Tap Your Retirement investments in the Right Order
When you retire, the usual recommendation is to cover as much as you can of your essential
living expenses with government and company pension plans (CPPs) first.
As the illustration below shows, where you turn to next for cash
flow depends largely on your age:
- Between the ages of 60 and 69: You should consider drawing on your
non-registered investments. While this may begin to deplete
your non-registered capital, it will allow you
to continue to take advantage of the tax-deferral element
available within your Registered Retirement Savings
Plan (RRSP) account.
-
In the year you turn 69: You must convert your RRSP into
a Registered Retirement Income Fund (RRIF) or annuity.
Since you will be required to take a minimum amount
annually from your RRIF, the RRIF moves up in the pecking
order. Any non-registered investments you have can be
invested to generate as much or
as little cash flow as needed.
For help with determining the best approach to meeting your retirement income needs, speak with an
RBC financial advisor.
Please stop by your nearest branch and ask us to review your
retirement income plan with you, or contact us at 1-866-365-2123.
RBC has a lineup of retirement
cash flow solutions to help you make your assets
last so you can retire with confidence.
Important information about our financial planning services can be found at the bottom of our
homepage.
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