Retirement Income Options

Now that your retirement’s at hand, it’s time to turn your hard earned savings into income. Even if you’re not thinking of retirement quite yet, when you hit age 71 you’ll be required to move your RRSPs into a retirement income fund.

Registered Retirement Income Fund (RRIF)

RRIFs give you a level of control and flexibility over your retirement income you won’t find anywhere else. You decide the amount and frequency of payments.

  • There’s a minimum payment you need to take each year after you reach age 71. That minimum payment increases each year as you age.
  • Earnings are tax sheltered until they’re withdrawn.
  • You can transfer funds to your RRIF from an RRSP, a different RRIF, a Registered Pension Plan (RPP), a Deferred Profit Sharing Plan (DPSP), or a commuted RRSP annuity.
  • Put your retirement in context with the help of our RRIF Calculator.
  • See RRIF Product Options.

Saskatchewan Registered Retirement Income Fund (SK RRIF)

SK RRIFs are a perfect option if your money’s in a Saskatchewan pension plan.

  • They work just like RRIFs. The only difference is that SK RRIFs are governed by Saskatchewan pension legislation and the money in your SK RRIF comes out of a Saskatchewan pension plan instead of an RRSP.
  • Depending on what your plan permits, you can transfer funds to your SK RRIF from a Registered Pension Plan (RPP), a Locked-In Retirement Account (LIRA), a Life Income Fund (LIF), a Locked-In Retirement Income Fund (LRIF), or a Saskatchewan Pension Plan (SPP).
  • See RRIF Product Options.

Life Income Fund (LIF)

LIFs are the middle road of retirement income options. You get the flexibility of a RRIF in the early years of your retirement and the security of an annuity in your later years.

  • LIFs governed under Saskatchewan legislation switch from a RRIF to an annuity on December 31 of the year you turn 80.
  • You can transfer funds to your LIF from a Registered Pension Plan (RPP), Locked-in Retirement Account (LIRA) or Locked-in Retirement Income Fund (LRIF)
  • See RRIF Product Options.

Annuities - Credential Financial Strategies Inc.*

If you like to play it safe, annuities are right for you. They’re also a good option if preserving your estate isn’t a main concern.

  • Annuities are like an insurance policy in reverse: You make a large, lump-sum payment and, in turn, the insurer pays you a regular income.
  • The size of your monthly payment depends on your age and sex, current interest rates, the size of your savings, the type of annuity, and whether it’s for an individual or a couple.
  • Payments are generally provided until age 90.
  • You can purchase annuities with money from your RRSP or non-registered funds.

Getting ready to retire? Congratulations! Call our Contact Centre at 1.866.863.6237 to discuss turning your retirement savings into retirement income.

*Credential Financial Strategies Inc. is a member company under Aviso Wealth Inc., offering financial planning, life insurance and investments to members of credit unions and their communities. Your insurance contract will provide details of the coverage available under the plan you choose. Restrictions may apply.