All about Retirement Planning in Canada. Learn the ins and outs and get the latest news.
Latest News
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 »
Ladies, start saving 20 per cent for retirement Apr 28th
Women can unlock their financial potential by growing their financial confidence..... More »
Slashing debt is Canadians’ number one priority in 2018 + MORE Dec 30th
TORONTO — Canadians are keen to lighten their debt loads in 2018, according to an annual opinion survey conducted for CIBC.
The Toronto-based bank says debt reduction or elimination was the top priority for 25 per cent of the poll respondents.
Paying bills or just getting by .... More »
How to plan for retirement when you have no pension Nov 22nd
In years past retirement planning was relatively easy. Fifty years ago, more than half of working Canadians, and an even higher proportion of men, could fall back on a corporate or union pension plan as their main source of income in retirement.
That’s no longer the case. Just 38% of paid work.... More »
When to consider extra RRIF withdrawals Apr 4th
I am in my 91st year and for my age, in reasonably good health. I drew down a significant extra sum in 2025 from my RRIF. Fortunately, due to some good earlier decisions, my RRIF remains with a very strong market value. I use this drawdown for two purposes: to reinvest in my non-registered accounts.... More »
How annuities can beef up retirement cash flow
– moneysense.ca
Many fixed-income investors are acquainted with the concept of “laddering,” whether it be ladders of guaranteed investment certificates (GICs), or bonds with different maturities. Maturity dates are staggered over (typically) one to five years, so each year some money comes due and can be reinvested at prevailing interest rates. This minimizes the likelihood of investing the whole amount at what may turn out to be rock-bottom interest rates, only to watch helplessly as rates steadily rise over time. Buyer’s remorse results: “Why didn’t I wait to invest?”
The same applies when it comes time for retirees or near-retirees to annuitize. At the end of the year you turn 71 you must decide whether to convert your RRSP into a RRIF, cash out and pay tax (few do this), or thirdly to annuitize.
READ: RRIF or annuity: Which one is right for you?
Mind you, as Warren Baldwin, a senior vice president with T.E. Wealth points out, the analogy is not perfect, since GICs mature and annuities do not…
The same applies when it comes time for retirees or near-retirees to annuitize. At the end of the year you turn 71 you must decide whether to convert your RRSP into a RRIF, cash out and pay tax (few do this), or thirdly to annuitize.
READ: RRIF or annuity: Which one is right for you?
Mind you, as Warren Baldwin, a senior vice president with T.E. Wealth points out, the analogy is not perfect, since GICs mature and annuities do not…
Can I receive a share of my ex’s military pension?
– moneysense.ca
Q: I was married to a Navy man, went through mediation and it was in our divorce settlement that I was entitled to receive half of his military pension. I thought I had to wait until he turned 65 to be entitled to half but I’ve been told that as soon as he left the Navy he was getting his pension. So I’m not sure if I can receive the split pension or not. How do I find out?
—Deborah
A: Mediation is a wonderful way to settle marital disputes. Unfortunately, some mediators do not come from a financial background and therefore sometimes things get missed or misrepresented.
Once a settlement is mediated, it is always best that each participant receives independent legal advice and it is at this point that your entitlement and access to the pension should have been discussed. I am not clear on how long ago this actually took place, however in 2015, the pension legislation in Canada was changed.
Since this time, an individual entitled to equalization of pension had immediate access to transfer this pension to their personal Locked-in RRSP…
—Deborah
A: Mediation is a wonderful way to settle marital disputes. Unfortunately, some mediators do not come from a financial background and therefore sometimes things get missed or misrepresented.
Once a settlement is mediated, it is always best that each participant receives independent legal advice and it is at this point that your entitlement and access to the pension should have been discussed. I am not clear on how long ago this actually took place, however in 2015, the pension legislation in Canada was changed.
Since this time, an individual entitled to equalization of pension had immediate access to transfer this pension to their personal Locked-in RRSP…
How can I use my extra RRSP room when I retire?
– moneysense.ca
Q: In 2019, I will retire. I will contribute $26,000 to my RRSP in 2018, but I will have ~$26,000 of contribution room available from my 2018 income in 2019. Is there any way to use this RRSP room and enable a deduction against my 2018 income?
For example, could I contribute an additional $26,000 to my RRSP in January 2019, have it be a deduction off of my 2018 income, and still be within my 2019 contribution limit?
—Bill
A: Good question, Bill. I’ll give you a little primer on registered retirement savings plan (RRSP) room and deductions.
RRSP room is generated from earned income like employment income, self-employment income and even net rental income. Your RRSP room for this year is equal to 18% of your earned income for last year, up to a maximum.
Ask a Planner: Leave your question for Jason Heath »
For 2018, the income required to generate the maximum 2019 RRSP room of $26,500 is $147,222. So, assuming you have $147,222 or more of earned income for 2018, you will have $26,500 of RRSP room for 2019…
CPPIB forming joint venture to invest in Brazilian wind power
– canadianbusiness.com
TORONTO _ The Canada Pension Plan Investment Board has signed a joint venture to invest in Brazil’s power generation sector.
The agreement is with Votorantim Energia, the energy arm of Brazil’s Votorantim Group, and will initially involve the purchase of two wind parks in northeastern Brazil with combined generation capacity of 565 megawatts.
As part of the deal, CPPIB will put up about C$272 million in equity and says the joint venture expects to increase its investment over time.
The acquisitions of the wind parks are subject to customary regulatory approvals.
“This transaction enables CPPIB to establish a footprint in the attractive Brazilian power generation market, which fits well with our overall power and renewables strategy and further diversifies the CPP Fund,” said Bruce Hogg, the managing director of power renewables at CPPIB.
“Brazil is considered among the top renewable energy markets in the world, and as demand in the country grows, wind energy is expected to be one of the largest contributors to this new supply…
The agreement is with Votorantim Energia, the energy arm of Brazil’s Votorantim Group, and will initially involve the purchase of two wind parks in northeastern Brazil with combined generation capacity of 565 megawatts.
As part of the deal, CPPIB will put up about C$272 million in equity and says the joint venture expects to increase its investment over time.
The acquisitions of the wind parks are subject to customary regulatory approvals.
“This transaction enables CPPIB to establish a footprint in the attractive Brazilian power generation market, which fits well with our overall power and renewables strategy and further diversifies the CPP Fund,” said Bruce Hogg, the managing director of power renewables at CPPIB.
“Brazil is considered among the top renewable energy markets in the world, and as demand in the country grows, wind energy is expected to be one of the largest contributors to this new supply…
