February is typically a month when Canadians are evaluating RRSP investments as part of their retirement plan.
Where did the idea of retirement begin?
The concept of retirement can be traced back to 13 B.C. when Emperor Augustus instituted a pension program for Roman Legionnaires who had served in the military for 20 years. “Retirement” wasn’t initially created to reward people after a lifetime of hard work, it’s more strategic
aim was to reduce civil unrest.
While the model of retirement wasn’t universally adopted for millennia, it became more widespread in the late 1800s.
In Canada, the Old Age Pensions Act was introduced in 1927. Giving assistance to provinces that provided a pension to British subjects 70 and older. It was updated to the Old Age Security Act in 1951 establishing a federally funded pension.
In 1957 the Federal Government introduced changes to the Income Tax Act to encourage self-employed Canadians to provide for their own retirement.
Fabulous news … lifespans have gotten longer over the past 66 years. The challenge … retirement planning has become more complicated.
Over the decades, even with fluctuating markets, one of the best retirement plans has proven to be an investment in residential real estate – a home of our own! More than a proven long-term investment, it’s where we welcome friends, raise families, and make memories.