OAS & CPP
A Taxable Benefits Based on how long you have resided in Canada.
What is OAS?
Example: 65 y/o resided in Canada since age 18=47 years of residence. Receives 100% of Max benefit less any clawback % if income is above minimum Threshold (2025-$86,991).
The maximum OAS for 2025 is $727.67 per month for people aged 65–74, and $800.44 per month for people aged 75 and older.
A tax-free retirement income solution.
What is, a TFSA (Tax-Free Savings Account)
- The lifetime maximum for TFSA's is currently $102,000. Calculated based on what year you turned 18 and what year(s) you resided in Canada.
- Contribution limits increase every year.
- There is no age limit on who can contribute to a TFSA after age 18.
A legal document that states how to distribute your assets after you pass away. It can also name guardians for dependents and pets.
- Will's are commonly outdated and therefore miss assets and information you would like to see go certain places/cared for by certain people.
- It is important to update or at least review your will every 3-5 years to make sure there are no gaps.
- always consult legal professionals to make sure your will is done right.
Assets that are not considered part of an estate in Canada.
What is life insurance policies, and savings accounts with specific beneficiaries?
- When you own assets like life insurance, RRSP's and Pension plans, it is important to make sure your beneficiaries are listed directly on the plan and they are who you want them to be. Accounts like Non-Registered and Bank accounts are subject to probate, therefore should be listed in a will.
- A beneficiary listed on the plan is always taken "at face value" and will take priority over anything listed on your will, as these policies and accounts are not technically a part of your estate.
My Real Life Example: A man had a life insurance policy purchased in his previous marriage decades ago. The new/current spouse knew about the plan, and assumed it was going to her upon his estate. After his passing, the current spouse went in to make the claim, however the listed beneficiary was the man's former spouse from decades ago, therefore that is who the benefit was paid to. Whether this was the intention of the man or not, this is what happened.
This can be used to take care of final expenses and expected debts/taxes of deceased(s).
What is, Permanent Life Insurance?
- Popular solution to pay for funeral expenses so that your loved ones do not have to.
- Can be used to help take care of taxes on secondary land/real estate and rental properties.
- Can be a cost effective way to take care of other taxable personal and corporate assets.
- Cash Value Permanent Life Insurance can be a last resort retirement solution by accessing cash flow via a policy loan or cash surrender of the policy.
A Taxable Government Pension calculated using your pensionable earnings, minus a basic exemption.
What is CPP?
The CPP rate and the basic exemption amount depend on your pay schedule and employment period.
You can use a CPP calculation service to estimate your benefit at any age from 60 to 70.
The maximum monthly Canada Pension Plan (CPP) payment in 2025 is $1,433, or $17,197 per year. This amount is payable at age 65
Growth is taxed on this type of savings account.
What is, a non-registered/Open Savings account.
- Popular only after your TFSA has been maximized or your RRSP has no room or you are ineligable to contribute to an RRSP (Dec. 31st of year you turn Age 71).
- Usually used for "rainy day" or large lump sum inflows of money.
- You can invest these funds however you please, acccording to your goals. (ie; savings for kids, leaving a legacy, supplementing your income, topping up TFSA's each year.)
A legal document that allows someone you trust to make decisions on your behalf regarding your finances and property.
What is, a Power of Attorney (POA).
- essentially gives someone you trust the authority to act in your place if you become unable to do so yourself; the person you designate is typically called your "attorney" in most of Canada, even though they don't need to be a lawyer.
- To ensure someone can manage your affairs if you become incapacitated due to illness, age, or other reasons.
A type of fund that allows non-registered savings accounts to list a beneficiary and avoid being subject to the will/estate.
What is, a Segregated Fund?
- As an alternative, you can invest non-registered funds in a segregated fund contract, and this allows you to list beneficiaries directly to your account, where you otherwise could not. This allows the account to bypass the estate, the public eye, and almost any risk of contestation and probate.
- Non-registered accounts through stocks, bonds and other investment solutions like mutual funds usually cannot name a direct beneficiary, and therefore they they need to be listed in the will as part of the estate, so that an executor knows where the money needs to go. Unless it is Jointly owned with your spouse, in which case they continue to own the contract, and beneficiaries listed in the will would be at their discretion, and would not apply until their passing.
- If you do not have a beneficiary of your estate listed for the non-registered account, it is subject to probate. This can add additional fees, which costs your estate money and can take a long time.
A Drug plan for seniors who receive the federal Guaranteed Income Supplement (GIS) or have a low income.
What is, the New Brunswick Prescription Drug Program (NBPDP)?
CPP & OAS are indexed to account for this each year.
What is, Inflation.
The CPP inflation adjustment is based on the inflation rate in the 12 months ending in October of the previous year.
The OAS inflation adjustment is based on the Consumer Price Index (CPI), which is a weighted average of goods and services purchased by Canadian households. The OAS program is reviewed quarterly in January, April, July, and October.
This type of account provides a tax-deduction based on contributions each year, and the growth is tax-deferred. But you are taxed when you withdraw from it.
What is, an RRSP (Regsitered Retirement Savings Plan)
- Great for income earning years when you want to reduce your income taxes.
- Sometimes not as effective for years approaching retirement, unless your income level is far more than you expect to receive once you retire.
- Can set up a Spousal RRSP to create tax deductions for yourself, but a retirement account for income for your spouse, if they earn far less from their occupation and you feel you do not need the RRSP income in retirement.
- When you are ready for income from your RRSP/Pension, these are generally transferred to a RRIF (Registered Retirement Income Fund) or LIF (Locked-in/Life Income Fund)
Allows the attorney to manage your financial affairs like banking and real estate.
What is, a Property Power of Attorney?
- Your property and personal care POA's can be different.
- Should be someone with reasonable knowledge of your affairs and assets that you trust will make decisions in your best interest.
Important to Consider:
A legal arrangement where a person transfers assets to another person to be held for the benefit of a third party.
What is, a Trust?
What can I use a Trust for?
*ALWAYS SEEK PROFESSIONAL HELP WHEN SETTING UP A TRUST*
A drug plan for uninsured New Brunswickers, including seniors.
What is, the NB Senior Drug Plan?
Who's eligible:
- Premiums and maximum copayments are reassessed annually (every summer), based on the family income, as indicated on the Canada Revenue Agency tax return for the year immediately preceding the current year.
- Like your usual health and drug plans, premiums are claimable at tax time each year.
A monthly, non-taxable payment that supplements the Old Age Security (OAS) pension for low-income seniors in Canada.
What is, the Guaranteed Income Supplement (GIS)?
A plan offered by employers that a lot of employees contribute to during their working years.
What is, a Group RSP/Pension Plan?
- Very popular retirement savings option provided by employers where part of your income is automatically allocated, based on your preference, and the employer matches up to a maximum amount or %, set by the employer.
- Wise to maximize these to full potential during income earning years. "FREE MONEY"
- Usually get the option to transfer a Group RSP/Pension once you retire. Transferring is popular for those who want a bit more control over their plan during retirement, and want to ensure their beneficiary gets the full value of what is left, if you pass away prematurely.
Allows the attorney to make healthcare decisions on your behalf.
What is, a Personal Care Power of Attorney?
- Can be different than your Property Power of Attorney.
- Should be someone you trust to make proper, adequate decisions for your health if you are unable to. You can also name a doctor or other health professional to confirm that you are mentally incapable of making decisions.
Important to Consider:
Add this to a bank account, investment account, or to the deed for real estate to help you avoid probate.
What is, JOINT OWNERSHIP WITH RIGHTS OF SURVIVORSHIP OR TENANCY BY THE ENTIRETY?
- Adding a joint owner to a bank account, investment account, or to the deed for real estate will also avoid probate, provided that it is clear that the account is owned as joint tenants with rights of survivorship and not as tenants in common.
- Some assets only allow you to list a spouse as a joint owner/tenant.
- PROFESSIONAL HELP SHOULD ALWAYS BE USED WHEN MAKING THESE DECISIONS.
Insurance plans for people with pre-existing health/lifestyle complications that may have difficulty getting insurance coverage from traditionally underwritten companies.
What is, non-medical insurance?
- Different qualification levels based on your health condition, stability, and how much time has passed since diagnosis/recovery or if it is still ongoing.
- Possible solutions for anyone searching for Life, Health/Drug, and Critical Illness protection.
- People with a history of lifestyle issues such as drug use/alcohol abuse can also find better solutions through non-medical insurance.
- Some plans can be subject to limitations depending on your history. Usually a 2-Year Deferred benefit where if something happens due to other than accidental cause, then the benefit is a return of premiums plus an interest rate pre-set by the company, or 50% coverage amount. After 2 years the benefit is payable in full.
The amount you receive from CPP is permanently Reduced.
What is, CPP early income election?
A plan that offers death benefit guaranteed values.
What is, a segregated fund?
Segregated funds are considered an insured investment. Their primary benefit is being able to have a 100% death benefit guarantee applied to your account for an extra cost.
This benefit guarantees that the value of your account will never go below the principal you invested, unless you have withdrawn from the account. The DB Guarantee will then be the latest reset value, less any withdrawals.
The reset occurs every 1-3 years, and only applies when the value is more than it was on your previous reset.
Example: You invest $50,000 in 2020 in a TFSA. In 2023 the value of your account on Dec. 31st is now $57,881 (5% return average). The DB Guarantee is now reset to $57,881.
In Sept. of 2024 your account has had a tough year and decreased in value to $53,829 (-7% return). At the same time you unexpectedly passed away.
The value your beneficiary receives will be $57,881 because that was the value of the DB Guarantee. If your account value was more than the DB Guarantee, then your beneficiary would receive the market value.
A person or institution named in a will to manage the estate of the deceased.
What is, the Executor of a Will?
- The executor's responsibilities include carrying out the wishes of the deceased, paying debts, and distributing the estate's assets to the beneficiaries.
- It is very wise to create a spreadsheet or at least write down and give to your lawyer a copy of all types of investment accounts, insurance policies, bank accounts, card/account numbers, social media accounts, and their respective user ID's and passwords so that the executor can take care of closing them properly. Otherwise, it makes it very difficult to complete these tasks.
- Be sure to name secondary Executors in case a primary executor pre-deceases you or is incapable of performing these duties.
Make a list of these to ensure your executor and other authorized people can close out your estate efficiently.
What are, account username and password?
- with technology and electronic "client sites" being evermore popular, making a list of your social media accounts, bank accounts, rewards/points, investment accounts, insurance policies and other sites like bill payments that may require usernames and passwords/security keys is important.
- It can be hard enough for executors to close accounts as it is, let alone having to do so without knowing what all you have for accounts and log-ins.
- It would be wise to provide a copy of this to your lawyer as well as a copy in a file at home where you trust it is safe.
- Some people store a lot of memories with pictures, videos and other things on social media. It is good to do a quick sweep of your social accounts to save copies of this before deleting if you wish to do so.
A plan helping make the cost of dental care more affordable for eligible Canadian residents.
What is, The Canadian Dental Care Plan (CDCP)?
What is my coverage amount?
What is covered?
The CDCP also covers periodontal services, such as deep scaling.