Choosing the best retirement income option for you

BEFORE YOU RETIRE, allow for ample time to plan what you want to do with the money you’ve accumulated in your Registered Retirement Savings Plan (RRSP).

Keep your RRSP for as long as possible to get the tax-deferred growth. When it’s time to mature your RRSP, your best options are an annuity or a Registered Retirement Income Fund (RRIF). When deciding, consider the following:

Annuities provide a guaranteed monthly income that doesn’t require time or effort to manage. There are two types: life annuities, which continue payments for as long as you live, and fixed-term annuities, which make payments for a specific period. Remember that once you’ve signed an annuity contract, it’s irrevocable.

RRIFs offer more flexibility and control over your savings and may give you a better return. And they can hold the same investments as your RRSP. A minimum amount, based on your age, must be withdrawn from your RRIF each year.

One approach you can take is to purchase enough annuity income for your basic living expenses, and then invest your remaining RRSP savings in a RRIF.
Determining the best option depends on your needs and objectives. With careful planning and good advice from a Page professional, you’ll be able to decide on the best fit for you.