Investing accounts

What is a RRIF?

A Registered Retirement Income Fund (RRIF) is a tax-deferred retirement account designed to turn your retirement savings into a regular stream of income. You can convert an RRSP or other eligible retirement savings to a RRIF by the end of the year you turn 71, or sooner. Withdrawals from your RRIF are taxable as income, and the government requires you to take a minimum amount each year. 

Your RRIF income can help cover the costs of retirement, from everyday living expenses and healthcare to travel, home renovations and unexpected expenses. How you use your income is up to you, giving you flexibility to support the retirement lifestyle you want while meeting the required minimum withdrawals.

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Why choose a RRIF?

Retirement income

Continue to grow your money as you withdraw.

RRIFs are a long-term withdrawal product for your retirement income. Your RRIF allows you to continue to grow your money as you make withdrawals, meaning you can continue to build new savings.

Tax-deferred

You don’t pay taxes until you withdraw.

Similar to an RRSP, funds held within a RRIF grow and are tax-deferred. This means that you don't pay taxes on the investment gains or income generated by the assets held in your RRIF until you withdraw them.

Flexibility

Withdraw more or less depending on the year.

RRIFs are the popular choice because they provide the flexibility to withdraw more or less if needed in a particular year. Plus, you can allocate a portion of your RRIF income to your spouse's income, which can reduce your overall taxes.

How does it work?

To open a RRIF, you must be a Canadian resident and have funds in an RRSP or another eligible retirement savings plan. Once your RRIF is set up, you’re required to withdraw a minimum amount each year, starting the year after you open it. The minimum is based on your age and the value of your RRIF at the beginning of the year. 

You remain in control of how your RRIF is invested and can choose from options such as mutual funds, GICs, stocks and bonds. You can also withdraw more than the required minimum if you need additional income. You can name beneficiaries for your RRIF, allowing any remaining funds to pass to them as a lump sum or through ongoing payments after your death.

Is this right for you?

Right for you if:

  • You want to continue investing and growing. Since you're not required to withdraw all your funds immediately, you can leave a significant portion of your savings invested, allowing it to continue to grow. This is particularly beneficial if you anticipate a long retirement!
  • Keeping your money in a tax-sheltered investment is ideal. Your funds held with the RRIF grow tax-deferred, meaning you don't pay taxes on the investment gains or income generated by the assets held in the RRIF until you withdraw them. This can help you compound your investments more quickly over time.
  • You want to pay less on your taxes each year. When you make withdrawals from your RRIF, they are taxed as ordinary income, but since you're retired you may be in a lower tax bracket than during your working years. This results in lower taxes on your RRIF income.

May not be right for you if you: 

  • There is tax to be considered. RRIF withdrawals are taxable income, meaning they can impact your overall tax situation. If you have other sources of retirement income that already place you in a higher tax bracket, additional RRIF withdrawals could increase your tax liability.
  • You need liquidity and flexibility. RRIFs have mandatory minimum withdrawals, which may not align with your income needs or financial goals. If this is the case, consider other investment options like a TFSA.
FAQs

Common questions.

Here’s what people ask us the most.

You must convert your RRSP by the end of the year you turn 71. You can choose to convert it to a RRIF sooner if it fits your retirement income needs.

You must withdraw a minimum amount from your RRIF each year, starting the year after you open it. The minimum is based on your age and the value of your RRIF at the beginning of the year.

Yes. RRIF withdrawals are generally taxable as income in the year you receive them. The amount of tax you pay depends on your overall income and tax situation.

You can continue to invest the money held in your RRIF and choose from eligible investment products such as mutual funds, GICs, stocks and bonds.

Yes. You can designate beneficiaries for your RRIF so the remaining funds can pass to them after your death. How the funds are transferred and taxed depends on the beneficiary and your circumstances.

Have questions?

We're here to help.

Not sure which investment option is right for you? Our advisors can help you understand your choices, explore different options and create a plan that fits your goals and financial situation.

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Effective January 1, 2026, our RRIF terms and conditions changed. The changes do not affect the day-to-day operation of your account. It will only impact the final payout if the balance of your contract drops below $100. A copy of the updated terms and conditions can be found here. 

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