If you've made regular contributions to an RRSP over a period of years, you've accumulated substantial savings. By transferring these savings to a RRIF, or Registered Retirement Income Fund, you can assure yourself control and flexibility in managing your retirement income.

A RRIF is one of several tax-sheltered retirement income options for RRSP funds. It provides an income that can last for your lifetime - or your spouse's. Since the income is spread over your retirement years, so are the taxes.

Making the switch

You should consider converting your RRSP funds to a RRIF when you need more cash on a regular basis. Income from a RRIF also qualifies for the Pension Tax Credit after age 65.

Keep in mind that the minimum mandatory payment from a RRIF cannot be sheltered from taxation. It is mandatory to convert your RRSP savings to a RRIF at age 71.

RRIF options

PenFinancial Credit Union offers a variety of RRIF term deposit options with competitive interest rates. There are no start-up fees, annual administrative fees or services fees, you have the flexiblity to set the flow of payments from your RRIF, and you can change the size of the payments from time to time (provided they meet the minimum requirements).

Some things to keep in mind 

  • You cannot contribute directly to a RRIF. Funds must be transferred from a RRSP or other tax-sheltered investment.
  • You don't pay taxes when funds are transferred from your RRSP to your RRIF; however, you do have to pay taxes on any money removed from the RRIF.
  • You can purchase a RRIF any time before your 71st birthday and you don't have to take any income in the year of purchase.
  • Each year after that, there's a minimum payment that must be withdrawn based on your age and the total value of your RRIF at the beginning of the year.

Peace of Mind

  • Deposits insured up to $250,000 by the Financial Services Regulatory Authority of Ontario.
  • For further information on deposit insurance coverage, please visit www.fsrao.ca/
  • At PenFinancial Credit Union, registered savings plans are fully insured with no limit on the maximum amount (RRSP, RRIF, LIF, LIRA, RESP, TFSA)

Sound Financial Advice

Check out our RRIF calculator or contact your PenFinancial Advisor today for more information about RRIFs or to discuss your retirement plan.


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