Ontario government to delay ORPP rollout by one year + MORE Feb 19th

Q: I am still working at age 63 and getting CPP. I will have a pension when I retire and I have an RRSP.
When I retire at age 70, I believe I will have to start withdraw from my RRSP.
Because I already have a pension, will my monthly CPP payout be reduced?
—Gisele
A: I find that a lot of Canadians are confused when it comes to their retirement income, Gisele. So you are definitely not alone. I’m going to try to clarify your concerns.
First, I’ll comment on receiving the Canada Pension Plan (CPP) before you retire, as this is an area that most people don’t understand. If you start your CPP retirement pension between age 60 and 65–as you did–you have to continue to contribute to the CPP while you are working. If you are between age 65 and 70, you have the option to opt out of contributing or you can continue to contribute. Contributions made after you begin your CPP will enhance your monthly pension through the Post-Retirement Benefit (PRB).
Continuing to contribute may provide a good “return on investment” in particular for conservative investors, those who expect a long life expectancy or married Canadians whose spouse is younger or who won’t receive the full CPP retirement pension themselves…

TORONTO – One of Canada’s biggest insurance and financial services companies says nervousness among Canadian investors has risen to levels not seen since the financial crisis.
Manulife Financial (TSX:MFC) says that Canadian investors have lost confidence in mutual funds, exchange-traded funds and balanced mutual funds over the past six months.
It also suggests that housing is seen as a less attractive investment, while confidence in fixed income investments has stayed about the same.
The report is based on Manulife’s semi-annual index of investor sentiment, which dropped to 16 in December from 19 last May.
Investors: Don’t do dumb stuff when it gets hard »
The index is based on investor views on a range of asset classes as well as their confidence in these areas.
Regionally, investors in Ontario and the Atlantic provinces were the most optimistic with a score of 20, while Quebec ranked lowest at nine. Alberta was second lowest at 14.
The skittishness among investors comes as stock markets have taken a beating and Canadians head toward the RRSP contribution deadline on Feb…

 
Last time, we talked about the 5 RRSP pitfalls that can keep you from getting the maximum benefit from your savings. They aren’t the only ones you need to be concerned with when making decisions about how to plan for a secure future. Making a simple error now can have far-reaching consequences in years to come. Find out how to avoid even more RRSP pitfalls and have more funds available to you in retirement.
More RRSP Pitfalls to Avoid in 2016
1. Having Too Many Financial Accounts
If your RRSPs are spread out over several financial institutions, it can create havoc in managing your overall portfolio and attaining your financial goals. You may also end up paying extra account fees.
Consolidate all your RRSPs into one account instead. This step should provide you with peace of mind that your financial advisor fully understands all your holdings and that your assets are properly diversified to reduce risk. You will also get the benefit that your financial goals are understood, making your retirement reality fit the picture you have in your mind…

The Association of Canadian Pension Management is welcoming today’s announcement of a one-year delay to the Ontario Retirement Pension Plan.
“We welcome it,” says ACPM chief executive officer Bryan Hocking, calling it a “wise” move.
“I think they’ve had enough input from a number of different organizations and companies that are all saying the same thing at this point,” he notes, referring to a growing number of calls in recent weeks to delay the ORPP by one year.
In a speech at the Empire Club today, Finance Minister Charles Sousa announced the province would be delaying the ORPP by one year. As a result, large corporations will still have to register with the ORPP as of Jan. 1, 2017, but won’t have to start remitting premiums until Jan. 1, 2018. Under the original schedule, premiums were to apply to large companies as of 2017 with the ORPP continuing to roll out in stages until Jan. 1, 2020.
What you need to know about the ORPP »
“So we’re giving employers more time to prepare,” said Sousa…

In a perfect world, people would have enough money to top up both their RRSP and TFSA accounts. But that’s probably not the case.