Retirement Planning Flashcards
Rule of thumb of retirement income
70-80% is comfortable for most.
OAS clawback (2024)?
15% on the excess above the threshold amount of $86,912
3 types of annuities?
- Term certain: payable to you or yur estate for a fixed number of years
- Single life: payable to you as long as you are alive
- Joint an last survivor life: payable while you or your spouse are alive
How many days of work and income before CPP must be paid into?
after 25 days must start paying in above 3500 in income EVEN IF A MIGRANT WORKER
CPP contribution period?
18-65 if working, even if you take CPP at 60 and continue working. This just increases your cpp payments
Reduction in CPP if taken early?
7.2% per year (0.6 per month)
Self-employed individuals cpp oblogation?
Double: they pay the employee and the employers portion
What is the YMPE?
The max amount you pay CPP on
What is CPP Year Basic Exemption (YBE)?
3500; cpp is not paid into on the first 3500 in income.
How to calculate CPP contribution?
income up to YMPE - 3500 X 5.95% (CPP contribution %)
Benefit of delaying cpp?
Increase of 8.4% annually (0.7% per month)
CPP in divorce?
Credit splitting: contributions made during cohabitation are equalized (starting from the beginning of the year in which they cohabitated until end of year prior to when they ceased)
When is orphan benefit received until? Benefit for being child of disabled contirbutor?
Child is 18 or 25 if enrolled in ful time post-secondary
Requirements for CPP death benefit?
Must have received CPP for 1/3 the years in your contributory period (and in case less than 3 years);
OR
10+ years
How is the pension adjustment calculated?
((Pensionable earnings X benefit rate) X 9) - 600 (adjustment)
