FMLY 2400: RETIREMENT PLANNIGN
AND THE SOCIAL SAFETY NET. Exam
Questions With Correct Answers
Why of retirement planning - answer✔-important (government benefits CPP, old age dont
support most, prepare for sickness, chance to do things didnt do during work life)
-challenging (think theres lots of time, no means to put away for retirement)
common misconceptions - answer✔-expenses will drop when I retire
-I can depend on govt and company pension to pay for basic living expenses
-pension benefits will keep pace with inflation
-plenty of time to start saving for retirement
-small amounts of savings wont help
where to begin - answer✔-identify retirement goals
-conduct financial analysis (review assets, review liabilities, predict expenses, predict
retirement income)
-review on a regular basis and make adjustments as needed
-some go up, life and health insurance, medical expenses, expenses for leisure activities, gifts
and contributions
-adjust estimates for inflation
financial health of seniors - answer✔-improved
-poorest tends to be women, over 80, racialized, new canadians, living on own
-warnings signs (rising debt to income ratio, increase in those 65+ carrying debt, increase in
bankruptcy rates)
-for those with low incomes preparing for retirement may be almost impossible
major sources of retirement income - answer✔1. public pensions
-old age security
-guaranteed income supplement
-allowance for survivor
-CPP
2. employer pension plans or registered pension plans
3. private savings
-unregistered: RRSPs, TFSA
what is paid under OAS - answer✔-old age security, guaranteed income supplement and
allowance
OAS funding - answer✔-from federal general tax revenues
OAS program basics - answer✔1. provides monthly benefit to most canadians 65+
2. usually dont need to apply
3. benefits indexed to the cost of living, adjustments made in Jan, April, July and October
4. benefits not dependent on employment history or retirement status
5. benefits are taxable income
6. pension recovery tax or claw back
7. eligibility
2|Page
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Brightstars. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
