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…


  1. There is never a silver bullet in the best ideal investment plan for retirees. I have discussed several options in the past with clients and it all depends on what they/you are trying to achieve and ultimately what kind of retirement you want to have. Eveyrone’s ideal for their later years is different. And as such one has to adapt their portfolio accordingly.

    My best advice is to plan it out in detail and know thyself!

  2. Very good read! I didnt know it was common to not exceed 4-5% withdrawal rate when retired.

  3. First time reading about RESPs! Didn’t know such a thing existed.

  4. @Pete i hear ya man. But sadly i doubt the younger generation with their mobile obsession will even consider saving just a few dollars. It’s just not cool they would say.

    I personally think we need to have mandatory school classes that teach the value of saving. that is the only way to solve this crisis.

  5. I’m retired but sadly i started late contributing to my RRSP.

    Word for kids out there, start saving early. There are plenty of reasons to do so including lowerng your tax burden when you are making your most vs when you are retired like me.

    I have steady income coming in but it could be much larger if i was smarter when young.

  6. Is it best to have a portfolio consisting of fixed income securities right now? I have about 40 years before i retire and i assume its best to mostly invest in stocks that are relatively save that give income.

  7. What isn’t fair is how big banks still don’t offer much in RRSP % rate. I find that unless you invest in the stock market your retirement isn’t going to be as rosey as you might think. Unless CRA ups the cap on yearly limits.

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