Your Retirement Options
Your RRSP Maturity Options
At some point you’ll want to use the money you’ve
accumulated in your RRSP for income in retirement. By law, you must
convert your RRSP to a retirement income option by December 31st in the
year you celebrate your 71st birthday. Be sure to review your options
carefully before maturing your RRSP.
Your retirement income options
will be required to take a minimum amount into income each year no
matter which retirement income option you select. Canada Revenue Agency
allows you to choose one or a combination of the following:
retirement income options you choose will depend on your income from
other sources, the amount of income you need from your RRSP assets and
your tax situation.
- A lump sum cash withdrawal. This amount will be fully taxed in the year you receive it.
life annuity. This is a contract that guarantees a fixed income payment
for the rest of your life. It is based on your age and the interest
rates when you enter into the contract.
- A Registered
Retirement Income Fund (RRIF). A RRIF lets you continue to control how
your funds are invested. You can invest in the same eligible investments
as with your RRSP. While there is a minimum withdrawal, there is no
maximum limit. A RRIF gives you the most flexibility for managing your
cash flow in retirement.
Contact me to discuss how we can help you achieve your retirement goals.