Income options at retirement

When it comes time to convert your savings into income, there are various options available to you. Your choice will depend on the rules that apply to your savings plans, and on your particular needs.

Select a savings plan below to review your options for turning your savings into income.

Savings plans (choose one)

 
 
 
 
Locked-in
Assets
RRSP/DPSP
TFSA
Non-registered
Assets
 

Your options:

Assets must be converted to an income plan before December 31 of the year you turn 71.

Annuity

There are different types of annuities but the most common is a life annuity. A life annuity is a contract you purchase from an insurance company that provides regular guaranteed income payments for life. You can choose to guarantee the income for both your and your spouse's lifetime, however, the income will be lower.

LIF

A LIF allows you to turn your locked-in savings into income that you draw directly from your investment funds.

There is a minimum annual withdrawal and generally a maximum withdrawal as well.

RRIF

In some provinces, the "unlocking of assets" allows you to transfer locked-in funds, in whole or in part, into a RRIF as soon as the funds are converted to retirement income.

RRIFs have a minimum annual withdrawal but no maximum.

Assets must be converted to an income option before December 31 of the year you turn 71.

Annuity

There are different types of annuities but the most common is a life annuity. A life annuity is a contract you purchase from an insurance company that provides regular guaranteed income payments for life.

You can choose to guarantee this income for both your and your spouse's lifetime, however, the income will be lower.

RRIF

A RRIF allows you to turn your RRSP or DPSP into income that you draw directly from your investment funds.

RRIFs have a minimum annual withdrawal but no maximum.

Systematic Withdrawal Plan (SWP)

A SWP allows you to keep your assets in an RRSP or DPSP and make withdrawals whenever you need the money until you convert your savings to an income option.

Annuity

There are different types of annuities but the most common is a life annuity. A life annuity is a contract you purchase from an insurance company that provides regular guaranteed income payments for life. You can choose to guarantee the income for both your and your spouse's lifetime, however, the income will be lower.

Systematic Withdrawal Plan (SWP)

There are no restrictions on how you can withdraw assets from a TFSA.
You can take what you need, whenever you need it.

Annuity

There are different types of annuities but the most common is a life annuity. A life annuity is a contract you purchase from an insurance company that provides regular guaranteed income payments for life. You can choose to guarantee the income for both your and your spouse's lifetime, however, the income will be lower.

Systematic Withdrawal Plan (SWP)

There are no restrictions on how you can withdraw assets from non-registered assets.
You can take what you need, whenever you need it.



The information contained in this tool is for illustration purposes only. Manulife, or any of its affiliated companies, is not liable for its accuracy.

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