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Registered Retirement Income Fund (RRIF)

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Registered Retirement Income Fund (RRIF)

What is a RRIF?

As you save for retirement through your working years, you’ll likely make tax-deductible contributions to an RRSP. When you stop working and earning income, however, you can no longer make RRSP contributions. Further, by the end of the year that you turn 71, you’ll need to close out your RRSP and decide what to do with the funds. If you withdraw all your RRSP savings at once, you’ll face a heavy tax burden.

This is where the Registered Retirement Income Fund (RRIF) comes in. A RRIF is a tax-sheltered account that pays you a steady stream of income in retirement. It’s like an RRSP, but instead of putting money into it, you take money out of it. You can convert your RRSP savings to a RRIF whenever you choose, provided it’s no later than the end of the year that you turn 71.

Benefits of a RRIF

Tax sheltered savings: By transferring your RRSP funds into a RRIF, your money still grows, tax free. You only pay taxes on the amounts you receive as income each year.

Choice: Like an RRSP, a RRIF is an “umbrella” type of plan, in which you can hold different types of investments, from GICS to mutual funds, stocks and bonds.

Flexibility: A RRIF offers a steady income stream in retirement. You can withdraw as much as you like, provided it’s above the required annual minimum.

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Making withdrawals from a RRIF

Each year you’re required to withdraw a minimum dollar amount from your RRIF. This amount depends upon your age and the plan value at the beginning of the year. The minimum is calculated as a percentage that steadily increases as you get older.

For example, at age 69, you’ll have to take a minimum of 4.76% from your RRIF annually. By the age of 72, that amount goes up to 5.4%, and by the age of 80, the amount is 6.82%.

Investing options for your RRIF

Savings accounts

Access to guaranteed funds, whenever you need them.


Complement a balanced portfolio with variety of low-risk, guaranteed investments.

Mutual Funds

Diversify your portfolio and increase your potential returns with a professionally managed investment.

Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. Unless otherwise stated, mutual funds, other securities and cash balances are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions.