Retirement Hub by the Government of Canada

Are you planning for your retirement? Do you want to learn more about your public pension options like the Canada Pension Plan (“CPP”) and Old Age Security (“OAS”) and how to make the best choices for your future?

Service Canada has launched a new online tool called “Retirement Hub” that can help you with some of your retirement needs called the Retirement Hub. It is designed to provide you with a simple and improved experience for learning and planning your retirement.

Are you planning for your retirement in Canada?

The Retirement Hub has several handy features that help you understand Canada’s public pensions such as CPP and OAS. The tool helps Canadians decide when they should start taking their public pensions, how the pensions work, and how much you can expect to receive.

1. Personalized Retirement Quiz: The tool allows users to create a personalized retirement plan based on their individual circumstances. By entering information such as age, income, and retirement goals, users can receive customized recommendations for saving and investing. The tool only takes a couple minutes to complete.
2. Retirement Income Calculator: Users can estimate their retirement income from various sources, including Canada Pension Plan (CPP), Old Age Security (OAS), and personal savings. The tool takes approximately 30 minutes to complete and provides a clear picture of how much income they can expect in retirement.
3. Old Age Security Benefits Estimator: Users can find out how much money they could get from OAS benefits. They will have to provide key information like age, net income, legal status, residence history and marital status. The tool takes 5-10 minutes to complete.
4. Application for pensions: Users get simple information on how to apply for CPP and OAS, including links to start the application process. One the application has been submitted, users can check their application status, as well as update their address and banking information.
5. Retirement Planning Tips: The webpage also offers a range of retirement planning tips and resources to help users make informed decisions about their retirement. Topics covered include budgeting, investment strategies, and retirement income options.

What other factors should you consider for retirement?

The retirement hub is a great starting point for most Canadians to get a handle on their retirement needs but still lacks many of the tools that Canadians need to ensure a comfortable retirement. At Achen Henderson, we work with financial planners and lawyers to help our customers have peace of mind when preparing for retirement.

One notable omission from the government’s website is a calculation of ‘break even’ comparing what you have put into the various government pension programs, such as CPP. We would like to see a clear way to identify how much you have contributed through your life of employment and at what age after starting to collect CPP you will receive that amount back from the CPP, or what we would call a ‘break-even point.

How does Achen Henderson help its customers plan for retirement?

Some of the items that the retirement specialists in our network can help with that are not offered on the financial hub are:

1. Investment strategies to ensure you can live comfortably and give generously into the later stages of your life.
2. Comprehensive Tax Planning: We conduct a thorough assessment of your current tax situation and design a personalized tax plan that aligns with your succession or exit strategy.
3. Business Valuation: Our team offers expert assistance in valuing your business accurately, considering several factors such as assets, liabilities, cash flow, and market conditions.
4. Structuring Advice: We provide tailored advice on the best structure for your succession or exit, considering tax implications, legal requirements, and your long-term objectives.
5. Tax Minimization Strategies: We identify opportunities to minimize taxes related to your succession or exit, including managing capital gains tax, income tax, and other relevant taxes. Our strategies also include maximizing the use of your Lifetime Capital Gains Exemption.
6. Wills and Estate Planning Integration: For succession or exit plans involving estate planning, we seamlessly integrate tax-efficient strategies into your overall estate plan.
7. Transaction Support: Our team offers full support throughout the transaction process, including due diligence, negotiation support, and tax compliance, ensuring a tax-efficient outcome.
8. Ongoing Tax Advisory: Even after your succession or exit is finalized, we provide ongoing tax advisory services to assist you with any tax-related challenges that may arise.
9. Insurance planning to ensure you are properly covered for life’s challenges. This can include life insurance, health benefits, and critical illness and disability.

Questions?

Do you have questions about your retirement? Reach out to us today so that we can help you plan for the future.