Retirement is that phase of life when you should be able to enjoy your time without any worries. This is only possible when you are financially secure and stable. In Canada, retired people have income from different sources. Let us look at some of them.
Canada Pension Plan (CPP) – The value of CPP that you receive from government depends on your employment history. The maximum for age of 65 years is monthly $934. 17. However, it is better not to consider the maximum value for your financial planning. Old Age Security (OAS) – The amount of OAS payment from government depends on the number of years that you have stayed in Canada within a particular age range. The maximum amount is monthly $517. Pension Plans- You get a handsome amount as pension if you work in the same company for many years. Unfortunately, the number of companies offering pensions is reducing. Registered Retirement Savings Plans(RRSP) – This plan is extremely flexible and it is expected to be a great source of income in future. Explore this plan to suit your needs. Non- RRSP Investments- These include your other investments such as stocks and bonds. Income From Work- Yes, retirement today does not necessarily mean that you are supposed to literally stop working. If you enjoy working even after retirement, then go for it. Add up the amount that you can receive from CPP, OAS and your company’s pension plan. Now calculate the amount of money that you should earn from other sources to retire confidently. Plan your finances to attain that target amount.