Retirement Income for Retirees
You have been saving for retirement during your working years through work sponsored retirement plans, individual savings plans such as a Registered Retirement Savings Plan.
Registered Retirement Savings Plan (RRSP)
A retirement savings plan where contributions are made to a tax-sheltered plan. The contributions grow with investment earnings.
The retirement benefit is a lump sum. The lump sum can be used to provide retirement income (RIF) or can be used to purchase a pension for the lifetime (lifetime annuity) or for a certain period of time (annuity certain).
it is required that at age 71, the RRSP be converted to a Registered Income Fund (RIF).
Retirement Income Fund (RIF)
A registered retirement income fund (RRIF) is an arrangement between you and a carrier (an insurance company, a trust company or a bank) that we register. You transfer property to the carrier from an RRSP, a PRPP, an RPP, an SPP, or from another RRIF, and the carrier makes payments to you.
The minimum amount must be paid to you in the year following the year the RRIF is entered into. Earnings in a RRIF are tax-free and amounts paid out of a RRIF are taxable on receipt.
Tax Free Savings Account (TFSA)
The Tax-Free Savings Account (TFSA) is a flexible, registered, general-purpose savings vehicle that allows Canadians to earn tax-free investment income to more easily meet lifetime savings needs.