What is a RIF?

The Canada Revenue Agency (CRA) requires you to convert your RSP to a retirement income option by December 31 of the year you turn 71. This can either be done with an annuity or a Retirement Income Fund (RIF).

With a RIF, your income options are flexible. You can withdraw more than the minimum amount set by the CRA – so you’re in control of your retirement income. Plus, your money will continue to grow tax-deferred, meaning it keeps working for you.

Minimum income payments

You don’t contribute to a RIF – rather, you take minimum payments out every year. The amount of those payments is determined by CRA. You can withdraw more than your minimum amount subject to any tax implications.* You have the option to receive your payments according to your schedule – annually, semi-annually, quarterly or monthly.

Any retirement income – whether it’s from a RIF or an annuity – is considered taxable in the year it is withdrawn, so keep in mind it will be added to your other sources of income at tax time. RIF payments are also subject to a withholding tax, the amount of which varies depending on how much you withdraw and where you live.*

*To learn more refer to the Canada Revenue Agency website

A RIF from Oaken

With a RIF from Oaken, the funds you transfer from your RSP can continue to earn tax-deferred income, giving your savings the opportunity to keep growing. Plus, you benefit from the security provided by the guaranteed principal and interest features of our GICs that are eligible for the Canada Deposit Insurance Corporation (CDIC) coverage, up to applicable limits.

Make the most of your retirement income with proven investment strategies

Creating a seamless income stream in retirement is something that many Canadians find challenging. One strategy to consider is to open multiple GICs across several terms – this way, your investments mature at different times, giving you access to funds over time instead of all at once. Learn more about GIC laddering here