided equally between a spouse and one child or one third to the spouse and two thirds to two or more children.

If there are children but no spouse the estate will be shared equally between them.After this the order in which the estate is distributed is parents, siblings, nephews and nieces the next of kin.

New Brunswick

In New Brunswick there is a term known as “marital property” this includes property that was owned by one or both spouses before or during marriage such as shelter, transport, recreational property and business assets.

If the deceased dies leaving only a spouse the spouse shall receive the whole estate. If there is a spouse and one child the spouse shall receive the material property and one half of the remaining estate, the other half going to the child. If there is more than one child the spouse shall receive the material property and one third of the remaining estate. The remaining two thirds shall be divided equally between the children.

If there are children but no spouse the estate will be shared equally between them. Thereafter the estate is shared equally between grandchildren, parents, siblings then any other next of kin.

Prince Edward Island

If only a spouse survives the deceased they will receive the entire estate, however if there are children the estate is divided. The spouse will receive the first $50,000 of the estate and the remainder will be divided as follows: if there is one child the spouse and child will share the remainder equally. If there is more than one child the spouse will receive one third and the remaining estate will be split equally between the children.

If there are children but no spouse the estate will be divided equally between them. Thereafter the estate is shared equally between parents, siblings then any other next of kin.

Newfoundland and Labrador

A surviving spouse will receive the entire estate if there are no children. If there is one child the estate will be divided equally between the spouse and the child. If there is more than one child the spouse shall receive one third of the estate and the children the remaining two thirds, shared equally. If there are children but no spouse the estate will be shared equally between them. If there are no spouse or children then the parents share the estate, thereafter the siblings, nephews and nieces then other next of kin.

Northwest Territories

The surviving spouse shall receive the whole estate if there are no children. If there are children the spouse will receive the first $50,000 of the estate and the remaining estate shall be divided in half between a spouse and one child, or one third to the spouse and two thirds to the children if there is more than one. If there are children but no spouse the estate will be shared equally between them. If there are no spouse or children then the parents share the estate, thereafter the siblings, nephews and nieces then other next of kin.

Nunavut

If only a spouse survives the deceased they will receive the entire estate, however if there are children the estate is divided and the spouse will receive the first $75,000 of the estate and the remaining estate shall be divided in half between a spouse and one child, or one third to the spouse and two thirds to the children if there is more than one. If there are children but no spouse the estate will be shared equally between them. If there are no spouse or children then the parents share the estate, thereafter the siblings, nephews and nieces then other next of kin.

Yukon

A surviving spouse will receive the entire estate if there are no children. If there is one child the estate will be divided equally between the spouse and the child. If there is more than one child the spouse shall receive one third of the estate and the children the remaining two thirds, shared equally. If there are children but no spouse the estate will be shared equally between them.

Conclusion

There are many factors which can affect claims to estates and everyone is recommended to make a legal will to be sure your estate will be divided as you would want.

People in common-law or same sex relationships should always consult a lawyer regarding wills as different rules apply in different areas. For example in Quebec a common-law, gay or lesbian relationship is not recognized by intestate laws.

If your circumstances change such as a marriage, separation, divorce etc you should rewrite your will as these factors may void a previous will unless stipulated otherwise. Don’t think of a will as a morbid thing, rather as a gift to those you leave behind enabling them to settle your estate more easily and to your wishes.

Article Author: Jane Toombes C0-owner Muchmor Magazine

158,000 British Pensioners living in Canada have their British pensions frozen without any cost of living increases.  Meanwhile, pensioners living in the United States, Israel, Philippines, Slovenia, Bosnia-Herzegovina, any European Union country, as well as many more, receive annual cost-of-living increases the same as the increases they get if they lived in the UK.

The UK is the only western nation which denies parity to all state pensioners regardless of where they live. The Canada Pension Plan (CPP), for example, gives annual increases to pensioners no matter where its pensioners choose to live in Canada or not.

With rising costs of living, this situation has put many pensioners in an extremely difficult financial state.

John Markham, a British Pensioner living in Ottawa and spokesperson for the International Consortium of British Pensioners, said, “David Cameron has pledged to make pensions fair for all and we applaud that goal. When all British pensioners, no matter where they live, including these brave veterans, win the right to have their pensions raised annually like everyone else we will know he has been true to his word.”

British veterans living in Canada ready to hand medals back

Many British veterans living in Canada and other Commonwealth nations are so outraged at their abandonment by the British government that they are prepared to hand back their medals.

“After 50 years of injustice it has come to the stage where men and women who fought for this country feel so abandoned that they would renounce their hard won war medals,” said Markham.

“Cashing a pension check that is the same amount as the first one received in 1989 Twenty-four years ago won’t buy the turkey this year in Canada,” said Alan May, veteran of the British Merchant Navy now living in British Columbia.

May came to Canada to join his two sons and five grandchildren in his declining years. He never imagined that his pension would be frozen. “Four years I spent dodging torpedoes for King and Commonwealth and there is no good reason why they refuse to index our pensions like those in other countries around the world,” May said.

The UK State Pension is similar to the CPP where the value of each pension reflects the number of years of contributions paid. There are currently 12-million UK state pensioners, all of whom contributed similarly to the UK state pension via compulsory National Insurance Contributions.  Approximately one-million of these live outside the UK.

About the Canadian Alliance of British Pensioners and the International Consortium

The Canadian Alliance of British Pensioners (CABP) is a not for profit organization  with over 11,000 members, dedicated to securing annual cost-of-living increases for all recipients of the UK State Pension, regardless of where they choose to live in retirement.

The Canadian Alliance of British Pensioners, in association with other similar pensioner organizations in Commonwealth countries has formed the International Consortium of British Pensioners (ICBP) to fight this inequity.