An important aspect of personal fianncial planning is identifying and understanding your sources of income into the future and into retirement. In your earlier years this likely includes employment income and/or business income. In the years between retiring from work and collecting government pension this may include company pension and planned registered retirement plan withdrawals. In your senior years this may also include government pension and seniors assistance. For some there may also be inheritance.
It is important to determine when your income is expected to be the lowest and to plan to withdraw personal retirement plan amounts at that time to fill the income gap and to minimize tax. If you plan to retire before you collect government pension then the period between may be the best time to withdraw part of your personal retirement plan as income, then reduce it when government pension kicks in. That raises the question, when should I retire and when should I start collecting pension. A personal financial plan based on RealMoneyPlan can allow you to do “what if” scenarios and determine how much to save, what type of investments to hold and when to withdraw it.