2024 Canadian Retirement Profits Guide

Well a traditional pension is becoming harder to come by these days so building a steady retirement income is key for any financial plan Canadians have more than one option when it comes to where they should build that retirement income for their future or access additional retirement funds for today's your money month segment we're joined by Ted Rick.

Shaffin he's president and CEO of Tri Delta private wealth Ted thanks so much for coming in it's great to be here thank you so this is this is a great topic to to dig into for really anyone of any age because they might be thinking about this really early or they might be nearing retirement and thinking okay maybe there's some other options.

For me here of of funds that I could access or ways that I could manage my funds um best in in retirement um so maybe we should start though just where you know where people should get started when they're thinking about their uh retirement years and even just the budget how they should be looking at what they need in retirement well I.

Always say it starts with two things one is you were working and you had a paycheck and then you either are or might in the future stop working and the paycheck's gone and you say okay how do I replace that paycheck so the next thing is how much do you spend and spending sometimes changes in retirement there's expenses that disappear and in.

Some cases especially in early retirement sometimes there's more travel and some other expenses so you sort of say you start with how much do you spend and then you go how do you build that paycheck from various sources and how do you do it most tax efficiently yeah okay so let's go through some of these uh top sources or top ways that you could um.

Either you know build your retirement income in various different funds or or be looking towards so um the very basic Foundation of things the candidate pension plan is one aspect that people should be considering yeah and and so everyone has always a little bit of trickiness to it yeah so canid a pension plan most people qualify but the.

Question is do you take it at 60 do you take it at 65 you take it at 70 what what makes the most sense for you so one of the things in the guide we talk about that and we also have a link to a CPP calculator that helps you determine when you should take it okay and and are there are there factors um that would you sort of sway you one way or or the.

Other well the biggest one is Health if you're going to live till 90 you might as well wait till 70 ideally to take CPP if you're not in good health you want to take it as soon as you turn 60 old age security is another one that uh people can uh turn to that's for more is it for more of a a lower income in your retirement years not necessarily um so.

Basically up to about 86,000 of income you get full old age security and then up to I think it's about 145,000 it gets sort of slowly declines to zero but if you happen to be in a relationship and have a partner and you can split income you can you can have $170,000 of income split equally and still get full old age security so most.

Canadians will qualify for OAS and so how much would somebody be looking at if they're uh you know uh adding together CPP and and OAS well maximum you're taking it at 65 you could have 48,000 a year coming in between a couple it's a lot of money um and again all of these things we have an OAS calculator at our website at Tri.

Delta.com I think you want to put money into rsps and get the tax reduction the issue is when do you take it out sometimes it makes sense to take RSP money out let's say you're retire at 60 you take RSP money out for the next 10 years and defer taking your CPP and OAS so there's a few moving Parts you want to think about but you're sort of.

Looking at it going it's almost like making a making a big meal right where do you take from what do you do first what do you do second and some of them have big impacts on on the tax bill you pay yeah that's I mean that's a even just an interesting uh tip there that if you were taking that out in those first years and then you could.

Delay your your CPP a bit um people might have other investment accounts um non-registered investment accounts what would you be uh thinking or what should people be thinking about when it comes to those well again you can sometimes sometimes I say to people let's take some money out of your non-registered account and some money out of your RSP.

Riff account to to build your retirement paycheck because it will keep your income lower right you pay tax tax every dollar comes out of the RSP or riff you don't pay tax coming out of the other account so if you combine it together maybe you can you can you know get all of your old age security pensions so all again all of these things are they're.

Not as simple when you sort of you look at one and it's sort of okay and then you look at all of them and you go which one do I do first in what in what measure yeah which is which is great that you do have this checklist that people can go through and and check it all out and we we only have about a minute left here so um maybe if you want.

To touch on uh using your home equity because that might be something that people are thinking about many people yeah so home equity especially for people in in in places like Toronto and Vancouver a lot of people are real estate rich and cash poor and they say I don't want to move from my house so whether you use a reverse mortgage.

Whether you can set up a line of credit a lot of people don't think they can qualify for a line of credit but they can um we often recommend people borrow some money from their house um to live a better lifestyle rather than being Rich at 90 when you sell your house right uh but all these again all these things are in uh the Canadian retirement income.

Guide that we put together and it's available free at Tri delta.com

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