In fact, you must convert your registered savings plans by December 31st of the year you turn 71, although you don’t need to start drawing an income until the following year. Non-registered savings plans, employee profit-sharing plans and tax-free savings accounts are not subject to any age or withdrawal limits, and may be kept invested or converted to cash and/or annuities.
If you’re a member of an employer-sponsored Defined Benefit Pension Plan (DBPP)1, you’ll need to make a request to start receiving your pension. Your HR department will be able to tell you when you are eligible to make the request, and what your retirement timing options and DBPP payment options are.
Each type of savings plan gives you different options for turning it into income. We’ve listed the different savings plans and their corresponding income options below.
What are the different retirement income options available to you?
The “Money in” boxes on the left of the following table represent your retirement savings. Each type of savings plan has a corresponding retirement income product (the middle boxes). Your savings are transferred into these products at retirement.2 On the right, the “Money out” boxes explain how you are able to receive income from these products throughout your retirement.