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Latest News
Many Canadians Are Avoiding Retirement Planning, But Here’s How to Get on Track Aug 16th
Regardless of whether you’re saving for a new home, a business venture, or setting up for a family, planning for your financial future (and the financial future of your significant other) is crucial. Sure, you can set up automatic deposits to your savings account for long-term goals, but look.... More »
TFSAs & RRIFs: What’s the difference between beneficiaries, successor holders and successor annuitants? + MORE Jan 23rd
A MoneySense reader writes:
I’m writing to ask about beneficiaries, successor holders and successor annuitants for TFSAs and RRIFs. What is the difference between these, and how do you choose the right one for each account?
FPAC responds:
When you have a registered account, su.... More »
Planning to cash in on your home to help fund retirement? Here’s how to do it right + MORE Dec 19th
Elizabeth and Charles have a home worth about $1.3 million. They’re considering selling and downsizing to a smaller unit to bulk up retirement savings. We ask experts for advice on the right move..... More »
Why too much cash hurts investors + MORE Nov 2nd
You spent decades scrimping and saving to build up your retirement nest egg. And yet a lot of Canadians let inflation eat into their precious portfolio by leaving too much of it exposed, in cash.
Sure, there is a role for some cash. You’ll want to keep some accessible for household emergencies. A.... More »
Canada’s best dividend stocks for 2023 + MORE Feb 20th
Overview
Top 100 Dividend Stocks
Past Performance
Methodology
The year 2023 couldn’t have arrived fast enough for Ca.... More »
Tips on how to stick to your savings goal: Vaz-Oxlade
– thestar.com
It’s easy enough to set a savings goal, but it can be really tough to actually achieve it.
It’s the first time the census has probed the question, taking advantage of tax data to correct a picture which experts say has long been distorted by suspect numbers and aggressive investment marketing.Two thirds of Canadian households saving for retirement, census suggests
– canadianbusiness.com
TORONTO _ Two-thirds of households are setting aside money for retirement, taking advantage of either a registered pension plan, an RRSP or a tax-free savings account, Statistics Canada said Wednesday as it released the latest batch of numbers from the 2016 census.
Of 14 million households, 65.2 per cent made a contribution in 2015 _ the most recent year for which data was available _ to one or more of the three major savings vehicles, an apparent counterpoint to the prevailing narrative that too many Canadians take a cavalier approach to retirement.
Different generations took different approaches: Major income earners aged 35 to 54 were prone to make use of registered pension plans and RRSPs, while those younger than 35 and those older than 54 were more likely to contribute to a TFSA.
Or, in Statistics Canada’s words: “Participation in savings plans followed strong life-cycle patterns.”
It’s the first time the census has probed the question, taking advantage of tax data to paint a more accurate picture of just how seriously Canadians take it _ a picture which experts say has long been distorted by suspect data and aggressive investment marketing…
Of 14 million households, 65.2 per cent made a contribution in 2015 _ the most recent year for which data was available _ to one or more of the three major savings vehicles, an apparent counterpoint to the prevailing narrative that too many Canadians take a cavalier approach to retirement.
Different generations took different approaches: Major income earners aged 35 to 54 were prone to make use of registered pension plans and RRSPs, while those younger than 35 and those older than 54 were more likely to contribute to a TFSA.
Or, in Statistics Canada’s words: “Participation in savings plans followed strong life-cycle patterns.”
It’s the first time the census has probed the question, taking advantage of tax data to paint a more accurate picture of just how seriously Canadians take it _ a picture which experts say has long been distorted by suspect data and aggressive investment marketing…
Almost two-thirds of Canadian households are saving for retirement, census data show, despite a national household savings rate that fell to 4.6 per cent in the second quarter of this year.
Should I convert my RRSP to a RRIF early?
– moneysense.ca
Q: I’m 67 and my husband turned 71 in May. He has to turn his RRSP into a RRIF. Can I turn my RRSP into a RIFF also? The only income we have is Old Age Security and CPP and it just isn’t enough to pay bills and food. The person from our bank said that I was too young to turn the RRSP into a RRIF. Is she right? Any information would be great.
—Mina
A: Registered Retirement Income Fund (RRIF) is exactly the same as a Registered Retirement Savings Plan (RRSP) with only two exceptions. Age 71 is the latest age that an RRSP can be converted to an RRIF. The earliest age is 55.
A RRIF has a mandatory minimum withdrawal requirement. This minimum is a % amount based on your age. (See table this table.)
A RRIF withdrawal is considered pensionable income after the year you turn age 65.
I see that Mina wishes to solve a perceived income problem by converting to a RRIF. It simply isn’t necessary as Mina can withdraw funds from her RRSP as-is. Mina can decide what amount she needs for a regular income over the coming months/years and withdraw that amount…
