[Soft music playing.]

[Planning Your Retirement Income.]

[Jamie talking to the camera in front of a grey background.]

[CIBC logo. Jamie Golombek, Managing Director, Tax and Estate Planning, CIBC Financial Planning and Advice.]

Jamie Golombek: The whole issue of retirement income planning is certainly a hot one as our demographic ages, and we're looking at ways to retire. 

[Sources of Retirement Income. Two pieces of a pie chart appear. They are similar in size and account for just under 50% of the pie chart. One of them is labelled CPP/QPP and the other is labelled OAS.]

When it comes to sources of retirement income, we've got the basic government sources, so you're probably entitled to Canada Pension Plan.

 Many of us will be entitled to old age security. 

[Jamie talking to the camera in front of a grey background.]

So we can quantify those numbers based on you know, your age, your work and get estimates of what those dollar amounts will be.

[Sources of Retirement Income. Pie chart with two pieces re-appears. One is labelled CPP/QPP and the other is labelled OAS. Then a third piece of the pie chart appears. The new piece is labelled Company Pension Plan.]

If you work for a company that has a company pension plan, then you'll be getting a pension income on a monthly basis when you retire. 

[Jamie talking to the camera in front of a grey background.]

You can go to the pension plan and get an estimate of what that number is actually going to be. 

[Sources of Retirement Income. Pie chart with three pieces re-appears. They are labelled CPP/QPP, OAS and Company Pension Plan. Then a fourth piece of the pie chart appears. The new piece is labelled RRSP.]

Then beyond that, it really depends on what other funds you have saved. So for example, you may have an RRSP. 

[Jamie talking to the camera in front of a grey background.]

There's an obligation to withdraw money from a RRIF, which is the successor of the RRSP, starting at age 72.

[Sources of Retirement Income. Pie chart with four pieces re-appears. They are labelled CPP/QPP, OAS, Company Pension Plan and RRSP. Then the label of the fourth piece of the pie changes from RRSP to RRSP & TFSA.]

We have Tax Free Savings Accounts, if you've been putting money away every year into the TFSA, those also may form a source of retirement income.

[Sources of Retirement Income. Pie chart with four pieces re-appears. They are labelled CPP/QPP, OAS, Company Pension Plan, and RRSP & TFSA. Then a fifth and final piece of the pie chart appears. The new piece is labelled Non-registered.]

And then finally, of course, we have our non-registered accounts. 

[A senior couple sitting on the couch in their living room, happily looking at something on a tablet.]

And again that is also available to you as a source of retirement income by drawing down on that pool of capital. 

[How much do you need in retirement?]

[Jamie talking to the camera in front of a grey background.]

I would look at the big picture and look at how much of your retirement income you need on an annual basis. 

[An advisor and a client looking at something on a tablet.]

Work with an advisor to run estimates to life expectancy and beyond, and then you'll decide if there are any legacies that you want to leave as part of your estate plan.

[What about taxes?]

[Jamie talking to the camera in front of a grey background.]

Taxing also play a huge role in planning your retirement income. Certain types of retirement income are going to be taxable like CPP and OAS. Pension plan will be taxable. 

[A young couple sitting together at a desk in a home office, discussing something that they’re looking at on a tablet.]

Tax free savings accounts we know withdrawals are completely tax free. 

[A senior woman looking at something on a tablet.]

We also know that in a non-registered account, if you set up something called the systematic withdrawal plan, where you take money out of account every single month, a large portion of your withdrawals may be what's called a return of your original capital; your ACB, your adjusted cost base — in which case you don't pay tax on that. 

[A senior couple standing together in a large, bright living room, discussing something that they’re looking at on a tablet.]

If you do receive a pension or you're taking money out of the RRIF, and you're over the age of 65, you could also take advantage of pension income splitting, which allows you, if you have a spouse or partner, to take up to 50% of your income and have it taxed in that perhaps lower spouse or partner's hands. 

[How do you draw down your retirement income?]

[An advisor and a client are seated at a table in an office, discussing something that they see on a laptop.]

Perhaps the biggest question that we often get asked in retirement income is, “which source of capital I draw on first?” 

It's only when you sit down with an advisor and you look at your specific situation, including any other income, perhaps you're still working or consulting in retirement. 

[A senior couple sitting together on a couch, looking at a piece of paper and discussing it.] 

If you're married or living with a partner, look at their income situation. 

[Jamie talking to the camera in front of a grey background.]

It’s only when looking at the combined total expected retirement income that we can come up with a concrete plan for you, to guide you as to which pool of assets should be drawn on first.

[Top 3 tips to maximize your income in retirement.] 

My top 3 tips for retirement planning:

[Tip #1: Calculate all sources of retirement income.]

[Jamie talking to the camera in front of a grey background.]

I’d say number one: gather all your sources of retirement income including any government entitlements, pension plan retirements, get those estimates all up front.

[Tip #2: Look at how your income will be taxed.]

[Jamie talking to the camera in front of a grey background.]

Number two: looking at optimization strategies, in terms of which pool of assets you should be taking out first, and also whether pension income splitting might help you and your situation.

[Tip #3: Speak to an advisor.]

[Jamie talking to the camera in front of a grey background.]

And finally speak to an advisor. It's only when the advisor reviews your entire situation all your sources of income, that that individual can advise you what the best way to maximize your own personal retirement income is.

[Take action and contact your advisor today.]

[This is video is provided for general informational purposes only and does not constitute financial, investment, tax, legal or accounting advice nor does it constitute an offer or solicitation to buy or sell any securities referred to. Individual circumstances and current events are critical to sound investment planning; anyone wishing to act on this document should consult with his or her advisor. The information contained in this video has been obtained from sources believed to be reliable and is believed to be accurate at the time of publishing, but we do not represent that it is accurate or complete and it should not be relied upon as such. All opinions and estimates expressed in this video are as of the date of publication unless otherwise indicated, and are subject to change. ®The CIBC logo is a registered trademark of Canadian Imperial Bank of Commerce (CIBC). The material and/or its contents may not be reproduced without the express written consent of CIBC.]