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2021 Financial facts @ your fingertips

Investments, Personal Finance

Posted by Empire Life

Feb 19, 2021 9:00:00 AM


2021 FINANCIAL FACTS
@your fingertips

Manage your savings and taxes

There are a lot of financial facts to keep track of – here’s our handy sheet with the important amounts and dates to help you manage your finances. 
 

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INV-2289-FinancialTips-Calendar-img-ENFRCONTRIBUTION deadlines

2020 RRSP March 1, 2021
2020 Homebuyer’s Plan repayment March 1, 2021
2020 Lifelong Learning Plan repayment March 1, 2021
2021 TFSA December 31, 2021
RRIF December 31 of year RSP holder turns 71
Don’t miss these dates to get the most from your
registered accounts and to avoid penalties.

 

INV-2289-FinancialTips-Tax-img-EN2021 Personal Federal
MARGINAL TAX rate

Taxable income Tax rate
$0 to $13,808 0%
$13,809 to $49,020 15.0%
$49,021 to $98,040 20.5%
$98,041 to $151,978 26.0%
$151,979 to $216,511 29.3%
over $216,511 33.0%
Add your provincial marginal tax rates to get your
combined tax rate.

 

INV-2289-FinancialTips-Growthmonitor-img-ENFRGROWTH in a tax-deferred plan
after 10 years*

Monthly deposit 3% rate of return 5% rate of return
$50 $6,987 $7,764
$100 $13,974 $15,528
$200 $27,948 $31,056
Register for a pre-authorized deposit plan for your
RRSP or TFSA and help your nest egg grow.

 

   

INV-2289-FinancialTips-ClipBoard-img-ENFR-2 Annual RRSP Limits

2021 contribution maximum

$27,830

Your contribution limit is 18% of last year’s earned income (2020), to a maximum annual limit ($27,830). This limit is reduced by any pension adjustments for the year.

Check your Notice of Assessment from Canada Revenue Agency for your own limit.

 

Annual TFSA limits 

2021 Contribution limit Cumulative 1  
$6,000 $75,500
The TFSA is the most popular savings, investment and retirement account in Canada.

 

LUMP-SUM PAYMENT
withholding taxes

All provinces except Quebec  
Up to $5,000 10%
$5,001 - $15,000 20%
Over $15,000 30%

These taxes will be withheld at source from funds withdrawn from your RRSP, and from withdrawal amounts above your RRIF minimums. For nonresidents of Canada, the withholding tax rate is 25%, but can be reduced by a tax treaty.

 

 INV-2289-FinancialTips-Clock-img-ENFRMANAGE YOUR RETIREMENT INCOME

CANADA PENSION PLAN (CPP)
monthly benefits

As of Oct 2020

Average

Maximum

Retirement pension at age 65

$689

$1,203

Disability pension

$1,031

$1,413

Survivors’ benefit younger
than 65

$450

$650

Survivors’ benefit age 65+

$301

$722

Death benefit - one time payment

$2,496

$2,500

Yearly maximum pensionable
earnings (2021)

$61,600


CPP provides contributors and their families with partial replacement of earnings in the case of retirement, disability or death. You have to apply for the CPP retirement benefit – it doesn’t start automatically.

 

OLD AGE SECURITY (OAS)
monthly pension

For January-March 2021

Maximum

Pension at age 65

$615

Minimum Net Income Recovery threshold

$79,845

OAS pension recovery tax

15% of excess
over threshold


It’s important to watch your annual net income,
as the OAS recovery tax begins for net income over the threshold.

 

GUARANTEED INCOME SUPPLEMENT (GIS) monthly benefit

For January-March 2021

Maximum

Maximum if single, widowed, divorced,  or if your spouse does not receive OAS pension

$919

Maximum if spouse receives OAS
pension or Allowance

$553


In addition to the OAS pension, low income Canadians may be eligible for GIS. Starting December 2017, eligible seniors are automatically enrolled.

 

Talk to your advisor for more advice and information on managing your finances.

 

Age

RRIF/LIF
Minimum
Payment

60

3.33%

61

3.45%

62

3.57%

63

3.70%

64

3.85%

65

4.00%

66

4.17%

67

4.35%

68

4.55%

69

4.76%

70

5.00%

71

5.28%

72

5.40%

73

5.53%

74

5.67%

75

5.82%

76

5.98%

77

6.17%

78

6.36%

79

6.58%

80

6.82%

81

7.08%

82

7.38%

83

7.71%

84

8.08%

85

8.51%

86

8.99%

87

9.55%

88

10.21%

89

10.99%

90

11.92%

91

13.06%

92

14.49%

93

16.34%

94

18.79%

95 +

20.00%

This is the minimum you must withdraw every year from your RRIF/LIF (% of the market value).


 

* For illustration purposes only. Assumes monthly contributions made at the beginning of the period and compound annual returns.

1 This total applies to people who have been eligible to contribute to this plan since inception and have never made a withdrawal. The
amount may be higher for individuals who made a withdrawal and wish to make a contribution in a year following the withdrawal.

Sources: Canada Revenue Agency, Government of Canada, Statistics Canada. This document is for information purposes only and is not meant to provide legal, financial, tax, or any other advice. Although care was taken in the preparation of this document, The Empire Life Insurance Company assumes no responsibility for any reliance on or misuse or omissions of the information contained in this document and cannot be held responsible for damages or losses arising from the use of this information. Please seek professional advice before making any decisions.

This blog reflects the views of the author as of the date stated. This information should not be considered a recommendation to buy or sell nor should it be relied upon as investment, tax or legal advice. Empire Life and its affiliates does not warrant or make any representations regarding the use or the results of the information contained herein in terms of its correctness, accuracy, timeliness, reliability, or otherwise, and does not accept any responsibility for any loss or damage that results from its use.

 

February 2021

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