There are two smart options in planning your retirement at age 71: a Life Annuity or a Registered Retirement Income Fund (RRIF).
With a RRIF, retirement income is taken from funds accumulated in a matured Registered Retirement Savings Plan (RRSP). There is a government defined minimum income that must be paid out of the RRIF each year, but no maximum.
Click here for MINIMUMS AND WITHHOLDING TAXES.
An advantage of a RRIF is that you can change the income payments from minimum to level. Also you can withdraw lump sums to meet unexpected financial needs. You retain control and you have two main choices for investment: a fixed interest rate or segregated funds.
Which one do I choose?
Your choice of a RRIF or a life annuity will partly depend on how your financial needs are met by other sources. You might choose a RRIF to enjoy the flexibility it provides.
However, you may want to buy an annuity if you want absolutely no headaches and want the highest possible income with no stock market risks.
Form more information please complete our Annuity Quote Form or our RRIF Form.