SESSION OVERVIEW:

The purpose of your client's Registered Pension Plan (RPP) and Registered Retirement Savings Plan (RRSP) is to create a source of income during retirement for your client. Minimizing tax implications of pension payments and transfers out of registered accounts is important to maximizing your client's retirement income. Find out more about new tax reductions for RRIF holders, effective 2020, and consider strategies required to build a pension income for your clients from various sources of income, considering the challenges of recent market volatility.

APPROACH:

Financial advisors need to take tax implications into consideration when building decumulation plans for their clients. Being able to point out tax saving strategies is a value added service clients will need and appreciate, especially since the federal government announced relief measures for retirees during the financial emergency in March 2020. RRIF withdrawal relief and potentially the replenishment of TFSA or non-registered accounts are important topics.

WHAT YOU WILL LEARN:

• Tax rules for deaccumulation from RRSPs, RRIFs and other private pension accumulations
• Potential tax free transfers of various retirement income sources
• The order withdrawal : Layering of income considerations to reduce tax
• The practical application and benefits of pension income splitting

LEARNING ACTIVITIES: To test the learning process, the student will answer multiple-choice questions and contemplate the role of the advisor.