Actuarial Science 1021A/B Lecture Notes - Lecture 5: Long-Term Care, Pension, Mandatory Retirement

• School: Western University
• Department: Actuarial Science
• Course: Actuarial Science 1021A/B
• Professor: Steve Kopp

Document Summary

Here is the economic problem of old age: 2000: 12. 5% of population were 65 and older. 2050: 20% of population will be 65 and older. Aged use doctors more (ohip covers most but not all) Receiving care in nursing home or other facility. The three pillars of old age financial security. Usually in the form of contract or part time work. Saved outside of an rrsp or pension plan. Money not taxable when turned into retirement income. Registered retirement savings plan (rrsp"s: ch12 pg 313-316 and 319-322) Interest income inside an rrsp is not taxable. Contributions, interest income and capital gains are taxable when withdrawn form rrsp. Can be set up through most financial institutions. Money can be invested in a range of financial products. If you have employer pension, can"t contribute max. Unused portions stack up and you can contribute in future years.