Retirement​ Planning

There are several retirement programs available in Canada:
Government plans – CPP( Canada Pension Plan) , when Employer and Employee are contributing together the amount of 9,9% of Employee income into pension plan. Contributions are tax deductible , benefits are taxable
-OAS ( Old Age Security) , for Canadians with more than 10 years residence, available at the age of 65. Benefits are taxable
-GIS ( guaranteed income supplement) , for the low income retirees after 65 y.o receiving OAS. Benefits are not taxable
-Allowances ( paid to the spouses, based on income test) Benefits are not taxable
-RRSP( registered retirement saving plan) , tax deductible contributions with tax deferred compounding . Contribution limits are:
18 % of the previous year income
Pension adjustments
Past service pension adjustment
Unused contributions
Life time over contributions
Taxes are paid only at the time of withdrawals
When the person is 71 years old, the money from RRSP should be converted to :
Cash, Annuities,RRIF( registered retirement income fund)
All locked in RRSP may be transferred to LIRA, LIF, LRIF or to buy a deferred life annuity
The group RRSP are not locked in. The money are deducted from the payrolls.

Non government plans – Private Pension Plans with the following options:
1) Defined Benefit ( Employer doesn’t know the amount of contributions)
2) Defined Contributions ( Benefits are unknown)
3) Deferred Profit Sharing ( non contributory plan, the money are vested in employee name for two years)
Those plans can be registered , or unregistered