1. Retirement Income Made Easy: Moving your RRSP into a RRIF is the key to starting withdrawals for your retirement. You must transition to an RRIF or start taking income by December 31 of the year you turn 71. It’s the next step in your retirement journey.

2. Flexibility in Withdrawals: Unlike some other income plans, a RRIF gives you the freedom to withdraw as much or as little as you like, with the only requirement being the minimum annual withdrawal mandated by law.

3. Tax-Deferred Growth: Your investments continue to grow tax-deferred in a RRIF until you begin withdrawals. If you pass away, your RRIF can be transferred to your spouse without triggering any tax penalties.

How Does a RRIF Work?

1. Start with a Strategy: As you approach 71 or plan to retire soon, it’s important to discuss your retirement strategy with one of our advisors. We’ll help you review your time frame, withdrawal needs, and risk tolerance to create the right plan for you.

2. Investment Flexibility: Although contributions to your RRIF are no longer allowed, you can still adjust your investment portfolio. Your savings can continue to grow in a tax-sheltered environment until you decide to withdraw funds. Plus, you can easily transfer your RRSP investments into your RRIF without needing to cash them out.

3. Minimum Withdrawals: Once your RRIF is set up, you’ll need to withdraw at least the minimum required amount each year based on your age. Unlike a LIF, there is no upper limit on withdrawals, meaning you can take out as much as needed for your retirement. Keep in mind that any withdrawal will reduce the amount in your RRIF and is subject to tax.

4. Tax-Free Transfer to Your Spouse: If you pass away before your spouse, your RRIF can be transferred to them without any tax implications, ensuring that your partner’s financial security remains intact.