presented by David Cotcher
Pension Plans
Company Pension Plans
Defined benefit plans OR Defined contribution plans
RRSP - Registered Retirement Savings Plans
Contribute up to 18% of Earned Income up to $22,450 (2011 limit)
Can contribute up to age 71 and then transfer to RRIF or withdraw.
Contributions to spousal plan can be withdrawn as spouse’s taxable income after 3 years.
TFSA – Tax Free Savings Account
Not a pension plan but can save $5000/yr for retirement with no tax on interest earned.
RDSP –Registered Disability Savings Plan
People under age 60 who qualify for disability tax credit can contribute to RDSP
CPP – Canada Pension Plan
Contribute while working and pension is based on contributions up to YMPE
2011 maximum CPP at age 65 = $960/month
Amount reduces 0.5% / mo for CPP earlier than 65 and increases 0.5%/mo after age 65
Proposed change to 0.6%/ mo reduction before 65 or 0.7% /mo increase after 65
Reduction/increase Age 60 Age 65 Age 70
o 0.5%/mo $672 $960 $1248
o -0.6% / +0.7%/mo $614 $960 $1363
Survivor 65 or over get 60% of CPP (under 65 survivor = 37.5% + $169)
OAS – Old Age Security
Age 65 OAS = $526.85 / mo (reduced for income over $67,668)
Guaranteed income supplement (GIS) amount depending on income up to $38,256
o GIS maximum $665/mo single or $439/mo for spouse with OAS
Allowance for lower income seniors age 60-64 whose spouse gets OAS and GIS
o Maximum allowance $965/mo or Allowance for survivor $1070/mo
Pension Information and Financial Planning
Service Canada website servicecanada.gc.ca or call 1-800-277-9914
See a Certified Financial Planner (CFP) / Certified Senior Advisor (CSA) CanadaCSA.com
Wills and Estates
A Will is a legal document that sets out how you intend your estate to be handled after your death.
After a person's death, their assets and liabilities make up their Estate.
The Executor is the person appointed to administer the will and estate.
Probate is the court process to have the will proven to be valid.
A will may be handwritten by the person (holographic) or prepared by a lawyer. Using a lawyer costs about $100 to $200 and saves future costs for wills that are not done correctly.
Choosing who will be the Executor is important. It may be a family member, trusted friend, and lawyer, or a corporation like a bank or trust company. Check what the corporate executor would charge since it can be expensive.
Qualities when choosing an Executor: (1) Honesty, (2) Responsibility, (3) Diplomacy, (4) Knows your financial affairs, and (5) Lives close to you.
Saskatchewan laws Family Property Act and Dependant’s Relief Act have provisions that a will cannot ignore your spouse and dependents.
Power of Attorney
Power of Attorney is a legal document that gives someone authority to act on your behalf if you are unable for any reason such as illness or injury.
The person given Power of Attorney can be anyone 18 or over, who is able to understand information related to the decisions, and appreciates the consequences of the decisions.
Types of Power of Attorney are Enduring, Contingent Enduring, Personal or Property Powers of Attorney depending on the type or circumstances of the decisions.
Powers of Attorney may be General for all personal or financial decisions or Specific to certain decisions. Non-Enduring Powers of Attorney end if you lose capacity to understand the decisions yourself. Enduring Powers of Attorney continue until your death. General Enduring Power of Attorney is the broadest authority.
Health Care Directives (Living Will)
A Health Care Directive (sometimes called a Living Will) gives direction concerning your health care treatment in the event that you lose your capacity to make or communicate such decisions. You can appoint a Proxy to make health care decisions on your behalf.
Saskatchewan law The Health Care Directives and Substitute Health Care Decision Makers Act gives the law for Health Care Directives.
For information on Wills and Estates, Power of Attorney and Health Care Directives see www.plea.org
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