FAQ: Why Do I Have Contributions to Savings and Investments Starting Later in Retirement?

If there is excess cash flow in retirement (typically when RRIF or LIF Minimums escalate later in retirement) the platform will reinvest this extra cash flow in TFSA and Non-Reg accounts. This reinvested income is essentially increasing success rate because it’s not being spent, it’s just being shifted from “left pocket to right pocket”.

If you go to Planning > Projections > Table and open the account columns using the “>” arrow you can see where the platform is putting this excess cash flow.

Or go to Planning > Summary, this also provides a nice condensed overview.

Rather than invest that excess income you could explore some increased spending throughout retirement. This will decrease the success rate though, so it’s a balance. To test this, make a copy of your scenario, the click the “Lifetime Spending” column in the AI Strategy table, this will re-rank the strategies by increased spending (but lower success rate and estate value). Then you can explore higher spending in retirement by activating one of the increased spending strategies.