Unlike traditional registered pension plans, this plan offers greater flexibility for when and how you begin receiving retirement income. Since it is made up of a RRSP, TFSA, and RRIF, you have more control over the timing and structure of your withdrawals.
For example, you can begin drawing income even while working part-time later in your career. RRSPs must be converted to a RRIF by the end of the year you turn 71, at which point minimum annual withdrawals are required. TFSAs, on the other hand, offer even more flexibility—you can start taking income whenever it suits your retirement goals, without mandatory withdrawal rules.
To support your transition into retirement, the plan includes tools to help you create a personalized retirement income strategy. These tools can assist in converting your savings into steady income and coordinating with other sources, such as government benefits.
There are no processing fees during the drawdown phase, so you can focus on enjoying your retirement without worrying about extra costs.