MEMBER RETIREMENT INCOME OPTIONSAchieve Your Retirement Dreams

Wise Ways to Make the Most of Your Money Now that you’re getting ready to retire, you want to feel comfortable that you’ll enjoy the lifestyle for which you’ve so carefully planned. When converting your retirement savings to a Retirement Income Option, it’s important to make the decisions that are right for you. After reviewing the options available, most people decide that a Registered Retirement Income Fund (RRIF) best meets their needs. A RRIF earns money from investments, just as your RRSP did, and it is the most flexible Retirement Income Option available.

Flexible Payment OptionsCanada Revenue Agency (CRA) requires that you receive at least a minimum payment from your RRIF each year, but beyond that, your RRIF can be completely customized to meet your personal goals and budget requirements. It can provide payments for life. Or, you can arrange to change the amount and frequency of the payments from time to time, as your needs change and evolve.

Competitive Rates and TermsYour credit union offers a variety of RRIF investment options at competitive interest rates:

• Variable Rate RRIF offers an interest rate which will vary according to the marketplace.

• Fixed Term RRIF earns a fixed rate of interest for the period of time you select.

Achieve Your Retirement Dreams… With a Registered Retirement Income Fund (RRIF)

Maximum Control Over Your RRIFOne of the most appealing features of a RRIF is the amount of control you can exercise. If you need extra money for a financial emergency or any other purpose, you can make lump sum cash withdrawals from your RRIF. (The amount instantly accessible may vary depending on the investments held within your RRIF).

You’ll also control what happens to your RRIF after your death. If you appoint your spouse* as successor annuitant, your RRIF contract will continue in your spouse’s name. If you designate your spouse beneficiary, the funds in your RRIF may transfer tax-free to your spouse’s RRSP or RRIF. If you designate someone other than your spouse, the proceeds of your RRIF will be paid as a lump-sum to your beneficiary.

As long as funds remain in your RRIF, they are tax sheltered and continue to grow.

*The term ‘spouse’ can also read as common-law partner.

After saving so hard for a comfortable retirement, you want to make the most of your money.

Understanding Your Options In addition to the RRIFs described inside this pamphlet, your credit union can provide information about these other Retirement Income Options:

Life Annuity provides you with a series of scheduled payments for the rest of your life, with options that affect your payment amount, frequency and payout to your survivors.

Term Certain Annuity to Age 90 provides scheduled payments until age 90, by which time all RRSP amounts and earnings have been returned to you or your estate.

Decision Making for a Comfortable RetirementAfter saving so hard for a comfortable retirement, you want to make the decisions that will make the most of your money. Talk with your credit union about the retirement income options outlined in this pamphlet. Or, ask for a free copy of our more detailed booklet called “Knowing Your Retirement Income Options.”

Options for Locked-in Pension FundsIf you have funds in a Locked-in RRSP, Locked-in Retirement Account, Restricted Locked-in Savings Plan, or Registered Pension Plan, you may be able to consider the following options, the first three of which have formulas which limit the maximum payments in a year:

Life Income Fund (LIF) functions as a RRIF and in some jurisdictions must be converted to a Life Annuity, or if permitted to an LRIF, at age 80. (PBSA, 1985, Alberta, British Columbia, Manitoba, New Brunswick, Nova Scotia, Ontario and Quebec pension legislation does not require termination of the LIF at age 80.)

Restricted Life Income Fund (RLIF) functions like a RRIF and has the similar restrictions as a LIF. There is no requirement to convert an RLIF to a Life Annuity at age 80 and the RLIF includes a One-Time 50% Unlocking option. (Available only under Federal PBSA, 1985 jurisdiction.)

Locked-in Retirement Income Fund (LRIF) functions like a RRIF and makes payments for life. (Available only in Newfoundland & Labrador.)

Prescribed RRIF is available under the Manitoba and Saskatchewan pension legislation and functions like a RRIF with no maximum payment restrictions.

Under Manitoba pension legislation, the annuitant of a LIF may transfer up to 50% of the LIF to a MB RRIF. Pre-approval from the Manitoba Superintendent of Pensions is required.

Under Saskatchewan pension legislation, the annuitant of a LIRA, LIF or LRIF may transfer the funds to a SK RRIF.

Note: Pension legislation provides protection under LIF, RLIF, LRIF, MB RRIF and SK RRIF from certain creditors.

Your credit union RRIF is as safe and secure as your other credit union deposits.

Credit union deposits are protected. Deposit insurance coverage is prescribed in each province by provincial law. Please check with your local credit union for specific coverage details.

The information in this publication is summary in nature and does not constitute legal or financial advice. This brochure is provided by your local credit union and is designed to inform you about RRIFs. For more information about this or any other financial product, please contact our knowledgeable staff.

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® HANDS & GLOBE Design is a registered certification mark owned by the World Council of Credit Unions, used under license. © 2015 Credit Union Central of Canada. All rights reserved.

Prepared with assistance by Central 1 and Concentra.

RSPL

EARI

OA

® HANDS & GLOBE Design is a registered certification mark owned by the World Council of Credit Unions, used under license. © 2015 Credit Union Central of Canada. All rights reserved.