Registered
Retirement Products (RRSP, RRIF,
LIRA, LIF,
LRIF)
Registered Retirement Savings Plan (RRSP)
RRSPs are a vital part of retirement planning. Designed by the federal
government as an incentive to save for retirement, RRSPs offer a wide
range of investment options and saving opportunities.
RRSPs offer tax savings by allowing taxes on funds earned to be
deferred until a later date when the funds are withdrawn. Further
tax savings may be possible using a Spousal RRSP to split future
income between yourself and a lower income earning spouse.
While designed for retirement, the government has also established
programs to withdraw RRSPs to achieve other life goals, including
education (Life Long Learning Plan) and home ownership (Homebuyer's
Plan).
Please contact W.P.G. for information on the benefits of setting
up an RRSP or enhancing a current plan.
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Locked-In Retirement Account (LIRA)
Locked-In Retirement Accounts (LIRA) are similar in design and nature
to RRSP accounts.
The main difference is that LIRA are designed specifically to hold
locked-in pension funds of a former plan member, their spouse, or
common law partner.
Pension funds transferred to a LIRA can not be cashed out, but
must be used to purchase a life annuity from an insurance company,
transferred to a Life Income Fund (LIF) or to a Locked-In Retirement
Income Fund (LRIF) providing a pension income for life.
The LIRA owner may purchase a life annuity at any age, or transfer
their pension funds to a LIF or to a LRIF at any time prior to the
end of the year in which she/he turns 69 years of age.
For more information on the rules, regulations, and transfers into
LIRA, please contact W.P.G.
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Registered Retirement Income Fund (RRIF)
Registered Retirement Income Funds (RRIF) are used at retirement
to move RRSP funds into a stream of retirement income. By transferring
money from your RRSP into a RRIF contract, you can begin to receive
funds on a monthly or annual basis.
RRIFs have a minimum amount that must be taken out each year as
established by the Canada Customs and Revenue Agency, but no maximum
limit is applied to RRIFs.
It should be noted that all RRSP funds need to be transferred either
to a RRIF or an annuity account by the end of the year in which
the plan holder turns 69.
For further information on retirement planning and the establishing
an RRIF contract please contact your representative at W.P.G.
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Locked-In Registered Retirement Income
Fund (LRIF) and
Life Income Fund (LIF)
Similar to RRIFs, LRIFs and LIFs are purchased with "locked-in"
retirement funds such as another LIF, LIRA, or "locked-in"
pension fund transfers.
LRIFs/LIFs provide the holder with an annual retirement income
and have both a minimum and a maximum amount that may be withdrawn
within a calendar year.
Each province has it's own pension legislation and regulations
regarding transfers into LRIFs and LIFs to protect the funds from
being used before retirement.
For more information on current pension legislation and transferring
of pensions to LIRA/LRIF/LIF, please contact W.P.G.
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