A Complete Canadian Retirement Income Guide

[@Moluccan56]

Great instructional video. A must watch for those who haven’t delved into their retirement strategy. With OAS, I was told that mine would have started automatically if they found there was a clean CRA and or social services benefits history. I still felt better about speaking to a representative.

[@colinmagee5155]

Great video idea. Pretty clear on all these points from other videos but nice to have a summary review all in one place

[@ParallelWealth]

Glad it was helpful!

[@brucegarrod8674]

I love the ongoing information from Adam and the experts he brings in on his channel. We bought a full plan, and very recently an update, so we have clear retirement and decumulations plans. Worth every dime.

[@ParallelWealth]

Thanks Bruce, it was a pleasure for our team working with you on the plan.

[@wrongwayconway]

I transfered my LIRA to my Defined Benefit Pension as a "buyback." It's tax free and helped boost my HOOPP pension.

[@brucebanner2222]

You are the best Adam!!! Thank you so much!

[@ParallelWealth]

My pleasure!

[@AB-jk7tw]

Great advice as always!

[@ParallelWealth]

Thanks for watching!

[@ianleach1869]

Thanks Adam, perfect timing.

[@ParallelWealth]

Very welcome!

[@heidilevens6284]

Another great video, thank you!

[@ParallelWealth]

Glad you enjoyed it!

[@cdnJGSL]

Is RDSP not an income retirement source? Portion of it is taxable (of course after the ten-year lock from the last time the government paid bond/grant), and they force you to withdraw at the age of 60 which in some cases in combination of other income source will make it make sense to retire early. Would be nice to touch a little on disability-related to sort acknowledge their existence.

[@douggibson9084]

Thanks, Adam 👍👍

[@ParallelWealth]

My pleasure!

[@guybeauregard]

Very helpful content.

[@ParallelWealth]

Glad it was helpful!

[@tifonapoletanononhaconfini4442]

Great news for the people of Quebec as of January 1 2025 There is no upper limit related to withdrawals..Vive le Quebec !!! great video btw thx a million

[@johnnyv5995]

Merci!!

[@tifonapoletanononhaconfini4442]

Bienvenue mon ami

[@Pill-AI]

Thanks Adam good information…

[@ParallelWealth]

Glad it was helpful!

[@garth217]

Adam i was looking at changing my RRSPs to a RIF at 60, but my adviser talked me out of it, for one reason and one reason only. The fixed percentages of withdrawals by age. If someone has a very large RRSP your age determines the amount you HAVE TO WITHDRAWAL . That amount has an impact on taxes. I'm now withdrawing an amount that i decide on from my RRSP. That way i can set my own income for the year. By setting the amounts myself i can also set my taxes based on the tax bracket i set to fall in ( to a limited degree) . My RRSP withdrawals dont have fees. By withdrawing from 60 to 71 i decrease the amount of money in my RRSPs when im forced to flip into a RIF and have set % of withdrawals. At 71 being forced to withdraw 5.28 of my RRSPs would have a significant affect on my income and taxes if I didn't start reducing the amounts earlier. Its NOT an RRSP meltdown, its a slow burn as to not jack my income up significantly as it have Defined Benefit Pension with a bridge until 65. Im stabilizing my income streams

[@DoneByD]

So we can assume you're withdrawing less than what the prescribed minimum amount would be if you converted to a RRIF? If not there is really no difference if the money sits in a RRIF or a RRSP. If you are withdrawing less than minimum are you not letting your RRSP grow to a larger amount therefore just kicking the problem down the road? If you don't have the room now to withdraw the minimum how are you going to have the room latter in life when you are also collecting CPP and OAS?

[@garth217]

​@DoneByD unfortunately you assumed wrong. . At 60 the minimum is 3.3%. I took out closer to 4.2%. Yes if I convert to a RIF now I can take more than the prescribed %. But the point is I don't have the government forcing me to take a set amount currently. At 71 I'll do it and have to take the 5% plus minimum. My point is I'm not doing an RRSP meltdown, I'm doing a slow burn that will spread my RRSPs over 25 years vs 10 ..taking CPP at 61 to take less longer. The CPP increases to 70 don't make sense for me because of increases in taxes and OAS clawback if I meltdown my RRSPs over 10 years vs 25

[@ParallelWealth]

Do they charge transaction or withdrawal fees though to pull from the RRSP? Most still do. You can always set up a RRIF and then move some money to it, maybe just a bit more than what you will need in the year.

[@Pmjay00]

@@ParallelWealth RBC Direct Investing Royal Circle benefits have no fees for partial RRSP withdrawals. So, it does exist. I make multiple $5000 withdrawal to keep the witholding tax to 10%.

[@scottvidler1023]

​@@ParallelWealthisn't the only benefit of this method that since the RRIF is a pension that you can split the RRIF withdrawal with a spouse? If you are not going to be doing that then why do the RRSP to RRIF transfer?

[@GarryMurray-i1y]

Only thing I don’t understand is. If a person has a number of different stocks in their diy account and some stocks are down (BCE) and they don’t want to sell those stocks. Do you just set your cash portion of your account to a RIF and take the dividends or do you need to set all your stocks to a RIF first? If so then your minimum withdrawal will go up because now your whole diy account is now turned to a RIF. Confused with what you are saying. Thanks.

[@Nap9340]

Hello. Thanks for this very informative video. Question: If I have multiple LIRAs and I’ve already converted one LIRA to a LIF, can I also convert my other LIRA accounts to the one LIF?

[@ParallelWealth]

Yes you can, as long as they are the same legislation.

[@Nap9340]

Thanks for the quick response. This will help me a lot.

[@Winter8R1]

I've already converted my LIRA (50%) into a LIF with an annual payment commencing in Jan 2025. I have all the funds in my LIF invested so my question is - do I need to convert some of these investments into cash prior to the payment date or does my financial institution do that? If my financial institution does that, how do they know which account to sell in order to draw the money out.

[@rb239rtr]

Talk to your institution. Mine pays monthly, dividends refresh the cash on hand. If my bank needs more than the cash shown for the monthly withdrawals, they first go to a cash savings ETF within the LIF and sell a bit, after that the USD savings etf, then they will call me re selling stocks. What I do is ensure that there is enough cash for the withdrawal every month.

[@Rockymtnchick]

Sorry if this is a stupid question, but can I not just withdraw money directly from my rrsp if I’m taking the money before I’m 71?

[@view23015]

Yes you can . After 71 it’s just a “must” that you start taking money out

[@DoneByD]

Yes you can deregister funds from RRSP. Doing it that way may also come with a transaction fee, and I don't believe that RRSP deregistered income after age 65 is eligible for income splitting (not 100% sure on splitting comment).

[@ronkennedy213]

You can, but you will pay all the taxes owing for that income all at once. Probably at a much higher rate than would need to pay at if you dribble it out year by year

[@Rockymtnchick]

@@ronkennedy213 Oh I didn’t mean all at once, I mean say from age 60 to 70 taking out a bit each year.

[@ronkennedy213]

@@Rockymtnchick My mistake.

[@DoneByD]

I wish the government would allow me to determine the level of tax withheld on automatic monthly withdrawals rather than the institution having to follow CRA 10%, 20% & 30% thresholds. With income splitting and other strategies a withdrawal of more than $15,000 from our RRIF will never incur a 30% tax payable rate upon filing our income taxes. And because of this we have moved to adhoc withdrawals so we don't have to front load the tax payments only to get a large tax refund when we file our income taxes.

[@ramspace]

QPP is now as late as 72.

[@dwaynejeffery3115]

little off topic but have they released the CPP1 CPP2 and EI maximums for 2025 ? If so what are they.

[@dragonfly1146]

CPP1 max earnings 68,500. CPP2 73,200. EI rate 1.66%

[@davecarpenter4917]

@@dragonfly1146 Is CPP max linked to CPI ? Each year, the max limit(s) grows and the last 5yrs average is what determines your CPP payments (in addition to the other variables) when you start. No ?

[@DoneByD]

@@davecarpenter4917YMPE and AYMPE grow according to average wage growth however in 2024 and 2025 they are predetermined as those years are the final two years of the CPP enhancements to higher coverage (25% to 33%). So the 5 year avg for CPP1 moves to $66,020 but the YMPE 68,500 and AYMPE $78,000 is already predetermined. Once you start CPP the annual increases are calculated using the CPI amounts. Before you start CPP the benefit amounts increase by the avg wage growth with caveat as above for 2024 and 2025.

[@Michael_Robinson]

Great information! But I never hear about DCPP. I have an RRSP, a LIRA and a DCPP. My understanding is that the DCPP is the employer provided match from my Defined Contribution Pension Plan, and is locked-in. Is this treated the same as a LIRA or is does it simply unlock at retirement and get treated like an RRSP? 🤔

[@ParallelWealth]

It will move into a LIRA when you retire.

[@wd1598]

Can OAS be deferred for life

[@ParallelWealth]

No, but if you earn too much it essentially would be!

[@Montrealmum]

I wish I could say that I’m looking forward to my retirement but I’m really worried that I won’t have enough money. What’s your take on Bill C 319 proposed by the Bloc Quebecois

[@seolfor4797]

I’m retiring soon and would love the enhanced OAS - but we will just be borrowing to pay these extra payments - more debts for our children to pay

[@Roof_Pizza]

The Liberals won't pass it because it's too expensive. It would cost ~250 million a month they say. It would cost waaay more to increase the OAS for the younger seniors than it did to increase payments to the older ones.

[@colinmagee5155]

That worry is why you should have a plan done. As for C319, only 4-6 years from retirement myself and I'm against it. Approximately 2.5 million people between 65 and 69 in Canada now. That bill would cost an extra 2.1 Billion every year, minimum.

[@murraytown4]

It will never happen.

[@derekcox6531]

@@murraytown4never?

[@KieranDevine]

In your culture HMK is something special. You have no choice but to participate in the "ratrace". In my culture HMK and all its staff look identical to the 1939 leader of Deutschland. And that is all the respect it will ever get from me. I will never lift a fingernail to support your way of life! PERIOD!

[@slyanover]

I move money from RRSP to RRIF on an as needed basis (I'm over 65 and under 71). So if I need $25,000 that's all I transfer over, well actually $35K and change). I then transfer the money from the RRIF to my account paying tax(30%) on the way out, so $35,714.28 * 0.3 is $10,714.28 leaving $25,000 being transferred to my account with the $10K going to CRA. Doing this I can income split with my spouse being as I'm over 65. And I get to leave my RRSP as it is and not worry about minimum withdrawals. Of course that'll all change when I have to convert the whole thing to a RRIF, but that's still years away.

[@garth217]

So you pay taxes twice?

[@slyanover]

@@garth217 RRSP contributions are not taxed. The taxes on that money are paid upon withdrawal. The 30% is a witholding tax and you settle up with CRA when you file your taxes, so you may get some of that back or you may owe more depending on your total income.

[@hydrogolfer]

Curious, when you say paying 30% on the way out, is that something you set up within the RRIF?

[@DoneByD]

@@hydrogolfer RRIF withdrawals tax withholding rates are determined by CRA --- If you are taking out an automatic set amount monthly they look at the total for the year and withhold taxes according to the total annual amount being withdrawn... IE

[@DoneByD]

Not understanding why you don't convert to a RRIF - if you are needing $25,000 each year anyway, and withdrawing $35,714 because of tax withholdings you are probably above the prescribed minimum withdrawal amount anyway. IE To have a minimum withdrawal of $35,714 @ age 65 (factor is 4%) you would need to have an RRIF of $892,857, and if at that level you might want to explore if RRSP meltdown would be beneficial depending upon all other sources of retirement income.

[@timw4369]

You have to have a budget. Thats it. Very easy no planning required

[@AlexClarkcompany]

The incompetence and corruption that runs through this administration are getting more ridiculous. I feel for people with disabilities not getting the help they deserve. Thank you June Renae Matthysse, imagine investing $1.5k and receiving $6.5k in 30 days

[@LouisMorganxb3]

That woman transformed my entire life for the better. Among the folks I've met, June appears to be the most trustworthy. I'm surprised you know her as well

[@BaileyJames-zv2ddd]

I've noticed a lot of people talking about June, she must be amazing for everyone to be saying so many wonderful things about her

[@TechJunky777]

I’ll just move to another country because I won’t be able to afford my own country! 🤷‍♂️

[@garth217]

Bye bye

[@TechJunky777]

@@garth217 Thanks 🫡

[@TechJunky777]

🫡