If you've made regular contributions to an RRSP over a period of years, you've probably 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 your RRSP funds.  It provides an income that can last for your lifetime - or your spouse's.  Since this income is spread over your retirement years, so are the taxes.

You can convert your RRSP funds to a RRIF at anytime you need cash on a regular basis (your retirement savings, now becomes your retirement income).  However, the Canada Income Tax Act requires an individual who owns an RRSP, to mature the plan by the end of the year in which the planholder turns 71.  The planholder then has the option of using the funds to purchase a life annuity, rolling the funds into a RRIF, or receiving a lump-sum payment from the RRSP.

The RRIF is the most popular option for RRSP savings to provide income during retirement.  A RRIF offers the most flexibility, while allowing your savings to remain tax-sheltered and under your personal control.

RRIF Facts

  • You cannot contribute directly to a RRIF.  Funds must be transferred from an RRSP or other tax-sheltered plan
  • 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don't pay taxes when funds are transferred from your RRSP to your RRIF; however, you do have to pay taxes on any money withdrawn from the RRIF
  • Once you turn your RRSP into a RRIF, you don't have to take any income in the year of purchase
  • Each year after that however, there's a minimum payment that must be withdrawn based on your age and the total value of your RRIF at the beginning of the year
  • Tax is not withheld on the minimum payment

Creston & District Credit Union offers you Registered Retirement Income Funds (RRIFs) with some of the following features:

  • Variable savings with no minimum deposit, and is redeemable on demand
  • Fixed-rate term deposits, 1-5 years, with minimum $500 investment 
  • Redeemable or non-redeemable options on fixed rate terms
  • No set-up or administration fees *
  • You set the flow of payments for your RRIF; they can be scheduled as monthly, quarterly, semi-annually or annually
  • Deposits are 100% guaranteed by the Credit Union Deposit Insurance Corporation CUDIC

* except when the RRIF is transferred to another financial institution that is not a credit union

View our current RRIF Term Deposit rates and product offerings

If you are looking to convert your RRSP funds into income or are nearing retirement and would like more information on RRIFs, contact one of our knowledgeable member service representatives at CDCU.

For More Information About RRIFs

Contact Jason Truscott, Licensed Financial Advisor & Member of the Financial Advisors Association of Canada (Advocis®) at our subsidiary Growth Financial Corp., located in Creston Valley Insurance at the Creston Valley Mall.

The following links will also provide you with more information on RRIFs and your retirement options:

Try the RRIF Calculator or the Retirement Planner Calculator