Your Retirement Income Options
- February 18, 2019
- Posted by: olinsadmin
- Categories: Health Care Ontario, Insurance Toronto, Medical Insurance Ontario
Before you make your final decision, you (and your spouse, if you have one) should consider getting professional financial advice to make sure you understand all of your options.
The Retirement Income System in Canada
The retirement income system in Canada is a blend of mandatory and voluntary arrangements involving individuals, employers, governments and unions. Here are the main sources of retirement income.
The main sources of retirement income
Employment-based pension plans
Employment-based pension plans (registered and non-registered) — These plans are usually established by employers or through collective bargaining and include registered pension plans and other types of retirement savings plans, such as group Registered Retirement Savings Plans (RRSPs) and Deferred Profit Sharing Plans (DPSPs). Savings in Life Income Funds (LIFs), Locked-in Retirement Income Funds (LRIFs) and Locked-in Retirement Accounts (LIRAs) all come from registered pension plans and the funds paid out from them must follow the regulations in the governing pension legislation. There are also unregistered supplemental pension plans that provide benefits above the income tax allowance for high-income pension plan members.
Personal retirement savings
Personal retirement savings — Personal savings may include tax-assisted arrangements such as Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs), Tax Free Savings Accounts (TFSAs), as well as non-registered savings and investments.
Publicly-administered pension plans
Publicly-administered pension plans operated by the government — Some of the publicly administered pension arrangements available to an Ontario resident include:
- Canada Pension Plan (CPP)
- Old Age Security Program (OAS)
- Guaranteed Income Supplement (GIS)
- Guaranteed Annual Income System (GAINS)
The CPP, OAS and GIS are all administered by Human Resources and Skills Development Canada. GAINS is administered by the Ontario Ministry of Finance.