Frederick Vettese

So that's one thing.

Second thing I do is I suggest to people that they ought to be deferring their CPP, Canada Pension Plan, until 70.

And what that does, it means that you're running down your risk assets, like your RRIF or your RRSP, sooner.

But what you have left with is a much bigger amount.

Canada pension plan because it's 42% higher at 70 than 65.

So what you're doing, you're increasing that and that goes up with inflation for the rest of your life, even if you live until 105.

And so what happens is that if you do the numbers and you show the bar charts to show where all the income comes from, by the time you hit the 85 or 90, most of your income is coming from like totally safe sources like OAS and CPP.

And on top of that, I'm suggesting it may not be such a bad idea to be allocating about 20% of your assets toward an annuity.

On top of that, I'm not a huge fan of annuities ever since COVID started.

That's simply because I thought inflation was dead, and it's not.

So we can never assume it's going to be dead again, as far as I'm concerned.

You never know what's going to raise it.

It won't be COVID next time.

It might be a war with Iran.

It might be who knows what.

But how do you fit that?

But all the arguments you gave for them, those arguments become stronger and stronger with time.

So maybe you don't buy an annuity at the age of 60 or even age 65.

You should seriously think about it at age 70 and for sure by the time you're in your early 70s, 75, because there's something called a mortality credit.

So that annuity is, it's worth more and more because it's not just a matter of you get the same amount of interest as you get off a bond, whatever.