Access your money when you need it, for whatever you need it for in retirement.
It’s like a Registered Retirement Savings Plan (RRSP) in reverse. An RRSP helps you save for retirement through annual contributions. A RRIF does the opposite, requiring you to take minimum annual withdrawals from your savings to help fund your retirement.
- Convert your RRSP to a RRIF at any time, before Dec. 31 of the year you turn 71.
- Choose how you’ll invest your money.
- The government determines the minimum amount you must take out each year.
- However, you have flexibility on how much you withdraw over the minimum amount and when you’ll receive it.
- All your RRIF withdrawals are taxable as employment income.
- Use our handy calculator to see how much income you’ll get from your retirement savings.
You may have more than one type of retirement savings (i.e., pension plan, RRSP, etc.). Depending on the type, both a RRIF and a life income fund (LIF) can help you turn those savings into income.
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RRIF |
LIF |
Both |
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Converts RRSP savings to retirement income. |
Converts pension plan savings into retirement income. |
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Minimum and maximum withdrawal amounts. |
Choose a variety of investment options including segregated funds, mutual funds and more. These investments are tax-free while in the fund. |
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You only pay income tax on the money you withdraw each year. |
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You may designate your spouse as a beneficiary. The money rolls over tax-free if you die first. |
The information provided is based on current laws, regulations and other rules applicable to Canadian residents. It is accurate to the best of our knowledge as of the date of publication. Rules and their interpretation may change, affecting the accuracy of the information. The information provided is general in nature, and should not be relied upon as a substitute for advice in any specific situation. For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors.
You can take money from your RRIF any time, with no maximum. However, the more income you take out in the short term, the more tax you may pay and the less money you’ll have left in the long term.
You may designate a beneficiary for your RRIF. For a beneficiary other than your spouse, the value of your RRIF will be added to your income for the year of your death and taxed accordingly.
If your spouse is your designated beneficiary, your RRIF’s lump sum value is passed to your spouse and remains tax-deferred. It may be reinvested in an RRSP (if your spouse is under age 69), annuity or a RRIF.
If you live in Manitoba or Saskatchewan, you can use a PRRIF to access even greater flexibility in managing your retirement savings. Contact an advisor for more details.