knowledge topics
Foundations of Retirement
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- 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
- Life expectancy
- Family circumstances
- Government pension reform
- Potential commencement periods for Canada Pension Plan and Old Age Security pensions
- Increasing premiums from contributors
- Introduction of provincial government pension plans
- Level of debt
- Intergenerational wealth transfers
- Costs of health / long-term care
- U.S. estate tax rules
- 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
- Explain how each of the factors may impact the ability to meet a retirement goal, such as:
- 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 (e.g. disability, death of spouse)
- Personal attitudes / preferences
- Define the time horizons associated with retirement.
- Period of accumulation
- Period of withdrawal
Glossary of Verbs (mouse over to see definition)
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
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Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
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Compare
To note the similarities and differences between two or more things
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Estimate
To determine an approximate value for
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Calculate
To find the value using mathematics
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Convert
To change from one form or purpose to another
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Evaluate
To reach a conclusion or make a judgement through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally
Read more about the Taxonomy used in the FP-BoK