When you have worked and saved a life time to provide an income in retirement, where and how your funds are invested is extremely important. If you have saved for retirement through a Registered Retirement Savings Plan and/or a Company Pension plan, there are decisions to make as to how best to invest these funds for the future to meet your financial retirement goals.
There are several options that may be available to you. It is important to discuss the options with our financial planners in detail prior to making your choice so they may help you understand how each product will benefit you.
Registered Retirement Income Funds (RRIF) – A RRIF is a government approved plan designed to provide retirement income with funds accumulated in a Registered Retirement Savings Plan and is an excellent alternative to an annuity. With a RRIF you can continue to earn tax sheltered income while taking regular retirement payments. A RRIF also allows you to maintain control over your retirement investments. The retirement income payments are taxable in the year you receive them, therefore the taxation of your accumulated savings are spread over your retirement years.
Retirement Income Fund Term Deposits
- Terms offered 1-5 years
- Attractive interest rates on deposit
- Held until maturity
- Payments offered monthly, quarterly, semi-annually, annually if balance meets requirements
- Interest paid annually
- Minimum deposit $5,000.00
Pension Plan Retirement Options
Prescribed Retirement Income Funds
Prescribed Retirement Income Funds (PRIF) is a Registered Retirement Income Fund governed by Saskatchewan pension legislation. It is only available to those who have retirement funds governed under Saskatchewan pension regulations, that is if you are transferring money directly from a pension plan. A Prescribed Retirement Income Fund works very similar to a Registered Retirement Income Fund when you withdraw funds or when you choose an investment type. Investments that you choose must be government approved as a registered product type investment . Withdrawals are taxable income to you. This type of retirement income investment does offer very flexible withdrawal terms.
When deciding if this type of investment is best for you, consult with our Financial Planners to help you with your investment choice.
Another option for investing Registered Retirement Savings into a Retirement Income type of account is an Annuity. There are a number of different annuities available. Investors should have a very clear understanding of each one when making a choice to purchase an annuity as their retirement product.
Life annuities provide regular payments that will continue for at least the rest of their life no matter how long they live. There are a broad variety of choices to make when making this purchase. Such as: Do you want payment to end when you die? Do you want money to be paid to a spouse after death? And many other questions to consider.
LIF Income Funds (LIF’s)
A Life Income Fund (LIF) holds funds locked in under pension legislation. It is a non-commutable Registered Retirement Income Fund to the end of the year the holder turns 80, by which time the remaining funds must be used to purchase a life annuity. There are mandatory minimum payments required to be taken and also there are maximum payment amounts per year that can be taken.
With so many options available and many individual situations to consider, it is best to contact our Financial Planners to discuss options for retirement income investing.
Mutual Funds are offered through Credential Asset Management Inc.