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%.
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.
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.
One of the lesser known (though still considerably valuable) retirement savings plans is the deferred profit-sharing plan (DPSP). This kind of plan is only provided by companies, for the benefit of their employees. The investments they contain are managed by a trustee. Given that the DPSP in Canada is not as well-known as other registered plans (such as RRSPs or TFSAs), this guide is designed to tell you everything you need to know about it. We’ll look at what is a deferred profit-sharing plan, the DPSP meaning, DPSP contribution limits, DPSP withdrawals and how to transfer a DPSP to an RRSP.
Old age pension plans (often called government or public pensions) are one of the major pillars of retirement income available to Canadian retirees. Public pension plans are designed to provide Canadian families with some income certainty in retirement. Understanding where your pension income will be coming from and how much you are entitled to receive can help you confidently plan ahead for retirement. There are three main types of old age pension available in Canada: The Canada Pension Plan (CPP), Old Age Security (OAS), and the Guaranteed Income Supplement (GIS).
Home ownership is a dream shared by Canadians, with almost two-thirds of us owning homes. But sometimes life can toss a curveball our way and throw our finances out of whack. For instance, an unexpected job loss, a disability, a divorce, or even a global pandemic can derail our financial plans, affect our credit scores, … Continued
Two of the most common ways for Canadians to save for retirement are the Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA). Although there are key differences between RRSP and TFSA, both offer opportunities for tax-free savings growth. Should you save for retirement in an RRSP, a TFSA, or both? There are some important differences between an RRSP and TFSA – especially when it comes to taxation.
Retirement Savings Plans (RSP) and Registered Retirement Savings Plans (RRSP) are sometimes used interchangeably, but there are important differences between RSP and RRSP. An RSP is a broad category that includes many different types of retirement savings accounts, of which an RRSP is one. What distinguishes an RRSP is that it is registered with the federal government and is designed to incentivize Canadians to save for their retirement by making RRSP contributions tax-deductible and allowing the investments in the plan to grow tax-free
Old Age Security (OAS) can be a really valuable source of retirement income for Canadians. It’s a type of government pension that comes in the form of a monthly payment, which you can draw from the age of 65 (though you can delay receiving it until your 70th birthday). However, OAS comes with a recovery tax, or commonly known as Old Age Security Clawback. When retirement planning, it’s really important to know about the OAS clawback and how it can affect your retirement income.
