MCS 2100 Lecture Notes - Lecture 8: Mutual Fund, Life Insurance, Pension

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 2100
• Professor: Jian Zhou

Document Summary

Should start retirement planning early to take advantage of compounding effect. Average life expectancy of males is 75 and female 81 but there is a chance of living longer than expectancy. All workers pay into cpp based on pensionable earnings (amount of income between. ,500 and year"s maximum which is adjusted each year based on average wage; currently 4. 95%) Those self-employed must pay both employer"s and employee"s contributions. Cpp benefits payable at 65, can elect to have reduced cpp at 60, will get more if you wait until 65. Benefits are based on contributions; there are dropout and child rearing clauses to minimize the effects of life events. Other two types of benefits are disability and survivor benefits. Old age security is available to ontario residents (since age 18) over 65 and a partial benefit is available to those with fewer than 40 years" residency. Benefit is taxable and those with higher incomes will repay some or all.