The Chambre de l’assurance is pleased to announce the publication of the newest edition of CSFMag+. This issue focuses on a crucial step in personal financial planning: retirement decumulation, meaning the withdrawal of accumulated funds to cover your needs.
In what order should you use the different available tools? How can you spread out tax payments and ensure you have enough income for life? There are many factors to consider, and they require reliable advice from qualified professionals who adhere to rigorous standards. A plan tailored to your needs and actual means is essential to make the best choices for your situation.
Life expectancy tends to increase, which is good news, but it also represents a risk when planning your retirement finances. Experts interviewed for this feature emphasize that it is best to establish a plan well before retirement. Doing so helps determine the order in which to use public programs and personal savings tools, while optimizing withdrawal sequencing to spread out annual tax obligations.
Public programs: Funds left on the table
There are strong arguments for delaying the use of public programs such as the QPP and Old Age Security (OAS) as much as possible. Yet many Quebecers still hesitate to make this choice. These programs have the advantage of paying benefits for life, thereby reducing “longevity risk.” Moreover, if you postpone your application within the allowed limits, the amounts are significantly higher. This means you can enjoy guaranteed higher benefits for the rest of your life.
Covering all aspects of retirement decumulation
The feature also addresses many other aspects of this stage of financial planning, including protecting heirs, philanthropy, essential legal documents, and situations specific to newcomers and immigrant women in particular.
“When we talk about retirement planning, the focus is often on saving, which is normal, but many savers also wonder what happens once retirement begins,” said Chantal Lamoureux, President and CEO of the Chambre de l’assurance. “This comprehensive feature published by the Chambre is a goldmine of information for both advisors and the clients they support, to help them successfully navigate this essential stage.”