“Our approach to pension plans is to provide personalized advice that considers your unique circumstances and retirement goals, ensuring that you have a reliable income stream and tax-efficient retirement plan in place”
- Mitch McLean
A pension plan is a retirement savings plan that provides income to individuals during their retirement years.
In Canada, pension plans are typically sponsored by employers, but individuals can also set up individual pension plans.
Please learn more below about the different types of pension plans available in Canada, who needs a pension plan and how we can help you build your perfect pension plan, for the perfect retirement.
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Mitch McLean is an Ottawa based financial advisor with over 16 years experience, offering financial planning services across the entire province of Ontario including Ottawa, Toronto , Mississauga , Brampton , Hamilton, Markham, Vaughan and Kitchener.
If you are interested in scheduling a call with Mitch to discuss your financial planning and personal finance needs, then simply contact him below and please feel free to connect with him on on LinkedIn, Twitter and Facebook, or schedule and appointment below.
A defined benefit pension plan promises a specific retirement income to its members, based on a formula that takes into account the member's years of service and salary history. The employer is responsible for making contributions to the pension plan to ensure that there is enough money to pay the promised benefits.
A defined contribution pension plan, on the other hand, is a savings plan where the employer and/or employee makes contributions to the plan, and the retirement benefit is determined by the amount of money saved in the plan, investment returns, and the fees charged. The investment risk is borne by the employee, rather than the employer.
In addition to these two main types of pension plans, there are several other types of plans in Canada, including:
Individual Pension Plan (IPP): An IPP is a defined benefit plan for self-employed individuals and incorporated professionals. The plan is sponsored by the individual's own corporation, and the retirement benefit is based on a formula that takes into account the individual's years of service and salary history.
A PPP is a defined benefit plan for self-employed individuals and small business owners. The plan is sponsored by a financial institution, and the retirement benefit is based on a formula that takes into account the individual's years of service and salary history.
An RCA is a non-registered, tax-deferred savings plan for executives and high-income earners. The plan is sponsored by the employer, and contributions are made on a tax-deductible basis. The retirement benefit is based on the value of the assets in the plan at the time of retirement.
An employee-sponsored DCPP is a type of defined contribution plan offered by an employer to its employees. The plan is funded by contributions from both the employee and the employer, and the retirement benefit is based on the value of the assets in the plan at the time of retirement.
Overall, pension plans are an important source of retirement income for many Canadians. It's important to carefully consider the type of plan that's right for your needs and to work with a financial advisor to help you make informed decisions about your retirement savings.
Discuss Pension Plans!
As Canadians are living longer than ever before, retirement planning has become increasingly important.
One key aspect of retirement planning is selecting the right pension plan, which can provide a reliable source of income during retirement years. In addition to offering financial security, pension plans also offer significant tax benefits and professional investment management.
In Canada, almost everyone who is working and earning income will need a pension plan to help support them financially in retirement.
A pension plan is a long-term savings plan that provides income in retirement, and it's an essential part of retirement planning.
Here are some groups of people who may particularly benefit from having a pension plan in Canada:
Many employers in Canada offer a workplace pension plan, which is a valuable benefit that can help employees save for retirement.
However, not all employers provide a pension plan, so employees who don't have access to a workplace pension plan may want to consider setting up an individual retirement savings plan (RRSP) or a tax-free savings account (TFSA) to save for retirement.
If you're self-employed in Canada, you may not have access to a workplace pension plan, so you'll need to set up your own retirement savings plan.
You can contribute to an RRSP or a TFSA, but also may qualify to set an Individual Pension Plan (IPP) or a Retirement Compensation Arrangement (RCA), as a self employed individual.
Even if you have access to a workplace pension plan, you may want to consider contributing to an RRSP or a TFSA to maximize your retirement savings.
Pension plans, RRSPs, and TFSAs all offer tax advantages, so contributing to RRSPs, and investing in TFSAs can help you minimize your taxes and keep more of your hard-earned money.
"The Wealthy Invest Differently"
- Dampen overall portfolio volatility as they are not marked-to-market daily
- May have high long-term growth potential
The world's most successful investors, such as Warren Buffett, and large institutions, like the Canada Pension Plan (CPP), have achieved their impressive track record by diversifying their investment portfolios across a mix of public, private, and alternative investments.
At Mandeville Private Client Inc, we recognize that many individual investors share the same investment needs and goals as these role models. That's why we seek to emulate their investment strategies by offering our clients access to high-quality traditional public investments, which provide liquidity and an opportunity for long-tern growth, as well as private and alternative investments, which have the potential to dampen volatility and provide long-term growth.
By providing a range of investment options across different asset classes, we aim to help our clients achieve their financial objectives while minimizing risk. We believe that a diversified portfolio is key to successful investing, and we strive to offer our clients the same access to a well-rounded investment mix as the world's most successful investors and institutions.
Mandeville Private Client Inc's Private Mandates offer investors the opportunity to access private investments that were previously only available to a select group of wealthy investors.
This approach allows us to democratize access to private investments for all investors. Before April 2015, only accredited investors - those with a high net worth or income - were able to participate in private/alternative offerings.
However, securities rules changed in April 2015, allowing investors who do not meet the accredited investor definition to invest in these offerings through a registered portfolio manager.
At Mandeville Private Client Inc. our Private Mandates provide our clients with access to private investments that were previously inaccessible to many investors. These investments have the potential for significant long-term growth and diversification benefits.
At Mandeville Private Client Inc., we believe that democratizing access to private investments is an important step towards creating a more inclusive and fair investment landscape. Our Private Mandates allow investors of all backgrounds to benefit from the potential opportunities of private investments and to take advantage of the potential for diversification in their investment portfolios.
Finally, we provide the framework for investment that emulates the strategies of the world's most successful institutional investors and wealthy families. By diversifying across a mix of public and private investments, these investors have created lasting wealth over the long term.
Our goal is to democratize private investment opportunities for wealth creation by providing our clients with access to quality private investments that were once only available to the ultra-high net worth and institutional investors.
Through our Private Mandates, we offer clients the potential for significant long-term growth and diversification benefits. We use disciplined investment techniques to ensure that our clients' portfolios are well-diversified and aligned with their long-term financial objectives.
By following in the footsteps of the world's most successful investors, we aim to provide our clients with the best possible investment framework to help them achieve their financial goals.
Mitch McLean is an Ottawa based financial and pension planning advisor, offering investment advice and pension planning services across the entire province of Ontario including Ottawa, Toronto , Mississauga, Brampton , Hamilton, Markham, Vaughan and Kitchener.
If you are interested in scheduling a call with Mitch to discuss your financial planning and pension planning needs, then simply contact him below and please feel free to connect on LinkedIn and Twitter too!
Get in touch
The Canada Pension Plan is a mandatory pension plan for most working Canadians. It is funded through contributions from employers, employees, and self-employed individuals and provides retirement, disability, and survivor benefits.
An RRSP is a registered retirement savings plan that allows Canadians to save for retirement and reduce their taxes. Contributions made to an RRSP are tax-deductible, and the money grows tax-free until it is withdrawn in retirement.
A defined benefit pension plan is a type of pension plan where the employer guarantees a specific level of retirement income to the employee, regardless of the performance of the plan's investments. These plans are typically only available to employees of larger organizations or government bodies.
A target benefit pension plan is a hybrid plan that combines features of defined benefit and defined contribution plans. The employer and employees both make contributions to the plan, and the benefits are based on a target income level, which is not guaranteed but can be adjusted based on the performance of the plan's investments.
The amount you should be saving for retirement depends on your individual circumstances, including your age, income, and retirement goals. As a general rule, experts suggest saving at least 10-15% of your income for retirement, but this can vary depending on your personal situation. It's important to start saving early and regularly to ensure you have enough money to support your retirement goals.
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