{"id":2140,"date":"2026-07-08T10:49:42","date_gmt":"2026-07-08T15:49:42","guid":{"rendered":"https:\/\/lifeannuities.com\/blog\/?p=2140"},"modified":"2026-07-08T10:49:42","modified_gmt":"2026-07-08T15:49:42","slug":"which-is-better-a-rrif-or-a-life-annuity","status":"publish","type":"post","link":"https:\/\/lifeannuities.com\/blog\/retirement\/which-is-better-a-rrif-or-a-life-annuity","title":{"rendered":"Which Is Better a RRIF or a Life Annuity?"},"content":{"rendered":"\n<p>A RRIF and a life annuity do not have to be an all-or-nothing decision. Some retirees keep part of their retirement savings in a RRIF for flexibility, while using part to create guaranteed income for life.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"quick-answer\">Quick Answer<\/h2>\n\n\n\n<p>A Registered Retirement Income Fund (RRIF) may be the better option, if access to money and leaving an estate to your beneficiaries are your priorities. A life annuity is the better option if you want a guaranteed monthly income for life and protection against outliving your savings. Many Canadian retirees use a combination of both options.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">On This Page<\/h3>\n\n\n\n<p><a href=\"#quick-answer\">Quick Answer<\/a><br><a href=\"#turning-71\">Turning 71?<\/a><br><a href=\"#rrif-vs-annuity\">RRIF vs. Life Annuity<\/a><br><a href=\"#rrif-withdrawal-requirements\">Understanding Your RRIF Withdrawal Requirements<\/a><br><a href=\"#rrif-calculator\">RRIF Minimum Withdrawal Calculator<\/a><br><a href=\"#when-rrif-may-be-worth-keeping\">When a RRIF May Be Worth Keeping<\/a><br><a href=\"#when-life-annuity-may-be-worth-exploring\">When a Life Annuity May Be Worth Exploring<\/a><br><a href=\"#use-both\">You May Be Able to Use Both<\/a><br><a href=\"#annuitize-rrif\">Should You Annuitize Your RRIF?<\/a><br><a href=\"#personal-comparison\">Request a Personal Comparison<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"turning-71\">Turning 71<\/h2>\n\n\n\n<p>By the end of the year you turn 71,your  registered retirement savings plan (RRSP) generally needs to be converted into an income option, such as a RRIF or registered annuity. Read: <a href=\"https:\/\/lifeannuities.com\/which-is-better-rrif-or-annuity.html\" data-type=\"link\" data-id=\"https:\/\/lifeannuities.com\/which-is-better-rrif-or-annuity.html\">Are You Turning 71?<\/a> <\/p>\n\n\n\n<p><strong>Your Retirement Income Choices<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>RRIF<\/li>\n\n\n\n<li>Life Annuity<\/li>\n\n\n\n<li>RRIF and Life Annuity Combination<\/li>\n\n\n\n<li>Cash Withdrawal<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"rrif-vs-annuity\">RRIF vs. Life Annuity<\/h2>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Question<\/strong><\/td><td><strong>RRIF<\/strong><\/td><td><strong>Life Annuity<\/strong><\/td><\/tr><tr><td>Do I keep access to my money?<\/td><td>More access to your savings<\/td><td>No cash access after purchase<\/td><\/tr><tr><td>Who manages the investments?<\/td><td>You manage the investments<\/td><td>Insurance company manages them<\/td><\/tr><tr><td>Can I leave money to beneficiaries?<\/td><td>Remaining funds can be passed on <\/td><td>Depends on options chosen<\/td><\/tr><tr><td>Can I outlive the income?<\/td><td>Yes, can run out<\/td><td>Income lasts for life<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"rrif-withdrawal-requirements\">Understanding Your RRIF Withdrawal Requirements<\/h2>\n\n\n\n<p>A RRIF requires minimum annual withdrawals. Those required withdrawals generally rise as you get older, which can affect how long your savings remain invested.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center\">RRIF Minimum Withdrawal Rates<\/h3>\n\n\n\n<figure class=\"wp-block-table aligncenter\"><table class=\"has-fixed-layout\"><thead><tr><th class=\"has-text-align-center\" data-align=\"center\"><strong>Age<br>At start of year<\/strong><\/th><th class=\"has-text-align-center\" data-align=\"center\"><strong>Annual Minimum Withdrawal (%)<br>1\/(90-age) x 100<\/strong><\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\">60<\/td><td class=\"has-text-align-center\" data-align=\"center\">3.33%<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">61<\/td><td class=\"has-text-align-center\" data-align=\"center\">3.45%<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">62<\/td><td class=\"has-text-align-center\" data-align=\"center\">3.57%<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">63<\/td><td class=\"has-text-align-center\" data-align=\"center\">3.70%<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">64<\/td><td class=\"has-text-align-center\" data-align=\"center\">3.85%<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">65<\/td><td class=\"has-text-align-center\" data-align=\"center\">4.00%<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">66<\/td><td class=\"has-text-align-center\" data-align=\"center\">4.17%<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">67<\/td><td class=\"has-text-align-center\" data-align=\"center\">4.35%<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">68<\/td><td class=\"has-text-align-center\" data-align=\"center\">4.55%<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">69<\/td><td class=\"has-text-align-center\" data-align=\"center\">4.76%<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">70<\/td><td class=\"has-text-align-center\" data-align=\"center\">5.00%<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">71<\/td><td class=\"has-text-align-center\" data-align=\"center\">5.28%<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\" colspan=\"2\"><a href=\"https:\/\/lifeannuities.com\/articles\/2026\/rrif-withdrawal-rates.html\" data-type=\"link\" data-id=\"https:\/\/lifeannuities.com\/articles\/2026\/rrif-withdrawal-rates.html\">View All RRIF Withdrawal Rates<\/a> <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"rrif-calculator\">RRIF Minimum Withdrawal Calculator<\/h3>\n\n\n\n<p>Enter your age to instantly see the minimum percentage you must withdrawal from your RRIF this year.<\/p>\n\n\n\n<p><a href=\"https:\/\/lifeannuities.com\/rrif-withdrawal-calculator.html\" data-type=\"link\" data-id=\"https:\/\/lifeannuities.com\/rrif-withdrawal-calculator.html\">Calculate Your RRIF Minimum Rate<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"when-rrif-may-be-worth-keeping\"><br>When a RRIF  May Be Worth Keeping<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>When you need access to money for emergencies or major expenses<\/li>\n\n\n\n<li>Leaving an estate to beneficiaries is a priority<\/li>\n\n\n\n<li>Comfortable managing investments<\/li>\n\n\n\n<li>Other dependable income from pensions, CPP, OAS or other sources<\/li>\n\n\n\n<li>You want the potential of investment growth<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"when-life-annuity-may-be-worth-exploring\"><br>When a Life Annuity May Be Worth Exploring<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You are concerned about outliving your savings<\/li>\n\n\n\n<li>Market changes make you uneasy<\/li>\n\n\n\n<li>You want dependable income for basic monthly expenses<\/li>\n\n\n\n<li>You want income protection for a spouse<\/li>\n\n\n\n<li>You prefer less responsibility for managing investments<\/li>\n<\/ul>\n\n\n\n<p>A combined approach lets you use a life annuity to cover everyday expenses while keeping part of your RRIF available for future needs. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"use-both\"><br>You May Be Able to Use Both<\/h2>\n\n\n\n<p>A RRIF can provide flexibility and potential investment growth while a life annuity can help cover essential expenses with income you cannot outlive. <a href=\"https:\/\/lifeannuities.com\/rrif-annuity.html\">Compare  RRIFs and Life Annuities<\/a> <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Guaranteed income for essentials<\/li>\n\n\n\n<li>RRIF flexibility for emergencies<\/li>\n\n\n\n<li>No market exposure with a life annuity<\/li>\n\n\n\n<li>Potential growth with remaining RRIF investments<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"annuitize-rrif\"><br>Should You Annuitize Your RRIF?<\/h2>\n\n\n\n<p>Answer a few quick questions to see if turning part of your RRIF into a life annuity makes sense. <a href=\"https:\/\/lifeannuities.com\/assessment\/should-you-turn-part-of-your-rrif-into-a-life-annuity.php\" data-type=\"link\" data-id=\"https:\/\/lifeannuities.com\/assessment\/should-you-turn-part-of-your-rrif-into-a-life-annuity.php\">Take the 7-Question RRIF Assessment?<\/a><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignleft size-large\"><a href=\"https:\/\/lifeannuities.com\/assessment\/should-you-turn-part-of-your-rrif-into-a-life-annuity.php\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"538\" src=\"https:\/\/lifeannuities.com\/blog\/wp-content\/uploads\/2026\/07\/rrif-assessment-1024x538.jpg\" alt=\"\" class=\"wp-image-2144\" srcset=\"https:\/\/lifeannuities.com\/blog\/wp-content\/uploads\/2026\/07\/rrif-assessment-1024x538.jpg 1024w, https:\/\/lifeannuities.com\/blog\/wp-content\/uploads\/2026\/07\/rrif-assessment-300x158.jpg 300w, https:\/\/lifeannuities.com\/blog\/wp-content\/uploads\/2026\/07\/rrif-assessment-768x403.jpg 768w, https:\/\/lifeannuities.com\/blog\/wp-content\/uploads\/2026\/07\/rrif-assessment.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure><\/div>\n\n\n<h5 class=\"wp-block-heading has-text-align-center\"><br><\/h5>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"personal-comparison\">Need a Personal RRIF-to-Annuity Comparison? <\/h2>\n\n\n\n<p>An independent financial advisor can help compare a RRIF and a life annuity based on your retirement needs. <br><br><a href=\"https:\/\/lifeannuities.com\/productform-rrif.html\" data-type=\"link\" data-id=\"https:\/\/lifeannuities.com\/productform-rrif.html\">Request a Personal Comparison<\/a><br><br>To review different annuity options use our <a href=\"https:\/\/lifeannuities.com\/assessment\/annuity-product-finder.php\" data-type=\"link\" data-id=\"https:\/\/lifeannuities.com\/assessment\/annuity-product-finder.php\">Annuity Product Finder\u2122<\/a>.  Answer a few quick questions to see which annuity type fits your retirement goals, including joint life, insured annuities, impaired annuities and more.<br><br><br><\/p>\n\n\n\n<p><strong>Disclaimer:<\/strong> This page is for educational purposes and i snot personal financial tax or legal advice.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Retirees often use both options for their retirement needs. A RRIF for flexibility with access to savings and a life annuity for guaranteed income for life. See which option makes sense for you.  <\/p>\n","protected":false},"author":1,"featured_media":2159,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[459,387,136,411,36,455,458,456,457],"class_list":["post-2140","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retirement","tag-canadian-retirement-planning","tag-guaranteed-income","tag-life-annuity","tag-retirement-income","tag-rrif","tag-rrif-vs-annuity","tag-rrif-withdrawal","tag-rrsp-conversion","tag-turning-71"],"_links":{"self":[{"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/posts\/2140","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/comments?post=2140"}],"version-history":[{"count":20,"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/posts\/2140\/revisions"}],"predecessor-version":[{"id":2166,"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/posts\/2140\/revisions\/2166"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/media\/2159"}],"wp:attachment":[{"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/media?parent=2140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/categories?post=2140"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lifeannuities.com\/blog\/wp-json\/wp\/v2\/tags?post=2140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}