Planning for Retirement Presented By Business Partners www.businesspartners.ca

Retirement doesn’t exempt us from taxation Lets plan so that we will only pay as little as possible

Non refundable amounts 15% fed. & 6.05% prov. =21.05% Federal – Provinc. Basic Personal amount $8648.0 - $8196.0 Age Amount $3979.0 - $4002.0 Spouse amounts $7344.0 - $6960.0 Amt for infirm dep $3848.0 - $3863.0 Disability Amount $6569.0 - $6622.0 Pension Amount $1000.0 - $1000.0 Adoption Expenses up to $10,000.0

Marginal Tax Rates in Ontario

Additional Health Tax

RETIRING ALLOWANCE Fully taxable when received (regular tax) Consider transfer the eligible amount into an RRSP. It can be done, even if you have no RRSP room available

University Pension Again fully taxable Does qualifies for $1000.00 Non-Refundable credit of 15% Fed and 6.05% Provincial for a total of 21.05% marginal tax rate. Or $210.50 reduction in tax payable.

CANADA PENSION Must apply for it. If you apply at 65, you will receive full benefits. Can apply at 60, but there will be 30% reduction in benefits. Can work until 70, and apply then, and gain 30%. When you start drawing, you will not pay into it, even if you go back to work. Can split it with your spouse or common law partners. If spouse also has CPP, must first pull it together and then split 50% each

OLD AGE PENSION Also must apply for it. The first payment will be the month after you turn 65. If you apply late it will be retroactive up to 11 months back. Taxed the year received. Must watch for clawback, if net income is over $60806, must pay back part or all of your OAS

OTHER PENSIONS If you worked in the United States, you may be eligible to receive USSS. Only 85% of your USSS is taxable in Canada, you do not pay taxes in U.S. on it, and your spouse will receive an additional 50% of your Social Security. You may also receive other overseas pensions. We do have tax treaty with most countries, and the tax treatment varies for every country.

RRSP/RRIF Can contribute into RRSP up to your 69th birthday, and into a spousal RRSP until your spouse 69th birthday. Savings are at marginal tax rate. Must convert your RRSP into a RIFF or an annuity by Dec.31st of the year that you turn 69. RIFF’s minimal amount of withdrawal are spread to age 90. They can also be based on spouse’s age, if spouse is younger. You must withdraw the minimum amount, can withdraw more if needed. Withdrawls are fully taxable, at marginal tax rates.

INVESTMENTS Interest, taxed at marginal tax rate Dividends, tax at a preferred tax rate Mutual Funds, or Shares, could generate capital gains, which has probably one of the best rates of tax. Flow-through shares also have a very good tax rates, but they have a bit higher risk

WAGES \ SELF-EMPLOYMENT Something to consider Part time wages, fully taxable, but will open up RRSP room. Self-employment, good write-offs, will open up RRSP room. Ask us about “Debt Freedom Canada” a good self-employment opportunity.

Thank you for your attention If you have any questions feel free to ask now. Also if you have any other questions at a later date don’t hesitate to contact us by: Phone : 519-971-7355 Fax : 519-971-0160 E-mail: Pat@businesspartners.ca Katie@businesspartners.ca Or in person at 125 Tecumseh Rd W.