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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 ...
mhoran_psprep's user avatar
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 ...
mhoran_psprep's user avatar
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 (...
DJClayworth's user avatar
  • 33.6k
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 ...
Robert Longson's user avatar
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....
nsandersen's user avatar
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 ...
Vicky's user avatar
  • 24k
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 ...
brian's user avatar
  • 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 ...
Brythan's user avatar
  • 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 ...
Yimin Rong's user avatar
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. ...
Pete Becker's user avatar
  • 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 ...
Grade 'Eh' Bacon's user avatar
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 &...
Kevin Carlson's user avatar
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 *...
DJClayworth's user avatar
  • 33.6k
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 ...
Joe's user avatar
  • 35.8k
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 ...
C.S.'s user avatar
  • 715

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