Pattie Lovett-Reid: RBC poll shows Canadians rethinking their retirement plans due to pandemic
Is owning a home realistic?
I’m not exactly sure when it happened, but for decades Canadians have felt the need to buy a home, CTV’s Chief Financial Commentator Pattie Lovett-Reid writes, questioning the attainability of this dream in today’s market. She says she believes the need to own is an outdated concept that is not the only logical step toward wealth creation. Lovett-Reid adds there is “great comfort” in knowing if you rent, “you aren’t stretched beyond your limits.”
Quickest path to becoming debt free
Thirty-year-old Zandile Chiwanza popped a bottle of champagne after finishing paying off approximately $50,000 in debt. Her strategy was to treat it like a bill. “It was not an afterthought after my fixed expenses, and, at one point, 40 per cent of my income was going toward debt,” she said. Here she explains how she used the debt avalanche strategy and the debt snowball method to pay it off as quickly as possible.
Toronto housing at ‘crisis point’
Toronto-area real estate broker John Pasalis is warning that home affordability in the nation’s largest city is reaching a “crisis point” in the wake of the massive run-up in home prices throughout the pandemic. Pasalis says the decoupling of economic and wage fundamentals from home prices has pushed prospective buyers to the very brink, and perhaps pushed them out of the Toronto market altogether.
First Home Savings Account falls short
Personal Finance Columnist Dale Jackson says the First Home Savings Accounts, which is part of the Liberal strategy to help first-time homebuyers save for a down payment, has the best tax perks of a RRSP and TFSA, but falls short as a practical investment vehicle.
Canadians plan to drive to work
A recent online survey completed for RATESDOTCA and BNN Bloomberg in July found that as companies across Canada begin brining their employees back to the office this fall, more employees are planning to commute to work by car. The survey found that 71 per cent expect to use a car to get to work, an increase from the 65 per cent of commuters who used a car prior to last year. Meanwhile, 13 per cent will be taking public transit and nine per cent will be walking or riding a bike, the survey found.
Don’t let the pandemic ruin your retirement dreams
A new RBC poll found that Canadians are rethinking what their retirement could look like, when they could in fact retire and how much money they will require to do so. In response to these findings, CTV’s Chief Financial Commentator says “it is unlikely anyone factored in the fear of a pandemic delayed retirement until now.” But, Pattie Lovett-Reid adds that before you panic, you should hit the pause button, go back to your base case assumptions and understand your financial facts.
“Despite some of the policies being offered up by all the political parties, recognize there is great comfort in knowing if you rent, you aren't stretched beyond your limits and renting can provide you with a lot of financial flexibility that shouldn't be underestimated.” – CTV’s Chief Financial Commentator Pattie Lovett-Reid