A bleak picture is painted by the findings of the second annual survey about 'growing into retirement,' commissioned by the Royal Bank of Canada (RBC). Most retirees' outlook has worsened in just one year, and the so-called 'golden years' are beginning to look tarnished. Just one year ago, 39 per cent of Canadians expected to still have debt in retirement; more than half of those questioned now (54 per cent) think that they will not have paid off everything.
Registered Retirement Income Funds (RRIFs) are one method of drawing an income from Registered Retirement Savings Plans (RRSPs) in retirement. There are a few things to consider to get the best value from your retirement savings with RRIFs.
For many Canadians, RRSP savings will be the major source of their retirement income. The main concern for most is the risk
of outliving their money. Another priority for many retirees is minimizing income taxes.
Bob and Lisa are wondering just how their retirement will turn out. After all that's happened over the past few of years, their RRSP accounts aren't what they used to be. Even in the best of times, the accounts weren't as large as they could have been, at least for all their post-retirement desires.
With the turbulent times we have been experiencing in the markets, more people are considering annuities to ensure a certain income in their retirement years. It might not suit everybody to put their funds into annuities, and
there is always the question of what percentage do you want to invest in them, and how much will you leave in the markets? There is no clear-cut answer, and you'll need to weigh your personal circumstances to see how annuities can fit into your retirement plans.
Millions of Canadian make RRSP contributions each year for the sole purpose of getting a big tax refund cheque each spring. If this is your only reason for investing in RRSPs, there may be situations where making RRSP contribution isn't your best option.
With the arrival of the Tax-Free Savings Account (TFSA) in January 2009, Canadians now have a viable alternative to RRSPs when saving for their retirement. Simply put, the TFSA is the mirror-image to an RRSP - you don't get an upfront refund, but all your future withdrawals are 100% tax free.
One of the top retirement goals for many is travel. As many as 1.5 million so called 'snowbirds' travel to the Southern United States during the winter. With summer just around the corner, thoughts turn to travel within our borders, too. The Canada Safety Council states that a few simple precautions can help ensure a safe, healthy and enjoyable trip any time of the year.
Retirement used to mean a gold watch, a pension and spending time on hobbies or new pastimes. For some this may still be true, but times have changed and there are new realities that will affect how retirement will look in the future.
The largest segment of the population in Canada today, the so called Baby Boomers, will be starting to retire in large numbers soon. Those born in 1947 are considered the first Baby Boomers and will be reaching age 65 in 2012. Many are in a position to retire now and some already have.
On May 25, 2009 Finance Canada announced some proposed changes to how Canada Pension Plan will work.
If approved, the changes will take effect over a period of time from
2011 to 2016, so they will affect anyone planning to retire after 2010.
Below is a brief summary of some of the most important changes:
Early retirement (before age 65) will result in a reduction in CPP benefits by 7.2% per year, which is up from the traditional 6%. This means that if you
begin to take your pension at age 60, your payments will be cut by 36%, not 30%.
Retirement funding is a complex machine, with several moving parts. For many Canadians employer pensions and government benefits will make up the core of their retirement income.
A recent RBC survey found 54% of Canadians expect their pension will be the largest source of income, but when asked what kind of pension they have, 19% do not know.
Personal savings, whether in the form of an RRSP or non-registered savings, help pad out the post-career lifestyle, but only 18% of Canadians said personal investments would be their largest single source of income.
Ralph and Louise have seen the TV commercials featuring Gordon Pape, the financial author, as the spokesman for Canadian Home Income Plan Corp. (CHIP) reverse mortgages. They were wondering if it would be a good way to go to help ease their current financial situation.
Thank you so much for the very generous donation to the "Teddy Bears of Hope Foundation".
I am very excited and looking forward to all the experiences I will share as I fufill my role as Miss Teen Ontario Canada 2014 and ambassador for the "Teddy Bears of Hope Foundation". The kindness and support of wonderful folks like you is very much appreciated, thank you again.
Mutual funds and segregated funds provided by the fund companies are offered through Worldsource Financial Management Inc., sponsoring mutual fund dealer. All other products and related services are offered through Brian Fitzsimons/Fitzsimons Financial.