Registered Retirement Income Fund (RRIF)

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Overview

In the year an investor turns 71 (or earlier, depending on personal circumstances) they must close their Registered Retirement Savings Plan (RRSP) and choose from several retirement income options. One option is a Registered Retirement Income Fund (RRIF), which provides flexible annual cash flow based on the investor’s needs.

What are the RRIF 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.

RRIF income can be split with a spouse if they are at least 65 years of age.

Who is a RRIF suited for?

Investors who are approaching or have reached age 71 and want to take advantage of continued tax-deferred growth and flexibility by rolling their RRSP into a RRIF.

Investors who want to withdraw cash from their RRSP in the short term.

Investors who want to ensure they have enough cash flow to enjoy a long, secure retirement.

Five ways advisors can help clients optimize retirement income

  • Incorporate RRIFs into a broader retirement income strategy by coordinating RRIF withdrawals with registered and non-registered assets.
  • Review asset allocation at retirement and develop a decumulation strategy that balances income, growth, tax efficiency and estate goals.
  • Help manage taxable income by integrating RRIF payments with RRIF withdrawals and other income sources.
  • Consider a systematic withdrawal plan (SWP) to complement RRIF income, support diversification and enhance tax efficiency.
  • Provide ongoing guidance and reviews to help clients adapt to changing markets, tax rules and personal circumstances.

RRIF calculator

Planning for retirement can be complex, but our RRIF calculator can make it easier. Work out minimum withdrawals and how long your client’s savings will last.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.