About
RRIF
The Registered Retirement Income Fund (RRIF) is a structured and tax-efficient vehicle designed to provide income during retirement. It allows individuals to convert accumulated retirement savings into a stream of withdrawals while maintaining control over how remaining funds are invested.
Upon retirement, or by the end of the year in which they turn 71, individuals must convert their Registered Retirement Savings Plan (RRSP) into a RRIF or another eligible retirement income option. Funds within a RRIF continue to grow on a tax-deferred basis for as long as they remain invested, with income tax payable only on amounts withdrawn.
RRIFs are subject to prescribed minimum annual withdrawals established by federal regulations and calculated based on the account holder’s age (or, if elected, a spouse’s age). While minimum withdrawals are mandatory, individuals may withdraw more than the minimum if needed, providing flexibility in managing income and taxation throughout retirement.
A RRIF can hold a broad range of qualified investments, including stocks, bonds, mutual funds, exchange-traded funds (ETFs), and Guaranteed Investment Certificates (GICs). This investment flexibility allows retirees to maintain a diversified portfolio aligned with their evolving risk tolerance, income needs, and long-term objectives.
For many retirees, a RRIF forms a central component of their income strategy, offering a balance between structured withdrawals and continued tax-deferred growth. When integrated thoughtfully within a broader retirement plan, it provides both predictability and adaptability throughout the retirement years.
