Are you close to retirement?

As you get closer to your retirement date, it’s time to start thinking about how to convert your registered savings into income.

We’ve seen the different payout vehicles available. But which option is right for you?

With a traditional annuity…

• There are no investment or reinvestment decisions to make.
• You cannot change your payment amounts or terms of the annuity once payments have started.
• A life annuity guarantees an income you cannot outlive.
• A life annuity is the best option if you want total security throughout your lifetime.
• A fixed term annuity provides a guaranteed income up to age 90 (in the case of an RRSP).
• Unless the annuity contract provides otherwise, you normally cannot cash out (withdraw) any of the money used to purchase the annuity. You can only receive periodic payments.

With a RRIF or a prescribed plan…

• You can increase or decrease the amount of your payments, subject to minimum and maximum amounts, or make unscheduled withdrawals, although these may be subject to penalties.
• Your assets continue to be invested according to your instructions and can be exposed to ups and downs of markets.
• You can move your money between different investment options.
• If you die, payments can continue to your spouse (RRIF only) or the value may be paid to your beneficiary.
• However, you can outlive your income.

Your life, your plan

You see how with a plan, you greatly increase your chances to retire on your terms – when you want, and with the lifestyle you want.

Come back and check this site often, as we’ll be adding new information, tools and features to help you build and maintain your Plan for life.