3 Financial Steps You Must Take At 65
May 31, 2023
When it comes to planning for your retirement, there are several important steps to take to ensure a secure financial future. By completing and crossing these items off of your to-do list when you are 65, you can pave the way for a financially secure and well-planned retirement.
#1 RRSP to a RIF Conversion
It is important to convert your RRSP to a RIF, which is a retirement fund that you can draw income from for retirement purposes. You could get a pension income tax credit on the first $2,000 of income that you draw from the RIF account in the year you turn 65 or beyond, even if you do not plan to retire at 65.
#2 Recalculate your CPP at age 65 and consider delaying it until age 70
Secondly, it is crucial to recalculate your CPP at age 65 and understand the benefit of delaying it until you turn 70, especially if you have collected CPP disability, child rearing years, or survivor benefits.
#3 Create an estate plan, including a power of attorney and a will
Lastly, you should consider setting up a meeting with a financial advisor to discuss your estate plan, which includes creating a power of attorney and a will, and even discuss the idea of gifting some of your assets.
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