Step Five - Using the Information Gathered in the Previous Steps - Analyze and Process the Information

We are going to use an example.

We will assume that Bob is an employee age 60 with 30 years in his pension plan. He is married, to Julie, age 57, who is not working. Both have RRSP's totalling $80,000. Their house is paid for.

Bob makes $48,000 per year. His pension will be 60% of his salary, or 60% of $48,000 = $28,800. The difference is $19,200 per year. (Bob has decided that he would like to have all calculations based on last year's wages.)

Bob is eligible to receive QPP/CPP. Julie can only collect QPP/CPP in 3 years. Bob's pension will be reduced once he starts collecting QPP/CPP, but only after age 65.

The RRSPs are currently in Guaranteed Investment Certificates (GICs) with a bank and earn 4% per year. Inflation is currently 2%.

They do not expect to receive much in the way of a GIS or OAS.

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