Youngsters Pensions advice

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Jan 18th 2019, 7:44 pm

#16

Edo

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Re: Youngsters Pensions advice

Quote:

Originally Posted by Scotcad

thanks very much for this info, I didn’t realise there was technically two state pensions in Canada. And of course, I plan to invest in my own private pension whatever form that takes, however I just wanted to have my bases covered before I left than leaving anything to chance.

And obviously I’m a long way off thinking about retiring, but my occupation is well paid, as is my partners so we’re looking to invest this Wisely and fingers crossed he able to retire relatively ‘young’.

You will only get one state pension in Canada (unless you work for the public services who sometimes have their own pension schemes).

The RRSP that the previous poster was referring to is private pension that you put your own (pre-tax) money into based on your individual yearly limits. However, most employers contribute a percentage into it from their pocket as long as you maintain some sort of contribution.

Jan 18th 2019, 8:15 pm

#17

BristolUK

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Re: Youngsters Pensions advice

Quote:

Originally Posted by Edo

You will only get one state pension in Canada (unless you work for the public services who sometimes have their own pension schemes).

Remembering, of course, that there's also OAS if CPP and/or other pension "isn't enough"

But since the cut off is about $70k before losing OAS, that leaves a fair number likely to qualify as "not having enough".

Jan 18th 2019, 9:15 pm

#18

Hurlabrick

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Re: Youngsters Pensions advice

Quote:

Originally Posted by Edo

However, most employers contribute a percentage into it from their pocket as long as you maintain some sort of contribution.

Yes indeed. Not uncommon to have a 'we will match your percentage of salary that you pay in up to a maximum of x%' - for example, if you pay 5%, the employer will add ab additional 5% into a group money purchase type arrangement (i.e. it is your pot of investment). I suspect few if any private employers in Canada still offer 'final salary' type arrangements.