Effective April 1, 2018, Plan Members and Dependents who use insulin to manage their diabetes are eligible for FreeStyle Libre Flash glucose monitor and sensors. For more information Click here

Personal Savings

When you retire, you may use the following sources to create an income stream.

Registered Retirement Savings Plans (RRSP’s)
 
An RRSP is an investment account designed primarily for saving toward your retirement years. As a Canadian government regulated program RRSPs have special tax benefits. Your annual RRSP contribution can greatly reduce the amount of income tax you pay in that year and the money you put away can have years of tax-deferred growth potential. You only pay tax on the amounts you withdraw. RRSPs are available through chartered banks, trust companies and other selected financial institutions.

There are many investments that can be held in your plan and it would be advisable to consult a qualified financial advisor to discuss your options.

In or before the year you turn 71, you have to choose among one or more of the following options for your RRSPs:

  • Withdraw them
  • Transfer them to a Registered Retirement Income fund (RRIF)
  • Use them to purchase a life annuity
  • Purchase a GMWB plan

Locked-in RRSP’s (also known as Locked in Retirement Accounts “LIRA” in Ontario)
 
When an employee has terminated employment who was also a member of a registered pension plan, many companies then provide a life time pension for that employee. In other cases, they may allow any funds due to the employee under that plan to be transferred to a locked in RRSP or LIRA. Withdrawals may not be made from a LIRA. On or before the end of the year in which the taxpayer turns 71, a locked-in RRSP must be converted to an income producing vehicle, such as LIF’s, annuities, etc.
 
There are many investments that can be held in your plan and it would be advisable to consult a qualified financial advisor to discuss your options.

Tax Free Savings Plan (TFSA)
 
This savings vehicle came into effect in 2009 and its principal functions are to encourage more saving as well as shelter your investment income from taxes. It allows any resident of Canada, 18 years of age or over, to contribute up to $5,000 per year starting in 2009. There is no tax deductions in the year contribution are made. In subsequent years, this limit will be indexed to inflation. Any unused amounts can be carried forward to subsequent years. Investment income, including capital gains, earned within the account will not be taxed and withdrawals will be tax-free.

There are many investments that can be held in your plan and it would be advisable to consult a qualified financial advisor to discuss your options.

Other sources of retirement income:
 
Non-registered savings or open accounts: This will consist of your savings or investments in open or non-registered accounts, such as bank accounts, Canada Savings Bonds, GIC’s, mutual funds, etc. In retirement, you can set up systematic withdrawal plans (SWP’s), purchase a life annuity or Guaranteed Minimum Withdrawal Benefit (GMWB) plan with an insurance company.

Downsizing: Upon retirement, you may not require as big a home with its associated costs and maintenance. In this case, you may want to buy a more suitable home. This may give rise to a significant cash windfall which can be invested to provide additional monthly income.
 
Investment property: If you own a rental property, the net income generated may provide you with additional income to supplement your other pensions and personal savings. Or, it may be sold and invested to provide you with possibly even more retirement income each year.
 
Sale of business: As with property mentioned above, when you are ready to retire from your business, this can generate a significant sum of money that can be invested to produce additional retirement income.
 
Insurance Policies: Some insurance policies, such as whole life and universal life, may generate cash values over time. These cash values may sometimes provide an additional income in your retirement years.

Insulators Local 95 Benefit Trust Fund c/o Benefit Plan Administrators 
90 Burnhamthorpe Road West, Suite 300 Mississauga, Ontario L5B 3C3