Practical Money Skills - For Consumers

Getting it right starts with having a plan. Canadians have three possible sources of retirement income to consider: employer-sponsored retirement plans, government benefits, and their own savings and investments.

What they are and how they work

Plans that help individuals set aside money to be used after they retire

Federal income tax is not immediately due on money put into a retirement account or on the interest it makes

Income tax is paid when money is withdrawn

Penalty charges apply if money is withdrawn before retirement age

Income after retirement is usually lower, so tax rate is lower

Types of Retirement Plans

Employer-sponsored retirement plans

Government pensions

Your own savings and investments