What to know before choosing a plan
Plain-language information, designed to help you compare meaningful differences.
Retirement is a withdrawal plan, not just a savings target
A realistic retirement plan estimates regular expenses, inflation, taxes, health costs and the time that savings must support those expenses. It also considers pensions, CPP, OAS and other income.
Review how secure and variable income sources work together, including any survivor-income needs.
RRSP-to-RRIF transition and withdrawal sequencing
Registered retirement assets are generally subject to age-related conversion rules and RRIF minimum withdrawals. Withdrawals can increase taxable income and may affect income-tested benefits.
Timing withdrawals among RRSP/RRIF, non-registered and TFSA accounts can change a long-term tax profile. Model scenarios rather than applying one withdrawal rule to everyone.
Risk during the first years of retirement
Large market declines shortly after retirement can damage a portfolio when withdrawals continue. This is often called sequence-of-returns risk. A cash reserve, spending flexibility and diversified investments may help manage it.
No investment strategy eliminates risk or guarantees a particular retirement balance.
Coordinate the household and estate plan
Review both spouses’ timelines, beneficiary designations, insurance needs, powers of attorney and possible estate liquidity. If business assets, foreign income or complex tax issues are involved, involve appropriate professionals.
The aim is a plan with clear assumptions that can be updated as markets and family circumstances change.