RRSPs & Retirement Planning
There are two distinct road maps when thinking about retirement.
- The first to help you plan a path to the goals you wish to reach and the time frame to which you wish to reach them.
- The other plots out how you will generate a monthly fixed income in retirement that meets your anticipated needs and leaves you enough left over to bequest as a legacy to your family.
Most of us have grown up understanding the importance of a Registered Retirement Savings Plan (RRSP) and how it complements our Canada Pension Plan (CPP), Old Age Security (OAS) and for some, our company pension plans. However, it takes a strong discipline and responsibility to save for one’s own retirement and the early we start the less painful it becomes. The first question becomes, "Do I Have a Plan?"
The last Canadian Baby Boomer turns 50 in 2015; therefore we have record numbers of individuals retiring and living longer. CPP is now paying more retirees while receiving fewer contributions, so changes became necessary.
It seems each year, another survey shares the results that Canadians are stressed about their retirement dollars, stressed about contributions by the March deadline or stressed about the performance of their retirement dollars.
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Ask us about:
- RRSP planning
- Spousal RRSPs
- After age 71
- Turning age 71 — Time it right to contribute or top up
- Earned income after age 71
- Beneficiaries with disabilities
- Canadian residents working in the U.S.
- Early retirement and pension plan options
- Using a portion of your severance payment as a contribution to your RRSP
- Company pension plans — defined contribution pension plans vs. defined benefit pension plans
- Commuted value and how it is calculated
- Locked-in accounts and how they’re treated differently than a RRIF
- Pension income splitting