Retirement income plus tax-sheltered growth
If you have an RRSP and/or locked-in savings that came from a pension plan, you have to make a choice about what to do with that money by December 31 of the year in which you turn 71. While you may take out your RRSP money in cash, taxes can make that a very expensive choice. And locked-in money must be used for retirement income except in very special circumstances.
That leaves 2 choices. Buying an annuity is one option for all or a portion of your savings. An alternative option is to transfer your money to another registered product that will pay you a regular stream of retirement income while keeping the balance of your savings in a tax-deferred investment.