How Does the Survivor Scenario AI Strategy Work?

The Survivor Scenario AI Strategy adjusts a retirement plan based on the possibility of one or both partners passing away earlier than expected. Here's how it works:

1. Life Expectancy Adjustments: The strategy simulates different scenarios where one partner passes away early, affecting their income and benefits (e.g., CPP, OAS, pensions).
2. Income Adjustments: When one partner dies, the surviving partner may lose certain income sources. The AI strategy takes into account Survivor Benefits (e.g., CPP), but there is no survivor benefit for OAS. The platform adjusts the income based on this.
3. Tax Impact: Without income splitting, the surviving partner may face higher taxes due to larger withdrawals from registered accounts (e.g., RRSP). The strategy can recommend faster RRSP meltdown to reduce taxes and increase available funds.
4. Rollover of Accounts: The platform handles the rollover of TFSA and non-registered accounts to the surviving spouse, preserving tax advantages.
5. Scenario Testing: The strategy allows for testing multiple survivor scenarios to see how the plan holds up under different circumstances (e.g., one or both partners passing early).