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Retirement Planning

Elderly-couple-looking-at-papers
Retirement Planning

A spousal RRSP is a type of RRSP that’s available in Canada to married couples and common-law partners. It allows spouses to accumulate retirement savings while potentially lowering the total amount of tax they pay – both now and in retirement. In this article, we explain how a spousal RRSP works, explore how it differs from a personal RRSP, discuss spousal RRSP contributions and withdrawals, and look at other ways to maximize retirement income. Spousal RRSPs work best when there are differences in income and savings levels between the spouses. With a spousal RRSP, the spouse making the contribution receives the tax deduction, while the lower-income spouse gets a boost to their retirement savings. This can help to reduce a couple’s combined taxes in two ways.

Continue Reading 8 min read
elderly-couple-looking-at-computer-PRPP
Retirement Planning

A Pooled Registered Pension Plan (PRPP) is a retirement savings plan option for Canadians including those who are self-employed. We take a deep dive into PRPP meaning, look at how employee PRPP contributions work (as well as employer PRPP contributions), how PRPP compares with RRSPs and RPPs, and answer the question, what does PRPP stand for? A PRPP is like a type of defined contribution plan, but rather than being managed by employers, it’s managed by one of five Canadian companies licensed to administer the plans. Pooled Registered Pension Plans are designed to provide income in retirement. While you’re working, you contribute to your PRPP, meaning that you’re not supposed to withdraw from it until you reach normal retirement age.

Continue Reading 8 min read
older-couple-cooking-happily-in-their-condominium
Retirement Planning

A National Institute of Ageing (NIA)/TELUS Health Survey discovered that 91 per cent of Canadians of all ages, and almost 100 per cent of Canadians 65 years of age and older, plan on supporting themselves to live safely and independently in their own homes as long as possible. Research has found that mobility issues are especially prevalent for older people. Installing stairlifts and home elevators are now quite common. We can now order groceries or meal packages to be delivered, join in social activities at a community centre or library through Facebook or a Zoom call and visit a physician remotely. But to effectively prepare to age in place takes time, money and energy and ideally should be done before it’s needed.

Continue Reading 7 min read
happy-senior-couple-reading-about-GRSP
Retirement Planning

A Group Retirement Savings Plan (GRSP) is a collection of individual Registered Retirement Savings Plan (RRSP) accounts that an employer sponsors for its employees. It is typically administered by a plan provider, such as an investment or insurance company. Employers provide GRSPs to help employees save for retirement and take advantage of better management fees. Employers who sponsor the GRSP also have the option of contributing to individual employee plans. The main difference between a GRSP and an RRSP is that a Group plan is administered by an employer on behalf of employees, while an RRSP is solely the responsibility of the individual plan holder.

Continue Reading 8 min read
elderly Asian couple looking at their LIF policy in ipad
Retirement Planning

A Life Income Fund (LIF) is one way to convert your pension to income. In this article, we explain what a LIF is and how it works. We also discuss LIF withdrawal rules and other ways to supplement your retirement income, such as a reverse mortgage. A LIF is a registered account designed to provide you with an income throughout your life using funds from your locked-in pension. If you decide to convert your pension to a LIF, you’ll also have to choose the investments to hold in your LIF, which something that your financial advisor can help you with. You’ll also have to decide on the amounts you’ll need to withdraw each year from your LIF, based on government withdrawal rates

Continue Reading 8 min read
Happy old spouses reaching a pension plan agreement
Retirement Planning

In this article, we explain what a pension plan is, discuss the main types of pension plans in Canada and explore other ways to supplement your retirement income, such as a reverse mortgage. There are three main different types of pension plans in Canada offered by employers: A defined contribution pension plan (DCPP), a defined benefit pension plan (DBPP) and a pooled registered pension plan (PRPP). Defined contribution pension plans are the most common type of pension. Defined benefit pension plans (DBPPs) are a type of pension that guarantees you’ll receive a specific – or defined – monthly income when you retire. A Pooled Registered Pension Plan (PRPP) is offered by financial institutions on behalf of employers (and their employees) and self-employed individuals.

Continue Reading 9 min read
Financial Planning for Women Empowering through Financial Literacy
Retirement Planning

Over the course of many years, women have made great strides towards gaining gender equality. But there is one area that women continue to experience a significant gender gap. This is their involvement in their own financial planning and investment decisions. Both men and women believe that financial planning is a necessity for furthering gender equality. In a report entitled Gendered Financial Literacy – A Global Perspective, even though Canadians performed better than many other countries overall, there was still a significant gender gap. Approximately 78% of Canadian men were identified as being financially literate however this dropped quite substantially for Canadian women to around 60%.

Continue Reading 8 min read
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Retirement Planning

For many Canadians, aging in the right place means spending the golden years of retirement at home. However, staying in the home you love is closely tied to both your financial wellbeing and health, both of which are challenged by Canada’s shifting retirement landscape. In a recent report, Healthy Outcomes, the NIA noted “aging in the right place” means empowering older Canadians to make choices regarding their aging process and living environment given their personal preferences, circumstances, and care requirements.

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elderly-asian-couple-reviewing-their-retirement-income
Retirement Planning

In this article, we look at the different retirement savings plans in Canada and discuss how much we should be saving for retirement and how long our retirement savings should last. There are many types of retirement savings plans available to Canadians. There are many factors that will affect how long your retirement savings will last. Despite our best intentions, we may sometimes fall short of our savings targets: Volatile markets, skyrocketing inflation, or large, unexpected expenses are just a few of the factors that can derail our retirement savings plans. The good news is there’s a safe and secure financial solution that can address your needs for greater financial freedom and cash flow in retirement: The CHIP Reverse Mortgage from HomeEquity Bank.

Continue Reading 11 min read