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Registered Retirement Income Fund (RRIF)
A registered retirement income fund (RRIF)
acts as an extension of a registered
retirement savings plan (RRSP). ). It allows you to utilize the amounts
you accumulated throughout your working life: you’ll make withdrawals as needed and continue to accumulate tax-sheltered income.
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Who Should Consider a RRIF?
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Retirees who wish or need to use
their RRSPs as a source of income.
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Investors wanting to retain a certain amount of
control in the management of their investments.
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Features and Advantages
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Your protection against financial
market fluctuations may attain and even exceed 100% of the capital
invested. |
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You pay no surrender
fees for withdrawals made up to a maximum of 20% of the value
of your contract determined at the beginning of each year.
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You pay no annual administration fees.
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Amounts withdrawn are taxable income.
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You can establish the income from your RRIF based on the age of
the younger spouse.
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You receive a pension income tax credit for the first $1,000 withdrawn
annually starting at the age of 65.
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You are required by law to withdraw a minimum annual amount from your RRIF which corresponds to a percentage of the value of the fund on January 1 of each year. All withdrawals are taxable. There is no minimum withdrawal, you control your RRIF.
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Table of RRIF Minimum Withdrawals
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Age
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Withdrawal
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Age
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Withdrawal
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65
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4.00%
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83
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9.58%
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66
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4.17%
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84
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9.93%
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67
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4.35%
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85
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10.33%
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68
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4.55%
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86
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10.79%
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69
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4.76%
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87
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11.33%
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70
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5.00%
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88
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11.96%
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71
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7.38%
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89
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12.71%
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72
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7.48%
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90
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13.62%
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73
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7.59%
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91
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14.73%
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74
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7.71%
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92
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16.12%
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75
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7.85%
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93
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17.92%
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76
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7.99%
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94
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20.00%
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77
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8.15%
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95
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20.00%
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78
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8.33%
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96
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20.00%
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|
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79
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8.53%
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97
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20.00%
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|
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80
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8.75%
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98
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20.00%
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81
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8.99%
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99
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20.00%
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82
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9.27%
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100
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20.00%
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Products Available
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A RRIF permits you to invest in the following
investment vehicles:
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Daily Interest Funds
For investors wishing to accumulate money to make investments and
accumulate interest on a daily basis.
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The IAG Savings and Retirement Plan includes three separate series of funds, each with its own guarantees and choice of funds.
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CLASSIC SERIES: A range of investment funds designed for those seeking long-term growth potential and low-cost capital protection.
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ECOFLEX SERIES: A range of investment funds that offer a full guarantee of your capital and medium- to long-term growth potential. In addition, you can also protect the return on your investments.
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ECOFLEXTRA SERIES: A range of investment funds that prioritize capital protection with a view to paying a guaranteed retirement income for life, which can even increase over the years.
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