Retirement means a brand new interest for this 75-year-old: Olympic-style weightlifting. Plus, how Canada’s retirement age in contrast with different international locations
We’ll be pausing this article for the vacations. See you within the New Yr!
Laurie Armstrong, 75, of Victoria retired at age 67 after a profession as a litigator.
“I had my very own regulation agency in Victoria. I wasn’t attempting to flee; I beloved my work, however I didn’t have a succession plan for the enterprise, so I made a decision to shut the doorways,” he says within the newest Tales from the Golden Age characteristic. “It wasn’t traumatic. It was a brand new section I used to be fortunately heading into.”
Mr. Armstrong had a number of pursuits to maintain him busy in retirement, together with constructing wood boats. When he turned 70, he took up Olympic-style weightlifting.
“I feel the important thing to a profitable retirement is taking over one thing that’s actually exhausting, which for me was weightlifting. I imagine it’s necessary to be sturdy. I had sturdy legs from biking to work – 30 kilometres spherical journey for a number of years – however my higher physique wanted work,” he says.
Learn the total article right here.
Calling all retirees: Are you a retiree occupied with discussing what life is like now that you just’ve stopped working? Globe Investor is searching for individuals to take part in its Tales from the Golden Age characteristic, which discusses the realities of retirement dwelling. For those who’re occupied with being interviewed for this characteristic, and agree to make use of your full title and have a photograph taken, please e-mail us a number of particulars about your retirement life to this point at: [email protected]
Can Dean and Astrid obtain their spending aim of $120,000 a yr?
Dean and Astrid are in an enviable place, lately retired with extra money than they know what to do with – hard-earned financial savings amassed by modest dwelling and secure careers. He’s age 64, she is 59. They don’t have any kids.
Throughout their working years, they each loved skilled careers, with Dean incomes considerably greater than Astrid. Astrid, who took early retirement a yr or so in the past, has an outlined profit pension partly listed to inflation, of $3,100 a month. She selected to retire early due to their age distinction, Dean provides. “We deliberate to journey throughout our first years of retirement and can most likely begin that in earnest subsequent yr.”
Their Alberta home is mortgage-free they usually have substantial financial savings and investments. Additionally they have an curiosity in a rental property.
Dean appears to have a fairly good concept of prepare their monetary affairs however he’s looking for extra readability. When ought to they take Canada Pension Plan and Previous Age Safety advantages? What’s their most sustainable earnings? And “ decrease the Canada Income Company lower of our retirement earnings?” Their retirement spending aim is $120,000 after tax.
Within the newest Monetary Facelift, Jeff Ryall, a monetary planner and affiliate portfolio supervisor at Cardinal Capital Administration in Winnipeg, take a look at Dean and Astrid’s state of affairs.
How does the conventional retirement age in Canada evaluate with different international locations?
Within the newest Charting Retirement article, Fred Vettese, former chief actuary of Morneau Shepell and writer of Retirement Earnings for Life, appears at how international locations have raised the conventional retirement age to replicate longer life spans. See the place Canada ranks by studying the article right here
In case you missed it
Enjoying the saxophone and educating health lessons are a part of a satisfying retirement for an Ontario man
Morris Tait, 79, retired 25 years in the past at age 54 after a profession in training, first as an elementary faculty instructor and later as a faculty vice-principal and principal.
“It was an exquisite profession, however after 32 years I used to be able to retire,” he says within the newest Tales from the Golden Age characteristic.
“For many individuals, retirement will be horrifying, particularly in the event that they haven’t ready for it,” provides the Cobourg, Ont. resident. “I used to do retirement workshops for academics to warn them about being unprepared. Research present that it may be an sad adjustment and expertise, which may end up in a lack of vanity. It may possibly have an effect on your well-being.”
Mr. Tait believes it’s necessary to be busy in retirement and to do various things. He owns some rental properties, teaches senior health and discovered to play the saxophone three years in the past at age 76.
Learn the total article right here.
Why Colombia is on this Canadian’s retirement radar
“As I start analysis on my future life as a snowbird – although, for now, I favor the younger-sounding “digital nomad” – my guidelines steadily grows: security, balmy climate, dependable web, gay-friendliness, first rate well being care, a stimulating café society, correct gastronomy and, after all, good worth,” Doug Wallace writes within the Globe.
Whereas he’s nonetheless a number of years away from retirement, Mr. Wallace is beginning to take into account hotter climates the place he can escape Toronto for the winter months. “Boring previous Arizona? Someplace extra unique like Vietnam? The world is brimming with prospects, however Colombia wasn’t even on my radar till I took a trip there this previous September,” he writes.
Learn the total article right here.
I retired earlier this yr and am in receipt of an outlined profit pension from my Canadian employer. I lived and labored for a number of years within the U.Okay. and have a deferred pension which I’m contemplating taking inside the subsequent 12 months. One of many choices is to obtain a portion of the pension worth as a lump sum along with a lowered month-to-month pension. Within the U.Okay. that is referred to as a Pension Graduation Lump Sum (PCLS), sometimes called a tax-free money sum. However that that is tax-free within the U.Okay., I perceive that it might be absolutely taxable in Canada. I’ve been suggested nonetheless that it might be attainable to pay the PCLS right into a Canadian RRSP to defer tax with no need RRSP contribution room. Are you able to affirm that is certainly the case because the lump sum considerably exceeds my obtainable RRSP contribution room and there are appreciable tax implications if this isn’t the case? Many thanks.
We requested Peter Megoudis, government director of personal consumer companies at KPMG in Canada, to reply this one:
Thanks on your inquiry concerning your U.Okay. plan, which raises some technical tax concerns below Canada’s Earnings Tax Act.
The Canada Income Company (CRA) has acknowledged that residents of Canada are taxable in Canada on worldwide earnings. Typically, the tax implications of receiving distributions from a U.Okay. pension plan will rely on how the CRA characterizes the plan. It needs to be famous that what’s handled as a pension within the U.Okay. is just not essentially handled as a pension in Canada.
If the U.Okay. plan obtained direct contributions from the employer, then it might be characterised as a pension by the CRA and handled as a pension in Canada. On this case, any quantities obtained from a U.Okay. plan could be included as earnings. Nevertheless, whereas Canada would tax a U.Okay. pension (together with the portion that may be tax-free within the U.Okay. as a Pension Graduation Lump Sum), it could possibly be offset by a deduction for the portion of the U.Okay. pension that’s transferred to an RRSP, whatever the taxpayer’s RRSP room. For instance, if $100,000 is withdrawn from the plan and the taxpayer contributes $20,000 to their RRSP, then the Canadian taxable earnings could be $80,000.
If the plan is taken into account a private pension scheme within the U.Okay., then the CRA wouldn’t deal with it as a pension however somewhat as a private belief. The excellent news is that distributions from private trusts will not be taxed in Canada per se. Because of this, there isn’t any have to switch to an RRSP. Nevertheless, it’s additionally necessary to remember that earnings or capital positive aspects earned inside a private belief after the taxpayer turned a Canadian resident could be taxable.
A closing phrase for anybody with a U.Okay. firm pension plan who’s a Canadian resident. Whereas a switch to a U.Okay. private pension plan is tax-free within the U.Okay., it’s taxable in Canada for Canadian residents. As such, if this switch happens earlier than a person turns into a resident in Canada or returns to Canada, they will keep away from this Canadian tax consequence.
Have a query about cash or life-style matters for seniors? E-mail us at [email protected] and we’ll discover consultants and reply your questions in future newsletters.
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