Planning for your retirement - Servus Credit Union

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Worksheet for Planning Your Savings and Investment Program– Present Holdings –AMOUNTSAVED ORINVESTED IN:$ $PRESENTANNUAL YIELDIN DOLLARSLOCATION OFSECURITIESOR DEPOSITSTOTAL$ $AVERAGE YIELD IN % (DOLLAR YIELD ÷ AMOUNT X 100) =OTHER ASSETSTOTAL$ $PLANNING FOR YOUR RETIREMENT 11
Public Pension PlansA number of government programs provide retirementincome. Specific provisions of these programs are subjectto change – for more information, check with Employmentand Social Development Canada, “Pensions”, in the federalgovernment section of your telephone directory, or online athttp://www.esdc.gc.ca/eng/retirement/index.shtml.Canada Pension Plan (CPP)Everyone employed or self-employed in Canada is required tomake payments to the CPP. Retirement benefits are providedby the plan if you have made contributions for at least oneyear. The amount of your pension depends on your incomelevel while contributing to CPP and the number of years youcontributed. The benefits are indexed annually based on thefederal cost of living index.Starting in 2012, contributors no longer have to stop workingor significantly reduce earnings for two consecutive monthsto receive the CPP retirement pension before the age of65. This will make it easier for Canadians to make a gradualtransition to retirement.Most people begin receiving benefits on their 65th birthday.However, you may start receiving CPP payments as early asage 60. From 2012 to 2016, the Government will graduallychange this early pension reduction from 0.5% to 0.6% permonth. This means that by 2016, an individual who startsreceiving their CPP pension at the age of 60 will receive 36%less than if they had taken it at 65.You may also delay receiving your pension until as late asyour 70th birthday. If you take your pension after age 65,your monthly pension will be increased by 0.7% for eachmonth (8.4% per year) that you delay receiving your paymentup to age 70. This means that an individual who startsreceiving their CPP pension at the age of 70 will receive42% more than if they had taken it at 65.CPP also pays survivor benefits to a spouse and dependentchildren and benefits to you and your dependent children ifyou are disabled.You must apply to receive benefits. Do this several monthsin advance, because retroactive payments are not made.12PLANNING FOR YOUR RETIREMENT
Page 4 and 5: How to Begin PlanningThere are thre
Page 6 and 7: Here’s WhereRetirement Income Goe
Page 8 and 9: Savings ultimately are not only a s
Page 10 and 11: Match Your Investments to Your Obje
Page 14 and 15: Old Age Security (OAS)People 65 and
Page 16 and 17: Disadvantages of This Kind of Plan
Page 18 and 19: Personal Pension Plans -RRSPs and M
Page 20 and 21: Term Certain Annuities to Age 90 (T
Page 22 and 23: Some Tax ConsiderationsRRSPs, RRIFs
Page 24 and 25: Planning for Retirement LivingWhere
Page 26 and 27: • If you’re married, consider d
Page 28: ® HANDS & GLOBE Design is a regist

Planning for your retirement - Servus Credit Union

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