No money to shelter, after taxes

Dear editor,

Is maximizing an RSP contribution a reality for the so-called middle class family?

With the RSP deadline fast approaching, I thought it a good time to see how us average Canadians might maximize RSP contribution limits for use in our future retirement. Based on the “Taxes versus the Necessities of Life: The Canadian Consumer Tax Index, 2015 edition” published by the Fraser Institute, we are approaching 45 per cent of our income paid to taxes on all levels.

Let us use as an example, a family with $100,000 of income. About $45,000 will go to various types of government taxes. For the necessities of life — food, shelter and clothing — we spend about another 35 per cent or $35,000. Now, based on the advice of our governments, our banks and our financial advisers, we need to maximize our RSP contribution for retirement, which is 18 per cent of the $100,000 or $18,000.

Let’s add that up: $45,000 for taxes, $35,000 for food, shelter, and clothing and $18,000 for future retirement, equals $98,000. Fortunately an RSP contribution, if made, creates a deferral of some tax, but the point remains the same. The cupboard is bare.

Wayne Neville

French Creek

 

 

 

 

Just Posted

Courtenay Fish and Game members pitch in on annual spring cleaning effort

By Gail Eggiman Special to The Record Courtenay and District Fish and… Continue reading

People’s Party of Canada plan to have a candidate in the North Island-Powell River riding

Elections Canada formally recognized the North Island—Powell River PPC Association

North Island College showcases web programming and design talent

North Island College’s Interactive Media Grad Show will feature the best work… Continue reading

Union Bay elects two new trustees

Paul Healey and Hein Vandenberg will join the Union Bay Improvement District board

Painted pinkies mark World Immunization Week

World Immunization Week runs April 24-30

Homeless activists outside Notre Dame demand ‘a roof too’

Wealthy people have donated millions to effort to rebuild cathedral after devastating fire

United Way opens grants to help charities tackle social issues

Charities north of the Malahat can apply for grants $2,000 to $20,000

United Way grants help tackle social issues

To better tackle social issues, such as the rise in homelessness and… Continue reading

Second earthquake in less than two hours strikes off Vancouver Island

The first earthquake happened at 1:27 p.m., the second at 2:44 p.m.

PHOTOS: Green Party Leader Elizabeth May says ‘I do’ on Earth Day

May and John Kidder got married Monday morning in Victoria

Comox Valley fishing charters feel pinch of restrictions

Government imposes chinook restrictions

Sri Lanka invokes war-time military powers after nearly 300 killed in Easter bombings

Sri Lanka’s minister of tourism says 39 foreign tourists were killed in the Easter Sunday attacks

New look, same people at rebranded Comox bike store

New name, new logo, same people. That’s the idea behind Comox Bike… Continue reading

Most Read