“Fred Vettese is the king of can-do retirement planning. Practical, clear advice from someone who knows what you’re up against and has the answers.” — Rob Carrick, Globe and Mail

Canada’s most trusted resource on retirement income is now updated for tumultuous times.

As the global economy faces uncertainty in the face of high inflation — at levels not seen since the 1980s — individuals in retirement or near to it are understandably anxious about their long term-prospects. Canadians need the tools to make better-informed choices to turn their retirement savings into retirement income for life.

This completely revised and updated third edition:

Explains how higher interest rates and higher inflation present both new opportunities and new challenges to retirees Illustrates how the expansion of the CPP (which started in 2019) will affect upcoming retirees Examines the impact of inflation on the deferral of CPP and OAS pensions Explores whether life annuities are still relevant and asks whether there are better products on the market Provides a revamped retirement calculator

Actuary Frederick Vettese demystifies a complex and often frightening subject and provides practical, actionable advice. With over one thousand Canadians turning 65 every day, the cultivation of good decumulation practices — the way in which you draw down assets in retirement—has become an urgent matter that no one can afford to ignore.

Drawing down one’s savings in retirement is something very few retirees do well. They often outlive their money, systematically underspend for fear of outliving their money, or employ inefficient and wasteful drawdown strategies. Retirement Income for Life provides five enhancements that will greatly improve the odds of your retiring well.

List of Tables and Figures
Preface
Introduction
Part I: Identifying the Decumulation Problem

1: Who Should Read This Book?
2: The Thompsons Are Ready to Retire
3: The Thompsons Face Financial Ruin
4: Coping with Spending Shocks
5: Improving on the 4-Percent Rule
6: Withdrawal Strategies to Avoid
7: Investment Risk
8: What if You See a Black Swan?
9: Where the Thompsons Stand


Part II: A Five-Part Solution

10: Enhancement 1: Reducing Fees
11: Enhancement 2: Transfer Risk to the Government
12: Why So Few People Defer Their CPP Pension
13: Enhancement 3: Transfer Even More Risk
14: Progress Report
15: Enhancement 4: Knowing How Much Income to Draw
16: Enhancement 5: Have a Backstop


Part III: Exploring Other Situations

17: What if You Die Early On?
18: Super-Savers and YOLOs
19: How Early Retirement Changes Everything
20: Not Yet Ready to Retire?
21: Complex Situations
22: High-Net-Worth Couples
23: Tax-Sheltered vs. After-Tax Assets
24: Retiring Single
25: Where Do Bequests Fit In?


Part IV: Making It Happen

26: Lingering Doubts?
27: Making the Strategy a Reality
28: A Message for Employers


Appendices

Appendix A: Summary of Takeaways
Appendix B: Summary of LIFs and RRIFs
Appendix C: Details on Using PERC
Appendix D: Quirky CPP Rules You Should Know About
Appendix E: Why the Income Target Is Not 70 Percent


Acknowledgements

“Destined to become the bible of any new or near retiree.” — moneysense.ca on Retirement Income for Life, first edition

“I’m on the record saying that every Canadian retiree and soon-to-be retiree should read Retirement Income for Life by Fred Vettese. It offers five clear strategies for making the most of your accumulated savings and turning it into predictable, sustainable retirement income.” — Boomer & Echo on Retirement Income for Life, first edition

“Must-read book for Canadians who are in retirement or who are preparing for retirement.” — Cut the Crap Investing on Retirement Income for Life, first edition

“A great resource for Canadians who see retirement on the horizon and are beginning to wonder whether it is to be embraced or feared.” — PWL Capital on Retirement Income for Life, first edition