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Design Your Unique Retirement

Have some fun with our interactive Your Future by Design® tool and think about how you want to spend your time in retirement.

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Get Ready to Use Your RRSP Savings

When you're ready to use the money you've saved, one option is to convert your RRSP to a Registered Retirement Income Fund (RRIF).

Understanding RRIF

Top Retirement FAQs

Timing your RRIF conversion is very important as this decision can impact the amount of taxes you pay and your government benefits.

You must convert your RRSP to a RRIF or an annuity—or cash it out (not typically recommended)—by December 31 of the year you turn 71. You can also make the switch before then if you need the income.

Since RRIF payments are considered taxable income in the year you take the money out, these amounts are added to your “other income” for tax purposes. Once you convert to a RRIF, you have to withdraw a minimum amount each year and that money will be taxed. Your withdrawals can also reduce certain government benefits such as Old Age Security (OAS).

For help knowing when to convert your RRSP, talk to an RBC Financial Planner. He or she can help you understand your options and suggest strategies to help you make the most of your income.

When you retire, your income could come from at least four different sources:

  • Government benefits such as Old Age Security (OAS) and the Canada Pension Plan (CPP)/Quebec Pension Plan (QPP)
  • Registered Retirement Savings Plans (RRSPs)/Registered Retirement Income Funds (RRIFs)
  • Work pension plan(s)
  • Other personal savings and investments you may have

For advice on making the most of your income in retirtement, check out the following resources:

Knowing whether to right-size or sell your home is not always an easy decision. Before you decide, make sure you have a good reason and really think through the impact to your lifestyle, what you want out of retirement, and all the potential costs of selling and moving.

For more on this important topic, check out our Downsizing Case Study and Things to Think About Before Selling Your Home.

Thanks to better lifestyles and health care, people are living longer than ever. Today, a healthy 65-year-old has a good chance of living to 81. For a healthy couple, both age 65, there’s a strong possibility that at least one spouse will live past 90.

Of course, it’s impossible to know exactly how long any one person will live in retirement. But it’s certainly wise to plan for a long retirement. In most cases, you should plan for 30 years or more to cover a wide range of possibilities.

To help make sure your income will last as long as you need it to, contact an RBC Financial Planner today.

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