Retirement Planning.

Working to save for retirement

Saving for retirement is one of the most important financial goals that you will ever pursue. And this guide will help you achieve this goal by showing you how to work effectively with your most important asset.  Your advisor has the in-depth knowledge and expertise to offer you the sound financial advice you will need to make the retirement planning decisions that are right for you.

By working through this guide, you will:

• Identify your current financial priorities and retirement planning issues and concerns.
• Learn how you can effectively address your retirement issues and concerns to develop a realistic plan for you.
• Be well prepared to work effectively and efficiently to save for retirement.
• Learn how to work with your advisor to adapt your retirement plan and ensure that you continue to reach your goals.

Keep in mind that everyone's retirement planning needs are different and not every suggestion will apply to your situation.

So consider carefully those issues that do apply to you, and plan to discuss them with your advisor.

One of the most important considerations when saving for retirement is that you develop a plan addressing your current priorities and your future goals. This means taking a look at your current financial circumstances and priorities and the retirement issues that concern you.

How you can help
The following worksheets make it easy for you to identify where you are today, uncover issues and concerns that you may have about saving for retirement, and discover the many ways in which your advisor can help. The tools in this section can help you clarify your own thoughts about retirement and other financial priorities and prepare you for productive discussions with your advisor.
Saving for retirement: your personal assessment

In the accompanying pages you'll find a set of three information sheets with quick checklists to help you identify the financial issues most important to you now, and later in your life. Select the worksheet that best fits your current circumstances, based on the number of years you have until retirement. Browse through the appropriate worksheet, taking note of any issues that concern you and how your advisor can help. Then complete the included Financial priority planner checklist  to identify your current financial priorities. Be sure to share this information with your advisor. If you have a retirement concern or issue that isn't mentioned here, remember to record it so that you can discuss it with your advisor.

Financial Priority Planner
Use this planner to assess your current financial priorities.  Your advisor can devise the appropriate strategies to help you balance your priorities while making progress towards your goals.

Check the priorities that apply to you and then rank them in order of importance from most important to least important.

Years from retirement

Retirement Lifestyle

Complete this quick assessment to get a snapshot of your retirement years.  Even if retirement seems a long way off, this assessment can help you begin to shape your plans.  Share this information with your advisor so that together you can develop a clear plan. You may select more than one option under each category.

Financial Snapshot

To Help build a realistic retirement saving plan, your advisor will need an accurate assessment of your current finances.  Use the following list to develop a current inventory of your income sources, expense, assets, and liabilities. Revisit this list when you conduct the annual review of your retirement plan or any time your circumstances change.

Reviewing and Adjusting your plan with your advisor.

Once you have a retirement savings plan that meets your current priorities and future goals, you'll want to make sure that it continues to be effective.

Schedule an annual meeting with your advisor

You should meet with your advisor at least once a year to get a formal update on your financial situation and to revisit your goals and assumptions to see if they are still appropriate. An annual meeting also provides the ideal time to apprise your advisor of any changes to your personal circumstances and bring any issues or concerns to his or her attention.

The following strategies will help generate a productive annual review

• Schedule your meeting outside the busy retirement planning months of January and February.
• Be sure to bring important information, such as your most recent tax return and assessment, investment statements, and other relevant financial documents.
• Make a list of the items you want to discuss with your advisor. If you've created a clippings file of articles and information to discuss with your advisor, be sure to review it and bring it to the meeting.

Reasons to revisit your plan

An annual review will keep your retirement plan on track as your financial priorities change and you make progress toward your goals. However, certain circumstances may necessitate a special review. Contact your advisor if any of the following situations arise:

• Your marital status changes (marriage, cohabitation, separation, or divorce)
• You acquire a new dependant (birth of a baby, adoption, caring for a relative)
• Your spouse passes away
• You change jobs or embark on a new career
• You receive an inheritance
• Your income changes (up as well as down)
• You begin to participate in a company pension plan
• You acquire or eliminate a significant debt, such as a student loan or mortgage
• You need to access your retirement savings

• Be sure to consult your advisor before making any alterations to your retirement savings plan. Even a moderate withdrawal from your RRSP, for example, can have considerable tax consequences. Even more serious, unexpected alterations could affect your asset allocation and even hamper your progress toward your long-term goals.
  
  Your advisor can help you explore all the alternatives to meet your immediate need, whatever it might be, and still keep your retirement plan on track. Together, you can decide on an appropriate course of action.
  
  A plan you are comfortable with

Helping you achieve a solid, practical retirement savings plan that you are comfortable with is the ultimate goal of the information, tips, and suggestions presented in this guide. As well, in working through this process, you will have achieved a better appreciation of how you can best utilize your financial advisor's knowledge and expertise. Remember, your savings plan is not intended to be a static program. It needs to change as your financial needs and goals change. So ensure that your financial advisor always has the information he or she needs to continue to do the best possible job for you.

Canadian Government Assisted Retirement Plan

Registered Retirement Savings Plan (RRSP)

An RRSP is a retirement plan that we register and that you or your spouse or common-law partner establish and contribute to. Deductible RRSP contributions can be used to reduce your tax.

Any income you earn in the RRSP is usually exempt from tax for the time the funds remain in the plan. However, you generally have to pay tax when you cash in, make withdrawals, or receive payments from the plan.

How much can I contribute?

Generally, the amount you can contribute to your own RRSPs or your spouse's RRSPs, or your common-law partner's RRSPs for a given tax year without tax implications is determined by your RRSP deduction limit. This is often called your "contribution room". Amounts that you contribute above this limit may be considered excess contributions.
Your RRSP deduction limit is shown on the latest notice of assessment, notice of reassessment, or on a T1028, Your RRSP Information for 2009, that we sent you after processing your 2008 return.
Calculating your 2009 RRSP deduction limit
We determined your limit from information on your 2008 and previous year's returns, and from information we keep on record. If any of that information changes, your 2009 RRSP deduction limit may also change. In most cases, we will inform you of any change to your 2009 RRSP deduction limit.
Note
The maximum RRSP deduction limit for 2009 is $21,000. However, if you did not use all of your RRSP deduction limit for the years 1991-2009, you can carry forward the unused amount
to 2010. Therefore, your RRSP deduction limit for 2009 may be more than $21,000.
The maximum RRSP deduction limit for the subsequent year is as follows:

• 2010 - $22,000.

For full details please click on following link
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/rrsps-eng.html

Old Age Security pension
What is the Old Age Security pension?
The Old Age Security pension is a monthly payment available to most Canadians aged 65 or older. You must apply to receive benefits. If you meet the eligibility requirements explained below, you may be entitled to receive the Old Age Security pension even if you are still working or have never worked.
We look at three factors to determine if you can receive the Old Age Security pension: your age, your legal status, and the number of years you have lived in Canada.
If one of the two scenarios listed below describes your situation, you may be eligible to receive the Old Age Security pension.
For full information please click on following link
http://www.servicecanada.gc.ca/eng/isp/oas/oastoc.shtml
Guaranteed Income Supplement
The Guaranteed Income Supplement is a monthly benefit paid to eligible residents of Canada who receive a basic, full or partial Old Age Security pension and who have little or no other income. Guaranteed Income Supplement payments may begin in the same month as Old Age Security pension payments. Recipients must re-apply annually for the Guaranteed Income Supplement benefit by filing an income statement or by completing an income tax return by April 30. Thus, the amount of monthly payments determined for the year may increase or decrease according to reported changes in a recipient's yearly income. Unlike the basic Old Age Security pension, the Guaranteed Income Supplement is not subject to income tax. The Guaranteed Income Supplement is not payable outside Canada beyond a period of six months after the date of departure, regardless of how long the person has lived in Canada.
Eligibility conditions: To receive the Guaranteed Income Supplement benefit, a person must be receiving an Old Age Security pension. The yearly income of the applicant or, in the case of a couple, the combined income of the applicant and spouse or common-law partner, cannot exceed certain limits.
For full information please click on following link.

http://www.servicecanada.gc.ca/eng/isp/oas/oastoc.shtml

General Information About The Canada Pension Plan

What benefits does the Canada Pension Plan provide?
The Canada Pension Plan is a contributory, earnings-related social insurance program. It ensures a measure of protection to a contributor and his or her family against the loss of income due to retirement, disability and death.
There are three kinds of Canada Pension Plan benefits:

• disability benefits (which include benefits for disabled contributors and benefits for their dependent children);
• retirement pension; and
• survivor benefits (which include the death benefit, the survivor's pension and the children's benefit).

The Canada Pension Plan operates throughout Canada, although the province of Quebec has its own similar program, the Quebec Pension Plan. The Canada Pension Plan and the Quebec Pension Plan work together to ensure that all contributors are protected.

For full information please click on to following link
http://www.servicecanada.gc.ca/eng/isp/cpp/cppinfo.shtml