Welcome to this month’s Wealth Wednesday segment, brought to you by FirstOntario Credit Union and Aviso Wealth. In this informative discussion with Yvonne Delry, Investment Specialist, we delve into the crucial topic of retirement income sources in Canada. Learn about the key pillars of retirement income, including the Canada Pension Plan (CPP), Old Age Security (OAS), work pensions (defined benefit and defined contribution), and personal savings through Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs).
Understanding your potential income streams and the factors that influence them, such as contribution history and retirement age for CPP, and residency requirements for OAS, is essential for effective retirement planning. Yvonne also touches upon important considerations like the OAS clawback and valuable tax planning strategies for retired couples, including income splitting and CPP sharing, to help maximize your after-tax retirement income.
Key topics covered in this video:
- Understanding the Canada Pension Plan: eligibility, early vs. delayed retirement benefits, and factors affecting your payments.
- Exploring Old Age Security: residency requirements and the potential impact of the Pension Recovery Tax (clawback).
- Different types of work pensions: defined benefit and defined contribution plans.
- Utilizing personal savings: RRSPs and TFSAs for retirement income.
- Tax planning strategies for retirees: income splitting and CPP sharing between spouses.
- The importance of early retirement planning, especially in the current market volatility.