Sunday, March 13, 2011

Staring down retirement, spendthrift deep in debt


In Vancouver, a woman we’ll call Suzette, 58, has put 37 years into her job and wants to retire in a few months, then return to work part-time. She will have to work to supplement her pension, for her financial cupboard is almost bare. Her assets are $2,500 in an RRSP. Period. She lives on credit. She rents a home from her ex-husband for $900 a month, which is 18% of her $4,983 monthly take-home income.

Her plan, which she would put into place when she turns 59 in March, would boost her monthly pension income with $3,500 part-time income and, after deductions and taxes, give her about $7,000 of after tax income each month.

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