Where will my income come from?

What should I know about the CPP?

If you’ve worked in Canada, chances are you’ve contributed to either the Canada Pension Plan (CPP) or Quebec Pension Plan (QPP).

Both the CPP and QPP provide retirement, disability and survivor benefits to anyone who has contributed to either plan. Almost everyone who works in Canada contributes to at least one of them:

What you can expect to receive from CPP/QPP is a bit complex, and the quick answer is “it depends”.The age at which you start taking your CPP/QPP retirement benefits is one of the factors that affect how much you can get. If you take CPP before age 65, you will receive a reduced payment of 0.6% (for each month you take CPP before age 65). If you take CPP after age 65, you will receive a higher payment of 0.7% (for each month you take CPP after age 65).Take a look at this short message from Bill Hill, National Retirement Planning Consultant at RBC, as he walks through some things to consider when deciding when to take CPP/QPP.

What are my pension options when I leave work?

  1. Keep your pension with your former employer
  2. Purchase an annuity
  3. Transfer to a LIRA/Locked-in RRSP
  4. Transfer to a New Employer Pension Plan 

How can I create a steady income in retirement? 

Featuring helpful checklists, tips and pointers, Your Guide to Retirement Income Planning1 walks you through what you need to know to create a steady income when you stop working.

Click here for the guide.

When should I convert my RRSP to a RIF?

While your Registered Retirement Savings Plan (RRSP) helped you save for retirement, a Registered Retirement Income Fund (RRIF) will allow you to enjoy and use those savings. You can convert your RRSP to a RRIF at any time, but you have to do it by December 31 of the year you turn 71. Here’s what to consider if you’re thinking about converting before then :

  • RRIF Withdrawals Can Affect Your Taxes and Government Benefits
  • You Can Contribute to Your RRSP Until Age 71
  • Decide Whether You Need the Income Now
  • Consider Other Tax-Saving Strategies