Foundations of Retirement

KNOWLEDGE EXPECTED OF: QAFP® Professionals

Highest Knowledge Level: Application

Knowledge Levels and Associated Verbs


Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
Define
To state exactly the meaning of
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
Compare
To note the similarities and differences between two or more things
Estimate
To determine an approximate value for
Calculate
To find the value using mathematics
Convert
To change from one form or purpose to another
Evaluate
To reach a conclusion or make a through careful study
Interpret
To give the meaning of / to construe or understand / to translate orally

Hold cursor over or click on each term to read its definition.

  • Identify the pillars of Canada’s retirement income system.
    • Government pension plans
    • Employer-sponsored pension plans
    • Individual retirement income plans
  • Explain key trends affecting retirement, such as:
    • Definition of retirement
    • Age of retirement
    • Length of retirement
    • Changes in life expectancy
    • Family circumstances
    • Government pension reform
    • Potential commencement ages for Canada Pension Plan and Old Age Security pensions
    • Increasing CPP premiums from contributors
    • Personal debt level
    • Intergenerational wealth transfers
    • Costs of health / long-term care
  • Explain the roadblocks to saving for retirement, such as:
    • Cash flow limitations
    • Personal debt level
    • Procrastination
    • Reliance on government and/or employer benefits
    • Business failure / loss of employment
    • Relationship breakdown
    • Support of children / parents / family
    • Lack of knowledge / advice
    • Personal attitudes / choices
  • Determine how each of these factors may impact the ability to meet a retirement goal:
    • Net income
    • Rate of savings
    • Amount of savings
    • Rate of return on assets
    • Debt levels
    • Retirement income needs
    • Retirement income sources
    • Retirement expenses
    • Inflation
    • Risk tolerance
    • Life expectancy
    • Unforeseen events (i.e., disability, death of spouse)
    • Personal attitudes / preferences
  • Define the time horizons associated with retirement.
    • Period of accumulation
    • Period of withdrawal

KNOWLEDGE EXPECTED OF: CFP® Professionals

Highest Knowledge Level: Application

Knowledge Levels and Associated Verbs


Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
Define
To state exactly the meaning of
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
Compare
To note the similarities and differences between two or more things
Estimate
To determine an approximate value for
Calculate
To find the value using mathematics
Convert
To change from one form or purpose to another
Evaluate
To reach a conclusion or make a through careful study
Interpret
To give the meaning of / to construe or understand / to translate orally

Hold cursor over or click on each term to read its definition.

  • Identify the pillars of Canada’s retirement income system.
    • Government pension plans
    • Employer-sponsored pension plans
    • Individual retirement income plans
  • Explain key trends affecting retirement, such as:
    • Definition of retirement
    • Age of retirement
    • Length of retirement
    • Changes in life expectancy
    • Family circumstances
    • Government pension reform
    • Potential commencement ages for Canada Pension Plan and Old Age Security pensions
    • Increasing CPP premiums from contributors
    • Personal debt levels
    • Intergenerational wealth transfers
    • Costs of health / long-term care
  • Explain the roadblocks to saving for retirement, such as:
    • Cash flow limitations
    • Debt load
    • Procrastination
    • Reliance on government and/or employer benefits
    • Business failure / loss of employment
    • Relationship breakdown
    • Support of children / parents / family
    • Lack of knowledge / advice
    • Personal attitudes / choices
  • Determine how each of these factors may impact the ability to meet a retirement goal:
    • Net income
    • Rate of savings
    • Amount of savings
    • Rate of return on assets
    • Debt levels
    • Retirement income needs
    • Retirement income sources
    • Retirement expenses
    • Inflation
    • Risk tolerance
    • Life expectancy
    • Unforeseen events (i.e., disability, death of spouse)
    • Personal attitudes / preferences
  • Define the time horizons associated with retirement.
    • Period of accumulation
    • Period of withdrawal