We’ll be pausing this article for the vacations. See you within the New 12 months!
Laurie Armstrong, 75, of Victoria retired at age 67 after a profession as a litigator.
“I had my very own regulation agency in Victoria. I wasn’t making an attempt to flee; I liked my work, however I didn’t have a succession plan for the enterprise, so I made a decision to shut the doorways,” he says within the newest Tales from the Golden Age function. “It wasn’t traumatic. It was a brand new part I used to be fortunately heading into.”
Mr. Armstrong had a number of pursuits to maintain him busy in retirement, together with constructing picket boats. When he turned 70, he took up Olympic-style weightlifting.
“I feel the important thing to a profitable retirement is taking up one thing that’s actually exhausting, which for me was weightlifting. I imagine it’s vital to be sturdy. I had sturdy legs from biking to work – 30 kilometres spherical journey for a number of years – however my higher physique wanted work,” he says.
Learn the total article right here.
Calling all retirees: Are you a retiree taken with discussing what life is like now that you just’ve stopped working? Globe Investor is on the lookout for folks to take part in its Tales from the Golden Age function, which discusses the realities of retirement dwelling. If you happen to’re taken with being interviewed for this function, and agree to make use of your full identify and have a photograph taken, please e-mail us a couple of particulars about your retirement life up to now at: [email protected]
Can Dean and Astrid obtain their spending objective of $120,000 a yr?
Dean and Astrid are in an enviable place, not too long ago retired with more cash than they know what to do with – hard-earned financial savings amassed by modest dwelling and secure careers. He’s age 64, she is 59. They haven’t any youngsters.
Throughout their working years, they each loved skilled careers, with Dean incomes considerably greater than Astrid. Astrid, who took early retirement a yr or so in the past, has an outlined profit pension partly listed to inflation, of $3,100 a month. She selected to retire early due to their age distinction, Dean provides. “We deliberate to journey throughout our first years of retirement and can most likely begin that in earnest subsequent yr.”
Their Alberta home is mortgage-free and so they have substantial financial savings and investments. Additionally they have an curiosity in a rental property.
Dean appears to have a fairly good concept of find out how to prepare their monetary affairs however he’s looking for extra readability. When ought to they take Canada Pension Plan and Outdated Age Safety advantages? What’s their most sustainable earnings? And “find out how to decrease the Canada Income Company reduce of our retirement earnings?” Their retirement spending objective is $120,000 after tax.
Within the newest Monetary Facelift, Jeff Ryall, a monetary planner and affiliate portfolio supervisor at Cardinal Capital Administration in Winnipeg, have a look at Dean and Astrid’s state of affairs.
How does the traditional retirement age in Canada examine with different international locations?
Within the newest Charting Retirement article, Fred Vettese, former chief actuary of Morneau Shepell and creator of Retirement Earnings for Life, seems at how international locations have raised the traditional retirement age to replicate longer life spans. See the place Canada ranks by studying the article right here
In case you missed it
Taking part in the saxophone and instructing health lessons are a part of a satisfying retirement for an Ontario man
Morris Tait, 79, retired 25 years in the past at age 54 after a profession in training, first as an elementary college trainer and later as a faculty vice-principal and principal.
“It was an exquisite profession, however after 32 years I used to be able to retire,” he says within the newest Tales from the Golden Age function.
“For many individuals, retirement could be scary, particularly in the event that they haven’t ready for it,” provides the Cobourg, Ont. resident. “I used to do retirement workshops for academics to warn them about being unprepared. Research present that it may be an sad adjustment and expertise, which may end up in a lack of vanity. It might have an effect on your well-being.”
Mr. Tait believes it’s vital to be busy in retirement and to do various things. He owns some rental properties, teaches senior health and realized to play the saxophone three years in the past at age 76.
Learn the total article right here.
Why Colombia is on this Canadian’s retirement radar
“As I start analysis on my future life as a snowbird – although, for now, I want the younger-sounding “digital nomad” – my guidelines steadily grows: security, balmy climate, dependable web, gay-friendliness, respectable well being care, a stimulating café society, correct gastronomy and, in fact, good worth,” Doug Wallace writes within the Globe.
Whereas he’s nonetheless a couple of years away from retirement, Mr. Wallace is beginning to take into account hotter climates the place he can escape Toronto for the winter months. “Boring outdated Arizona? Someplace extra unique like Vietnam? The world is brimming with prospects, however Colombia wasn’t even on my radar till I took a trip there this previous September,” he writes.
Learn the total article right here.
I retired earlier this yr and am in receipt of an outlined profit pension from my Canadian employer. I lived and labored for a number of years within the U.Okay. and have a deferred pension which I’m contemplating taking inside the subsequent 12 months. One of many choices is to obtain a portion of the pension worth as a lump sum along with a diminished month-to-month pension. Within the U.Okay. that is referred to as a Pension Graduation Lump Sum (PCLS), also known as a tax-free money sum. However that that is tax-free within the U.Okay., I perceive that it could be absolutely taxable in Canada. I’ve been suggested nevertheless that it could be attainable to pay the PCLS right into a Canadian RRSP to defer tax while not having RRSP contribution room. Are you able to affirm that is certainly the case because the lump sum considerably exceeds my accessible RRSP contribution room and there are appreciable tax implications if this isn’t the case? Many thanks.
We requested Peter Megoudis, government director of personal shopper companies at KPMG in Canada, to reply this one:
Thanks on your inquiry concerning your U.Okay. plan, which raises some technical tax issues beneath Canada’s Earnings Tax Act.
The Canada Income Company (CRA) has acknowledged that residents of Canada are taxable in Canada on worldwide earnings. Typically, the tax implications of receiving distributions from a U.Okay. pension plan will rely on how the CRA characterizes the plan. It ought to be famous that what’s handled as a pension within the U.Okay. isn’t essentially handled as a pension in Canada.
If the U.Okay. plan acquired direct contributions from the employer, then it could be characterised as a pension by the CRA and handled as a pension in Canada. On this case, any quantities acquired from a U.Okay. plan could be included as earnings. Nonetheless, whereas Canada would tax a U.Okay. pension (together with the portion that will be tax-free within the U.Okay. as a Pension Graduation Lump Sum), it might be offset by a deduction for the portion of the U.Okay. pension that’s transferred to an RRSP, whatever the taxpayer’s RRSP room. For instance, if $100,000 is withdrawn from the plan and the taxpayer contributes $20,000 to their RRSP, then the Canadian taxable earnings could be $80,000.
If the plan is taken into account a private pension scheme within the U.Okay., then the CRA wouldn’t deal with it as a pension however reasonably as a private belief. The excellent news is that distributions from private trusts usually are not taxed in Canada per se. Consequently, there isn’t a have to switch to an RRSP. Nonetheless, it’s additionally vital to bear in mind that earnings or capital positive aspects earned inside a private belief after the taxpayer turned a Canadian resident could be taxable.
A last phrase for anybody with a U.Okay. firm pension plan who’s a Canadian resident. Whereas a switch to a U.Okay. private pension plan is tax-free within the U.Okay., it’s taxable in Canada for Canadian residents. As such, if this switch happens earlier than a person turns into a resident in Canada or returns to Canada, they will keep away from this Canadian tax consequence.
Have a query about cash or life-style subjects for seniors? E-mail us at [email protected] and we’ll discover consultants and reply your questions in future newsletters.
Considering extra tales about retirement? Sixty 5 goals to encourage Canadians to stay their finest lives, confidently and securely. Learn extra right here and join for our weekly Retirement e-newsletter.