Day 1 – Retirement Planning
- Introduction (approx. 0.25 hour)
- Welcome participants and review goals and objectives
- Present agenda for the program
- Solicit group input on specific questions and concerns
- Lifestyle and Wellness Planning for Retirement (approx. 0.25 hour)
- Discuss the importance of lifestyle and wellness preparation and planning for retirement
- Describe the approach and section of the workbook that leads participants through this form of planning/preparation for retirement
- Briefly review the relevant topics for completion in the workbook:
- The psychological transition to retirement
- Your life values and, in turn, retirement activities
- Where and what home will be in retirement
- Travel
- Relationships
- Life fulfillment
- Wellness – nutrition, fitness, and mental health
- Retirement Planning – Lifestyle Costs (approx. 0.75 hour)
- Two individual exercises: Retirement Lifestyle Goals and Retirement Cost of Living
- Retirement Planning – Your Pension (approx. 2.5 hours)
- Presentation of the federal government employee pension plan: standard PowerPoint presentation prepared by the Government of Canada Pension Centre – entitled “Plan Member Education Session (PSSA)”
- Pension and Benefits Website
- Tools and videos
- Contributions
- Before and after 2013
- Calculation
- Two-tiered approach
- Coordination with CPP
- Benefit Calculation
- Formula
- Bridge and lifetime
- Coordination with CPP
- Benefit Options
- Lump sum payments
- Immediate annuity
- Annual allowance
- Deferred annuity
- Deductions
- Indexing
- How it works
- Supplementary Death Benefit
- How it works in retirement
- Naming a beneficiary
- Survivor Benefits
- Spouse/partner and children
- Minimum value
- Group Insurance Benefits
- Health plan
- Dental plan
- Buybacks
- What is a buyback
- Advantages
- What can be bought back
- Cost
- Process to follow
- Types of service buyback
- Methods of payment
- Summary
- Retirement Planning – Other Income (approx. 2.0 hours)
- Review of Income During Retirement tool
- Old Age Security
- Eligibility
- Benefit calculation
- Deferral of benefit
- Clawback
- Canada Pension Plan
- Contributions
- Benefits
- When benefit starts – flexibility
- Benefit reduction and enhancement rules
- Benefit calculation
- Income from Savings
- RRSPs
- RRSP to RRIF
- RRSP to annuity
- Non-registered investment income
- RRSPs
- Other Income
- Employment income in retirement
- Retirement Planning – The Full Financial Picture (approx. 0.5 hour)
- Exercise: Your Full Financial Picture in Retirement – pull together all personal financial information looked at so far (expenses and income)
- Calculating income tax
- Completion of exercise leads to ability to answer question “Will I have enough?”
- Example of fully completed exercise
- Review of financial tools via website
Day 2 – Financial Planning
- What is Financial Planning (approx. 0.5 hour)
- Define financial planning and relate to process covered in Day 1 re retirement planning
- Evaluating your net worth: individual exercise
- Using net worth as a benchmark to measure progress
- Evaluating cash flow
- Registered Savings Plans (approx. 1 hour)
- Registered Retirement Savings Plans (RRSP)
- RRSPs and taxes
- Contribution limits
- Financial value
- Spousal RRSPs
- Registered Education Savings Plans (RESP)
- Contribution rules
- Tax benefits
- Canada Education Savings Grant (CESG – the grant)
- Penalties
- Withdrawal strategy
- Tax Free Savings Account (TFSA)
- Contribution limit
- How they work
- Tax benefit
- Registered Retirement Savings Plans (RRSP)
- Tax planning (approx. 1.5 hours)
- How the tax system works: tax brackets, average tax rates, marginal tax rates
- Federal tax rates
- Deductions
- How they work – value
- Marginal tax rate
- Examples – RRSPs, pension contributions, carrying charges
- Tips to maximize their value
- Tax credits
- How they work
- Examples – medical, donations, pension, age
- Tips to maximize their value
- Income splitting
- Why and how it works
- Income splitting between spouses: CPP, pension splitting, RIFF/annuity income
- Exercise – checklist: Tax Planning
- Investment Planning (approx. 1.5 hours)
- Principles of investing
- Investment plan – asset allocation strategy
- Asset classes
- Cash
- Fixed income
- Equities
- Mutual funds
- Concept
- Fees
- Performance
- Active vs passive
- Working with an advisor
- Keys to investment success
- Exercise – checklist: Investment Planning
- Life Insurance Planning (approx. 0.25 hour)
- Needs analysis
- Types – temporary and permanent
- Estate Planning (approx. 0.75 hour)
- Records management
- Taxes at death
- Final (Terminal) tax return
- Strategies to reduce
- Wills
- Dying without a will
- Formats
- Functions of a will
- Updating
- Probate
- Purpose and process
- Fees
- Tips to reduce probate fees
- Powers of attorney (POA)
- What are they
- Kinds of POAs
- Purpose
- Property ownership
- Types of joint registration
- Dos and don’ts
- Exercise – checklist: Insurance and Estate Planning
- Summing Up (approx. 0.25 hour)
- Developing your action plan: individual exercises