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:

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

Contact the CRA client services team. They can help you prepare for a smooth transition to retirement, discuss distribution options, provide additional resources and answer your questions.


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

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As you approach retirement, you’ll start to be exposed to a term called RMDs. IRS Required Minimum Distribution is an annual calculation based on account balances and IRS-defined life expectancies for the current year. Generally, beginning the year you turn 72, you must begin to withdraw RMDs from your retirement accounts, unless you are still working at that time.

RMD amounts change every year, and are required every year after the aforementioned threshold is met. Also, employer retirement plans can each have their own RMDs, for instance both for your 401(a) CRA account as well as your 457(b) account, if applicable. You cannot pool these RMDs and have them withdrawn from only one of the accounts.