Tag Archives: Pensions

Estimating How Much You Need In Retirement

How much do you really need to retire? Are you one of the majority that either have a large number in mind or do not know? It may not be as bad as you think. What you need is an estimate of your expenses when you retire based on what you spend today, have an understanding of where your retirement income will come from and how you will use your savings. A spreadsheet is provided that will help you and it only takes a few minutes to fill in. You can try different values for capital, interest rates, inflation rate and withdrawal amounts. More

When to Take the CPP – What Is Involved?

If you have worked in Canada you will have contributed to the Canada Pension Plan (CPP). You have some control over when to take and how much of a CPP retirement pension you will receive when you reach age 60. This post summarizes what you need to know and do and provides links to more details. More

When to Take the CPP – Factors Involved

Before deciding when to take your Canada Pension Plan retirement pension you need to consider the impact of a number of factors that affect how much you will receive. These include the age-dependent increase in yearly payment provided, drop-outs, inflation, marginal taxes, the break-even age and survival probability. More

When to Take the CPP – Spreadsheets

The downloadable Excel spreadsheets described in this post can be used to determine when to take your Canada Pension Plan retirement pension. Once you copy your CPP Statement of Contributions into the table provided, a macro can be run that fills in the drop-outs and removals. Yearly payments, break-even ages and cumulative payments at various ages plus many charts will give you an insight as to when to take the CPP for your circumstances. You can also set inflation and marginal tax rates.
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Life Expectancy and Survival Probability

Life expectancy is a key factor in a number of decisions required when you approach retirement. For example, should you delay taking the Canada Pension Plan pension or the Old Age Security payment? You need to feel comfortable that you will be alive to take a delayed pension and, for example with the CPP if you will be alive at the break-even age. More

Nortel Pension Settlement – Deferred Pension

About one-quarter of the 13,000 Nortel pensioners that are members of the Nortel Managerial and Non-Negotiated Pension Plan (Reg. 0342048) must take a Deferred Pension in the form of a Locked-In Retirement Account (LIRA). Before age 71 the LIRA must be converted to an annuity or to a Life Income Fund (LIF). The references, comments and spreadsheet provided in this post may be of some assistance in making the choice. It is also of use for others who need to compare an annuity against a LIF when converting the LIRA. More

Nortel Pension Settlement Options – Annuity vs LIF

There are some 13,000 Nortel pensioners that are members of the Nortel Managerial and Non-Negotiated Pension Plan (Reg. 0342048). The settlement of this plan provides members in some provinces with the option of either receiving the default of an annuity or taking the commuted value and converting it into a Life Income Fund (LIF). The references, comments and spreadsheet provided in this post may be of some assistance in making the choice. It is also of use for others who need to compare an annuity against a LIF. More

Estimating Capital Totals at Retirement

Estimating Capital Totals at RetirementChart4If you have been putting money into an RRSP, TFSA or other investments over the years, have you ever projected how much you will have when you retire? If you are just starting, what will you have if you save some money each year? This is important because it will determine what is available for a yearly income when you retire. The spreadsheet provided lets you try out different options. The results may surprise you as even a small amount of savings each year combined with compounding can really add up. More

Understanding Your Canadian Sources Of Retirement Income

Understanding Your Canadian Sources Of Retirement Income Chart1When you are retired you will probably have more sources of income than you had when you were working. There will be OAS, GIS, CPP, RRIF, TFSA, Annuity, company pension and investments. You may have all or some of them depending your income and time in Canada during your working life. This post will help you understand how these are obtained and their impact on retirement income and taxes. More