Understanding RRSPs and RRIFs for Your Retirement (Part 4)

When it comes to planning for retirement in Canada, you'll often hear about Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs). These are key tools designed by the CRA to help Canadians save for their future.

What are they? Simply put, an RRSP is a plan to save for retirement, offering tax benefits on contributions. A RRIF is generally what your RRSP can become when you retire, providing a steady income stream from your accumulated savings. Both are important parts of your financial planning as you approach and enter retirement.

The Canada Revenue Agency (CRA) is the main source for all official information regarding these plans, from setting them up to managing them throughout your life.

Source: https://www.canada.ca/en/revenue-agency/services/tax/registered-plans-administrators/registered-retirement-savings-plans-registered-retirement-income-funds-rrsps-rrifs.html