How to go about securing the best Retirement Plan in Canada.
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How to calculate the taxable amount for a cashed-in whole life insurance policy + MORE Apr 19th
Ask MoneySense
I cashed in my whole life insurance policy last year and received a T5 suggesting I have to pay tax on the full amount of my cash value. Is this correct? The cash surrender value was $27,000, I paid $28,000 in premiums, and they told me my pure cost of net insurance was $30,000, whate.... More »
The true price of financial advice + MORE Oct 28th
(Freeimages.com / Rober Owen-Wahl)
Many people worry about running out of money in retirement and some work longer than they would like to avoid such a possibility. Others take on part-time work after officially retiring to make ends meet.
It might be possible to avoid slaving away by learning how t.... More »
Retirement Income for Life: Why Canadian retirees love Frederick Vettese’s books and his PERC + MORE Feb 22nd
Since I turn 71 soon, my attention is naturally becoming focussed on the inevitable question of what to do when my registered retirement savings plan (RRSP) must be collapsed. Do I keep it as a registered retirement income fund (RRIF)? Or should I convert it into an annuity? Maybe I do a combination.... More »
Future retirees may face “steep decline” in living standards + MORE Jun 4th
(Alistair Berg/Getty Images)
Millions of Canadians may face a “steep decline” in living standards once they retire, according to a report by the deputy chief economist at CIBC.
Benjamin Tal says that dire stats indicate that a change in the retirement income system is necessary.
While a portion .... More »
5 key risks to retirement income + MORE Jun 25th
Inflation is the single biggest risk for retirees, with 58% of pre-retirees and 45% of retirees worried about the potential for rising prices to erode purchasing power, finds a Fidelity Investment survey.
“Inflation hurts retirees more than any other group,” says Peter Drake, vice-president, ret.... More »
Government puts the chill on EI rates, but premiums still hiked for some in 2014
– canadianbusiness.com
OTTAWA – It’s not just the temperatures that are freezing on this first day of 2014.
The federal government says it’s freezing Employment Insurance premiums, and generally keeping taxes low.
But the Canadian Taxpayers’ Federation says the EI “rate freeze” will actually mean that premiums will go up slightly for some.
In its annual New Year’s Tax Changes report, the federation calculates that maximum employee EI rates will go up by $23 in 2014 to $914.
It says maximum EI premiums paid by employers will also rise by $31 to $1,279.
Overall, EI premium rates will remain at 2013 levels, at $1.88 per $100 of insurable earnings.
The federation adds that Canada Pension Plan premiums will be hiked by $140 for workers earning at least $52,500 per year.
But there will be bigger tax breaks for people who donate to charities for the first time.
They will receive a credit of 40 per cent of the first $200 they donate, rather than the normal 15 per cent credit.
The tax credit for donations over $200 is also rising, to 54 per cent for first time donors, rather than the previous 29 per cent…
The federal government says it’s freezing Employment Insurance premiums, and generally keeping taxes low.
But the Canadian Taxpayers’ Federation says the EI “rate freeze” will actually mean that premiums will go up slightly for some.
In its annual New Year’s Tax Changes report, the federation calculates that maximum employee EI rates will go up by $23 in 2014 to $914.
It says maximum EI premiums paid by employers will also rise by $31 to $1,279.
Overall, EI premium rates will remain at 2013 levels, at $1.88 per $100 of insurable earnings.
The federation adds that Canada Pension Plan premiums will be hiked by $140 for workers earning at least $52,500 per year.
But there will be bigger tax breaks for people who donate to charities for the first time.
They will receive a credit of 40 per cent of the first $200 they donate, rather than the normal 15 per cent credit.
The tax credit for donations over $200 is also rising, to 54 per cent for first time donors, rather than the previous 29 per cent…
How retirement systems vary among major nations
– moneysense.ca
Retirement systems vary widely from country to country. In China, policymakers are just beginning to expand retirement benefits to everyone. In Australia, people have been compelled for years to save for their own retirements. Italy and Germany are raising retirement ages and cutting benefits.
Here’s a look at retirement systems in key nations:
— UNITED STATES:
The United States is struggling to finance its promises to future retirees. Social Security is the core of its system. Social Security payments are financed by a tax on both workers and employers. The payments average $1,269 a month. Two-thirds of retirees rely on Social Security for most of their income. Americans can collect as early as age 62 but don’t receive the full benefit unless they wait later to collect — until age 66 for those born from 1943 through 1959 and age 67 for those born after. Many also rely on corporate pensions. But companies have been replacing them with 401(k)-style plans. These plans require employees to save and invest themselves…
Here’s a look at retirement systems in key nations:
— UNITED STATES:
The United States is struggling to finance its promises to future retirees. Social Security is the core of its system. Social Security payments are financed by a tax on both workers and employers. The payments average $1,269 a month. Two-thirds of retirees rely on Social Security for most of their income. Americans can collect as early as age 62 but don’t receive the full benefit unless they wait later to collect — until age 66 for those born from 1943 through 1959 and age 67 for those born after. Many also rely on corporate pensions. But companies have been replacing them with 401(k)-style plans. These plans require employees to save and invest themselves…
With a $495,000 mortgage, divorced man is house rich and cash poor.
