Question

1. Old Age Security income will be clawed back or reduced if you earn more than $35,000 in retirement.

Select one:

True

False

2. Morley is retiring on his 70th birthday. How much of a CPP pension will he receive if he is entitled to the maximum monthly benefit of $700?

Select one:

a. $952

b. $994

c. $765

d. $700

3. Defined-contribution employer-sponsored retirement plans provide you with a specific amount of income when you retire, based on factors such as your salary and years of employment.

Select one:

True

False

4. You have worked for a company for 20 years and it provides a two percent final average earnings defined-benefit plan. Your average income on retirement was $70 000. What will your annual pension be?

Select one:

a. Unknown

b. $35 000

c. $42 000

d.  $28 000

5. Luigi and Maria are 65 and have been married for 20 years. Luigi is entitled to a CPP pension of $796 per month. He has been working and paying into CPP ever since he came to Canada 25 years ago. How much of his CPP can he allocate to Maria, who did not work at all?

Select one:

a. $636.80

b. $796.00

c. $398.00

d.  $318.40

Answer 1

Question 1:

FALSE.

Old Age Security income will be clawed back or reduced if you earn more than $73,000 & for every $1 increase in the earning, there will be reduction of 15 cents.

Question 3:

FALSE

Defined contribution plans are based on the contributions made by the employer over the tenure of the employment but not on the basis of Years of employmeny & last drawn salary.

Question 4:

Annual Pension will be 70,000*2%*20 years = $ 28,000

Option D.$ 28,000 is the answer

Question 5:

Luigi can allocate 50% of the CPP benefit to his wife.

That means, CPP Luigi can allocate to maria = 796*50% = $ 398

Option C $ 398 is the answer.