Actuarial Science 1021A/B Study Guide - Retirement Planning, Ontario Health Insurance Plan, Savings Account
16 Oct 2014
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Document Summary
The economic problem of old age consists of the following: growing population of older people. 2050 20% of pop. is expected to be 65+ ^ creates problem b/c elderly need to be supported in retirement. Longer retirement period: this occurs because, people are living longer, people are retiring earlier (this may be reversing) Insufficient income and assets: the aged are an economically diverse group and the incomes received are far from uniform, 2008: 65+ - 22% annual income of < ,000. Also, aged may have accumulated assets over time to help offset the loss of income. Aged tend to have more assets and fewer liabilities than their children (may be reversing) But one of the main assets is a house but it does not provide income (unless it is sold) 1 in 11 of those people will spend 5+ years there: heavy property taxes, true even if your home is mortgage free. Inflation: other financial problems, abuse of the elderly.
