Shrinking Canadian dollar

her&I wrote:

John&Joey wrote:

her&I wrote:
...We also survived the $0.67 era but my fixed income value has eroded considerably since.

I saw this first hand with my F&MIL. They didn't know about inflation and what it could do to a fixed retirement income over 20+ years.

What should be a little scary to our northern neighbors (and here also) is in the US we have been experiencing 10-15 years of very mild inflation. Once our Fed's start to raise interest rates, that trend will stop. If our inflation does goes up, and the exchange rate gets worst, that will be a perfect storm for some with a fixed income.

I took an early retirement full pension offer in July, 1996. It was a very good package at that time but there has been a lot of life lived since then and that amount has lost it's shine. Fuel was in the $2.98 CND a gallon on July 1, 1996 and it is $6.56 CND this morning. The 1996 average retail cost of a dozen eggs was $2.85 CDN and is $3.87 CND this morning. Add 24% in exchange rate and that fixed income sure looks meager.

Thanks for the explanation, others can learn from it.

Myself I learned from watching my in-laws. I could have left my job for better pay several times over the years, but stayed. The reason was the pension that I would be getting was tied to inflation and was not fixed. Hopefully I did the right thing, but only time will tell.

One could always explore an alternative. Here are some choices for a different winter: la Ronge,sk.; Teulon,mb., Cold Lake, ab. All fine spots to spend a winter! Just suck it up and spend some of the millions Canadian seniors have collectively squirreled away.

Moisheh

her&I wrote:

John&Joey wrote:

her&I wrote:
...We also survived the $0.67 era but my fixed income value has eroded considerably since.

I saw this first hand with my F&MIL. They didn't know about inflation and what it could do to a fixed retirement income over 20+ years.

What should be a little scary to our northern neighbors (and here also) is in the US we have been experiencing 10-15 years of very mild inflation. Once our Fed's start to raise interest rates, that trend will stop. If our inflation does goes up, and the exchange rate gets worst, that will be a perfect storm for some with a fixed income.

I took an early retirement full pension offer in July, 1996. It was a very good package at that time but there has been a lot of life lived since then and that amount has lost it's shine. Fuel was in the $2.98 CND a gallon on July 1, 1996 and it is $6.56 CND this morning. The 1996 average retail cost of a dozen eggs was $2.85 CDN and is $3.87 CND this morning. Add 24% in exchange rate and that fixed income sure looks meager.

Holy cow you guys get whacked for fuel in Ontario. 6.56 is freakin crazy. Thats like 1.72 a litre. Geesh. Its around 1.19 a litre here (4,52) here for gas and 1.11 per litre (4.21) for diesel and we are in the expensive part of the valley In the interiour of BC. What drives that? Geesh.

moisheh wrote:
One could always explore an alternative. Here are some choices for a different winter: la Ronge,sk.; Teulon,mb., Cold Lake, ab. All fine spots to spend a winter! Just suck it up and spend some of the millions Canadian seniors have collectively squirreled away.

Moisheh

Ahhh, winter in Cold Lake Alberta. I did 6 of those. Angela and I standing on the side of a runway in minus 40 C temperatures aligning a PAR reflector while an F-18 Takes off a 100 yards away. Ever hear (feel) a fighters engines at 110 percent at minus 40C. Special. :)

pawatt wrote:
The cost of food, gas & refreshments is so much less in the USA that should help some. Esp the low costs in Texas.

Overall we do find it cheaper in the USA but gotta say that generally speaking we find veggies and fruit more expensive in California than where we live in Canada. Maybe just where we are....and where we go in the US.

Pension? You got a pension? Must be nice.

Gas here in Ontario is $1.16 here which is about $5.50US / gal. Diesel is less for a change.

joebedford wrote:
Pension? You got a pension? Must be nice.

Gas here in Ontario is $1.16 here which is about $5.50US / gal. Diesel is less for a change.

Hmmm, 1.16 per litre is 4.40 Canadian per US gallon or 3.47 American at todays rate. Finger fault on the calculator???

her&I wrote:
On our fixed income this is going to make it almost impossible to go to our place in Texas this year. We did pay our site rental in late May at 0.94 on the dollar but the cost of food, gas, propane and entertainment at 0.70 will be very hard to justify for us.

Come down to Silver Springs FL where the cost per month is $220 in one place and $330 a month just up the road. We have Ontarians there every winter.

John & Angela wrote:

joebedford wrote:
Pension? You got a pension? Must be nice.

Gas here in Ontario is $1.16 here which is about $5.50US / gal. Diesel is less for a change.

Hmmm, 1.16 per litre is 4.40 Canadian per US gallon or 3.47 American at todays rate. Finger fault on the calculator???

Some times guilty of loose nut on key board when making conversions.

her&I wrote:

John & Angela wrote:

joebedford wrote:
Pension? You got a pension? Must be nice.

Gas here in Ontario is $1.16 here which is about $5.50US / gal. Diesel is less for a change.

Hmmm, 1.16 per litre is 4.40 Canadian per US gallon or 3.47 American at todays rate. Finger fault on the calculator???

Some times guilty of loose nut on key board when making conversions.

:)