As we all know, the primary focus of CEIRP is to help you save for a comfortable retirement. So, when you’re getting close, what comes next? Our plan provider Canada Life has posted a great article about the process on their website (How to decumulate your assets in retirement). To get you started, we’ve summarized the key points.
Entering the Decumulation Phase
Through your career, you’ve been “accumulating” savings for your retirement, and now you need to start the decumulation process — basically you need to think about how you’re going to convert these savings into income. It’s also a major life change that requires some careful preparation. Here are some of the questions to think about:
- What are your plans? Are you ready to retire?
- What is your current financial situation: have you saved enough, do you have other obligations (financial or otherwise) to consider?
- Thinking about government benefits – OAS, CPP, QPP: what are you entitled to?
- With all these considerations, how long do you think your money will last?
- Will you find the right pace to draw on your savings so that you have enough for the rest of your life? Or will you need — or want — to continue working part-time?
- Are there health concerns that need to be considered? If yes, how will this help or hinder your financial plan?
- What do you need to know about taxation during this period?
- How do you want to convert your RRSP into retirement income?
The other great thing about being connected to Canada Life is that you can find the support and answers these questions for free. As you get closer to retirement, you can set up an appointment to speak to our dedicated Investment and Retirement Specialists. They can help you make decisions, create a plan and guild you through this transition. If you are 71, you can expect to be contacted by Canada Life about your decumulation options. That might be rolling your RRSP into a RRIF with the CEIRP. Plus, the funds and the fees are the same as in the RRSP. To learn more about decumulation, you can access more articles, videos and calculators by logging on to My Canada Life At WorkTM.
