ACCOUNTANT EXPLAINS Retirement Income Sources in Canada | CPP, OAS, GIS, RRSP, etc.

About this Video

• Video Title: ACCOUNTANT EXPLAINS Retirement Income Sources in Canada | CPP, OAS, GIS, RRSP, etc.
• Channel: Gabrielle Talks Money
• Speakers: Gabrielle (CPA and tax expert)
• Duration: 00:09:00

Introduction

This video explains various retirement income sources in Canada. Gabrielle, a CPA and tax expert, breaks down government benefits (CPP, OAS, GIS) and personal savings options (RRSPs, TFSAs, FHSAs), along with other potential income streams like employer pensions and personal investments. The video aims to clarify eligibility rules, potential amounts, and key planning considerations for Canadians approaching retirement.

Key Takeaways

• Government Retirement Income (Public Pensions): Canadians can receive CPP (Canada Pension Plan), OAS (Old Age Security), and potentially GIS (Guaranteed Income Supplement), depending on income and eligibility. CPP payments are based on contributions, OAS is funded by general tax revenue, and GIS supplements OAS for low-income seniors.
• Personal Retirement Savings (Private Tools): RRSPs (Registered Retirement Savings Plans) offer tax-deductible contributions and tax-deferred growth, while TFSAs (Tax-Free Savings Accounts) provide tax-free growth and withdrawals. FHSAs (First Home Savings Accounts) combine elements of both, primarily for first-time homebuyers but transferable to RRSPs/RRIFs if unused for a home purchase.
• Other Retirement Income Sources: Employer pensions (defined benefit or defined contribution), personal investments (stocks, rental properties), and business income are additional potential income streams in retirement.
• Retirement Planning Tips: Start saving early to maximize investment growth, diversify income sources (combining public and private options), consider delaying CPP and OAS (after consulting a specialist), determine your target retirement income (60-80% of pre-retirement income), and account for potential healthcare costs, especially for early retirement. Consult a CPA or financial advisor for personalized planning and tax optimization.
• Important Considerations: CPP and GIS benefits aren't automatic; applications are required. OAS has an income clawback threshold, meaning benefits are reduced if income exceeds a specific amount.