How to go about securing the best Retirement Plan in Canada.
Latest News
More Canadians are pressing pause on retirement savings to pay for things now. Just how long should you do that? The answer may surprise you + MORE Jun 1st
Be aware of the setbacks of putting saving for the future on the back burner in the face of high inflation, experts caution..... More »
How job changes can affect your taxes + MORE Mar 28th
Landing a new job or being laid off from your current position can be life-changing—whether it’s an exciting transition, a tough stretch or a chance at a fresh start. But months after the dust settles, people often forget that job changes can also impact that year’s tax return. Expe.... More »
Downsizing vs reverse mortgage: which option is right for you? Feb 2nd
For many Canadians approaching retirement, their home is by far their largest asset. With detached homes in major cities selling for well above $1 million, it’s not surprising that owners expect to tap into that equity to help fund their golden years, prompting the common refrain: “My home is my.... More »
The best RRSPs in Canada for 2023 + MORE Jan 4th
Registered retirement savings plans (RRSPs) are often described as “tax-advantaged,” meaning they offer tax-efficient ways for savers and investors to build wealth for the future, usually for retirement. To maximize their potential, you must understand how RRSPs work compared to other registered.... More »
Tax write-offs that Canadians often get wrong Apr 18th
I come across frequent questions from taxpayers about expenses they think they can claim as a tax deduction or credit. Often, they cannot be claimed, or there are strict criteria that apply.
Safety deposit box
Back in the olden days, investors sometimes kept stock certificates in their safety .... More »
How the coronavirus pandemic could change the way we think about retirement in Canada
– moneysense.ca
Over the past few decades, the concept of retirement has grown increasingly more sophisticated. Canadians preparing for retirement have been able to contemplate a variety of highly personalized approaches—from early (or even very early) retirement; to active, phased, or working retirement; and more.
All of these variations on the retirement theme have been built on a relatively steady set of economic conditions and assumptions: that housing and financial markets will remain stable, the economy will continue to function, and Canadians will continue to pay the Canada Pension Plan premiums and income taxes that keep CPP and Old Age Security payments flowing.
But what happens to retirement when the world is grappling with a global pandemic and the resulting worldwide economic fallout? Here are three ways the coronavirus could reshape retirement in Canada.
The movement towards “early retirement” will dwindle as employment security drops—and the average retirement age creeps up
Many of these newer approaches to retirement assume that if retirement goes wrong, retirees have fallbacks to rescue their finances, whether that’s returning to paid employment, harvesting home equity, or counting on continued asset growth to help meet budget shortfalls…
All of these variations on the retirement theme have been built on a relatively steady set of economic conditions and assumptions: that housing and financial markets will remain stable, the economy will continue to function, and Canadians will continue to pay the Canada Pension Plan premiums and income taxes that keep CPP and Old Age Security payments flowing.
But what happens to retirement when the world is grappling with a global pandemic and the resulting worldwide economic fallout? Here are three ways the coronavirus could reshape retirement in Canada.
The movement towards “early retirement” will dwindle as employment security drops—and the average retirement age creeps up
Many of these newer approaches to retirement assume that if retirement goes wrong, retirees have fallbacks to rescue their finances, whether that’s returning to paid employment, harvesting home equity, or counting on continued asset growth to help meet budget shortfalls…
Should you delay your retirement because of COVID-19?
– moneysense.ca
Is the coronavirus-induced bear market reason to delay retirement? Some financial experts and commentators suggest Baby Boomers may be forced to set back their retirement by up to five years because of the effect lower stock prices have on retirement nest eggs.
But it really depends on personal circumstances and aspirations.
The good news is those with Defined Benefit (DB) pensions may not have to delay Retirement at all: “So long as the pension plan is healthy and well-funded, their retirement plan should remain intact,” says Aaron Hector, vice-president of Calgary-based Doherty & Bryant Financial Strategists.
However, those counting on their own nest eggs to fund retirement “have more reason to be concerned,” Hector cautions. “Valuations have fallen and some companies will be forced to reduce or cut their dividends, which will put a damper on income sources. For them, it would come down to whether or not they had previously built up an adequate cushion to allow for this market correction…
But it really depends on personal circumstances and aspirations.
The good news is those with Defined Benefit (DB) pensions may not have to delay Retirement at all: “So long as the pension plan is healthy and well-funded, their retirement plan should remain intact,” says Aaron Hector, vice-president of Calgary-based Doherty & Bryant Financial Strategists.
However, those counting on their own nest eggs to fund retirement “have more reason to be concerned,” Hector cautions. “Valuations have fallen and some companies will be forced to reduce or cut their dividends, which will put a damper on income sources. For them, it would come down to whether or not they had previously built up an adequate cushion to allow for this market correction…
