ORSO is an acronym that stands for the Ontario Retirement Savings Option. It is a type of pension plan available in the Canadian province of Ontario, specifically designed for individuals who do not have access to a workplace pension plan. The ORSO is operated by the government and allows individuals to contribute towards their retirement savings in a tax-efficient manner.
The ORSO is a voluntary retirement savings program that aims to provide individuals with a secure and reliable source of income during their retirement years. It offers several advantages, such as tax-deferred growth on contributions, flexible contribution options, and the ability to transfer funds from other retirement savings accounts.
To participate in the ORSO, individuals must be residents of Ontario and have a valid Social Insurance Number (SIN). They can contribute a portion of their income towards their ORSO account, up to a specified annual limit. These contributions are invested in a diversified portfolio of assets, such as stocks, bonds, and mutual funds, with the goal of generating returns and growing the account balance over time.
Upon reaching retirement age, individuals can start receiving regular payments from their ORSO account, providing them with a reliable income stream to support their living expenses in retirement. The amount of these payments depends on the account balance at the time of retirement and the chosen payout option.
In summary, ORSO is a government-operated retirement savings program available in Ontario, designed to help individuals without access to a workplace pension plan build a secure financial foundation for their retirement years.
