Core Curriculum Chapter 14

Question 1

LONGEVITY RISK - Why is estimating mortality age important in retirement planning?

Answer 1

It determines how long retirement savings must last, affecting income strategies and withdrawal rates.

Question 2

RETIREMENT INCOME STRATEGIES - What are the three spending phases in retirement?

Answer 2

Active Years, Slow Down Years, and Late Years (with increasing healthcare costs).

Question 3

ANNUITIES - What are the two main types of annuities?

Answer 3

Term Certain Annuities (fixed-term payments) and Life Annuities (payments continue until death).

Question 4

ANNUITY TAXATION - How are registered and non-registered annuities taxed?

Answer 4

Registered annuities are taxed as income; non-registered annuities may use prescribed taxation.

Question 5

TAX EFFICIENCY IN RETIREMENT - What strategies help minimize OAS clawbacks?

Answer 5

Income splitting, tax-efficient withdrawals, deferring RRIF withdrawals, and TFSA contributions.