6

You'll have a certain number of shares of each fund in your pension. You purchase a certain number of shares with the "pension" portion of your paycheck. This will be different each time because the share price fluctuates. To see the changing value of your pension, you update the price(s) of your fund(s). How often you do this is up to you, though if it'...


6

The specific "State Pension" plan you have linked to is provided by the government of the U.K. to workers resident there. More generally speaking, many countries provide some kind of basic worker's pension (or "social security") to residents. In the United States, it is called (surprise!) "Social Security", and in Canada most of us call ours "Canada ...


5

Defined Benefit Plans: Defined benefit plans are disappearing because of their high cost to the companies that provide them. When an employee retires, the company must pay his pension for the rest of his life, even longer if the pension includes a survivor option. Thus the company's financial burden grows as more employees retire. By law, they must ...


4

Transferring to Roth IRA is a taxable event. Your pension distribution will be a taxable income to you, but the qualified distributions from the Roth IRA will be tax free (i.e.: tax free income in retirement, including all the gains). Rolling over to traditional IRA will not trigger any taxes, but distributions will be taxable (i.e.: you'll pay ordinary ...


4

The Canada Pension plan is not a fund to which you contribute, and from which you can withdraw. CPP deductions are effectively a tax which funds CPP payouts. If you are obliged to pay the deductions (which most people are if they work in Canada) then you cannot avoid those payments by claiming that you will leave Canada at some point. Nor can you withdraw or ...


3

GnuCash allows you to keep accounts in various currencies (and as I recall there is even built-in support for securities). The easiest option is probably to make subaccounts for each company that you hold shares in, with each share being defined as a "currency" of sorts. Then, just update the rates regularly. The "pension" account will then show the total, ...


2

As others have explained defined contribution is when you (or your employer) contributes a specified amount and you reap all the investment returns. Defined benefit is when your employer promises to pay you a specified amount (benefit) and is responsible for making the necessary investments to provide for it. Is one better than the other? We can argue ...


2

I agree that to take the money from the defined benefit plan you are saying that you can get a better return than the plan. You are taking all the risk if you take the lump sum. But there are two more risks that you are taking by keeping the money in the plan even though you are decades from retirement. Funding risk: companies and state/city/county ...


2

All things being equal, a defined benefit pension is far better than an IRA or a 401(k). Think about it this way - let's say you can have a guaranteed $100 a month*, or the chance at $100 a month. Which is better? Now, obviously, your tolerance for risk is the difference - but this is the beauty of a defined benefit plan. Your employer is picking up the ...


2

The end result is basically the same, it's just a choice of whether you want to base the final amount you receive on your salary, or on the stock market. Defined benefit You pay in a set proportion of your salary, and receive a set proportion of your salary in return. The pension (both contributions and benefit) are based on your career earnings. You get ...


2

Assuming that the "5-15%" means that they contribute 5%, and then they match whatever you contribute up to an additional 5% (so 15% possible total) then there would be no reason at all to opt out of the "free" 5% unless it is a trade-off versus another benefit that you would rather have instead. For the remainder, how much free cash-flow do you have? In ...


1

A defined contribution plan is simply an employee-sponsored retirement plan where you and/or your employer can specify the contribution amount, and the benefit (what you get when you retire) is not defined (i.e., it's based on market returns and whatever you want to take out). A 401(k) and a 403(b) are kinds of defined contribution plans. This is as ...


1

No, certainly not, with respect to what you wrote about the payroll contributions. You're misunderstanding calculation and the meaning of the $53,600 "maximum amount", which is but one input to the calculation that limits the pensionable earnings (salary) amount before a contribution rate is applied to those pensionable earnings to determine contributions. ...


1

Yes it does. The amount of tax sheltered pension room is fixed every year. You either use it for your RPP or RRSP. Note that the employer's contributions are also accounted for in your T4 in box 52 as pension adjustment and reduce your contribution room. You will have to read your pension rules to get the specifics. You may be talking about past service ...


1

Depending on the type of pension, you should receive a pension adjustment amount on your T4 for the year. This will be deducted from your income on line 206 on your T1 and functions like an RRSP deduction. The calculation of the pension adjustment is a separate topic, but note that (for defined benefit plans) it is intended to be equivalent to the deduction ...


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