Personal Finance Reading List #9- B.C Pooled Pension Plan
It’s almost soothing to hear the month “March” come out of my mouth because that only means we are one step closer to the snow taking a hike and the flowers blooming.
All my fans know I have a thing for gardening, beer and tanning so the anticipation builds. The snow is what I’ve come to endure in Canada although I don’t mind the crisp air and the beautiful landscapes.
In fact it gives me some time off from the yard work to focus on other areas of my life and to brag to my family back home about how much snow we have.
We used to dream when we were younger that the snow would fall so we could go out to play in it.
Now I dream that it doesn’t fall so much as I have to go out and shovel it like a maniac similar to the past few days.
On the flip side I’ve worked hard on my gardening skills behind the scenes which I will talk more about in the upcoming week.
I’ve also got a contribution post that I wrote for my mates who run an informative blog at Newlyweds on a Budget, “Food Shopping On A Budget” that I think you should all check out.
BC Pooled Pension Plan
I don’t know if you read anything but it was interesting to learn from the Canadian Press that the B.C government has brought a “Pooled Pension Plans” to the table for 2 thirds of the people with no plans.
This was announced just yesterday by Finance Minister Mike De Jong and I’m guessing it’s a good thing for the people who don’t have a works pension plan especially those that are self-employed.
I suppose it’s one of the downfalls of being self-employed as you don’t get the perks of a pension plan at work like others might. Looking out for yourself becomes even more challenging.
I’m still learning plenty about Canada and like anywhere else everyone has their own opinion on what the good, bad and the ugly is when it comes to investing in our future.
Something I’ve always thought, even in my early years is that we can’t rely on what the government is going to give us when we retire and believe that it’s going to be enough.
Sometimes I think we are in the dark and turning a blind eye to the message the government is sending and that is we better get prepared for our retirement because no one else is going to look after us. At least that’s the message I’m hearing, I don’t know about anyone else.
In the UK I also have a pension that has being growing year after year which I participated in where my employer matched up to 11% of what I contributed.
Although I did contribute from the time I was allowed I’m happy I did because it’s something that I can look back on and say, it was a smart move, at least for me.
I remember my mates who did not contribute to the plan because they said they couldn’t afford it, yet they would be the first ones down to the pub as soon as pay-day came around. I guess it all boils down to priorities and what people value in the present and if they even care or want to care about the future. There’s nothing wrong with a little balance and beer as along as all my bases are covered.
Just to show how frugal I am, wouldn’t you know my acquired taste for Canadian Beer tops the Dirty Dozen Cheap Beers In Canada and fits nicely with my allowance.
The last thing I want to see happen is I get to the point where we retire and find out we didn’t invest enough even if only in a Tax Free Savings Account to weather the storm we may be in for. I sure as heck don’t want to get near the end of my journey to find the pot empty at the end of the rainbow.
Apparently with this pooled pension plan the employers don’t have to participate with a plan to match employees, all they would have to do is set it up.
They say the plan is managed by outside licensed financial institutions and for those that have no other options such as the defined benefit plans or a defined contribution pension plan it may be something to look into.
I have a pension at my place of employment but the reality is that I’m new to Canada so I have to step it up a notch when it comes to making sure I’m saving enough for when the day comes I want to pack it in.
It would be nice to have some sort of passive income coming in like my parents who have homes paid for and rented and the money is just their “spending money” although they travel quite often.
Even though I don’t know if early retirement will be in the cards for me what I do know is that I’m going to make sure I plan now when I’m young instead of hoping and praying that I’ll make it through.
Questions:
What do you think of the new BC Pooled Pension Plan Act?
Should all the provinces adopt this act?
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Thanks so much for the shout out Mr. CBB! There is no one in my opinion that has their finger on the pulse of the everyday real life finances that real people deal with like you do! Have a wonderful weekend and I really enjoyed this blog post!
I am excited we are almost into gardening, beer and tanning season too! Can’t wait…..thanks so much for the shout out on my lil chicken & dumpling post….man oh man it makes me wish I had not visited the nutritionist this week because they truly are I think the best I’ve ever made and she has said no more of those for a little bit anyways 😉 I have been super into mustards so I can’t wait to hope on over and check out Aunt B’s honey mustard salad dressing and you found a ton of good posts but Modest Moneys intrigues me because I am convinced sometimes money just slips between my fingers so I have to take a peek at that article. Have a great Saturday 🙂
Ya, the dumplings would be a nice “treat” meal once in a while. The mustard dressing is lovely and like Aunt B we make our own as well. The article that is at MM is great really makes sense. Cheers mate! BTG> Beer, Tanning, Gardening hahaha!! The older person Jersey Shore version..
Thanks for the interesting reading list Mr. CBB and for the mention. I do appreciate your kindness in sharing forward my links. I’m especially looking forward to checking out the Frugal Farmer. Thanks. 🙂
Well I appreciate when you share my posts with your fans so thanks to you as well. The Frugal Farmer is great!!
I don’t know much about Canadian pension plans, but anything that gets you ready for retirement is a good idea in my opinion. Just because your employer doesn’t offer anything in the way of retirement, doesn’t mean you shouldn’t start on your own. Have a great weekend!
Excellent point! Just because your employer doesn’t offer anything doesn’t mean you shouldn’t. We don’t have to wait around there are plenty of options. Cheers Kim
Hearing you say March actually scares me when you consider it was 2012 not that long ago! Have a great weekend mate and thanks for the mention.
No kidding mate, I have a funny feeling this year is going to fly by.
Thanks for the mention, Mr. CBB Hope you guys have a great weekend!
The pooled pension plan is a great idea for many people who don’t currently have any pension plan. It would also be very beneficial to the financial sector because of the fees they can charge administrating this system. I think the important thing is to give people options and let them decide how they want their money managed. Personally I like to manage my own retirement fund but other people may not have or want to spend the time to do it themselves. I believe the CPP is only meant to cover 25% of living expenses for retirees, the rest has to come from a combination of personal savings and other retirement plans.
Sure they get the fees that come along and in reality many people just don’t know how or don’t care to know how to manage their own funds. I don’t manage our funds simply because I don’t know how to do it. I’d like to learn and I hope that I can.
Pooled pension plans are being viewed with great distrust by those, like me, with few working years left and nothing but our minimum old age security ahead of us. The current BC government has a terrible track record for withdrawing support from the province’s most marginalized citizens. Many/most of us fear that this is a form of bait and switch. A fancy bit of sleight of hand to hide the fact that they are once again removing support from the poorest segment of our senior population.
You know somewhere in the whole scheme of things I felt I was hearing a message from the government or maybe I was reading into it much more than I thought. You may be right…
No one else will look after us. IT is true. Sad, but true. Therefore, time to get everything in order! Thanks for the mention my man!
You’re welcome mate
Thanks for the mention! Currently enjoying the snow free environment over here 🙂
Thanks for the link love! 😉
“we better get prepared for our retirement because no one else is going to look after us.” That’s exactly how it is here in the States Mr. CBB. A lot of people still live as Social Security will be there and that it will be enough for them to live on and sadly that will likely not be the case. I think it calls us to save/invest and live frugally now so we won’t be eating rice and beans when we’re retired…or having to work because we need to. I completely agree that this causes us to be more active & disciplined in looking out for ourselves while also being watchful of what we’re spending now. I could ramble on, but I’ll step down from my soapbox. 🙂 Thanks for the mention as always.
Thanks for the mention, my friend! You and I are on the same page as usual, regarding retirement planning and the arrival of spring. :-). Snow is good, for about a month. Then it can go and make way for spring gardening and summer fun time. Have a great weekend, Mr. CBB!
Yes that’s how I feel. When it comes it’s exciting then it wears off lol… cheers Laurie