Chapter 8 & 9 (Final) Flashcards
does CPP replace income?
does not but provides a safety net
1st Level: Income Security Programs
- Old Age Security
- Guaranteed Income Supplement
Old age security
- 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
Guaranteed Income Supplement
- 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
2nd Level
- public pension plan
- quebec pension plan
Public Pension Plan
- rate determined by pensionable income
- start contributing at 18
- can begin getting at 60-70
3rd Level: private pension
- workpalce retirement pension palns
- registered retirement savings plan
retirement as an institution
mandatory retirement rules, positive attitude towards retirement
Retirement push factors
pushing you into retirement
poor health
retirement pull factors
pulled into retirement
want to travel
factors influencing continuing to work
health, wage, challenges, attitude toward job etc.
_____ women are more likely to retire early
married
Canada’s mandatory retirement age
none!! woohoo as of 2006
median age for retirement in Canada
64
seniors continue to work because they have …
a lot to contribute to society
older people are staying in the workplace _____-
longer
alumni workers
people who have worked somewhere before
citizens wage
a governments pension tied to age
tax back
taxes paid on earnings
flexible career
allows the slow reduction of hours
bridge job
for workers on the path to retirement
seconf career
use and learn new skills that were not used in theor previous career
free careeer
a second career that allows them to rediscover old interests
third age
after work and parenting but before frailty and dependence
encore careers
take place after a midlife career ends
cumulative disadvantage
when disadvantages add up and lead to an economic disadvantage in later life
life portfolio
consists of a person commitments
clawback
a required payback of old age security to government from wealthier seniors
portable pension
moves with the workers when they move jobs
vesting
workers with a fully vested pension have credit for their total pension contributions. Even if they move from one employer to another
defined benefit pension plans
state how much an employee can expect to earn in retirement
defined contributions pension plans
defines how much a person will pay into their pension account
RRSPs
allows people to save money without paying income tax on the money
_____ face a higher risk of poverty in old age
women
credit splitting
a plan by which when a couple splits, each spouse gets half of what of pension credits accumulated when they were together
indexation
increasing pensions as cost of living increases
