How do some retirees make more money from their pension than they did with their salary?
After retirement, your income will generally come from three primary sources:
• The Old Age Security (OAS)
• The Canada Pension Plan (CPP) or the Quebec Pension Plan (QPP)
• Personal savings, investments, and pension plans from employers.
The money you save or invest for retirement comes from sources like:
• Real estate
• Tax-Free Savings Accounts (TFSAs)
• Registered Retirement Saving Plans (RRSPs)
• Non-registered investments and savings accounts
• Employer pension plans
If you want to plan for retirement, you must determine how much money you may get from these sources. It’s also helpful to know what to do with your savings at different points in your life. Measuring all these things before retiring helps you find the appropriate time to step down.
You will also know how much money you’ll have when you retire. It would be best to speak with a financial or investment expert before giving up work. They will find the most profitable options and help you pick the most profitable one for your retirement.