Retirement Planning in Alberta

Creating personalized retirement plans for Alberta residents

Planning for your retirement may seem like a daunting task at first, but it doesn’t have to be with the help of a dedicated advisor. Our retirement services team works with you to learn more about your insurance needs and financial goals. We leverage a suite of investment and insurance products to ensure personal financial security and to help maximize the value of assets passed to your family when the time comes.

It is never too early to start planning for your retirement. Connect with one of our retirement experts today to get started or continue reading below to learn more about different leveraging and taxation strategies.

Retirement Taxation Strategies

Pension Supplementation

• Income Shelter – Universal life has become a vital tool in tax planning strategies. In addition to providing liquidity with tax-free death benefits, universal life also offers tax deferred accumulation with a wide array of investment options. Preferred tax treatment and flexibility allow for income sheltering and retirement augmentation.
• Corporate Pension Augmentation – The advantage of tax-sheltered growth within a universal or whole life plan allows corporations to structure pension augmentation for executives. By over-funding the insurance requirements, the cash value will accrue tax-deferred until retirement, at which time withdrawals can be made or leveraging can be implemented.
• Leveraging Strategies – Cash values from a universal or whole life plan can be assigned to a bank, which in turn provides a line of credit to use for retirement income. The advantages of these arrangements are that cash values within the plans continue to accrue without taxation. As well, individuals can access their line of credit without having to pay personal income tax. In corporate arrangements, the income is taxable to the retired shareholder. In both cases, if structured properly, the interest paid on the line of credit may be tax-deductible.

Be sure to seek the assistance of a dedicated retirement advisor in Alberta prior to implementing any of these arrangements and to discuss your personal life insurance needs.

Transferring Wealth to Your Loved Ones

One of the most rewarding parts of growing older is providing security for your loved ones, even in your absence.  Being able to transfer your personal wealth to your family can make all the difference to your partner, children and grandchildren.

The cost of an education, starting a business, buying a first home or supporting a young family can be considerable, if not overwhelming. However, with the right planning, you can have peace of mind knowing you can take care of those who matter most and set them up for future success.

Asset Management in Alberta

In Alberta, diversification and tax strategies can be assisted by the utilization of features contained within a universal life plan. Segregated funds offered by life insurance companies also provide features such as maturity and death guarantees, which assist with asset management and long-term planning.

Providing support for your dependents

The ability to use universal life plans to transfer tax-free death benefits and tax-free cash values allows for the distribution of assets between generations. The strategy is to name a contingent owner on the policy of a joint last-to-die or multi-life policy. This allows the cash value to be passed to the contingent owner upon the death of the initial owner without taxation. In turn, the new owner can name a new contingent owner, which continues the strategy.

It is always important to seek professional assistance prior to implementing any type of retirement planning. Connect with one of our local advisors to make sure you and your loved ones are financially secure – now and in the future.