|  Inflation making it tougher to feed families Surging inflation has a growing number of Canadians concerned they won't be able to stretch their dollars far enough to keep food on the table, according to the latest polling from Ipsos. In a survey conducted exclusively for Global News from March 11-16, Ipsos found that six in 10 Canadians say they are concerned they might not have enough money to feed their families. Moreover, some 85 per cent of respondents said they were worried about not being able to afford “everyday things” like gas and rent. The most concerned among those surveyed tended to be younger Canadians, parents and those looking to start families. Darrell Bricker, CEO of Ipsos Public Affairs, told Global News that the latest polling represents a "dramatic transformation" of Canadians' top-of-mind concerns. As the pandemic winds down, wider concerns such as climate change and health care are falling down the rankings as eroding affordability rises to the top. "What we're now seeing is an agenda that's very much dominated by really urgent economic issues, principally, the cost of living," Bricker says. Read more here about the survey results from Global News reporter Craig Lord.  Jobs have bounced back – but not for everyone While Statistics Canada announced earlier this month that the country’s unemployment rate had officially fallen below pre-pandemic levels for the first time in two years, a Global News analysis shows certain segments of the population and workforce haven’t come back at the same pace. Strong job growth driven by the so-called "core age" Canadians — those aged 25 to 54 — was dampened by a lagged return to the workforce among youth and older adults. Comparing the latest StatCan figures to February 2020, unemployment last month was up 8.8 per cent in the 15-24 age group and 5.1 per cent higher for those aged 55 and older. "It's easy to forget that there's a lot more going on," Brittany Feor, economist with the Labour Market Information Council, told Global News. There’s also more going on in self-employment, where the total number of Canadians working for themselves is down nearly 10 per cent over the course of the pandemic. Hits to confidence among small business owners could finally be turning the corner, but advocates say it’s critical to get self-employment back on track and ensure that losses in entrepreneurship don’t hamper Canada’s economic growth in the long term. Read more about the age gap in Canada’s labour force here and about the slow recovery of self-employment here.  Can employers mandate a return to the office? After more than two years of working from home amid the COVID-19 pandemic, many Canadians are gradually returning to the office as public health measures and restrictions are being eased. While seeing colleagues in person may come as a welcome change for those tired of Zoom meetings and being stuck at home during lockdowns, many are not so keen to leave the comfort and flexibility of remote work. According to a recent survey by Amazon Business, 43 per cent of Canadian workers said they would likely look for a new job if they are mandated to work from the office on a full-time basis. But can employers even mandate that work be done in person, rather than the remote or hybrid styles many Canadians have become accustomed to over the pandemic? Generally, yes, legal experts say. "It is ultimately, for the most part, the employer's decision," said Alex Lucifero, employment lawyer and managing partner at Samfiru Tumarkin LLP, adding that the employees "might have very little say." That said, there could be a bit of wiggle room based on your specific circumstance. Read more here from Global News reporter Saba Aziz. ________________________ – THE QUESTION – “I'm turning 71 in December of this year and I have three RRSPs: two have small amounts and the larger one I'm taking an annuity. I’m told I can't put them all in one account, as they’re all with different institutions. Is that right? Let me know if there is a way to merge all three.” — A Money123 reader “It sounds like you want simplicity – having all three RRSPs in one account so you can see them together. Each institution has their own accounts, so yes, all three accounts would have to be at the same institution to have them in the same account. Since you are turning 71 this year, you have to convert your RRSPs to either a RRIF or an annuity by Dec. 31. That makes this year an excellent time to plan your retirement income for the rest of your life. Converting to a RRIF, instead of an annuity, is worth considering because it allows you to invest in more effective investments. It may even be worthwhile paying the penalty to get out of your annuity so that you can invest it more effectively in a RRIF. It is usually more important that your investments provide for your retirement effectively than to have the simplicity of one statement. Retirement for Canadians is typically 30 years or more. Annuities today have a very low interest rate, similar to a high-interest savings account. More effective investments can give you a far higher return. Having your investments compound at six or eight per cent per year for 30 years instead of one to two per cent for an annuity can give you a more comfortable retirement. Annuities give you cash payments of four to five per cent per year of your investment if you start at age 70, but really most of this is just giving you your original investment back. The downsides of annuities are that they usually do not increase with inflation, which is a huge factor over 30 years, and that there is nothing left for your kids or your estate. Most people believe that fixed income, like annuities, bonds or GICs, are the safest retirement income. However, they can lose money (or not keep up) when interest rates rise, and they often don't even keep up with inflation. When you think long-term, the investment world is completely different. Studies actually show that the stock market is more reliable than fixed income over long periods of time, say 20 years or more. The statistic for how predictable your returns are is called "standard deviation." The 20-year standard deviation after inflation of the stock market is lower than for bonds. In other words, we can more accurately predict the growth after inflation of the stock market 20 years from now than for bonds or other fixed income (like annuities). Investing with a growth portfolio can provide a reliable retirement income that rises with inflation and probably leave a large amount for your estate. The investments fluctuate short-term and medium-term, but done property are reliable over a 20-30 year retirement.” -Ed Rempel, fee-for-service financial planner and tax accountant, blogger at Unconventional Wisdom
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