You've worked for years to build your retirement savings and you want to be sure that you get the most out of it. It is important to take the time to analyze your sources of retirement income and plan your budget.

Did you know that on or before December 31 of the year in which you turn 71, the amounts accumulated must be converted? The RRSP to a RRIF, the LIRA or the locked-in RRSP to a LIF, or all of these to an annuity...

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Converting your RRSP into a Registered Retirement Income Fund allows you to periodically withdraw the amounts you need (subject to the minimum withdrawal set by law) and to continue to manage your investments while accumulating tax-free revenue.

The Life Income Fund is a locked-in retirement account in which you can transfer amounts from locked-in savings accounts from a former employment. It allows you to periodically withdraw the amounts you need (subject to the minimum withdrawal set by law) and to continue to manage your investments while accumulating tax-free revenue.

A life annuity is a contract under which a life insurance company agrees to pay you, for your lifetime, a specified periodic amount in exchange for amounts accumulated in your RRSP/RRIF, locked-in retirement plan or unregistered savings.

If your employer offers you a supplemental pension plan (or pension fund) when you leave the business for a reason other than retirement, you can transfer the money to a locked-in retirement account. You can then manage it yourself tax-free and make the investment choices that suit you. Upon retirement, the LIRA will be converted into a Life Income Fund (LIF), which will then pay you a retirement income.

Amounts held in a TFSA or outside of a registered plan can be converted into regular income term savings. This allows you to determine the amounts and frequency of payments that will be automatically made to you over a term of 1 to 5 years. You can even change these terms every year. By choosing term savings redeemable before maturity, you can withdraw a lump sum of up to 20% of the balance annually, free of charge and without penalty.

The TFSA allows you to accumulate money that grows tax-free, and with non-taxable withdrawals, it is ideal for saving for a project like buying a car, renovating your home, starting a business, travelling, buying a recreational vehicle, etc.