What are your retirement income options?

Whether you've already retired or plan to retire soon, it's important to understand your retirement income options so you can make sound decisions. Although retirement income needs and objectives are unique to each person, it's wise to consider how to:

• maximize income potential
• ensure flexibility to adjust to changing needs
• manage taxable income

What happens to my registered retirement savings plan (RRSP) when it matures? Canada Revenue Agency (CRA) guidelines dictate that you must decide what to do with the money in your RRSPs by Dec 31 of the year you turn 71. When it's time to convert your savings into retirement income, your options include:

• Convert your RRSPs to cash. If you take your RRSP balance as a cash payment, the full amount is considered taxable in the year you withdraw it.
• Convert your RRSPs to retirement income. Instead of cashing in your RRSP, you can choose a RRIF, an annuity, or a combination of both.

How do I know what's best for me? The RRIF gives you more flexibility and control over capital and income than any other retirement income product. If you prefer a guaranteed fixed income product with less flexibility, an annuity option might be more appropriate.

In determining what combination is best for you, it's important to understand your needs, circumstances, and goals. We can then help you make the most of your retirement through a personally tailored financial security plan.

Feel free to contact us for more information.