Did you know the number of years you work are likely to be the same number of years you are retired? Financial planning helps you establish financial security that will support your retirement goals later in life. Book a free consultation with one of our experienced advisors to ask questions, discuss your goals, and receive a thorough financial plan that fits you.
In the meantime, learn more about how you can create, manage and increase your retirement savings below.
Registered Retirement Savings Plan (RRSP)
Registered Retirement Savings Plan (RRSP)
Registered Retirement Savings Plan (RRSP)
An RRSP is a retirement savings plan that can hold a variety of different investments. You can invest in your choice of mutual funds, segregated funds and Guaranteed Investment Certificates (GIC's).
An RRSP is so attractive because any growth or income earned is tax-deferred as long as the funds stay in your RRSP. However, when you take money out, you have to pay tax on it.
You can make contributions to your RRSP to help reduce your taxes on an annual basis. There is also a new limit set each year for how much you can contribute.
Registered Retirement Income Fund (RRIF)
Registered Retirement Savings Plan (RRSP)
Registered Retirement Savings Plan (RRSP)
You can continue to save money and defer tax in your RRSP to a maximum age of 71, at which time it must be converted to an income through a Registered Retirement Income Fund (RRIF).
You can elect to receive payments from your RRIF over and above the mandated minimum to supplement your retirement income from other sources such as company pensions and government programs.
Canada Pension Plan (CPP)
Registered Retirement Savings Plan (RRSP)
Canada Pension Plan (CPP)
The Canada Pension Plan (CPP) is another measure taken to provide Canadians with adequate financial support during retirement.
While you are employed, a little from each of your paychecks is paid into the Canada Pension Plan. Then, when you retire, you can apply for CPP to begin receiving this pension. CPP benefits can be drawn as early as age 60 (reduced 0.6% for each month before 65) or as late as age 70 (increased 0.7% for each month after 65).
Old Age Security (OAS)
Workplace Pension Plan
Canada Pension Plan (CPP)
This is the largest Canadian Government pension plan in existence, and it is funded via general tax revenues ― this means you do not pay into this pension plan yourself.
You are eligible to receive monthly payments from OAS providing you are 65 years of age or older, you are a Canadian citizen or legal resident when you apply, and you have lived in Canada for at least 10 years since the age of 18.
OAS also provides three different benefits depending on your personal situation. In some cases, you will need to apply for OAS yourself.
Workplace Pension Plan
Workplace Pension Plan
Workplace Pension Plan
If your employer has a workplace pension plan set up, part of your income can come from there once you have retired. Your employer will regularly make contributions and they will also help you contribute to your future by putting part of your salary into it. In some cases, you can even choose the investments in your plan.