Retirement planning

Wherever you are on the path to retirement – saving for retirement, protecting retirement savings or maximizing retirement income, RBC Dominion Securities will help ensure that your retirement years are comfortable and secure.


The retirement planning strategies that make sense when you’re 45, don’t always make sense when you’re 55, 65 or older. That’s why our solutions and services are personalized to meet the needs of each stage of your life.

  • You’re already well on the way to building your retirement savings and now you’re looking for greater choice, flexibility and tax-efficient strategies with the benefit of professional advice.
  • You’re in your pre-retirement years and you’re looking to protect your retirement savings, and prepare for the next stage of your life.
  • You’re already retired and looking for advice and solutions to help you maximize your retirement income, ensure your savings last, and provide a legacy to your family.

Our retirement planning solutions could be ideal if you:

  • Need in-depth financial advice tailored to your retirement needs and objectives
  • Want a self-directed retirement savings plan that gives you choice, flexibility and advice from a professional advisor
  • Earn a high annual income and are looking for tax-efficient ways to save beyond a traditional RRSP/RRIF
  • Can benefit from enhanced retirement plans, including special Individual Pension Plans (IPPs) for incorporated professionals and business owners

Building your retirement

Saving for retirement

From customizing your Registered Retirement Savings Plan (RRSP)—to providing alternative solutions for unique circumstances—we can help ensure that you're taking advantage of the most tax-effective ways to build your nest egg.

To help you save for retirement, we offer:

Strategies for maximizing your retirement savings

When you’re many years away from retirement, we can help you maximize the growth of your retirement savings a number of ways. Some of the key strategies your Investment Advisor might recommend include:

  • Investing early to maximize the impact of tax-deferred compounding over time
  • Contributing to your RRSP earlier in the year or on a monthly basis to enhance growth potential
  • Investing in growth-oriented investments while time is on your side

Custom registered retirement savings plans

An RRSP is one of the best ways you can save for retirement on a tax-deferred basis. Based on your needs, your Investment Advisor can custom-design either an individual or spousal RRSP:

  • Individual RRSP - This type of RRSP is registered in your name only. The investments held in the plan and the tax benefits derived from it are yours.
  • Spousal RRSP – This type of RRSP enables you to contribute to an RRSP in your spouse’s name. The objective is to even out your and your spouse’s income during retirement, so that your combined tax rate is lower than it would be if one spouse earned all the income.

In building your RRSP, your Investment Advisor has access to a complete universe of investment products, including:

Solutions for Saving Beyond Your RRSP

In addition to (or in place of) your RRSP, there are several other ways we can help you save more for your retirement on a tax-effective basis. This is especially important if you're a business owner or professional with a high annual income. For example, we can assist you with:

  • Individual Pension Plans (IPPs)
    An IPP is an employer-sponsored registered pension plan that offers potentially higher tax-deductible contributions for a corporation than an RRSP. IPPs are ideally suited for self-employed incorporated business owners or professionals aged 40-71 who earn at least $100,000 annually.
  • Insured Retirement Plans (IRPs)
    An IRP can provide you with tax-free retirement income, plus a tax-free death benefit for your estate. An IRP requires that you have sufficient funds on hand to make annual deposits and pay the insurance cost. Plus, to qualify for insurance coverage, you need to be in good health.
  • Retirement Compensation Arrangements (RCAs)
    Also known as “super-sized pension plans,” RCAs are intended to provide supplemental pension benefits to business owners, professionals and executives. There are no set limits on the amount you can contribute into an RCA, provided the amount is “reasonable. ”
  • Personal Investment Accounts
    A non-registered personal account that focuses on investments that receive more favourable tax treatment can also help meet your retirement goals.

Maximizing Retirement Income

As you're enjoying retirement, we can help you balance your need for safety and security with your desire for higher income.

To help you maximize your retirement income, we offer:

Strategies for Boosting Your Income Stream

When you're retired, we can help you maximize your retirement income stream in a number of ways. Some of the key strategies your Investment Advisor might recommend include:

  • Delaying conversion of your Registered Retirement Savings Plan (RRSP) until you are legally required
  • Withdrawing the least amount possible from your Registered Retirement Income Fund (RRIF) to maximize the tax-deferred growth it provides
  • Enhancing the longevity of your savings with an element of growth

The RRSP Maturity Option that’s Right for You

Although you can convert all or part of your RRSP at any time, all your RRSP assets must be converted by December 31 in the year you turn 71. You have three main options for converting your RRSP:

  • Registered Retirement Income Fund
    Generally the most popular option, a RRIF is essentially an extension of your RRSP. Your RRSP’s assets can be transferred to a RRIF on a tax-deferred basis. Plus, you enjoy the same flexibility and control over how your investments are managed as you do with your RRSP. The key difference between an RRSP and RRIF is that you must withdraw a certain amount of income every year from your RRIF.
  • Annuity
    You can receive a guaranteed stream of income for life, or for a fixed term up to age 90, by converting all or part of your RRSP into an annuity. An annuity offers stable income, but you lose flexibility by locking in at a specific interest rate. There are several different types of annuities that may be appropriate depending on your situation, including insured annuities. You may even wish to convert a portion of your RRSP into an annuity, while putting the rest into a RRIF.
  • Cash
    Simply "cashing-in" or "deregistering" your RRSP is the most costly maturity option. This is because the entire amount is fully taxable at your marginal rate.

When it comes time to convert your RRSP, your Investment Advisor can help you decide which option is right for you.

Investments with the Potential for Higher Income

There are several alternatives that can help you maximize your retirement income. Some of the options your Investment Advisor might recommend include:

  • Corporate Bonds
    Carefully selected high-quality corporate bonds can provide higher interest payments compared to a government bond, without substantially higher risk.
  • Income Trusts
    Income trusts are publicly traded equities that distribute most of the cash earned from underlying assets directly to investors. Income trusts can provide much higher income than bonds, but the distributions are not guaranteed and can vary.
  • Dividend-Paying Stocks
    You can also boost your after-tax income with dividends from Canadian corporations, which are effectively taxed lower than interest income due to the dividend tax credit.
  • Insured Annuities
    Compared to a traditional Guaranteed Investment Certificate (GIC), insured annuities typically offer higher after-tax income. An insured annuity pays a steady, guaranteed income for life. The income is a combination of return of capital and earned interest. Since the interest portion is taxable, some of the payment is used to pay taxes. Another portion funds an insurance policy, which provides a tax-free benefit to your beneficiaries when your estate is settled. As with any annuity, an insured annuity is irrevocable once purchased.

Locked-In RRSPs/LIRAs for Your Pension Payout

If you need to receive a lump sum payment from your company's Registered Pension Plan (RPP), your Investment Advisor can help you determine whether you can transfer the accumulated benefits to a Locked-In RRSP or Locked-In Retirement Account (LIRA).

A Locked-In RRSP or LIRA is very similar to a regular RRSP except that funds can only be withdrawn by converting to a:

  • Life Annuity
    Available in all provinces, a life annuity gives you a steady lifetime income stream fixed at a certain rate.
  • Life Income Fund (LIF)
    Also available in all provinces, a LIF gives you control over how your assets are invested. There are minimum and maximum amounts of income you must receive from a LIF. In addition, except in Quebec, you must convert your LIF to a life annuity before you turn 81.
  • Locked-In Retirement Income Fund (LRIF)
    LRIFs are available in Newfoundland and Labrador. They are similar to LIFs, except there is no requirement to convert remaining funds to a life annuity after you turn 80.
  • Prescribed Retirement Income Fund (PRIF)
    Locked-in accounts under Saskatchewan pension legislation have another option called a PRIF. Only those annuitants who are at least age 55 (or the early retirement age established by the plan where the money originated) are eligible for the PRIF. The main advantage of the PRIF compared to the LIF and LRIF is that the PRIF has no maximum withdrawal limits. However, minimum withdrawals are still required.

Regulated by: