Retirement planning is a crucial phase of our financial lives. While it’s never too early to begin saving for retirement, many Canadians truly put a major focus on this towards the end of their careers. This is another time of our financial lives where knowing about and understanding CDIC deposit protection is important. Canadians age 50 and older count for the largest portion of personal deposits in the country. As people grow older, there’s a tendency to move away from riskier investments like stocks and bonds and start keeping money in CDIC-protected products like GICs or high-interest savings accounts.
It’s also the time when Canadians are most likely to exceed the $100,000 deposit insurance limit, making it important to understand how to maximize your coverage. By placing funds in different categories of accounts or even different CDIC member institutions, you can have much more than $100,000 of protection.
Below are some useful retirement planning tools that help explain how deposit protection plays a role in retirement planning.