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Reference Guide
Canadian Retirement
Glossary
Plain-language definitions of the terms you'll encounter when planning your retirement in Canada.
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
Z
C
2 terms
Commuted Value Explained
A commuted value is the lump sum representing the present value of your future DB pension.
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CPP - Canada Pension Plan Explained
CPP is a monthly government pension based on your lifetime contributions. Here is how it works and what it means for your retirement.
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D
2 terms
Defined Benefit Pension Explained
A DB pension guarantees a monthly income for life. It is one of the most valuable retirement assets a Canadian can have.
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Defined Contribution Pension Explained
A DC pension accumulates contributions in an individual account. The eventual retirement income depends on investment returns — nothing is guaranteed.
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G
1 term
GIS - Guaranteed Income Supplement Explained
The GIS is a tax-free monthly benefit for low-income Canadian seniors. RRIF withdrawals can disqualify you.
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I
1 term
Income Splitting in Retirement — Spousal RRSP vs. Pension Income Splitting
Spousal RRSP and pension income splitting both reduce household taxes — but work at different stages of your plan.
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L
2 terms
LIF - Life Income Fund Explained
A LIF is the retirement income version of a LIRA. It has both minimum and maximum annual withdrawal limits.
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LIRA - Locked-In Retirement Account Explained
A LIRA holds locked-in money from a former employer's pension plan. It cannot be freely withdrawn — but you have options at retirement.
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O
2 terms
OAS - Old Age Security Explained
OAS is a federal pension paid to most Canadians at 65 regardless of work history.
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OAS Clawback - The OAS Recovery Tax Explained
OAS clawback is a recovery tax that reduces your OAS benefit when your income exceeds a federal threshold.
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P
2 terms
Power of Attorney in Canada?
A power of attorney authorizes a trusted person to make decisions on your behalf if you cannot. It is one of the most important documents you can have.
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Probate in Canada
Probate validates your will and authorizes your executor to distribute your estate — and comes with fees paid before heirs receive anything.
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R
3 terms
RRIF - Registered Retirement Income Fund Explained
A RRIF is the retirement income version of your RRSP. You must withdraw a minimum amount every year — and pay tax on it.
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RRIF Minimum Withdrawal Explained
RRIF minimum withdrawals are mandatory annual amounts CRA requires. The percentage increases with age and every dollar is taxable income.
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RRSP - Registered Retirement Savings Plan Explained
An RRSP lets you save for retirement while reducing your taxable income today.
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S
1 term
Spousal RRSP
A spousal RRSP is contributed to by one spouse but owned by the other — a tool for equalizing retirement income.
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T
2 terms
Testamentary Trust in Canada
A testamentary trust is created through your will and comes into effect at death. It can reduce taxes and protect vulnerable beneficiaries.
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TFSA - Tax-Free Savings Account Explained
A TFSA lets you grow and withdraw savings completely tax-free — one of the most powerful tools for managing taxable income in retirement.
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