General

Vesting gives a plan member ownership of the employer’s DPSP contributions.  A DPSP can have a maximum vesting period of two years from the plan enrollment date. If an employee terminates their employment before they vest in the plan, the account value will be forfeited and returned to the employer, and the member’s RRSP contribution […]

A Deferred Profit Sharing Plan (DPSP) is a workplace savings program that many businesses use for employee incentives, or to help them save for retirement. Only employers can contribute to a DPSP. The annual contribution limit is either 18% of the employee’s annual earned income or half of the money purchase limit (up to $15,390

Even after retirement, you continue to reap the benefits of a Common Wealth plan. You would still have access to the low-cost investment funds as part of the plan, which would automatically be adjusted (more conservative) according to your age and stage. We’ll also provide support in turning your nest egg into actual retirement income

Guaranteed lifetime income is an annuity offering that can help protect your retirement finances from some of the key risks that arise in retirement, including longevity and market risks. A life annuity is a form of life insurance because it is paid based on the life of the insured person, providing guaranteed regular income in

For every year before age 65, your CPP benefit is reduced by 7.2%. For every year after age 65, your CPP benefit is increased by 8.4%. That means that if you decide to access your CPP benefits when you turn 60, you’re choosing to get 36% less on each CPP benefit cheque. However, if you

You can withdraw from your RRSP before retirement, but it can result in negative tax implications, and your contribution room will not be restored. Within the Common Wealth plan, there is a transaction fee to complete a withdrawal. When you withdraw funds from an RRSP, your financial institution withholds the tax. The rates depend on

The Canadian government introduced the Registered Retirement Savings Plan (RRSP) in 1957 as a way for Canadians without employer-sponsored pension plans to save money for retirement. When you add funds to save through an RRSP account, you are making contributions from pre-tax income (meaning the amount of your contribution is deducted from your current income

The Tax-Free Savings Account (TFSA) was established by the Canadian government in 2009 as a “flexible savings vehicle” for Canadians. When you add funds to a TFSA, you are making contributions from income you’ve already paid tax on. Your contributions grow tax-free while they’re in the TFSA account, and you aren’t taxed on any withdrawals.

Common Wealth is a group retirement plan that offers a group Tax-Free Savings Account (TFSA) and a group Registered Retirement Savings Plan (RRSP). When you enroll in the plan, you can choose how much of your contributions goes towards one or both accounts.

General contribution limits for RRSPs, TFSAs and DPSPs are set by the government and can be found here. If your plan includes a DPSP, your employer’s DPSP contributions will reduce your RRSP contribution limit next year. For example, if your employer contributes $1,000 to your DPSP in 2022, your personal RRSP contribution room will decrease by