Late-Career Retirement Planning
The tailwinds of experience are driving you forward. As you anticipate retirement, excitement about your next chapter may be building. Questions might be building too. The biggest ones might be:
- Can I leave the money in my CRA account when I retire?
- How do I take my money out after I retire?
- What will my taxes be?
Your CRA client services team is available to help answer your questions and smoothly transition you into retirement.
Here are the steps you should take within six months to a year before your anticipated retirement:
Develop an income plan
You’ll be more prepared to make wise decisions about your retirement income once you have a specific estimate of your anticipated budget requirements in retirement.
Take time to calculate all of the expenses and financial assets you expect in retirement. Factor in all sources of income that will be in effect once you retire. This includes Social Security, any pensions, investments and your retirement savings.
Once you gauge your expenses contrasted against your income, you will understand how much you need to withdraw per month from your retirement account.
Speak with CRA's retirement counselors
Plan your withdrawal strategy
You have more options for withdrawing your retirement income besides simply pulling it all out. Of course, that’s one choice, but you also can arrange for periodic withdrawals, or even select an annuity product for a guaranteed stream of income (additional fees apply). You don’t have to close your CRA plan when you retire – take only what you need and keep the rest secure and working for you in your CRA account.
Prepare for RMDs