Retirement Income Planning Checklist

<p>To share eligible pension income to reduce total taxes paid. (B)</p> Signup and view all the answers

<p>Payments from Old Age Security (OAS) (D)</p> Signup and view all the answers

<p>Pension sharing is specifically for CPP and happens at application, not tax time. (B)</p> Signup and view all the answers

<p>Withdrawals get taxed like regular income. (A)</p> Signup and view all the answers

<p>Your age and the total amount stored in the RRIF. (B)</p> Signup and view all the answers

<p>If you demonstrate low income or high medical/disability costs. (A)</p> Signup and view all the answers

<p>$935.08 (C)</p> Signup and view all the answers

<p>They will be reduced by 0.6% for each month taken early. (D)</p> Signup and view all the answers

<p>Earning post-retirement bonus (B)</p> Signup and view all the answers

<p>65 (A)</p> Signup and view all the answers

<p>Update your budget as a retiree. (C)</p> Signup and view all the answers

<p>It can reduce the overall tax burden during retirement. (A)</p> Signup and view all the answers

<p>It reduces the amount of tax owed. (D)</p> Signup and view all the answers

<p>Make contributions to CPP. (B)</p> Signup and view all the answers

<p>Traveling costs for family vacations. (C)</p> Signup and view all the answers

<p>0.6% for each month before age 65. (A)</p> Signup and view all the answers

<p>The rules set by the pension plan. (B)</p> Signup and view all the answers

<p>They must start using the savings for retirement income. (A)</p> Signup and view all the answers

<p>Market volatility. (B)</p> Signup and view all the answers

<p>It offsets some costs associated with modifying a home for accessibility. (C)</p> Signup and view all the answers

<p>Estimate future healthcare costs. (C)</p> Signup and view all the answers

<p>65 years old. (A)</p> Signup and view all the answers

<p>3 percent per year for each year retired early. (A)</p> Signup and view all the answers

<p>Property tax benefit. (B)</p> Signup and view all the answers

<p>To ensure a suitable lifestyle during retirement. (B)</p> Signup and view all the answers

<p>Accrual rate, salary, and years worked. (B)</p> Signup and view all the answers

<p>Payments cease and no further amounts are distributed. (D)</p> Signup and view all the answers

<p>The employee can opt for a single lifetime income with potentially higher payments. (B)</p> Signup and view all the answers

<p>Guaranteed retirement income. (B)</p> Signup and view all the answers

<p>The employee could end up with less money for retirement. (A)</p> Signup and view all the answers

<p>Regular income payments while keeping funds invested. (C)</p> Signup and view all the answers

<p>Potential to run out of funds due to high withdrawals. (B)</p> Signup and view all the answers

<p>An annuity provides guaranteed payments; an RRIF does not guarantee income. (C)</p> Signup and view all the answers

<p>An RRSP is for saving money for retirement; an RRIF is for withdrawing. (D)</p> Signup and view all the answers

<p>Payments are disbursed to the estate or beneficiary until the period ends. (D)</p> Signup and view all the answers

<p>The funds grow tax-free until withdrawal. (B)</p> Signup and view all the answers

A monthly, taxable income provided to eligible contributors once they reach retirement age.

A government-provided retirement income based on years of living in Canada, available from age 65.

A reduction in monthly CPP benefits for starting to receive them before the standard retirement age of 65.

The potential increase in CPP and OAS benefits for delaying your applications to age 70.

Earnings after you begin receiving CPP benefits.

The extra money that is paid into CPP when you work and earn income after retirement.

A reduction in the amount of tax you owe, directly lowering your tax bill.

An important step in retirement planning that involves reviewing and adjusting your spending habits to reflect your new lifestyle.

The process of determining how you will convert your assets and investments into a reliable income stream during retirement.

The inherent uncertainties and possibilities of loss associated with investments during retirement.

A type of retirement plan where the amount of money you receive is based on your salary, a set percentage, and the number of years you worked.

The age at which you can retire and receive your full pension without any reductions.

A number that combines your age and years of service to determine eligibility for early retirement with full pension benefits.

The amount of your pension income that is reduced each year you retire early.

The ability to keep the money your employer contributed to your pension plan upon leaving a job.

An employee who is not eligible to keep their employer's pension contributions when they leave a job.

An employee eligible to keep both their contributions and their employer's contributions when leaving a job.

A retirement savings account that holds your pension benefits when you leave your job.

The income you receive from a pension plan, typically paid monthly.

A retirement income option where you receive regular payments for your lifetime, with payments ceasing upon your death.

A retirement income option where you and your spouse both receive regular payments for your lifetimes, with payments continuing to the surviving spouse after one passes away.

A retirement income option where you choose a fixed period (e.g., 5, 10, 15 years) for guaranteed pension payments, even if you die during that period.

A retirement savings plan where both you and your employer contribute to an individual account to grow money for your retirement.

A type of retirement plan that allows you to take advantage of tax-free growth of your savings during your working years.

A retirement income plan where you convert your RRSP into a fund, allowing you to withdraw a minimum amount each year and control your investments.

A retirement income option where you use your savings to buy guaranteed regular payments from an insurance company, either for a set period or for life.

A retirement savings plan where you must withdraw a certain amount each year starting the year after you set it up. The amount you withdraw depends on your age and the RRIF balance. You'll be taxed on this money as regular income.

A type of annuity that pays you a set amount of money at regular intervals (like monthly) for a certain number of years.

A type of annuity that pays you a set amount of money at regular intervals for the rest of your life, no matter how long you live.

The ability to withdraw your pension money before you retire. You can unlock it if you’ve lived outside Canada for at least two years or face financial hardship.

You can choose to take your pension as cash, which you’ll be taxed on, or transfer it to an unlocked retirement account, like an RRSP.

Allowing retirees to split up to 50% of their eligible pension income with their spouse or common-law partner on their tax returns. This can help reduce the overall taxes they pay.

If one spouse has a higher income, splitting the pension income can lower their overall tax burden as a couple.

Sharing your CPP retirement income with your spouse or partner to reduce your taxes. This happens when you apply for CPP benefits, not at tax time.

The CPP income is split based on how many years you and your spouse/partner were together compared to your total years contributing to CPP.

CPP and Pension Splitting can help lower the overall tax burden for a couple, especially if one spouse has a significantly higher income than the other.