RRSP Centre

• Self-Directed RRSP
• Deduction Limit
• Spousal RRSP
• Investment Options
• Investment Strategies
• RRSP Loans
• How Much Will I Need to Save?
• RRSP Maturity Options
• Annuities
• RRIFs
• Self-Directed RRIF
• How Much Income Will I Need?
• How Long Will My RRIF Last?
• Naming a Beneficiary
• Retirement Planning for Small Business Owners

RRSP Centre

How Long Will My RRIF Last?
At the heart of retirement planning is a detailed analysis of anticipated retirement incomes and expenses. Of course, it's the expenses that are harder to calculate. Once you've come up with a general idea of how much additional cash flow or income you might need from year to year to meet your needs, the next question inevitably will be - how long will my assets last? The answer - that depends.

It depends on factors such as the rate of return on your investments, your personal income tax rate and how much you need on an after tax basis to fund your lifestyle throughout the various stages of retirement.

How Long Will a $150,000 RRIF Last?

This chart shows the effect of various annual withdrawal amounts from a $150,000 RRIF. Let's assume the plan earns a 6% rate of return and the individual is in a 46% tax bracket. You can see that the RRIF will be fully depleted in under 12 years if the after-tax withdrawal is $10,000 per year. Reduce the annual after tax withdrawal to $7,000 and the plan will last an additional 8 years.

Of course, there are many other factors to consider when developing a retirement plan - everyone's situation is unique. Your BMO Nesbitt Burns Investment Advisor can help you develop your own retirement plan that takes into consideration all of your potential future sources of income, expected expenses and all of your investments that will be used to fund your retirement years.

For more information, contact an Investment Advisor at a BMO Nesbitt Burns branch near you.

If you would like a BMO Nesbitt Burns Investment Advisor to contact you, simply complete this brief contact form.