What will you do with your RRSP when you turn 71?
You might know about the deadline for closing your RRSP. But do you know what you’ll do with your money then? Maybe you’ve been saving in your registered retirement savings plan (RRSP) for decades, or maybe you only started in recent years, once the mortgage was paid and the nest emptied. But either way, there’s a RRSP deadline looming in your future, and it’s not the 1st of March: By the end of the year you turn 71, you are required by law to close down your RRSP.
What will you do with your RRSP money? Just as it took you years of discipline to save it, you’ll want to take a long-term, disciplined approach to spending it.
You have 4 main options:
- Take it in cash
- Purchase an annuity
- Put it into a registered retirement income fund (RRIF)
- Some combination of the above
Before you decide which route to take, it’s important to get all the facts plus some expert advice, because once you’ve committed to an option, you may not be able to change your mind.