Statistics show that about half of marriages end in divorce. Ed and Liz are ending theirs and are concerned about changes that will have to be made to their financial and estate plans. Some considerations, also in common-law relationships, are:
On May 25, 2009 Finance Canada announced some proposed changes to how Canada Pension Plan will work.
If approved, the changes will take effect over a period of time from
2011 to 2016, so they will affect anyone planning to retire after 2010.
Below is a brief summary of some of the most important changes:
Early retirement (before age 65) will result in a reduction in CPP benefits by 7.2% per year, which is up from the traditional 6%. This means that if you
begin to take your pension at age 60, your payments will be cut by 36%, not 30%.
Many believe that if they need long term care, either in their home or in a facility, that the cost will be covered by provincial health care or other government agencies. While there are certain programs available, a significant portion of these costs are the responsibility of the patient.