Registered retirement income funds (RRIFs)

Saving your money inside an RRSP keeps it growing tax-free - but you can't keep it there forever. Eventually you want to start to spend that money during retirement. You will be required to do this by the end of the year you turn 71.

Many people choose to move their money out of an RRSP to a RRIF, when they're ready to start spending it.

RRIFs give you choice in how your money is invested, letting you choose from:

• Guaranteed investments, like Guaranteed investment certificates (GICs)
• Mutual funds
• Segregated funds
• Other options that reflect your risk tolerance and your overall financial plan

Often you can keep your current investments and move them to a RRIF.

How a RRIF can fit into your financial plan

For people who want to take money out of their RRSP as regular income, RRIFs are an excellent choice.

• You control your investments - The money can be invested in many ways, so it keeps growing and working for you.
   
• You control your income - There is a minimum withdrawal requirement, but in addition to that, you can take as much as you want, when you want. You need to be careful because extra withdrawals can erode your capital and future income.
   
• You maximize tax deferral - Since income is taxed only when it's taken out of the plan, the tax deferral you enjoyed with your RRSP continues with your RRIF.
   
• It can be passed to your spouse tax-free - RRIF assets can be passed directly to your spouse, on your death, without being taxed.
   
• You can convert to more secure guaranteed income at any point in time.

Sample policy pages

If you're interested in reading examples of text that can appear in a policy, you can find it below.

Please keep in mind as you read that not all the provisions you see apply to every policy. It is merely for your reference. When we issue a policy it governs the legal relationship between us and the client. An actual policy can have provisions that are somewhat different from those that you've read here.

• SunSpectrum Registered Retirement Income Fund [PDF, 3 pages, 528 kb]
• SunSpectrum Interest Account - RIF/LIF [PDF, 3 pages, 527 kb]
• Income Master Annuity - RIF/LIF [PDF, 3 pages, 532 kb]

• Understanding investments
• Building your savings
• Enjoying your retirement income
  • Converting your RRSPs into income
  • Converting your Locked-in RRSPs into income
  • Converting your other assets into income
  • Registered retirement income funds (RRIFs)
  • Life income funds (LIFs) and Locked in retirement income funds (LRIFs)
  • SunFlex Retirement Income
  • Payout annuities