Over the course of your retirement, you will convert your registered savings plan into income funds or annuities so that you may draw upon your funds as required. These options, which vary according to your plan that you own, allow you to regularly withdraw money while continuing to accumulate tax-free savings from investment income.
1. RRIF-Registered Retirement Income Fund
RRIF acts as an extension of a registered retirement savings plan. It allows you to utilize the savings you have accumulated during your working life. You have until December 31 of the year you turn 71 to convert the amounts invested in your RRSP to RRIF
2. LIF-Life Income Fund
If your savings have been placed in a locked-in retirement account (LIRA), a life income fund will allow you to periodically withdraw the funds you require to live comfortably.
3. Annuities (Guaranteed Income)
Annuities are ideal if you would like to convert a portion of your savings into a fixed and guaranteed income that provides you with regular payments. There are two types of annuities: life and certain.