A new paper from Ryerson University’s National Institute of Ageing is calling for the creation of workplace tax-free pension plans to better support Canadians’ financial security in retirement.
Under the current workplace registered pension plan model, noted the research, lower to middle income Canadians are essentially discouraged from saving for retirement due to the potential financial penalties from income tax treatment and senior social benefits calculations.
Read: National Institute of Ageing appoints inaugural senior research fellow Registered pension plan contributions are tax-deductible at the point of contribution, but payouts in retirement are taxable as income, which negatively affects lower income […]
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