Illustration of retired couple gardening together

Approaching Retirement

As you are approaching retirement and reaching your retirement goals, you may be thinking about how to manage income from your investment savings. Let us help you live the life you planned for.

Margaret: "I've always dreamed of spending my retirement years in a condominium in the southern U.S. Now that I'm almost ready to retire, I'm really looking forward to taking the next steps. What do I need to do now to make sure I'll have the income I need during my retirement years and for my dream condo?"


Preserve Your Wealth and Make Your Money Last

Switching all your assets to conservative cash-type investments may appear to be the safest option, but some risk may be involved. For instance, you could be spending 20 to 30 years in retirement. With this in mind, your asset allocation should include 20-35% equities to help outpace inflation. This mix will help to preserve your assets and provide a steady source of income, while offering some growth potential. 

Illustration of golf caddy and golf clubs on putting green

RRIFs and LIFs

Why Do I Need a RRIF or LIF?

When you are ready to convert your Registered Retirement Savings Plan (RRSP) into income, but don't want to use it right away, a Registered Retirement Income Fund (RRIF) and a Life Income Fund (LIF) are good ways to hold the funds, grow your investment and continue to defer taxes until you are ready to withdraw. Although you can convert your RRSP into income anytime, government legislation requires you to choose a retirement income option by December 31st of the year in which you turn 71. 


What is a RRIF?

If you want to have complete control over how your RRSP savings are invested once you are ready, or required, to convert your RRSP assets in to income, then a Registered Retirement Income Fund (RRIF) is the retirement income vehicle for you. It is flexible and adaptable to your needs, even if they change over time.

Your investments stay tax-sheltered - you only pay taxes on the payments you receive each year, giving you ongoing tax deferral on your investment as it continues to grow within your RRIF. While there is no limit on the amount you may withdraw, the government requires an annual minimum withdrawal amount

What is a LIF?

A Life Income Fund (LIF) or, in some provinces, a Locked-In Retirement Income Fund (LRIF) are other options where you convert your Locked-In Retirement Account (LIRA) or Locked-In RRSP, much like a RRIF. Similar to a RRIF, you must withdraw a minimum amount from your LIF each year but unlike a RRIF, there is a limit placed on the maximum amount you can withdraw each year. The aim of this legislated amount is to help ensure that the LIF provides income for life. 

Illustration of a calculator and a pen

Retirement Budget Calculator

Use the CIBC Retirement Budget Calculator to help with your budgeting plan and to manage your monthly finances in your retirement. 

Continue to the C I B C Retirement Budget Calculator