2020 KEY DATES AND INFORMATION
- RRSP contributions: last day for contributions is March 2, 2020
- 2019 Maximum contribution: $26,500
- 2020 Maximum contribution: $27,230
- TFSA contributions: maximum contribution is $6,000
- 2020 Maximum lifetime contribution: $69,500
- Must be 18 years of age and a Canadian citizen
- Canada Pension Plan (CPP): Average retirement pension at age 65 is $682.97 per month
- Maximum retirement pension at age 65 is $1,175.83 per month (January 2020)
- Old Age Security (OAS): Maximum pension at age 65 is $613.53
- Clawback begins at an annual income of $77,580 (July 2020 to June 2021)
- No OAS paid: Over $126,058 income from July 2020 to June 2021
THE TRUTH ABOUT RETIREMENT (RBC Myths & Realities Poll)
- 55% of Canadians plan to know their retirement date at least a year in advance while only 39% actually know that far in advance and 16% have no notice.
- 29% of pre-retirees plan to head south for the winter once they are no longer working; 51% prioritize spending time with family and 48% with friends.
- 50% of retirees plan to continue working in retirement to stay active mentally (64%), physically (48%), avoid boredom (44%), generate income (43%).
- Only 11% of retirees said they have returned to full-time work.
- Over the next 4 weeks we are going to ‘bust’ some common investment myths
- Since the long-term historical average annual return on the stock market is ~10%, investors should expect to see calendar-year returns near 10%.
Quite the contrary! It is likely that investors will only rarely see a calendar year where equity returns are close to their long-term historical average.
- Since 1957 only 8 years out of 63 have seen the Canadian stock market generate performance +/- 2% of the average.
- Investors should expect a wide range of outcomes in any given year but over the long-term annualized returns are near the historical average.
- China’s population is now over 1.4 billion, despite the birth rate decline for the 3rd consecutive year.
- Germany’s population reached a record 83.2 million, thanks to migration, but that is the slowest pace of growth since 2012.
- Germany has one of the world’s oldest populations and has recorded more deaths than births annually since 1972.
- Canada’s apartment vacancy rate hit its lowest level (2.2% in 2019 vs 2.4% in 2018) since 2002.
- US Senate signed the USMCA (new NAFTA) agreement yesterday.
- American officers seized 2,214 kg of marijuana from travelers entering the US (Nov 1/18 to Oct 31/19), nearly double the year prior.
- Russia’s president, Vladimir Putin, has proposed constitutional amendment which would allow him to retain power in another role once his current term ends in 2024.