Quote:
Originally Posted by waddy41
Can you explain how some tax filers do not qualify to contribute to RRSP.
I thought with you can contribute 18% of your previous year's incomem so the only people who don't qualify are those who are working for the first time.
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RRSP contribution room is only calculated on income, not other forms of profit such as capital gains. Thus it is possible to file a tax return and report no "income".
Quote:
Originally Posted by waddy41
Also, how do you get 40%+31%? People can have a pension AND contribute to RRSP.
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Yes I know my math here is very weak, I wish there was better stats. If I had a pension, I would not be contributing to RRSPs. Especially some of the government pensions that pay 2% per yrs of service - thus you work 30 year you get 60% of the 5 best years of salary. Plus CPP. Then your RRSP withdrawals are taxed ontop of that.
I'm going to assume most people with a pension are aware of this, and there's minimal overlap between pensioners and RRSPers.
Quote:
Originally Posted by waddy41
Well, I don't want them to increase CPP contributions. That will be even more deductions taken from my income.
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Me too!
Quote:
Originally Posted by waddy41
Maybe CPP contributions should be calculated on an individual basis and be based on several factors like annual income, RRSP contributions, RRSP contribution room, existing pensions, etc.
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If you mean being able to pay less into CPP based on how well you're saving for retirement (more savings == less CPP) - then you don't have a chance in hell of pushing that through government
cause that doesn't address the problem of people retiring with no savings.
The banks have been suggesting raising RRSP limits, yet as you see above, only 7% of the contribution room is used - so raising the limits is only benefit a few who contribute the max - and these people are not the ones that need help.
I don't know what a good answer is other than to politely say "fuck'em", people need to learn how to save, and perhaps a few more stories of broke seniors will encourage my generation to stop buying $600 iPads while having $0 in their RRSP at 30yo.