What happens to your RRSP when you retire?
Prior to retirement, people maximize their contributions to their RRSPs, top up their children’s RESPs and put whatever is left over into their TFSAs and non-registered accounts.
Once they hit retirement, the mystery about investing their savings to draw an income while unravelling these plans begins, and the biggest concern they face becomes not outliving their money.
There has been a great deal of research into investing for retired seniors, and with average life expectancy continually increasing, the rules of thumb regarding investment withdrawal rates will face demanding stress tests as fixed-income rates of return dwell at historic low levels. Read More…