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What is a RRIF?

In the year an investor turns age 71 (or any time prior to age 71 depending on personal circumstances), they must close down their Registered Retirement Savings Plan (RRSP) and choose from several investment options. One option is a Registered Retirement Income Fund (RRIF) which provides a set yearly cash flow determined by the investor to suit their needs.

Like an RRSP, any interest, capital gains or dividends will compound on a tax-deferred basis. Investors must make minimum annual withdrawals, and payments received from a RRIF are included in the income of the year they’re withdrawn. Unlike an RRSP, however, it is not possible to make any new tax-deductible contributions to a RRIF.

What are the Benefits?

  • Investments compound tax-free as long as they remain in the plan.
  • Holdings can be chosen from a wide range of options.
  • The ability to leave remaining RRIF assets to heirs.
  • Can split RRIF income with their spouse if spouse is at least 65 years of age.

Who is a RRIF Suited For?

  • Investments compound tax-free as long as they remain in the plan.
  • Holdings can be chosen from a wide range of options.
  • The ability to leave remaining RRIF assets to heirs.
  • Can split RRIF income with their spouse if spouse is at least 65 years of age.

Maximize Your Savings

  • Investors should rebalance their portfolio when they retire to ensure it is earning enough short-term income.
  • Take a long-term view to ensure investments will generate sufficient growth to see investors through retirement.
  • Set up a systematic withdrawal plan (SWP) for non-registered investments to help supplement RRIF income while keeping investments well diversified and offering tax benefits.
  • Work closely with our portfolio manager and target your ideal risk tolerance and have a solution built specifically for you. 

Use an advisor to create a comprehensive plan and keep informed about tax rules and regulations related to RRIFs.