Appendix II: Avoiding double-counting of income from assets
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Some of the assets owned by a household, notably pension assets, generate income. When calculating the wealth-adjusted stream of income, it is important not to double-count the income derived from these assets.
The Survey of Financial Security identifies the various sources of household income. To avoid double-counting in this analysis, the following components are subtracted from total income:
(i) retirement income from:
- employer pensions for the reference year,
- RRSP annuities
- RRIF withdrawals
- other pensions and superannuation
(ii) property/investment income from:
- rental properties
- dividends
- interest
- other investment income
- net partnership income
After these amounts are subtracted, the income stream derived by the annuitization of the household's net worth is added to the remaining income to obtain the adjusted income streams reported in this paper.
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