Retirement Income Plans
Visit each of the sections below to find out more about Retirement Income Plans and how to utilize them to manage and control your retirement finances.
A Registered Retirement Income Fund (RRIF) is somewhat the reverse of a Registered Retirement Savings Plan (RRSP). Instead of placing money in your RRSP you now withdraw money from your RRIF for income after you retire.
You must follow certain rules, particularly statutory minimum withdrawals each year. You don’t pay tax on investment earnings in your RRIF as long as it stays in the plan; but you pay tax when you withdraw money from your RRIF for income. If there is any money left in your RRIF when you die, it goes to your estate.
A Spousal Registered Retirement Income Fund (SPRRIF) is a RRIF that you create with money from a spousal RRSP.
A life income fund (LIF) is a specific type of Registered Retirement Income Fund (RRIF) from which you can draw retirement income. The amount in a LIF originates from a supplemental pension plan. Unlike the RRIF which has no withdrawal maximum, you cannot withdraw more than an authorized maximum amount each year from a LIF. Like the RRIF you must withdraw the minimum required under tax rules. You are not required to make a withdrawal during the year in which the LIF is opened.