If you are approaching retirement, determining how you are going to fund your retirement involves careful planning. In today's dollars many people will require between 60% and 80% of their current income to maintain their present lifestyle. However, if you take into account the effects of inflation and other factors, your income needs may prove to be considerably more.

The decisions you make now concerning your RRSP maturity options can have a tremendous impact in later years. To finance your retirement lifestyle you'll need to choose income options appropriate to your situation. You'll also need effective management to make your retirement capital last. Your Financial Planner can help you calculate your retirement income needs and resources. Once this is established, you can determine the most appropriate RRSP maturity options available to you.

While you can select an RRSP maturity option at any time, you must absolutely do so by the end of the year which you turn 71 if you wish to maintain tax-sheltered status on your registered assets. If you fail to select and RRSP maturity option Canada Customs and Revenue Agency requires your RRSP to be deregistered with the entire amount becoming fully taxable. This additional income could push you into a high tax bracket and may also cause you to lose some government benefits and income-related tax credits. Deregistration puts an end to tax-free compounding of RRSP assets.

Maturity options for your RRSP are as follows:

• Transfer your RRSP to one or more Registered Retirement Income Funds (RRIF)
• Transfer your RRSP to one or more Registered annuities
• Use a combination of both