If you have an RRSP and/or locked-in savings that came from a pension plan, you have to make a choice about what to do with that money by December 31 of the year in which you turn 71. While you may take out your RRSP money in cash, taxes can make that a very expensive choice. And locked-in money must be used for retirement income except in very special circumstances.
That leaves 2 choices. Buying an annuity is one option for all or a portion of your savings. An alternative option is to transfer your money to another registered product that will pay you a regular stream of retirement income while keeping the balance of your savings in a tax-deferred investment.
An advisor’s job is to help you understand how different products – each with its own features and options – can best meet your individual needs. Talk to your advisor; if you don't have an advisor, find one you're comfortable working with. There’s no cost to talk to an advisor.
To get the most out of the meeting with your advisor, take some time beforehand to think carefully about what you want to achieve. To help your advisor recommend the right products for your needs, it will be helpful if you gather some basic information about your income, assets and liabilities – including your savings, investment and pension plan statements.
Your advisor will help you with any paperwork that’s required and ensure your money is transferred. Shortly after making your investment, you will receive a statement confirming the details of your account. Your portfolio may be reviewed regularly to confirm your strategy and assess progress toward your goals.