Are you living and working in Canada?
If you have been working and living in Canada for the past 10 years, here are a few things you should know about retirement planning in Canada.
What is a Registered Retirement Savings Plan (RRSP)?
RRSP contributions are deducted from your earned income to reduce or defer any taxes payable. There is a limit to the amount you can contribute based on your earned income in previous years. Did not use your full deduction limit, it accumulates and is carried forward until used. After you make the contributions in the year you turn 71, all contributions into your RRSP are transferred into a Registered Retirement Income Fund and you receive an income from the fund. Any excessive amounts can be transferred into an annuity in the year of retirement.
RRSPs are not the same as a Registered Pension Plan.
What is a Retirement Pension Plan?
RPP contributions are contributions from your company pension plan, make contributions into. How much you will get depends on the plan type set-up by your employer. You contact company human resources center find out how much they will pay you?
What is an Annuity?
This is part of retirement planning if you do not have a company pension, to receive the $2000 non-refundable, when receive qualifying income after 65 years.
Canada Pensions from the government
- How much you will get? Click to find out
The Canadian Government has 10% increase for seniors over 75 years, if cost of living goes down the amount will not change.
Canada Pension Plan?
This can be applied for in the month before you turn 65 years, it takes about 60 days for the payment to be made by direct deposit. All depends how much money making 10 years before you turn 65 years. If you have been working in Canada for 40 years, any breaks in employment for family or education. As of July 2022, Basic $727.61 to $1253.59 plus post retirement of $16.05 to $36.26 – can continue to make contributions if you are not maxed out. Plus, any widowed/divorce pension payments.
Old Age Security?
If you are turning 65 in 2022, Maximum monthly payment is $685.50 over 75 $750.05
Guaranteed Income Supplement?
This is for low-income seniors do not have a company pension not receiving the maximum payments, you will receive Maximum $1023.28 if income is less than $20, 784.
- Canadian Retirement Income Calculator, along with your self-direct pensions and/or company pensions.
This will help determine if you have enough funds available to leave on.
We can help you, to determine how much to contribute!
We can help review what you receive? If you sent me the amount of the company pension and earnings current year.
Keep in mind that your financial institutional will be busy in the last weeks of February so get your RRSP slip early.
If you have questions please contact us