Registered Retirement Income Fund (RRIF)



Turning 71? This is the time to convert an RRSP into an income-generating investment like a Registered Retirement Income Fund (RRIF), which provides a stream of income during retirement, maintaining the benefits of a registered tax shelter and continued investment growth.

RRIFs are a powerful way to turn the funds in RRSPs into personal pension plans. Here's why:

  • RRIF holders can earn interest from their investments.

  • RRIF holders retain control of their investment.

  • RRIFs provide a monthly stream of income during retirement.

  • RRIFs maintain the benefits of a registered tax shelter and continued investment growth.

  • RRIF holders can choose an income schedule that best suits their lifestyle needs.

The law requires that individuals convert their RRSPs to retirement income by the end of the year in which they turn 71. Failing to do so, the entire amount accumulated in their RRSPs would become taxable. On the other hand, any principal income earned in an RRIF is allowed to grow tax-free and will only be taxable upon withdrawal

RRIF holders may withdraw all or some of the funds in their RRIFs every year. However, they are required by law to withdraw an annual minimum payment. The total amount of withdrawals each calendar year, after the year in which the RRIF is set up, must be at least the minimum amount. Within this range, RRIF holders may withdraw any amount they wish, and thus determine the number of years their fund will last.

All Renaissance Investment funds are eligible as investments for registered products such as RRIFs.