Make the Most of Your Retirement

More and more, Canadians are needing to plan for their own retirement income.  Public pensions include Canada Pension Plan and Old Age Security, which are designed to replace 25% of the average income, with the Guaranteed Income Supplement ensuring a minimum income for all.  More and more employers have stepped back from providing Defined Benefit Pensions, leaving individuals to make plans on their own or with a Financial Planner.

What are you retiring to?  We help you plant seeds of savings as you work, to water, weed and nourish them to grow, so that you can harvest an income in your retirement,  As your trusted advisor, I help find a balance between protecting your assets and growing them.  I help with tax planning, estimating retirement expenses, optimizing investments, and projecting income through your retirement.  See how I can help you benefit from a well-planned retirement with this video.

Canadian Public Pensions

Almost all individuals who work in Canada contribute to the Canada Pension Plan (CPP). The CPP provides pensions and benefits when contributors retire, become disabled, or die.  In retirement, you can apply for and receive a full CPP retirement pension at age 65 or receive it as early as age 60 with a reduction, or as late as age 70 with an increase.  Married or common-law couples in an ongoing relationship may voluntarily share their CPP retirement pensions.  If you continue to work while receiving your CPP retirement pension, your CPP contributions will go toward post-retirement benefits, which will increase your retirement income.  If you become severely disabled to the extent that you cannot work at any job on a regular basis, you and your children may receive a monthly benefit.  When you die, CPP survivor benefits may be paid to your estate, surviving spouse or common-law partner and children.  Old Age Security is available based on Canadian residency.  Find out more about Canada Pension Plan and Old Age Security here:

More Info from Service Canada


RRIF withdrawals

By December of the year you turn 71, you need to transfer your RRSP into either a RRIF or an annuity.  After that, there is a minimum required RIF withdrawal amount.  Since there was no tax on the money that went into the RRSP, the money coming out of the RIF is taxed as income.  In order to facilitate the personal savings of retirees lasting longer, the federal government has reduced the minimum required RRIF withdrawals, effective 2015.  Click here for existing and new RRIF minimum factors.   As a Financial Planner, we can project the amounts of income you might take from your RRIF under various scenarios.  If you are withdrawing more than the RRIF minimum, you may not be affected.  It  is a good idea to check with your Advisor to ensure that you get the RRIF income you want going forward. 


Decline in Private Sector Pensions

Statscan said 61per cent of all Canadian workers have no workplace pension plan; 39 per cent have a workplace pension plan.  With the decline in pensions being offered by the private sector, more than half  of the country's pensioned workers are in jobs in the civil service or at government-funded institutions such as universities and hospitals.  Planning for your own retirement rather than relying on others to do it for you, is becoming more critical.

More Info from The Globe and Mail

Old Age Security - clawbacks

This link shows the income at which OAS must be partially repaid (clawed back):

More Info from Service Canada

House Rich - Savings Poor

The latest Manulife Bank Homeowner Debt Survey reveals many Canadians find it difficult to pay for today and plan for tomorrow.  Faced with rising housing costs, homeowners struggle to balance saving, debt repayment and daily expenses.  Many may arrive at retirement house-rich, but savings-poor, which could require them to make difficult decisions.  Find the results of the Manulife survey here.

Old Age Security (OAS)

This link provides general information on the OAS and Guaranteed Income Supplement for low income Canadians:

More Info from Service Canada


Locked In Retirement Accounts (LIRA)

LIRA accounts result from transferring an employer pension into a self-directed retirement account (LIRA).  LIRA portfolios fall under pension legislation,and when they are transerred to a LIF they regulate the amount and timing of withdrawals from LIRA accounts.  Contact us to find out more.  

Canada Pension Plan

From Employment and Social Develepment Canada, you can find out about the Canada Pension Plan (CPP) and Old Age Security (OAS).

More Info from HRSDC

From Service Canada, you can find out about Canada Pension Plan, its disability and survivor benefits and ability to share pensions or split pension credits.  

More Info from Service Canada