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Registered Retirement Income Fund
Registered Retirement Income Fund (RRIF)
The first stage of an RRSP is to accumulate retirement savings. The next stage is to provide retirement income. Your accumulated savings may be invested in a variety of options to
provide a retirement income eg. RRIF. The retirement income payments are taxed each year as you receive them, thus spreading the taxation of your accumulated savings over your retirement.
Shaunavon Credit Union offers the following Registered Retirement Income Funds for your convenience:
- Variable Plan
Rates fluctuate with the market. This plan is open and can be changed to a locked in interest plan at any time.
- Fixed Plan
Available investment periods 3,6,9,18 months or 1-5 years and the interest rate fixed for the length of term chosen.
Registered Retirement Income Options
Locked-In Retirement Income Fund (LRIF)
The LRIF operates as a Registered Retirement Income Fund with the further requirement that the funds are locked -in permanently to ensure lifetime income. This plan allows you to control your investments for life, while providing some flexibility in determining income schedule. Some additional benefits are listed below:
- Limited ability to select payments that meet retirement budget needs early in retirement.
- Allows you to create and maintain an estate.
- Ability to transfer a LRIF from one issuer to another.
Life Income Funds (LIF)
A LIF acts as a RRIF from the year it is established until the member turns age 80 at which time it must be converted to a Life Annuity. The LIF can be converted to a Life Annuity prior to age 80.
The primary benefit of a LIF is that it provides you with some of the flexibility of a RRIF early in retirement and guarantee a fixed income later in life.
Additional benefits are listed below:
- Ability to transfer a LIF from one issuer to another.
- Ability of preserving capital and using the LIF as a more effective estate builder.
- Ability to delay the purchase of an annuity until a time when perhaps annuity yields are more favourable.
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