Comparing income options

For those approaching retirement, it's time to think about how you're going to draw income from your hard-earned savings in a way that's best for you.

Below you can review the advantages and disadvantages of various retirement income options. You can use this information to help you select the option – or combination of options – that works best for you.

Registered Retirement Income Funds (RRIFs)

Advantages Disadvantages
  • Investment flexibility
  • Control over investments
  • Tax-sheltered compound growth
  • Withdrawal flexibility
  • Can be complex
  • Income level depends on investment success
  • Minimum withdrawal required

 

Life Income Funds (LIFs)

Advantages Disadvantages
  • Investment flexibility
  • Control over investments
  • Tax-sheltered compound growth
  • Some withdrawal flexibility
  • Minimum withdrawal required
  • Maximum withdrawal limit
  • May have to convert to annuity at age 80
  • Income level depends on investment success

 

Locked-in Retirement Income Funds (LRIFs)

Advantages Disadvantages
  • Investment flexibility
  • Control over investments
  • Tax-sheltered compound growth
  • More flexible than a LIF
  • Minimum withdrawal required
  • Maximum withdrawal limit
  • Cannot cash out the whole plan
  • Income level depends on investment success




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