- You want to begin taking an income from your retirement savings plan.
- You want the flexibility to be able to take lump-sum withdrawals if you need extra cash
- You want to make sure your spouse can inherit your retirement savings tax free
A registered retirement income fund (RRIF) is a great way to use your RRSP savings to generate retirement income while continuing to have taxes deferred on your investment growth. It’s 1 of the 3 choices you have when you’re required to move your money out of your RRSP by December 31 of the year in which you turn 71.
In many ways, a RRIF works like an RRSP in reverse: Instead of putting money in, you take an income out. You do have to make a minimum withdrawal every year. What’s more, a RRIF keeps you in control of how your money is invested, letting you choose from:
Often you can keep your current investments and transfer them to your new RRIF.
With all the options that are available, guidance from an advisor can be a valuable part of your planning process. Talk to your advisor or find an advisor today to learn how a RRIF fits into Money for Life, Sun Life's customized approach to your financial and retirement planning.