To learn how a RRIF can convert your RRSP into retirement income, watch:

Video Transcription

Did you know that you can't keep your retirement savings in an RRSP forever? When the time comes, many move their funds into a Registered Retirement Income Fund, or RRIF.

What are Registered Retirement Income Funds (RRIFs)?

Simply put, a RRIF is one of the ways you can convert an RRSP into an income stream to fund your retirement.

When you turn 71, you can no longer keep your savings in an RRSP. But this doesn't mean that you need to withdraw all your savings at once and pay a large tax bill.

Maximize tax deferral

One option to consider is to convert your RRSP into an income-producing RRIF, where your savings can continue to grow tax-free.

Control your funds

Every year, you'll have to take out a minimum portion of your savings from your RRIF, which is subject to tax. There's no limit on how much you can withdraw. You can take as much as you want, when you want.

Tax free benefits

You can also name your spouse as beneficiary so RRIF assets can be transferred to your spouse's RRIF or RRSP, on your death.

And you control your investments

A RRIF allows you to invest your money in many ways, from GICs to mutual funds, so it keeps growing and working for you.