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Canada – a great place to … retire

We all know many reasons why being a Canadian and why living in Canada is so terrific. One you may not have considered is that Canada is a great place to retire! A comfortable retirement is something we too often take for granted but when you look at the benefits available to Canadian retirees – benefits not available to retirees in other countries – it’s clear that Canada rocks retirement.

Here are some reasons why:

  • Canada Pension Plan: All wage-earning and self-employed Canadians are eligible to receive either Canada Pension Plan or Québec Pension Plan (CPP/QPP) retirement benefits
  • Old Age Security: Those who have lived in Canada for at least 40 years after age 18 will receive the full monthly Old Age Security (OAS) benefit
  • Guaranteed Income Supplement: Seniors with a lower income may be eligible for the Guaranteed Income Supplement (GIS), a tax-free monthly benefit
  • Personal Tax Credit: Every tax-eligible Canadian gets the Basic Personal Tax Credit and those over age 65 also receive an Age Credit
  • Registered Retirement Savings Plans (RRSPs): Canadians can take advantage of the tax-deferred, compound growth benefits of investments in RRSPs
  • Split Pension Income: Any Canadian resident who receives periodic payments from a registered pension plan can potentially reduce their taxes by splitting pension income with a spouse or common-law partner
  • Pension Income Credit: Those over age 65 who receive Registered Retirement Income Fund (RRIF) income are also eligible for the federal and provincial Pension Income Credit and can allocate up to 50% of their RRIF income to a spouse for tax purposes
  • Tax-Free Savings Accounts: Canadians can invest inside Tax-Free Savings Accounts (TFSAs) to generate tax-free investment income that does not affect income-tested federal benefits.
  • Health Care: And, of course, Canadian retirees have access to a wide range of health care services at little or no direct cost.

Canada is a great place to retire! But to make your retirement all it can be, you need a plan that includes retirement income from other sources such as your company or personal pension plan and your own investments. Your professional advisor can help make sure you have everything in place for a great retirement in a great country.

Date reviewed: June 30, 2014

This column, written and published by Investors Group Financial Services Inc. (in Quebec – a Financial Services Firm), presents general information only and is not a solicitation to buy or sell any investments. Contact a financial advisor for specific advice about your circumstances. For more information on this topic please contact your Investors Group Consultant.