Exam 5: Retirement and Estate Planning - Retirement Planning

According to a 2007 study,two thirds of Canadians who are expecting to retire in in 2030 are not saving enough to cover necessary living expenses.

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

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?

An RRSP allows tax-deductible contributions of up to 18 percent of gross income regardless of whether you are enrolled in a pension plan at work.

Which is a key difference between RRSPs and TFSAs?

In an employer-sponsored retirement plan,you should contribute at least

Which of the following applies to the CPP?

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

If you are age 65 and were in a defined-benefit pension plan for 22 years which was based on earning a benefit of 1.8 percent of your best three years earnings,you would receive around 39.6 percent of your salary from your pension.

In 2017,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

You want to save $400 000 to supplement your pension income to retire early at age 60.You have 26 years to accomplish this and already have $90000 saved.Assuming an eight percent annual return,how much should you set aside each month to reach this goal?

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.

In the last 10 years many employers have shifted from

Tax-free withdrawals can be made from an RRSP under which of the following circumstances?

A pension assignment is when a married or common-law couple decides to share their CPP retirement pensions in order to reduce their income taxes.

Saving $100 per month from age 20 to age 70 with an eight percent return (compounded monthly)will give you over three quarters of a million dollars.

You have earned income of $56 000 for last year.You have a defined-contribution plan to which your employer contributes 50 percent.The employer contributed $3500.How much of an RRSP contribution can you make this year,assuming you have no accumulated RRSP room?

RRSP contribution room

Old Age Security is funded by general tax revenues.

How much you can contribute to your RRSP depends on your