Who should invest in Registered Retirement Income Fund (RRIF)

Canadians entering or already in retirement – and especially those with RRSPs – should learn more about RRIFs. That’s because any Canadian with an RRSP is required to convert it to a retirement income option by Dec. 31 of the year in which they turn 71. One option is to transfer money from your RRSP to a RRIF.

With a RRIF you can invest your money in a range of options, such as mutual funds and segregated funds. However, with a RRIF you don’t make contributions like you do with an RRSP – instead, you’re required to make minimum withdrawals each year.


Put simply, a RRIF provides you with income during your retirement years. RRIFs are flexible, too – you can make withdrawals when you need them. So, if a family emergency arises, you can withdraw additional money from your RRIF at any time.

When you convert your RRSP into a RRIF, your investments may continue to grow tax-free. That means you can continue to build your wealth after making the conversion. Aside from the mandatory minimum withdrawals, you have control over the amount and frequency of your withdrawals.* Additionally, you can pass on your RRIF investments to your spouse tax-free when you die.

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 Your decision should be made with the help of someone who really understands the product.