All about Retirement Planning in Canada. Learn the ins and outs and get the latest news.
Latest News
Should we draw down my spouse’s RRIF faster? May 30th
Ask MoneySense
My wife is currently drawing $24,000 per year from her RRIF, which has a balance of $510,000. She is also receiving OAS, CPP and a work pension of $22,000. She is 67.
My question is if it would be prudent to start making larger withdrawals to try and reduce the tax that the estate .... More »
What retirees need to know about tax brackets for 2025 + MORE Dec 20th
In our working lives and in our post-work retirement or semi-retirement phases, taxes are one of if not the single biggest expense. This hits home with the annual tax-filing deadline in April, but the time to start thinking about the yearly ordeal is before year-end.
The complexity of this task i.... More »
Am I on track to retire in 10 years? + MORE Nov 18th
(Photo by Amanda Skuse)
The current situation
Shannon Jimenez, 47, lives in Chilliwack, B.C. with her husband Hector, 55. She’s a part-time customer service rep while Hector is a manager. “We’ve spent the last 25 years building up the equity in our home and in our Mexican rental property so sa.... More »
Stock news: Cogeco takes U.S. telecom hit as Electrovaya rallies Jul 18th
Here’s a round-up of news for Canadian investors this week.
Cogeco
Electrovaya
Blue Ant Media
Loblaw-EQB
Featured RRSP Accounts
featured
EQ Bank
Build your retirement saving.... More »
Tontine: Retirement plan of the future?
– moneysense.ca
(Andy Roberts/Getty Images)Advances in life expectancy coupled with the decline of employer-sponsored defined benefit pension plans has greatly raised anxiety levels about seniors outliving their money.
Life annuities have long been touted as one possible remedy for prolonged longevity, which is why experts like finance professor Moshe Milevsky have dubbed them a form of “longevity insurance.”
But a more effective “retirement annuity” could be an almost-forgotten structure that originated in Europe in the 17th century. It’s called the tontine, a relatively unknown concept in modern times, although it has from time to time featured in various Hollywood movies (notably the novel and movie The Wrong Box).
A tontine is a seemingly morbid concept that involves the pooling of investments such that those who die end up subsidizing those who keep living. And Milevsky believes it’s time the financial industry or even governments stepped in to breathe new life into the concept.
The idea is presented in a just-published Cambridge University Press book entitled King William’s Tontine: Why the Retirement Annuity of the Future Should Resemble its Past…
A look at income programs for seniors
– moneysense.ca
(Robert Nicholas/Getty Images)OTTAWA – The Harper government will look at allowing people to stash more of their earnings into the Canada Pension Plan to boost retirement savings. Following is a quick look at various programs available to seniors.
The Canada Pension Plan: A monthly payment for those who have worked and made at least one valid contribution to the plan. Standard pensionable age is 65, but people may take a permanently reduced pension as early as age 60 or take a permanently increased pension after age 65.
READ: Why it pays to take CPP early »
Old age security: A monthly payment available to most people 65 years of age and older who meet the Canadian legal status and residence requirements. Employment history is not a factor in eligibility.
READ: Getting the most from OAS »
Guaranteed income supplement: Available to legal residents who get old age security cheques and whose annual income is below a certain amount.
READ: How the rich can qualify for a GIS »
Monthly allowance: For those age 60 to 64 whose spouse or common-law partner gets an old age security cheque and is eligible for the guaranteed income supplement…
