Chapter 8 & 9 (Final)

Question 1

does CPP replace income?

Answer 1

does not but provides a safety net

Question 2

1st Level: Income Security Programs

Answer 2

• Old Age Security

- Guaranteed Income Supplement

Question 3

Old age security

Answer 3

• based on residency (20 years)
• guaranteed income supplement
• don’t pay income tax on this money
• indexed to the cost of living
• you can defer from age 65 to 70

Question 4

Guaranteed Income Supplement

Answer 4

• provides additional money to low income seniors
• NOT tax deductible
• allowance for the survivor program: provides money yo low income seniors between 60-64 whose common law had died

Question 5

2nd Level

Answer 5

• public pension plan

- quebec pension plan

Question 6

Public Pension Plan

Answer 6

• rate determined by pensionable income
• start contributing at 18
• can begin getting at 60-70

Question 7

3rd Level: private pension

Answer 7

• workpalce retirement pension palns

- registered retirement savings plan

Question 8

retirement as an institution

Answer 8

mandatory retirement rules, positive attitude towards retirement

Question 9

Retirement push factors

Answer 9

pushing you into retirement

poor health

Question 10

retirement pull factors

Answer 10

pulled into retirement

want to travel

Question 11

factors influencing continuing to work

Answer 11

health, wage, challenges, attitude toward job etc.

Question 12

_____ women are more likely to retire early

Answer 12

married

Question 13

Canada’s mandatory retirement age

Answer 13

none!! woohoo as of 2006

Question 14

median age for retirement in Canada

Answer 14

64

Question 15

seniors continue to work because they have …

Answer 15

a lot to contribute to society

Question 16

older people are staying in the workplace _____-

Answer 16

longer

Question 17

alumni workers

Answer 17

people who have worked somewhere before

Question 18

citizens wage

Answer 18

a governments pension tied to age

Question 19

tax back

Answer 19

taxes paid on earnings

Question 20

flexible career

Answer 20

allows the slow reduction of hours

Question 21

bridge job

Answer 21

for workers on the path to retirement

Question 22

seconf career

Answer 22

use and learn new skills that were not used in theor previous career

Question 23

free careeer

Answer 23

a second career that allows them to rediscover old interests

Question 24

third age

Answer 24

after work and parenting but before frailty and dependence

Question 25

encore careers

Answer 25

take place after a midlife career ends

Question 26

cumulative disadvantage

Answer 26

when disadvantages add up and lead to an economic disadvantage in later life

Question 27

life portfolio

Answer 27

consists of a person commitments

Question 28

clawback

Answer 28

a required payback of old age security to government from wealthier seniors

Question 29

portable pension

Answer 29

moves with the workers when they move jobs

Question 30

vesting

Answer 30

workers with a fully vested pension have credit for their total pension contributions. Even if they move from one employer to another

Question 31

defined benefit pension plans

Answer 31

state how much an employee can expect to earn in retirement

Question 32

defined contributions pension plans

Answer 32

defines how much a person will pay into their pension account

Question 33

RRSPs

Answer 33

allows people to save money without paying income tax on the money

Question 34

_____ face a higher risk of poverty in old age

Answer 34

women

Question 35

credit splitting

Answer 35

a plan by which when a couple splits, each spouse gets half of what of pension credits accumulated when they were together

Question 36

indexation

Answer 36

increasing pensions as cost of living increases