November – Financial Literacy Month Tip

Piggy Bank with retirement savings message

How do I Turn My Retirement Savings into Retirement Income?

Nov. 14, 2016 – As you phase out of the workforce or retire, you’ll need to convert your retirement savings into retirement income. When a Canadian turns 71, they are required to withdraw a certain percentage from their RRIF yearly. The funds are also fully taxable if withdrawn in cash.

In 2015, CARP’s advocacy helped reduce the percentage that you’re required to withdraw (from 7.38% to 5.28% in the first year of mandatory withdrawals). So what can you do to more effectively turn your savings into retirement income? Enter the registered retirement income fund (RRIF), one of the most flexible and tax-effective ways of generating income in retirement.

Here are 10 things you need to know about RRIFs:

https://www.thestar.com/business/personal_finance/retirement/2010/08/03/rrifs_10_things_you_need_to_know.html