Benefits of 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must make minimum annual withdrawals, and payments received from a RRIF are included in the income of the year they’re withdrawn.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?
- Investors who are or are approaching 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.
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.
- Choose from a wide range of investment options from Mackenzie Investments.
- Use an advisor to create a comprehensive plan and keep informed about tax rules and regulations related to RRIFs.
More information about RRIFs
To find the RRIF investment strategies that are right for you, contact your financial advisor.
Applications and Forms
- Multi-Plan Application (413 KB PDF)
- Locking-In Supplement for a LIF, RLIF, PRRIF or LRIF (211 KB PDF)
- Locking-In Supplement for a LIRA or Locked-in RSP or RLSP (166 KB PDF)