| By :
Molly Wider
There was a recent eye-opening announcement from our American neighbours, that almost 3 million Americans have been forced to claim their retirement pensions earlier than expected. That means a few things when it comes to their financial security. One, by claiming their pension several years before they are eligible to get a full pension, they are only receiving a partial pension. Living on a full pension is not always do-able, which is why so many financial advisors hammer home the need to save that retirement nest egg as soon as you can. Applying for a retirement pension years earlier than expected also means people stand a chance at running out of funds before they planned. However, Canadians are concerned with the level of CPP they will eventually be collecting as well, so the government has stepped in and offered a pension plan reform. It will see a gradual, yet moderate expansion of the CPP. This means that Canadians could be adding more money now to their eventual government retirement plan. However, some are concerned that if the younger working class, as in the post-baby boomers, begin to contribute more, they will be paying more into the program than they will get in return when it comes time for them to retire. There are other voiced concerns such as that of Alberta Finance Minister Ted Morton, "We think it's a gross overreaction and that the problem of underfunding is limited to a small sector of the Canadian workforce and that CPP expansion hits everybody. Secondly, we think CPP is a form of payroll tax and it's a job killer." Quebec's minister of employment Sam Hamad, wanted to take a 'wait and see' approach, saying, "We aren't for or against what is proposed, however, there are questions on the table and we need to address them as soon as possible. These proposals came on Thursday and we will take the time to look at them." Other CPP reform supporters like Ken Georgetti, president of the Canadian Labour Congress feels that the current CPP benefits should be doubled. The National Union of Public and General Employees union has figured that approximately one-third of retiring Canadians are doing so with only their Old Age Security as well as their CPP benefits, which has them living on about $17,000 a year. Before the reform can move forward, at least two-thirds of the provinces that would be representing at least two-thirds of Canada's population would have to agree. By the time the young working class and post-baby boomers retire, the cost of living will most likely be a lot more, maybe even double what it is today. Saving extra money beyond the government programs is always beneficial long-term, however, it is hard to do when mountains of monthly bills keep you from seeing clearly. Getting all those bills made into one easy payment each month can be done with a consolidation loan. There are many private lenders who even specialize in providing such loans to clients with bad credit. When traditional banks are not an option, a private bad credit loan may be the solution.
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