Exam 14: Retirement and Estate Planning - Retirement Planning

Alonzo is 35 years old and earning $57 000 annually.He has a two percent defined-benefit plan based on the average of his last five years of income.He just started saving $2500 per year in an RRSP and expects to earn seven percent annually.Assume that the average of his last five years of employment earnings is $65 000.How much annual income will he have if he decides to retire at age 65 and expects to live to age 85?

Before the end of the year in which you have your 71st birthday

Even though you expect to receive OAS and CPP,a common rule of thumb is in order to be able to retire comfortably is

List four sources of income you may be drawing on when you retire and rough estimates for how much you anticipate having from each source in today's dollars.

Most defined-contribution plans allow some investment flexibility including the option to choose

A pensioner who only receives Old Age Security income will also receive the maximum Guaranteed Income Supplement.

Which of the following is True regarding LIRA and locked-in RRSP accounts at age 71?

Old Age Security benefits

A registered life annuity is better than an RRIF because you are no longer exposed to the risk that your funds could run out before your death.

Sally can use the Home Buyers Plan (HBP)to withdraw $50 000 from her RRSP for a down payment on a home as long as it is her first home and she can pay it back in ten years.

When you leave an employer prior to retirement age,your options with your vested defined-benefit plan are all of the following except

If your employer offers a pension plan,that should be the first plan you consider because your employer will at least match your contributions to the plan.

How much you can contribute to your RRSP depends on your

The retirement benefit you receive from a money purchase defined-contribution plan will be based on

The year's maximum pensionable earnings (YMPE)will

For each resident of Canada,their CPP entitlement is calculated based on their

LIRA's and locked-in RRSPs are a lot less flexible than RRSPs because they convert to LIFs and LRIFs and have limits on the amounts that can be withdrawn each year.

In 2014,if you were a resident of Canada from age 24 to 65,the monthly OAS benefit payment you would have received would have been approximately

If you have been in an employer-sponsored pension plan for three years and you leave your employer well before retirement,

Phil has a defined-benefit plan that pays him a pension of two percent of his average best three years' earnings.His earnings are as follows: 2008,$58 000;2009,$62 000;2010,$65 000;2011,$66 000;2012,$62 000;2013,$72 000;2014,$75 000.What will be his annual pension benefit if he was with Plastis Co.for 22 years?