Management's Role in Helping Canadian Workers Retire Comfortably
When it comes to retirees in Canada, business management teams are doing all they can to make sure workers retire comfortably.
According to Statistics Canada, the average worker in the Great White North retires from the workforce at age 62.
Whether it's pre-planning or winding down the work schedule a little at a time, your management department can help employees successfully phase out work life and happily enter retirement.
Here are just a few ways your team can manage its retirees and send them into retirement relaxed and ready.
Helping Employees Head into Retirement Gracefully
It is your management team's responsibility to ensure that each and every employee who retires from your business is adequately prepared for what lies ahead.
Fortunately, there are a number of steps your business can take to ensure your employees head into retirement gracefully and financially prepared.
For starters, your management team can encourage all employees that are of age to start saving for retirement as soon as possible. In addition, scheduling appointments to discuss retirement benefits and plans is also helpful.
Finally, it's always wise to promote good health and wellbeing throughout the workplace.
Generally speaking, healthy employees have an easier time transitioning into retirement because they don't require immediate medical services and therefore can extend their retirement savings and benefits.
Retirement in Canada vs. the United States
When it comes to retirement in Canada versus the United States, there are some key differences in terms of retirement plans and government sponsored retirement programs from one country to the next.
If your management team is trying to find the best retirement plan for its employees, comparisons with the U.S. can be helpful.
As the following article shows, online “Retirement calculators” also come in handy when determining lifetime retirement values.
With that said, here are just a few differences between Canadian and American retirement plans and benefits:
• RRSP vs. the Standard IRA - With a Registered Retirement Savings Plan, a soon-to-be Canadian retiree receives tax deductions on yearly contributions, which is beneficial for compounded returns. Although the IRA works much the same way, American retirees have a much smaller maximum contribution.
• TFSA vs. the Roth IRA - Canada's Tax-Free Savings Account allows for early retirement planning. With the TFSA, Canadian employees can begin making annual contributions as early as age 18. The Roth IRA also allows for early contributions, but the contribution limit is smaller for American employees over the age of 50.
• OAS vs. Social Security Benefits - Canada's Old Age Security benefits differ from America's Social Security benefits in many ways. One major difference is OAS benefits include paycheck provisions because they are considered a form of taxable income. Social Security differs in that it doesn't merely provide retirement benefits, but disability income and healthcare benefits as well.
Other Types of Canadian Retirement Benefits
There are other retirement benefits exclusive to Canada that your management team can provide its retiring employees.
These benefits include Guaranteed Income Supplement plans for low-income individuals and Allowance benefits for spouses of Old Age Security plan holders.
There are also international benefits for Canadians who have lived and/or worked outside of the country.
With all of the potential retirement plans and benefits available, it's important for your management team to choose the right route for its employees approaching retirement.
About the Author: Adam Groff is a freelance writer and creator of content. He writes on a variety of topics including retirement basics and human resources.