Recent Changes Which May Impact Your Retirement
June 11th, 2010
There is more significance to our logo than a winding road through flat countryside! It represents the typical path taken by those planning for their retirement. There is a definite goal on the horizon, but the route is not a straight line from here to there. In reality, an initial course is set based on the best information available at that time. Subsequent adjustments are then made as lifestyle goals change and financial resources crystallize.
Another variable in the mix is the changes that take place in Federal and Provincial tax rules, Government sponsored retirement programs, and Provincial pension legislation. In the last three years we have seen:
- The introduction of pension income splitting in 2008
- The introduction of Tax Free Savings (TFSAs) in 2009
- Changes in the Canada Pension Plan which will become effective in 2011
- Changes in Provincial legislation regarding the locking-in of pension money transferred into a Locked-in Retirement Account (LIRA)
- The elimination of mandatory retirement in many provinces
All of these changes could have a profound impact on an individual’s plans for retirement. Pension Income splitting has the potential to reduce a couple’s overall tax bill. TFSAs are a truly great way of investing non-registered assets. The changes to the Canada Pension Plan will make it more attractive to defer taking the pension payments past age 65. The relaxation of locking-in rules provides greater flexibility to members who take lump-sum settlements from pension plans. And the elimination of mandatory retirement has opened up new lifestyle possibilities for those of us who love our jobs.
In short, our logo represents the reality that financial plans are not cast in stone, but should be revisited on a regular basis as circumstances change. If we can help you with this, please give us a call at 416-815-7200 and let’s talk.
Patrick Longhurst
