Chapter 11 of 13

Glossary of retirement terms

Plain-language explanations of common retirement, tax, benefit, investment, and estate terms.

Version 6.3Updated July 15, 2026

2FA: Two-factor authentication — a second login step beyond a password.
211 Ontario: Free province-wide phone/online service (dial 2-1-1) that refers people to local community, health, and social services.
ADP: Ontario Assistive Devices Program.
ALDA: Advanced Life Deferred Annuity.
Alter Ego Trust: Living trust for a settlor aged 65+, for their own benefit, that can pass assets outside the estate.
Allowance: Income-tested OAS program benefit for certain eligible spouses/common-law partners aged 60–64.
Allowance for the Survivor: Income-tested benefit for certain widowed people aged 60–64.
Asset location: Placing investments in the account type (RRSP/RRIF, TFSA, non-registered) that is most tax-efficient.
Advance care planning: Discussing and recording wishes for future health/personal care, including end-of-life.

Bracket top-up / RRIF meltdown: Deliberately withdrawing extra registered income up to a chosen tax threshold to reduce future/terminal tax.
Bucket strategy: Decumulation approach that segregates short-, medium-, and long-term assets to protect near-term income.
Capacity: The decision-specific legal/mental ability to understand information and appreciate consequences.
Capacity assessment: A formal evaluation of whether a person is capable of managing property or personal care.
CCC: Canada Caregiver Credit.
CDCP: Canadian Dental Care Plan.
CPP credit splitting / DUPE: Division of Unadjusted Pensionable Earnings after divorce or separation.
CPP pension sharing: Sharing of CPP retirement pension payments between eligible spouses/common-law partners.
Change in use: Tax event when property use shifts between personal and income-producing, possibly triggering a deemed disposition.

DB pension: Defined-benefit pension with a formula-based payment.
DPSP: Deferred Profit Sharing Plan (employer-sponsored).
DTC: Disability Tax Credit.
EAT: Ontario Estate Administration Tax (probate).
FHSA: First Home Savings Account.
GAINS: Ontario Guaranteed Annual Income System.
GIS: Guaranteed Income Supplement.
Guardianship: Court- or OPGT-appointed authority over an incapable person who has no valid POA.
HATC: Home Accessibility Tax Credit.
HELOC: Home Equity Line of Credit.
HISA: High-Interest Savings Account.
Involuntary separation (GIS): Election allowing spouses living apart for reasons beyond their control to be assessed as single individuals for GIS/Allowance.

Joint Partner Trust: Living trust for a settlor 65+ and their spouse/partner; deemed disposition deferred to the second death.
JTWROS: Joint tenancy with right of survivorship; asset passes automatically to the survivor (see §8.7 for risks).
LIF: Life Income Fund.
LIRA: Locked-In Retirement Account.
MHRTC: Multigenerational Home Renovation Tax Credit.
OAS recovery tax: Repayment of OAS when net income exceeds the annual threshold.
ODB: Ontario Drug Benefit.
Ontario Health atHome: Provincial service that coordinates publicly funded home care and long-term-care home placement.
OPGT: Office of the Public Guardian and Trustee.
OSHPTG: Ontario Senior Homeowners' Property Tax Grant.
OTB: Ontario Trillium Benefit.

Pension adjustment: Amount reflecting workplace pension benefits that reduces new RRSP room.
PRB: CPP Post-Retirement Benefit.
PRE: Principal Residence Exemption.
RDSP: Registered Disability Savings Plan.
RRIF: Registered Retirement Income Fund.
RRSP deduction limit: Maximum deductible RRSP amount shown by CRA, after carryforward and adjustments.
SDM: Substitute decision-maker (for personal care/treatment).
Sequence-of-returns risk: The danger that poor early-retirement market returns, combined with withdrawals, permanently reduce a portfolio.
Successor holder / annuitant: Spousal designation that can provide continuity for TFSA or RRIF, subject to rules.
TCP: Trusted Contact Person.
TFSA: Tax-Free Savings Account.

Withholding tax: Tax retained at source on certain registered-plan withdrawals; not necessarily final tax.

Additional abbreviations used in the handbook

CCAC: Community Care Access Centre — a former Ontario organization for coordinating home and community care, later replaced by LHIN home-care services and now Ontario Health atHome.
CIRO: Canadian Investment Regulatory Organization.
CPP: Canada Pension Plan.
CRA: Canada Revenue Agency.
DC: Defined-contribution pension plan.
DIY: Do it yourself; completing a task without professional assistance.
FSRA: Financial Services Regulatory Authority of Ontario.
FX: Foreign exchange; the conversion of one currency into another and the related rate or risk.
GIC: Guaranteed Investment Certificate.
GST/HST: Goods and Services Tax / Harmonized Sales Tax.
ID: Identification; in “caller ID,” the displayed identity or number of an incoming caller.
IRS: Internal Revenue Service, the United States federal tax agency.
LHIN: Local Health Integration Network — a former Ontario regional health organization whose home-care functions are now provided through Ontario Health atHome.
LTC: Long-term care.
MFA: Multi-factor authentication — a login method requiring more than one form of verification.
OAS: Old Age Security.
ODSP: Ontario Disability Support Program.
OHIP: Ontario Health Insurance Plan.
OSDCP: Ontario Seniors Dental Care Program.
PBSA: Pension Benefits Standards Act, 1985 — the federal law governing federally regulated pension plans.
POA: Power of attorney — legal authority for another person to make specified property or personal-care decisions.
QPP: Quebec Pension Plan.
RHRA: Retirement Homes Regulatory Authority.
RRSP: Registered Retirement Savings Plan.
URL: Uniform Resource Locator; a web address.

Educational guide only. Rules and benefit amounts change. Confirm important decisions with official sources and qualified professionals.