Government rules require all RRSPs to be cashed in or converted to income by December 31 of the year you turn 71. You can choose to do this earlier, if you wish.
You have 3 choices:
Most people prefer not to cash out because all the money will be taxed in 1 year.
Sun Life product types that offer RRIF registration are:
The options you choose depend on what you need and whether you want a guaranteed income stream. Many people find that using a combination of these options best fits their needs.
A "locked-in” RRSP may also be called a “locked-in retirement account (LIRA)”, depending on the jurisdiction in which your money is registered. But whatever the account is called, locked-in money originally came from an employer or association pension plan and has rules attached.
“Locked-in” money is treated differently than money in a regular RRSP, because the government wants to ensure that money in a registered pension plan will only be used for retirement income. If you put your locked-in money into a LIF or LRIF, there is a minimum amount that you must take out and a maximum amount that you can take out from the plan each year. These rules vary by province.
Locked-in money can be put into an annuity or any of the following income products that offer LIF or LRIF registration:
You may have assets outside of registered accounts that can also be used to help fund your retirement:
Because money from these sources is not registered, you can do whatever you want with it, including: