Remember one of those arguments that held up as a reason to come to Canada?: "In Canada we do have a real choice to a dignified retirement, a pension"
Calculate quickly. The minimum wage as of 9.5 $ CAN per hour. That gives a little less than $ 20,000 a year (working 8 hours a day, 5 days a week). This value is going to use as reference a bit later.
The maximum pension granted by Québec is $ 11,000 or something year. MAXIMUM emphasized. Ie to get it you have to quote the time required and the quantities required. Canada: They have a program of "old age assistance." Current maximum value per year: 6,000 more or less. For this, they must not only have contributed a good time and good amounts, but also that they meet one small requirement: Have lived in Canada 40 years or more after 18 years of age. That is, difficult for those who arrived forties.
In conclusion, if you work enough years and enough money trades (no salary minimum) and also runs with the kind of young to get into Canada (and get a job soon), it then has the option of receiving $ 17,000 a year pension. Less than the minimum! In this country, too capitalist, economic issues (the rich, of course) push toward making pensions are increasingly smaller and to grow the retirement age. These facts explain the harrowing statistics: 9 out of 10 retirees are under the poverty line, according as defined here poverty, of course. (We'll always have the consolation of the Japan-Colombia: the wealth is is in the person, spirit, hugs. All you have to do is "think that we are not poor" and with that go to the store to buy meat to feed their children or send them to college. Japan, probably.)
What is certain is that at least the comfort of stable jobs and the economic situation under control allow at least one question and examine all these issues. I never even thought about Colombia on the topic of retirement.
solution? There is another, touches save. E invest the savings to grow. Invest it, of course.
These days, before the first of March, everyone walks talking and working on the issue of the famous Reersø (Régime Enregistré d'épargne-retraite, something like a registered scheme-retirement savings).
is simple. You can take some of their dollars and lead to a financial institution (a bank, usually) and say you want to invest in stocks or funds or those pods. Additionally, you say you want that investment to be registered for purposes of REER. The bank will get lucky the talking and returns a paper that says: Fulanito such an investment made on that date to be registered as an RRSP. Normally the investment is long term and in theory should be charged only at the time of retirement.
You can do this transaction with any amount of money at any time of year. Why, then the desire of these days, before the end of the month?
turns out that the amount you deposit in the REER may be deducted from your income for tax purposes. Let me explain. If you won $ 40,000 during the year and deposited in a fund REER $ 8,000, then you can file your taxes as if it had an income of $ 32,000 (40,000 - 8,000). Of course, this is much better for tax purposes.
Two restrictions: 1) You must have made the deposit before the period allowed by law. In this case, 1 March 2011. 2) You can not claim as a deductible more money than that which is permitted in accordance with the law. Typically, this value corresponds to 18% of its revenue from the last statement (last year). The government is gentle and sends one each year the maximum amount allowed for purposes of REER.
By the way taxes work here, an operation like this is, not only you do not pay much income tax, but also results in you get a return. The government gives you money back.
As the matter is such good business that many people into debt to provide the REER. (Usually, by this time of year, you do not have $ 8,000 under the mattress waiting to see where they are reversed.) People go to banks and the latter easily lend the money to invest in a fund REER. What if it's good business to pay interest on new debt? Yes, banks may now be paying money to REER to 6 or 7%, maybe less. Normally a fund REER, long term, it could be giving yields around 10%, obviously if the fund and investment are well chosen.
take an example with numbers calculated in the air. Pay $ 8,000 for 10 years, say that you pay the bank $ 1,800 of interest throughout the term. It is likely that during those 10 years, that $ 8,000 deposited into your RRSP fund pay can reach $ 12,000 or more, above the 8,000 original. Does this mean that the only difference between the returns you earn and those who interest you pay, and began to pocket $ 10,200 (12,000 - 1,800). Add to that the money that comes effects of extra money the government gives back.
In fact, what many people do, is take the money returned by the government and canceled it a part of credit, making interest is much lower in the long run. And anyway, is with the long-term investment!
As I quoted the REER I never, my accumulated maximum amount a little each year. For it had the capacity to deposit (and tax deductible) $ 13,500. A financial institution's paid me. To 5.75% for 10 years. The loan will cost me about $ 4,000 in interest. The 13,500 should generate just over $ 25,000 in 10 years. The difference between yield and these interests could be then over $ 20,000 ( hope and cross my fingers). The $ 13,500 were actually completed an RRSP with the same entity (the loan is secured by the same REER). On the issue of taxes, had planned to pay 5 or $ 6,000 this year (due to extra income working from my side). Now, with the deposit in the REER, I calculated that not only am I paying money to the government but I will get a return of close to $ 3,000. Directors to pay the bills!
Too tangled? Read the article again, very slowly. Take paper and pencil and go by the addition and subtraction. Try to imagine your own scenario. Suddenly the data it serves.
Would you like help in calculating or have questions? Do you think that this information can serve someone else? If you wish, you can contact me:
To me the issue of finances I love, so I gladly helped him. And free, as always.
(do not know what kind of legal statement should I do but I must say here that I am NOT authorized to become a financial advisor. Please take this article for information and without any commitment on your part. Even numbers are accurate and the calculations are there for illustrative purposes only).
U na of possible interview questions is Why did you choose Montreal as a destination of their migration? And in response can say "We chose Montreal because it is part of the region with more job offers according to our abilities" . In order to support that comment we page Emploi Quebec , Where it is possible to query jobs in the province of Quebec, unfortunately to be enrolled and receive notifications of new jobs by email you must have the CSQ in hand. It should be noted that the consultations of employment must be on the specialty that we have in our experience, which is not necessarily the one that says our title. 
