6
votes
Accepted
Making sense out of CPP estimates
Does this mean if I retire at 60, each month I'm getting 99.4% of the
previous month, or some fixed amount or what? Where does 36% come in?
For example if you had waited until age 65 to file you ...
- 136k
4
votes
How does tax-deferred pension savings carry any long-term benefit over taxable accounts?
These two are the same. Then, why does choosing tax-deferred make any
difference?
If the tax rates are different then, the two situations aren't equal.
If the rate will be lower in the future then ...
- 136k
4
votes
Withdraw money from Canada Pension Plan (CPP) or Govt Pension by an Indian Citizen
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 (...
- 33.1k
4
votes
Accepted
Defined-benefit / final salary pension schemes in the UK
Defined benefit schemes only really exist in the public sector these days. Changes in the taxation system and increased scrutiny about the solidity and funding of these schemes in the private sector ...
- 5,095
4
votes
Accepted
Should I rollover my pension into an IRA?
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 ...
- 166k
2
votes
Accepted
How much in CPP contributions do you pay when you are an independent contractor?
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 ...
- 31.7k
2
votes
Accepted
How does a defined contribution plan work
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 ...
- 2,017
2
votes
Accepted
Does contributing to company pension take away from RRSP contribution room
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 ...
- 1,737
2
votes
State pension from UK when a moving back to Spain after working only 10y in UK
After 10 working/qualifying years in the UK you will receive an UK pension as things currently stand. The amount will increase to the full amount as you accumulate more qualifying years.
https://www....
- 674
2
votes
Accepted
What's the best way of dealing with pensions in the UK
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 ...
- 23.3k
2
votes
Accepted
Do I need to account for this year's RPP contributions when contributing to RRSP
No, not if I read your question correctly. One advantage of an employer RPP is it is based on current earnings and the RRSP is based on the previous years earnings. Obviously this is easy and makes ...
- 1,737
2
votes
What's are the differences between "defined contribution" and "defined benefit" pension plans?
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 ...
- 21k
2
votes
Making sense out of CPP estimates
Funny thing, after writing a question, one gains some clarity. I think I understand now. My confusion arose because I didn't realize a pension is a fixed amount.
At age 65, a pension of $1,000 / month ...
- 163
2
votes
How does tax-deferred pension savings carry any long-term benefit over taxable accounts?
For simplicity, assume that the income tax rate is 20%. You initially have $1000 to invest, you can add to or remove from your investment at any time, and your investment will return 10% per year.
...
- 5,502
2
votes
Best practice on managing multiple pensions
There are a few benefits to work-based retirement plans, as opposed to personally managed plans you might otherwise enter yourself. Understanding these will likely guide how you choose to consolidate ...
- 42k
1
vote
How does tax-deferred pension savings carry any long-term benefit over taxable accounts?
Another key observation, specific to the US Roth vs conventional IRA/401(k), is that the contribution limit on the Roth is effectively higher by your marginal tax rate. Indeed, you can contribute &...
- 397
1
vote
How does tax-deferred pension savings carry any long-term benefit over taxable accounts?
There are two classic reasons why the tax-deferred is preferable.
Growth inside the tax deferred account is also tax free.
At 5% growth over ten years with 20% tax, your $1000 is:
tax deferred: (1000 *...
- 33.1k
1
vote
How does my Defined Contribution pension plan work?
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 ...
- 35.7k
1
vote
How should I record the changing value of an investment in accounting software?
Usually accounting systems track transactions that have occurred, between you and the outside world.
The market value of your pension is a fluid reality, and it is not based on a transaction that has ...
- 715
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