Now that you’re approaching the finish line or have finally retired, you can start living the dream. Here at Accureta Wealth, we want to make sure that your retirement is as fruitful and enjoyable as possible. Today’s blog concerns your income during your golden years. There are a number of benefits that the government can provide along with your personal savings and pensions, but we also suggest other forms of passive income to help pad your accounts in the case of emergencies, and to make sure you can afford your fun.
If you are over 65, have lived in Canada for over 10 years, and are retired, you can opt for the Old Age Security (OAS) program. Different options can change the benefits that you get when retiring. For low-income retirees, you can apply for the Guaranteed Income Supplement (GIS). You may also select from a range of pension plans such as the Canada Pension Plan (CPP), and the Quebec Pension Plan (QPP) that pay based on your work experience in Canada and Quebec.
In planning your retirement, it is common to have built RRSP saving accounts in order to have stored away finances. With RRSPs, you can simply withdraw the funds (opening them to taxes), purchase a registered annuity (you get a steady stream of income based on the accounts and interest rate of the purchase), or transfer them into a registered retirement income fund (RRIF), which will pay funds out depending on the RRIF you choose.
Voluntary Retirement Savings Plan
One other option is to use a Volunteer Retirement Savings Plan or VRSP. Employees in Canada are required to be enrolled in the plan if they work for an employer with more than five employees, and an employee may leave at any time if it doesn’t suit them. This plan is designed for those who have little retirement savings and no corporate pensions to supplement their retirement.
Other Income Options
There are a number of other retirement income sources that are available. Reverse mortgages are one possibility, as are leveraging a universal life insurance policy, tax-free savings accounts, and a variety of pension plan types.
Accureta Wealth helps sort and plan your retirement and your wealth management to meet your retirement and life goals. We make sure to create custom plans with each client to ensure their financial success.