Retirement and Savings

Retirement and Savings Banner How well you retire is directly related to how well you save.

You worked hard to earn enough to retire the way you want. There are many different options for maximizing your retirement savings with the Compass Portfolio Series, while minimizing your tax bill.

 Tax Free Savings Account

Tax Free Savings Account

Getting a Tax Free Savings Account (TFSA) allows you to grow your Compass Portfolio Series investments tax free. If you’re a Canadian resident over the age of 18, you’re eligible to save or invest up to $10,000 per year in a government-registered TFSA, with no contribution deadline and your contribution room never expires. Interest, dividends or capital gains earned on investments held in your TFSA are never taxed.


 

Registered Retirement Savings Plan (RRSP)

An RRSP is a government-registered account specially designed to help you save for your retirement. Many types of investments like the Compass Portfolio Series are allowed within your RRSP. These investments include cash, high-interest savings account, GICs, mutual funds, stocks and bonds.


 Registered Retirement Savings Plan
 

Registered Education Savings Plan (RESP)

An RESP is a tax-deferred savings plan that makes it easier to save money for your child's post-secondary education. The federal government matches up to 20% of your annual RESP contributions to a maximum of $500 per beneficiary per calendar year through the Canadian Education Savings Grant. Many types of investments are allowed within an RESP, including Compass Portfolios.

 
 

Registered Retirement Income Fund (RRIF)


You must decide what to do with the money saved in your RRSP by the end of the year in which you turn 71. One of the best ways to avoid incurring a large tax bill when you cash out your RRSP is to convert it into an RRIF. With an RRIF, you continue to manage your investments like an RRSP and your investments grow tax free until they’re withdrawn. The only difference is you’re required to make a minimum annual withdrawal. We’ll help you chose the best Compass Portfolio for your RRIF plan.


Pensions

Employer pension programs are either defined benefit or defined contribution. Defined benefit pensions pay employees a set pension amount based on a formula using the employee’s salary and years of service. In a defined contribution pension, the employer simply contributes to the pension on a regular basis; there is no set pension amount. Pensions are complex, and if you leave your employer seek proper guidance for options and to maximize your pension benefits.


 Pensions
 

Government Benefits


Pension programs sponsored by the Canadian government include the Canada Pension plan (CPP) and Old Age Security (OAS). Every Canadian who contributed a portion of their earnings to CPP during their working years will be eligible to receive monthly payments when they reach the minimum age of 60. Canada’s OAS pension provides supplemental income for retirees in lower income brackets. As your income level increases, OAS benefits decrease until you reach a certain income level where you don’t qualify for benefits.