Private Pension Plans
Aside from public pension plans, there are two other potential sources of retirement income:
If you are lucky enough to work for a company that offers you a supplemental pension plan (SPP) (a.k.a. pension fund), you're well on your way. Otherwise, you'll have to set up your own pension fund by contributing to an RRSP.
This income will make all the difference between a retirement where you live hand to mouth and one where you have fun hand over fist. It's up to you to decide which type of retirement you want and then take the necessary steps.
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*Hypothesis: With average annual career earnings of $40,000, 70% of that average annual income is needed to maintain quality of life at retirement. If you retire at age 60, the public pension plans consist of the QPP pension. If you retire at age 65, the public pension plans consist of the QPP pension and the old Age security pension.
| IF YOU RETIRE AT AGE |
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|---|---|
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*Hypothesis: With average annual career earnings of $40,000, 70% of that average annual income is needed to maintain quality of life at retirement. If you retire at age 60, the public pension plans consist of the QPP pension. If you retire at age 65, the public pension plans consist of the QPP pension and the old Age security pension.
