Charting Retirement is a weekly snapshot of retirement-related information.
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Tax Time in Canada
Desk with a lot of paper, Canadian federal tax type and a web page from calendar with the final date to file tax return.
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Earlier than 1975, actual wages usually grew by greater than 2 per cent a 12 months. Wages have barely saved up with worth inflation since then. Whereas decrease productiveness is normally blamed, be aware the connection between the unemployment price and wage progress. When unemployment was excessive, wage progress was low and vice versa (simply as one would anticipate based mostly on the regulation of provide and demand). Three elements elevated the unemployment price since 1975: the inflow of child boomers, girls coming into the work pressure and the offshoring of jobs to low-income nations. Since all three elements have now plateaued, anticipate Canadian wages to develop quicker in actual phrases for a few years to come back. The implications for retirement are twofold: OAS will shrink as a share of the typical wage and staff might want to save extra.
(Supply: OECD unemployment statistics, Canadian Institute of Actuaries financial statistics)
Frederick Vettese is former chief actuary of Morneau Shepell and writer of Retirement Earnings for Life.
