Retirement

RRSP and RRIF

An RRSP is mainly used to accumulate registered retirement savings. A RRIF is used to draw registered retirement income and requires minimum withdrawals after it is established.

4 min

Retirement 101 • 08

RRSP and RRIF are two stages of registered retirement money.

The RRSP is mainly an accumulation account. The RRIF is a retirement-income account.

An RRSP cannot remain an RRSP forever.

By the end of the year you turn 71, the RRSP must be withdrawn, transferred to a RRIF or used for another permitted option such as an annuity.

A RRIF involves

01Registered investments02Tax-deferred growth while money remains inside03Required minimum withdrawals04Taxable payments to you05Your choice to withdraw more than the minimum

The direction of cash flow changes.

01

RRSP

Money usually moves in during the saving years.

02

RRIF

Money must begin moving out under minimum-withdrawal rules.

The age rule creates a transition point.

RRSP stageAccumulation
End of year you turn71
RRIF minimumsBegin after the setup year
WithdrawalsGenerally taxable

A RRIF can still hold investments.

Converting the account does not mean every investment has to become cash immediately.

The transition requires decisions about

01When to convert02What investments to hold03How much to withdraw04Taxes05Other retirement income

Remember this

RRSP builds registered retirement savings. RRIF turns registered assets into required retirement cash flow.

The tax shelter changes from accumulation toward withdrawal.

Lesson complete

Reviewed 2026-08-18

Sources

Canada Revenue AgencyRegistered Retirement Savings Plan ↗Canada Revenue AgencyRegistered Retirement Income Fund ↗Canada Revenue AgencyRRSP options when you turn 71 ↗
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