Your investing questions, our clear answers.

Our response:

Thanks for your question Paul. A Registered Retirement Savings Plan (RRSP) is usually used to save for retirement. A Registered Retirement Income Fund (RRIF) is used to withdraw money from as retirement income.

Some key points about RRSPs:

• contributions are tax deductible
• savings grow tax free
• you can convert your RRSP into a RRIF to get regular payments when you retire

Learn more about How RRSPs work.

Some key points about RRIFs:

• can be opened anytime, but no later than the end of the year you turn 71
• typically open a RRIF by transferring money from your RRSP
• you must take out a minimum amount from your RRIF each year once you turn 71

Learn more about RRIFs.