Unit 5. Middle and Later Life. 1. Living the Dream. Emerging adults define who they want to be for the rest of their lives. The period between the start of adulthood until old age will be the definition of who they are… Emerging adults define their dream. THE TYPE OF LIFE THEY WANT!
Middle and Later Life
Read the text Aboriginal Families Valued Experience on pages 396-397.
Compare how the elderly were treated in those societies with today.
2.1 Preparing retirement
Preparing for retirement must begin early on in adulthood.
Planning and preparing will need to happen throughout Early, Middle and Late adulthood in order to have the resources necessary to enjoy old age.
Consequences of not preparing properly include poor health and poverty.
58 % of adult Canadians are not financially prepared for retirement.
Only 33 % of adult Canadians have a plan that will meet their goals.
Some people even retire with debt!
33% of Canadians retire with debt.
Of those with debt:
Preparing a budget that will meet yours and your family’s needs is very important.
Show: Til Debt do us part.
Before preparing a budget, list the things that are important to you and describe the lifestyle you want to live.
Using the data provided prepare a monthly and a yearly budget for the average family.
Complete the package…
RRSP : An RRSP is a retirement savings plan that you establish, that we register, and to which you or your spouse or common-law partner contribute. Deductible RRSP contributions can be used to reduce your tax.
Any income you earn in the RRSP is usually exempt from tax as long as the funds remain in the plan; you generally have to pay tax when you receive payments from the plan.
b) TFSA: The Tax-Free Savings Account (TFSA) allows Canadians, age 18 and over, to set money aside tax-free throughout their lifetime. Each calendar year, you can contribute up to $5,000, any unused TFSA contribution room from the previous year, and the amount you withdrew the year before.
All income earned and withdrawals from a TFSA are generally tax-free. Plus, having a TFSA does not impact federal benefits and credits. It's a great way to save for short and long-term goals.
A registered education savings plan (RESP) is a contract between an individual (the subscriber) and a person or organization (the promoter).
Under the contract, the subscriber names one or more beneficiaries and agrees to make contributions for them, and the promoter agrees to pay educational assistance payments (EAPs) to the beneficiaries.