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Maximize Retirement Income from Your RRSP

Last updated: Jul. 15, 2013 

retirement income rrspThere are a number of withdrawal options available to you as well as financial planning strategies that can maximize the income you receive from your RRSPs in retirement.

Your RRSP Income Options

  • Withdraw funds and pay tax on the full amount
  • Transfer RRSP to RRIF
  • Purchase a fixed term or life annuity

Remember, you must withdraw or transfer the funds from all of your registered retirement savings plans (RRSPs) before the end of the year in which you turn 71.

Financial Planning Strategies for Converting Your RRSPs to RRIFs or Annuities

  • Maximize contribution in final year and carry-forward deduction to minimize income levels and maximize OAS payments
  • Make over-contribution in December of final year
  • Make spousal contributions where spouse is under 71

There are a number of factors that could affect your decision, including:

  • Size of your RRSP
  • Current and future income needs
  • Taxation
  • Rates of return
  • OAS claw backs

You should speak to a financial advisor to discuss the various retirement options and financial planning opportunities you have to maximize your retirement income.

All FBC Members receive financial and estate planning as part of membership.