Retirement Income Plans

RRIF Considerations

Registered Retirement Income Fund (RRIF)

A financial product funded with RRSP deposits and designed to provide an income stream during retirement. Interest accumulates tax free in the RRIF until the funds are paid out. A RRIF may be purchased any time prior to December 31st of the year the annuitant attains age 71.

 

Life Income Fund (LIF)

The LIF is a Locked-In Retirement Income Option investment plan, permitted to age 80* and designed to provide retirement income from funds originating in an eligible Registered Pension Plan (RPP), Locked-in RRSP or Locked-in Retirement Account (LIRA)**. Interest accumulates tax free in the LIF until funds are paid out.

As a gernal rule, a LIF may be purchased once the planholder attains age 55, (dependant upon the terms outlined in the governing legislation) or at the latest, by December 31st of the year the planholder attains age 71.

* LIF funds governed under Newfoundland and Labrador or Saskatchewan must be converted to a life annuity by age 80. All other jurisdictions have eliminated this requirement.

** Newfoundland and Labrador pension legislation also provides for the transfer of LIF funds to a Locked-in Retirement Income Fund (LRIF).
 
 
Locked-In Retirement Income Fund (LRIF)
 
The LRIF is a Locked-in Retirement Income Option investment plan designed to provide a retirement income for life. The LRIF may be purchased with funds that are held in a LIF or a Registered Pension Plan (RPP) governed under the Newfoundland and Labrador pension legislation. Interest accumulates tax free in the LRIF until funds are paid out.

Ontario LRIF are not available for purchase after 2008. LRIF purchased prior to 2009 may continue uninterrupted until depleted or transferred to a LIF or a life annuity.

The minimum age at which LRIFs may be purchased is 55 (earlier if the RPP provided). Where the LRIF is purchased with funds under a LIRA, no later than December 31st of the year the planholder attains age 71.

 
Manitoba Registered Retirement Income Fund (MB RRIF)
 
A LIF annuitant or RPP member who is at least age 55 may apply for a "once in a life time" transfer of an amount up to 50% of the balance in one or more LIF contracts and/or RPPs that are governed under Manitoba pension legislation to a MB RRIF. Interest accumulates tax free in the MB RRIF until funds are paid out.
 
 
Restricted Life Income Fund (RLIF)
 
The RLIF is a Locked-in Retirement Income Option investment plan that is governed under the Federal Pension Benefits Standards Act, 1985 (PBSA, 1985) legislation. The RLIF is designed to provide retirement income from funds originating from a Registered Pension Plan (RPP), Locked-in RRSP, LIF or Restricted Locked-in Retirement Savings Plan (RLSP) governed under PBSA, 1985. Interest accumulates tax free in the RLIF until funds are paid out.
 

Within 60 days of a transfer to an RLIF from a Locked-in RRSP, LIF or RPP, the annuitant is eligible to a one-time 50% unlocking option.

An RLIF can be purchased at any age; however, the annuitant must be at least 55 to apply for the one-time 50% unlocking option where the RLIF is purchased with funds under a Locked-in RRSP or RPP no later then December 31st of the year the annuitant attains 71.

 
Saskatchewan Registered Retirement Income Fund (SK RRIF)
 
The SK RRIF is a Retirement Income Option investment plan designed to provide a retirement income. The SK RRIF is funded from an eligible Registered Pension Plan (RPP), Locked-In Retirement Account (LIRA), Locked-In Retirement Income Fund (LRIF) or Life Income Fund (LIF). Interest accumulates tax free in the SK RRIF until funds are paid out.
 
The minimum age at which a SK RRIF may be purchased is age 55 (earlier if the RPP provided). Where the SK RRIF is purchased with funds under a LIRA or RPP, no later than December 31st in the year the annuitant attains age 71.
 
 
Self-Directed Registered Retirement Income Funds (SD RRIF)
 
 
A self-directed plan allows the annuitant to hold a variety of investments under one contract. The annuitant directs and controls the investment of funds by selecting qualified investments to best suit personal investment objectives.
 
An individual may wish to consider a self-directed plan if he/she:
  • Wants to diversify his/her retirement investment portfolio.
  • Is looking for a consolidated income stream from his/her retirement income plans.

Concentra acts as the trustee. Holdings can include specialized assets such as mortgages, GICs and cash.

As trustee, Concentra is responsible for:

  • Safeguarding of assets
  • Administration, investment and distribution of assets under direction of the annuitant
  • Detailed periodic reporting on transaction history, administration activities and account asset balances.
The following retirement income plans can be self-directed:
  • Registered Retirement Income Fund (RRIF)
  • Locked-In Retirement Income Fund (LRIF)
  • Life Income Fund (LIF)
  • Restricted Life Income Fund (RLIF)
  • Manitoba Registered Retirement Income Fund (MB RRIF)
  • Saskatchewan Registered Retirement Income Fund (SK RRIF)