Category Archives: Pension

The future of pension plans in Canada

Many articles about pension reform and ‘the sky is falling’ predictions about pension plans are showing up in financial sections of newspapers, financial magazines, editorial pages, and around tables at Tim Horton’s. Debates rage about expanding the Canada Pension Plan, introducing new rules about workplace pensions, and about what politicians could do to stem whatContinue Reading

Income Options for Registered Retirement Plans

In my financial education programs for the workplace, I always get lots of questions on how to draw income from registered plans whether that’s RRSPs or Pension plans.  Here’s a list of income options for RRSPs and Pensions Options for regular RRSPs RRSPs must be converted to income, not later that December 31st in theContinue Reading

Pension plans provide safe, guaranteed income in retirement

Samantha and Jack just met with a financial advisor recommending they pull their money out of Jack’s defined benefit pension plan with the government and move it into a Locked in Retirement Account (LIRA). The advisor suggested that he could earn better returns than the pension and that the LIRA would provide an estate forContinue Reading

Unlocking pension money: Getting money out of a LIRAs

If you left a company with a pension before retirement, chances are you had to move the money into a Locked in Retirement Account (LIRA). That’s because both the federal and provincial governments do not permit you to convert your pension into cash. LIRAs are designed for accumulation of money that originated from a pensionContinue Reading

Four differences between pension splitting and CPP splitting

In my travels, some people confuse the rules of pension splitting and CPP splitting so I thought I would share the 4 key differences between the two.  Let’s introduce the differences with an example. Jackie has a $2600 per month pension and she also gets $600 per month from Canada Pension Plan (CPP).  Her husbandContinue Reading

Three examples where pension splitting makes sense

There are three tax planning strategies – Deduct, defer and divide.  Income splitting is a way of dividing income and pension splitting is a great strategy to help couples reduce taxes.  Sometimes rules can be confusing so I thought I would share a few examples of real life people who were able to take advantageContinue Reading