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Legal aid clinics tips on retiring right MARIE Tom hod Just turned and decided to think about retiring Tom could work to age 65 if he wanted He mind his Job and was healthy enough but if ho and his wife Mary age could awing it a little golf and travel to visit the children would be nice Like most people be want to be forced to retire but if he could hed liko to retire earlier Turning to basics Tom and Mary put pen to paper to figure out bow much money they needed and how long they would need it How long will I live Of course no one knows how long a particular live but the life expectancy tables snow that on average Torn can expect to live another years once he reaches and Mary can expect to live another 18 years So they counted on needing money until he was age and Mary was age 83 Source of Income la Retirement Old Age Security First theres Old Age Security the old age pension Thats easy every one who applies gets at age whether retired or not If the real requirements are fulfilled Its a federal program now paying a month and it Is automatically indexed quarterly to increases In the cost of living as measured by the Price Index GDarantecd Income Supplement CIS Tom and Mary also know that If they do sot have any income of their own at age the govern ment will provide a guaranteed annual Income which will be the total of plus the guaranteed Income Supplement is now paying a month to an Individual and it is also Indexed quarter ly Also the Spouses Allowance program will pay Mary a sum equal to and when Tom reaches since she will be between the ages of and In addition to these federal government programs Ontario Legally- Speaking Income through GAINS so that in Ontario the guaran teed income today for an elderly couple Is a month Canada Pisa Tom baa been working since l66 when the began so he will get a Canada Pension pays pensions to a maxi mum which Increases yearly The maximum pension for 1982 1 and the maximum Is paid If earnings are at the maximum CPP level in the year This earnings level Is designed to reflect the Average Industrial Wage Tom now earns more than the AIW about and he counts on getting the maximum pen sion when he retires He can only get CPP at age Mary has been working part tune for about 10 years and the will also get It will be based on her earnings of about a year Her CPP pension will be consider ably lower because her earnings are lower and because she has not been contributing to the CPP since 1966 Company Tom has been a member of hi companys plan for years It I a usual type of plan and pays turn a pension based on his aver age earnings over the five years before retirement This is a defined benefit plan which will pay him a pension of per cent of his final average salary for each year of service Tom may expect to receive at age per cent times average salary times years or annually or a month Pensions are really annui ties and this payment Is a life annuity payable as long aa Tom lives His pension plan permits Tom to elect a survivor option so that after his death half of his pension will continue be paid to Mary during her lifetime The a month pension be reduced to to provide the JO per cent survivor benefit Toms pension plan permits him to retire early after age so with an actus rial adjustment of pension of per cent a year Hi plan also provides a bridging supplement of 300 a month until be when be will be entitled to and CPP As a parttime employee Mary does not belong to a pension plan even though the company the works for has a plan for fulltime workers Saviag Tom and Mary have an in Marys name which is worth about 10000 and which can be used to buy an annuity between age and 66 Mary is and the can now be converted Inflation Tom and Mary were glad that the Old Age Pension and the Canada Pension were protected from Inflation but they were very concerned about the company penal on and the annuity which are not Indexed As prices increase at per cent a year Toms 600 a month Income will be worth 400 In five years The company glvea up dates but they cannot be counted on since they are not benefits in the plan Income l3 Tom calculated the family income would be roughly as follow At age 5 Company pension 600 Toms CPP projected Marys Toms Total monthly income At age 62 Company pension RRSP annuity Income Total monthly income Tom concluded be would wait to age to have the benefit of government pensions the longer year of service to calculate hi company pension and to avoid using their Having looked at the effect of inflation on his income Tom and Mary took some comfort In knowing that the federal government and Ontario through the Guaranteed Income Supplement and CAINS provide a guaranteed annual income over age If their com bined income drop below a certain level Tom and Mary may well need to obtain these incometested benefits in the future Copyright Marie Corbett 12 Antiques galore The first Orangevllle Summer Antique Show expected to become an annual event will benefit the Area Hospital Auxiliary Aug and at the OrangerlUe Agricultural Coliseum and Curling Rink on Fifth Avenue Features will include primitives stoneware Victorian and country furniture china glass and silver not to mention homebaked goodies All proceeds go toward hospital equipment Admission Is so WOMENS SHOES Georgetown Market Place Wed 9am 9pm Saturday gam