But he should have his own rrsp and other savings as well, no?
easy to say..
for a clearer example....a retired 60year old municipal worker who is already on his pension since let say 10years....
10 years ago his salary was what ? 35-40 K....
then his pension is probably about 60-65% of that then 21-26K$/year....like mine assumption of 24K
Then remove his Indexation which will probably mean avg 2% compounded loss per year..
then
age 60 years: pension 24000
61 - 24000-2% = 23520
62 - 23520 - 2% = 23 050
63 - 22588
64 - 22136
65 - 21694
66 - 21260
67 - 20835
68 - 20418
69 - 20009
70 - 19609
71 - 19217
72 - 18833
73 - 18456
74 - 18087
75 - 17725
and so on till he dies
In the same span of time his expenses stay same or rises.
His health problems become more important, and he needs more meds, etc.
His nutrition become less and less adequate because of lack of money
and he ends up as I said....and multiply this by thousands of retired...
and I'm pretty sure that only 1 year in hospital costs more that 3-4 years of his pension not taking in consideration that because he is talking 1 spot..
you wont be able to go yourself or with your kinds in case of need...or you will wait and wait and wait to get your turn.
Plus many other negative impacts that all this will have...