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Inflation, market volatility and high interest rates have made this year a difficult retirement year for seniors around the world, but it will be even more bleak if you are Canadian.
Canada slipped off the list of the top 10 countries for retirement security this year, according to Natixis Investment Manager (Natixis IM). In Investment Research Group 1Annual retirement index 0Canada has fallen five places to 15 out of 44 countries, after ranking in the top 10 last year.
Natixis IM said the main reasons for this decline are reduced financial well-being and happiness, increased tax burdens, rapidly aging populations, and environmental factors, such as a lack of biodiversity.
It comes as hyperinflation, spikes in interest rates and stock market volatility are wreaking havoc on the finances of retirees globally, setting 2022 on track to become one of the worst years to retire ever.
“Retirement security challenges are back home in 2022,” Dave Goodsell, executive director of Natixis IM Center for Insight Insight, said in a press release.
Amid these challenges, retirees in Canada are making some big mistakes when it comes to their financial planning, leaving them vulnerable to affordability problems, Natixis IM said. For example, 65 percent reduce their life expectancy, and 61 percent have not considered how inflation will affect their finances. In addition, 60 percent do not plan for additional health care costs. Still others lack an understanding of where their retirement income comes from.
These mistakes can be costly as it becomes increasingly clear that retirees will not be able to rely on public pensions to get through them.
Natixis IM said the current pension system is on the verge of collapse as the number of seniors booms in relation to younger workers paying into the Canada Pension Plan. There is no easy solution, especially as governments struggle with rising pension costs amid mounting debt. A new model that integrates individual savings with government initiatives will be essential in the coming years.
“Investment strategies, financial planning, employee benefits and policy considerations all need a new financing equation that takes into account inflation, interest rates and increased longevity,” Goodsell said.
In the meantime, Canada can look to other nations that get the right to retire to help craft better policies, Natixis IM said.
Here is a list of the 10 best places to retire from Natixis IM:
6. New Zealand
10. Czech Republic
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relieve bloating Prime Minister Justin Trudeau greets a young girl in a crowd after announcing a package of new measures to help Canadians deal with sharply higher prices during the Liberal Summer Gathering Retreat in St. Andrews, Note: Tuesday, September 13, 2022. The government will double the six-month tax rebate Sales of low-income earners, at a cost of $2.5 billion. It will also increase housing benefits for renters, which are worth about $700 million in additional spending. Trudeau said the government is confident the measures won’t make inflation worse. Photo by Darren Calabrese/The Canadian Press
- Pierre Serre, spokesperson for the National Council of the Unemployed, will give a press briefing at the start of his journey to Ottawa.
- Tracy Robinson, CEO of Canadian National Railroad, and Jeslyn Holley, CFO of CN, will speak at Morgan Stanley’s 10th Annual Laguna Conference.
- Marie Ng, Minister for International Trade, Export Promotion, Small Business and Economic Development, will meet with her G7 counterparts in Germany.
- Oxfam Canada, Climate Action Network, Doctors of the World and the League for Rights and Freedoms join the Immigrant Rights Network to call on Prime Minister Justin Trudeau and the upcoming Parliament session to implement a regulation program that guarantees permanent residency for unregistered and permanent residents. The immigration status of migrant workers, students, refugees, and families in the country.
- The Senate Committee on Transportation and Communications will hear from Philip Dufresne, Canada’s privacy commissioner, on the subject of Bill C-11, an act to amend the Broadcasting Act and make related amendments and consequent amendments to other laws.
- Today’s data: Canadian manufacturing sales and orders; Producer Price Index in the United States
- gains: BRP Inc. , Li-Cycle Holdings Corp. DavidsTea Inc.
US consumer prices rebounded last month, dashed hopes of an emerging slowdown, likely to warrant another significant rate hike by the US Federal Reserve.
Labor Department data on Tuesday showed that the consumer price index rose 0.1 percent from July, after unchanged the previous month. Compared to the previous year, prices rose 8.3 percent, slowing slightly, in large part due to recent declines in gasoline prices.
Food costs are up 11.4 percent from last year, the most since 1979. Electricity prices are up 15.8 percent from 2021, the biggest rise since 1981. Meanwhile, gasoline prices fell 10.6 percent in August, It is the largest monthly decline in more than two years. Years.
Shelter costs – the largest component of services and make up about a third of the overall CPI – continue to rise. Overall shelter costs are up 0.7 percent from July and 6.2 percent from a year ago, both greater since the early 1990s.
The Chinese economy has been a huge success by most measures. But its currency – the yuan – accounts for only three percent of world trade. Despite its economic and political power, the country does not dominate the global flow of fiat currencies. Now, she’s looking to change that. our MoneyWise content partner It lays out China’s multi-trillion, multi-decade plan to replace the US dollar as the world’s reserve currency.
Today’s Posthaste was written by Victoria Wells (hahahahahaha), with additional reporting from The Canadian Press, Thomson Reuters and Bloomberg.
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