Rick Sukhu - Retirement Planning

Planning for retirement is one of the most important steps you can take for your financial future. The right account can help you save efficiently and support your financial goals in retirement. Below is a breakdown of the different retirement accounts available to you:

Registered Retirement Savings Plan (RRSP)
This account allows you to save for retirement while deferring taxes. Contributions are tax-deductible, meaning you pay less tax now, and your investments grow tax-free until you withdraw the money in retirement.
Locked-In Retirement Account (LIRA)
A LIRA holds pension funds from previous employment. It allows you to transfer your pension into an individual account and continue growing it until retirement. You can't withdraw funds until you retire.
Registered Retirement Income Fund (RRIF)
This account is used to withdraw income from your RRSP once you retire. Unlike an RRSP, where your savings grow, the RRIF allows for periodic withdrawals to support your retirement income. The amount you withdraw is taxable.
Life Income Fund (LIF)
Similar to a RRIF, but used specifically for locked-in pension funds. A LIF is a type of account that allows for structured withdrawals from pension funds, ensuring you receive income in retirement. It’s restricted by minimum and maximum withdrawal limits.
Annuities
An annuity provides guaranteed income for life. You pay a lump sum to an insurance company, and in return, they pay you regular income for a set period or for the rest of your life. It's a way to ensure you have a steady income stream in retirement.

Account Type	Tax Advantage	Purpose	Withdrawal Flexibility	Age Considerations	Who It’s Best For
Registered Retirement Savings Plan (RRSP)	Tax-deferred (pay tax when you withdraw)	Save for retirement, reduce taxable income	Withdraw at retirement (usually after age 71)	Contributions until age 71, withdrawals after retirement	Those seeking tax breaks while saving for retirement
Locked-In Retirement Account (LIRA)	Tax-deferred	Transfer pension from previous employment	Withdraw at retirement (age 55-71 depending on province)	Pension transfer before age 55, withdrawals start at retirement	Those with pension funds from previous employers
Registered Retirement Income Fund (RRIF)	Taxable withdrawals	Convert RRSP to income in retirement	Required minimum withdrawals starting at age 72	Must convert RRSP to RRIF by age 71	Those ready to start withdrawing retirement income
Life Income Fund (LIF)	Taxable withdrawals	Convert locked-in pension to income	Limited minimum/maximum withdrawals	Generally available after age 55, withdrawals based on life expectancy	Those with locked-in pension funds ready to withdraw income
Annuities	Income is taxable	Guaranteed income for life	Steady income stream	Can start at any age (commonly age 55+)	Those seeking guaranteed retirement income

Which investment account is right for you?

Account Type Tax Advantage Purpose Withdrawal Flexibility Age Considerations Who It’s Best For

Registered Retirement Savings Plan (RRSP) Tax-deferred (pay tax when you withdraw) Save for retirement, reduce taxable income Withdraw at retirement (usually after age 71) Contributions until age 71, withdrawals after retirement Those seeking tax breaks while saving for retirement

Locked-In Retirement Account (LIRA) Tax-deferred Transfer pension from previous employment Withdraw at retirement (age 55-71 depending on province) Pension transfer before age 55, withdrawals start at retirement Those with pension funds from previous employers

Registered Retirement Income Fund (RRIF) Taxable withdrawals Convert RRSP to income in retirement Required minimum withdrawals starting at age 72 Must convert RRSP to RRIF by age 71 Those ready to start withdrawing retirement income

Life Income Fund (LIF) Taxable withdrawals Convert locked-in pension to income Limited minimum/maximum withdrawals Generally available after age 55, withdrawals based on life expectancy Those with locked-in pension funds ready to withdraw income

Annuities Income is taxable Guaranteed income for life Steady income stream Can start at any age (commonly age 55+) Those seeking guaranteed retirement income

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Planning for Retirement

Planning for retirement is one of the most important steps you can take for your financial future. The right account can help you save efficiently and support your financial goals in retirement. Below is a breakdown of the different retirement accounts available to you:

Which investment account is right for you?