Planit:Override Default Withdrawals
Withdrawal from AccountOn the Pensions and Other Revenues you can create a forced withdrawal from your registered accounts. In the past our approach has always been to do withdrawals from the non-registered accounts first, leaving sheltered money
This feature has another powerful benefit. If you have clients who have a significant amount of capital in their locked in registered accounts (LIF/LRIF etc.), you can now set up a structured withdrawal in order to force the money in those locked in accounts to last for the whole of the client’s life. Let’s look at an example:
Here I have a client with a significant amount of their registered capital in locked in accounts, $75,000. I have created a “Withdrawal from Account” record and called it “LIF Withdrawal”. Note I’ve set the amount to $5,000 indexed to inflation running to mortality. This will ensure that this $75,000 is not withdrawn using the “Use as Required” approach thus recognizing the limitations the client has when accessing the locked in capital. I used the Registered Payout Calculator to identify the amount of the withdrawal using a target withdrawal indexed to inflation.