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February 08, 2012

Amazon to open real-world store this year: report

Amazon doesn’t need any PR bumps, but let’s give it one anyway, shall we?

A_com_logo_RGBMy favourite Amazon story goes like this: one weeknight in 2010, I caught a late-night showing of The Social Network. Certainly, it was the year’s best movie, and so inspired was I that I came home and said, Hey, I oughtta read the book that was made from.

So sometime after midnight, well into the a.m., I placed an order for Ben Mezrich’s “The Accidental Billionaires.” Before the end of the next work day, it was at my door.

I’m not a paid Amazon advocate, just a fan of its convenience. So why, then, would a service as punctual as the web retailer actually open its own bricks-and-mortar store?

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Posted at 12:36 PM in Consumer news, Current affairs, Shopping | | Comments (0) | TrackBack (0)

February 02, 2012

Is the retirement age going up, no matter what?

Just a few days after Prime Minister Harper's promise/threat to rework the federal retirement income system by monkeying with Old Age Security, the Conservative government seems to be moving into damage control. Who can blame them?

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The government's opponents are having a field day mauling such a backhanded attempt to balance the budget.

NDP finance critic Peter Julian has been the most vocal, arguing the Conservatives would rather spend millions on fighter jets and prisons rather than support Canadian seniors.

Posturing aside though, if Harper's government was to announce next month that the age at which people will be eligible for OAS was going to increase from 65 to 67 over the next 15 years or so, would you take to the streets?

I doubt it.

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Posted at 06:43 PM in Economic news, Pensions, Personal finance, Retirement | | Comments (71) | TrackBack (0)

January 24, 2012

Lower-income workers should join workplace pension plans: report

Economists frequently assume that employees “pay for” employer-provided fringe benefits, such as contributions to retirement plans, in the form of reduced wages.

AdWages and fringe benefits are generally perfect substitutes, so that an additional dollar of wages should substitute for an additional dollar of fringe benefits and vice versa.

But that's not necessarily true, says tax analyst Eric Toder in a recent brief.

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Posted at 12:01 PM in Behaviour, Pensions, Personal finance, Retirement, Workplace | | Comments (15) | TrackBack (0)

January 19, 2012

Should public-service employees pay more towards their pensions?

In case you missed it, this week marked the most recent skirmish in a much larger battle to bring burgeoning public-sector compensation costs under control.

AdBasically, the federal government wants public sector workers to contribute more towards their pensions, largely so you and other taxpayers don’t have to. Depending on whose numbers you use, there isn’t going to be enough in the vault otherwise.

It’s clearly a big shortfall and the fiunding gap is growing. The C.D. Howe Institute warns that the unfunded pension liability for federal workers is some $80-billion higher than noted in the public accounts.

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Posted at 08:16 AM in Pensions, Personal finance, Retirement, Unions | | Comments (46) | TrackBack (0)

January 17, 2012

Cash strapped retirees pile into reverse mortgages: report

It's not uncommon for many retirees to take out small loans against their home equity to fund renovations or even to make down payments on an additional property.

AdMore and more, however, older homeowners are finding they need to squeeze a bit more income out of their house. That's leading to record number of reverse mortgages in Canada, according to a recent HomEquity Bank study.

Reverse mortgages are offered to Canadian homeowners 55 and older and have no income, credit or health hurdles to cross. As well, unlike traditional loans, borrowers don't have to service the interest or repay the principal for as long as they own their home and are still living in it.

Business seems to strong. HomEquity, the only national provider of reverse mortgages in Canada, says its reverse mortgage business was up 42% in the fourth quarter of 2011. On an annual basis, the company wrote $239 million in reverse mortgages, a 16% year-over-year jump that lifted its portfolio of reverse mortgages to $1.2 billion.

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Posted at 04:18 AM in Money management, Mortgages, Real estate, Retirement | | Comments (18) | TrackBack (0)

December 19, 2011

Do you know what your life expectancy is?

Thanks to healthier lifestyles and breakthroughs in medical technology, life expectancy on this continent  has increased significantly during the past half-century.

AdWhile that's got to be good news, knowing that that you can expect to live longer in retirement also means your investment portfolio may need to last for 30 years or more.

Here, for instance, is the likelihood of 65-year-olds living to certain ages, according to figures from the Society of Actuaries:

Male. A 65-year-old man has roughly a 41% chance of living to age 85 and a 20% chance of living to age 90.  

Female. A 65-year-old woman has about a 53% chance of living to age 85 and a 32% chance of living to age 90.
   
Couple. If the man and woman are married, the chance that at least one of them will live to any given age is increased. In fact, there's a 72% chance that one of them will live to age 85 and a 45% chance that one will live to age 90. 

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Posted at 09:57 AM in Demographics, Estate planning, Personal finance, Retirement | | Comments (1) | TrackBack (0)

December 06, 2011

Does Canada's pension system deserve a passing grade?

One year ago, Canada had the 5th best retirement-income system in the world. A year later, that really hasn’t changed much, according to the most recent study of worldwide pension systems by Mercer and the Australian Centre for Financial Studies.

AdThe study measured the overall pension benefits that are being provided to the citizens of 16 countries, the likelihood that those systems will be able to provide benefits in the future, and the integrity of each country's private retirement plans.

And, same as last year, Canada scores decent but not overwhelming marks. In fact, Canada earned a low “B” grade for its pension-plan system, according to the 2011 Melbourne Mercer Global Pension Index, the same grade awarded to Sweden and the U.K.

The Netherlands and Australia earned the highest grades, a B+, for the respective pension schemes. Read the entire Global Pension report here.

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Posted at 09:16 AM in Economic news, Money management, Pensions, Retirement | | Comments (15) | TrackBack (0)

November 23, 2011

Will new pooled pension plans boost retirement savings?

Despite the best of intentions, many people spend virtually all the money they have, says economist Richard Thaler, in his book Nudge. 

AdThaler believes that when faced with certain options, most people will consistently make the wrong choice. 

Therefore, when it comes to something as important as retirement savings, all of us need to be coaxed into developing more self-control, willingness to battle procrastination and the ability to handle short-term sacrifices. 

That’s tough to do. For most people, saving for a distant goal such as retirement is a challenge. Setting aside even a few dollars each month is difficult in the years of raising children and buying a home, when the need for cash is greatest.

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Posted at 04:13 AM in Behaviour, Pensions, Retirement, Saving tips | | Comments (8) | TrackBack (0)

November 17, 2011

The rush to develop caregiving products for boomers

Plastic bands that restrict movement and harnesses that make the body hunch over painfully may sound like just another late Saturday night for some, but they're just a few of the tools researchers are using to get a glimpse of what the aging of the baby boom generation might look like.

AdTo see what the future might feel like, MIT’s Age Lab, a research center designed to develop technologies and services geared to today’s aging population, created a high tech suit that’s designed to inhibit movement and sensation to better understand the physical challenges associated with aging.

Dubbed AGNES, an acronym for Age Gain Now Empathy System, the suit is worn by product developers and marketing folks looking to feel what it might be like to be a lot older and, in many instances, well heeled. 

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Posted at 03:29 PM in Behaviour, Demographics, Health costs, Retirement | | Comments (5) | TrackBack (0)

November 14, 2011

Thousands of Canadians missing out on pension benefits

While it’s not Greece, Canada is still fairly comfortable place to retire.

AdA working couple who is retiring today at age 65 after earning the average industrial wage throughout their careers will receive a combined annual Canada Pension Plan and Old Age Security pension of about $36,000, indexed for life.

That’s a significant amount of retirement income – which makes you wonder why so many people never get around to collecting so much of it, says consumer advocate Richard Shillington.

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Posted at 11:41 AM in Demographics, Family finances, Pensions, Retirement | | Comments (24) | TrackBack (0)

November 08, 2011

MSN readers are feeling pressured by inflation: Poll

Three quarters of MSN readers admit to feeling the pinch of rising prices. And the older you are, the higher the apprehension.

InflationAt least retirees' government retirement benefits and (if they’re lucky) pension plans will keep their purchasing power intact over time though. 

However, warn many financial advisors, this isn’t necessarily the case.

“Many of my clients keep needing extra infusions of income, even though their private pension, Canada Pension Plan and old-age security income is indexed to inflation,” advisor Christine Butchart told Investment Executive.  

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Posted at 11:10 AM in Economic news, Inflation, Personal finance, Retirement | | Comments (1) | TrackBack (0)

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AUTHORS
Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...

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