During your working years, you will put away savings for your retirement. After retirement you will need to use these savings to pay for your day-to-day needs.
Many people now enjoy a long retirement, living well into their 80s or 90s so you will want to make sure your money lasts as long as possible. Set up or revise your budget to ensure you pace your spending appropriately. Find a good balance between spending on items that are not necessary and saving your money for expenses you may incur in the future.
Converting your savings into retirement income may have tax and other implications depending on the type of account you have for your savings. A Registered Retirement Savings Plan (RRSP), for instance, will mature at the end of the year that you turn 71 years old. At that time, you will need to either transfer it to a Registered Retirement Income Fund (RRIF), purchase an annuity or withdraw the money. For most people, converting your RRSP to a RRIF is the best option however, it is important to understand the benefits and tax implications of each choice before you make a decision.
Speak to your financial advisor and develop a retirement plan early to help ensure you are able to make your income last as long as possible.