Retirement Income Strategies
Canadians' retirement goals are as diverse as our country. But no matter how simple or grand your retirement dreams may be, it will take careful planning to bring them to life.
We are retirement experts. We know that anyone planning for retirement today faces unique challenges. Today's boomers are not only looking at funding a long retirement as life expectancy increases, many will also face challenges such as rising medical costs, and the absence of guaranteed workplace pensions enjoyed by previous generations.
Using sophisticated planning tools and professional expertise, we can create a clear picture of your retirement finances. We can show you whether you're on the right track to saving and investing for a retirement that could last 25 to 30 years or even more.
We will show you how to take maximum advantage of tax-effective registered savings vehicles such as RRSPs and TFSAs. We can also explore other ways to build your wealth.
Registered Products: Everything you need to plan your retirement
BMO Nesbitt Burns can help you realize your retirement goals. As a part of BMO Financial Group and part of the organization’s Private Client Group, BMO Nesbitt Burns has the expertise to address the most sophisticated wealth needs. A BMO Nesbitt Burns Investment Advisor will make use of our wide range of retirement wealth management solutions to help you build and protect your retirement investments.
Your BMO Nesbitt Burns Investment Advisor can develop and implement a personalized retirement strategy, taking advantage of the many benefits of registered plans. Whether you’re saving for retirement through an RRSP or using a RRIF to create retirement income, your Investment Advisor will work with you to find a solution unique to your needs.
Registered Retirement Savings Plan (RRSP)
An RRSP is one of the most effective retirement saving and investing tools available to most Canadians. RRSPs were introduced to allow Canadians to save for retirement in a tax-efficient manner. Currently, 18 per cent of earned income up to the annual contribution limit can be contributed to an RRSP and deducted from total income. Any unused contribution room is carried forward to be used in future years. The tax on RRSP contributions, and on the income earned within RRSPs, is deferred until funds are withdrawn from the plan. Since income during retirement can often be much lower than during an individual’s working years, withdrawals from a registered plan are generally taxed at a lower rate than would otherwise apply.
Registered Retirement Income Fund (RRIF)
A RRIF is the most flexible way to manage and control your finances when you retire.
Selecting the right retirement income option is one of the most important financial and estate planning decisions you'll make. Especially today, when statistics show that Canadians are living longer, healthier lives. It's important to make choices that not only protect your savings but ensure that the purchasing power of your money lasts for decades.
A Registered Retirement Income Fund (RRIF) allows you to continue to earn tax-deferred income on a significant portion of your retirement assets while providing you with the flexibility to increase your withdrawal at any time. For these reasons, RRIFs are the RRSP maturity option of choice for many Canadians. A RRIF is very much like an RRSP in reverse. While an RRSP helps you save for retirement, a RRIF is designed to provide an annual income in the form of withdrawals from the plan during your retirement.
Like an RRSP, the assets in the RRIF continue to be tax sheltered until withdrawn. With a RRIF you continue to control how your funds are invested and have access to all the same investments you had with an RRSP.
Tax-Free Savings Account (TFSA)
The savings you accumulate in your TFSA are tax-free and can be used anytime, for any purpose. The benefits and flexibility provided by a Tax-Free Savings Account (TFSA) make it an ideal solution to save for multiple financial goals. While TFSA contributions are not tax deductible; they grow tax-free, can be withdrawn tax-free at any time, and there are no restrictions on how you use the funds once they’re withdrawn from your TFSA. Whether you’re saving for a new car, a home purchase, your child’s education or retirement, a TFSA can help you reach your financial goals sooner.