Ensure you have a good understanding of the basics of retirement. It is time to relax and start your retirement journey. Your plan is already in place – live your dreams.

Knowing the right time to retire is not easy. It is a difficult decision that involves more than just your paycheque. Money, age and health are the three main factors most Canadians consider when choosing to retire. The age of 65 has typically been the benchmark, but we are now living longer, and time has changed when and what retirement looks like for many.

What does my retirement paycheque look like?

Income streams for retirement generally come from these sources:

  • OAS/CPP/QPP
  • RRSPs/RRIFs
  • Work pension plans
  • Assets/investments/savings
You may also consider a part-time job. Your FSW Advisor will coach you through the impact these types of income streams can have on your OAS and potential claw-back.
Your FSW Advisor will guide you through all the pension plan options available to you once you have made the decision to retire. However, understanding your pension plan before you retire is important. Take the time to connect with your HR professional or pension plan provider to ensure you understand:
  • The type of plan – Defined Benefit (DB) or a Defined Contribution (DC) plan
  • The amount of pension income you can expect
  • If there is an option to purchase more pension credits before retirement to increase your income during retirement
  • If your pension is indexed to keep up with the cost of living
  • If there are survivor benefits? Are they reduced in any way
  • If your pension income will affect any government benefits What happens to your pension upon your death

Converting your RRSP to a RRIF

Timing is everything when it comes to converting your RRSP (Registered Retirement Savings Plan) to a RRIF (Registered Retirement Income Fund).

Your RRSP allowed you to save for retirement, a RRIF turns those savings into accessible income.

You can convert your RRSP to a RRIF at any time, but you must do it by December 31 of the year you turn 71. There may be an advantage to starting this process before the age of 71, depending on your personal situation.

We work with you through this process to maximize your benefits and keep your taxes minimal.

What does retirement mean to you?

Retirement is like a snowflake—each one is unique. Just as no two snowflakes are alike, no two retirement plans are the same.

Your retirement should be tailored to your individual needs, goals, and circumstances. You are the only one who can define what your dreams are as you embark on this journey. Here are some things to consider:

 

  • Are you emotionally and financially ready to leave the work force?
  • What does your social network look like? Do you have hobbies, activities or volunteerism planned?
  • Do you want to work on a part-time basis to have more money and maintain a social connection?
  • Do you want to stay in your current home or downsize?
  • How does retirement affect your family? Do you want to provide for your grandchildren, or do you need to provide care or support for your children/parents?
  • Has your health or the health of your spouse/partner changed? Are you prepared for these types of changes?