Canadian Retirement Planner's Software
Retirement Model


Sophistication
Retirement planning can be based upon simple rules of the thumb, but they do not serve clients well. Through the use of the calculation power of computers, the software allows you to prepare a sophisticated plan which takes into account the complexities of retirement planning and meets the needs of your clients.

Spouses
The ownership of assets and taxation of income under the Income Tax Act requires careful management of investment assets and their allocation between spouses or common-law partners. The Software allows allocation of assets and pension incomes between spouses or common-law partners, prepares separate income projections and income tax calculations, and uses an integrated strategy for use of investment assets.

Strategy
The tax impact of using non-tax-deferred savings to provide retirement funds is very different from using RRSPs. The Software uses a strategy to allocate funds, which is designed to take advantage of tax deferral and income splitting opportunities.

Income Taxes
With the progressive tax rates in Canada and taxation of all proceeds from an RRSP, the income tax burden is a critical consideration in retirement planning. The Software calculates the tax rates each year taking into account the indexing of income tax brackets and credits. It calculates the basic, age and pension income tax credits, clawback of OAS and provincial surtaxes.

Pension Income Splitting
The Income Tax Act allows any Canadian resident who receives income that qualifies for the existing pension income tax credit to allocate to their resident spouse or common-law partner up to one-half of that income. The amount allocated will be deducted in computing the income of the transferor and included in computing the income of the transferee. The Software calculates the amount of pension income to split between the spouses that would minimize their income taxes.

Inflation and Indexing
The impact of inflation on retirement planning is frightening and consideration of pension indexation and inflation of living costs can be complex. The Software enables you to specify inflation and indexation rates and calculates their impact.

Types of Plan
The Software prepares post-retirement income projections for those who have already retired and retirement savings plans for those who are some years away from retirement.

Post-Retirement Income Projections
The Software enables you to prepare sophisticated projections of retirement income to determine how financial resources can best be used to provide retirement funds.

Types of Income Projections
The Software enables you to prepare projections of retirement income based upon the client’s current savings, or based upon the additional savings required if the amount is saved by the client or the spouse in an RRSP or as tax-paid capital.

Sustainable Income Levels
The primary question in the minds of those considering early retirement and those who are already retired is “How much can I afford to spend?” The Software enables you to determine the maximum sustainable income level.

RRSP Maturity Options
The purchase of life or term annuities can in many circumstances provide retirement security. The Software allows you to readily assess the impact of this investment alternative.

RRSP Savings Plan
The Software assists in determining earned income, pension adjustments, maximum RRSP contributions, RRSP carry-forwards and appropriate use of Spousal RRSPs.

Defined-Benefit and Defined-Contribution Pension Plans
The Software assists in calculating retirement benefits and pension adjustments.

Locked-in Funds
The Software calculates the minimum and maximum withdrawals from Life Income Funds and from Locked-in Retirement Income Funds. The Software also allows you to specify an age at which to start drawing the maximum from locked-in funds in order to execute a freeze.

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