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Does Raising Taxes So That Your Child Can Have a Pension Make Sense to You?

It may not make sense to you, but this is the plan put forth by the Ontario government in Thursday’s budget. At the present time 66% of Ontarians do not have jobs with pension plans. These Ontarians who lack company pension plans will have to start paying up to 1.9% of their income, which will be matched by employers,

into a provincial pension plan in 2017. This plan, created to supplement the Canada Pension Plan, will provide a maximum of $25,275 annually to future retirees who are young workers now. Workers in company pension plans won’t be allowed to join unless the government determines the benefits provided aren’t adequate (a level has not yet been determined). This plan is going to potentially take $3.5 billion a year out of the pockets of working people in Ontario. E.g. someone earning $70,000/year will have to pay $100/month into the plan. This money is going to be invested on their behalf. There is no option to opt out. This plan is mandatory.

Are more taxes the only way to ensure that our children have a pension in retirement? Absolutely not. Parents can start saving for their children at the age of 14 days and by the time they are 20 years of age, there are no more payments to be made. Parents who choose our Child Plan Participating Life Plan with a $2,500 annual premium paid over a 20 year term for a child less than 1 year old will provide their child with a pension asset at age 65 of $1,091,154 in addition to a life insurance policy worth $2,351,136. Child Plan is a safe, long term investment for your child’s future.

Contact Insurance for Children today and let us show you how you can provide your child with retirement income without having to pay any additional taxes.

Sample illustration of Child Plan™ Cash and Insurance Values

Based on a Monthly Deposit of $250 per month

Age Accumulated Cash Value Life Insurance Value
20 $82,568 (Education) $612,728
35 $177,953 (House) $1,115,297
45 $303,299 (Security) $1,115,297
65 $834,276 (Retirement) $1,666,824

Sample illustration is based on a monthly contribution of $8.32 a day/$250 a month for twenty years, starting when the child is less than 1 years old. Cash and life insurance values are based on the current dividend interest rate of 6% from a Canadian life insurance company. This example is strictly for illustrative purposes only, the annual dividend scale is not guaranteed and values may differ.

Personalize Your Child Plan™

Request a Child Plan™ Illustration and see how much cash value your child will have for their education and for life.

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*illustrations are reflective of the annual premium amount

Have a question about Child Plan or wish to speak with a Family Advisor?