RRIF (Registered Retirement Income Fund)

RRIF

You can think of a registered retirement income fund (RRIF) as an extension of your registered retirement savings plan (RRSP). Your RRSP is used to save for your retirement while your RRIF is used to provide you with retirement income. The main benefit of a RRIF is that it provides you with flexibility in establishing an income stream during your retirement. Although you’re generally required to withdraw a minimum amount from your RRIF each year, there’s no maximum and you can make withdrawals as often as you wish. Another major advantage of a RRIF is that the assets that remain in the plan continue to grow on a tax-deferred basis until you withdraw them.