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TD Retirement Income Options

Put your savings to work so you can enjoy the full potential of your retirement years.

How to Apply

Visit any TD Canada Trust Branch or call 1-866-222-3456

You've worked hard to reach this stage of your life, and now it's time to enjoy yourself - traveling, spending time with grandkids, or maybe getting involved in your community. Planning your retirement income is one of the keys to living the life you want in retirement. Whether your retirement is close at hand, or still several years away, the time to start planning is now. Combining your retirement savings with other sources of income that you may have can result in a predictable, tax-efficient income stream, allowing you to enjoy a comfortable retirement.

What are the benefits of Retirement Income Plan?

Retirement Income Options (RIOs) provide you with a retirement income stream using the money you saved during your working years. Many of these retirement income options offer tax-deferred growth, similar to your Retirement Savings Plan (RSP).

The most common type of RIO is a Retirement Income Fund (RIF).1 A RIF gives you the flexibility to determine the amount of income you withdraw each year from your retirement savings. The only requirement is that you receive a minimum annual amount, according to a predetermined schedule set by the federal government. You can increase, decrease or change your income stream any time you choose. You only pay tax on the money you withdraw from your plan each year.

A RIO is also available for your Locked-in RSP (LRSP) or Locked-in Retirement Account (LIRA) in the form of a Life Income Fund (LIF), Locked-in Retirement Income Fund (LRIF) or Prescribed Retirement Income Fund (PRIF), depending on the governing legislation of the original pension plan.


When and how to convert your savings into retirement income

Your Retirement Savings Plan (RSP) can be converted to a form of retirement income at any time, but no later than the end of the calendar year in which you turn 71. At that time, you'll have three choices:

  1. Convert your RSP to a Retirement Income Fund (RIF)
  2. Convert your RSP to an annuity
  3. Withdraw the entire amount of your RSP in one lump sum

What are the benefits of Retirement Income Plan?

Confidence

We’ll help you create a written plan, so you'll always know where you're going and how you're going to get there. That leaves you free to focus on the things that matter most to you.

Convenience

Together, we’ll help you calculate the total retirement income you can expect to receive and even consolidate your retirement savings from all sources into one comprehensive plan for easier management and recordkeeping.

Access to advice

We’re always here to answer your questions and help you make any adjustments to your plan.

Explore your TD Retirement Income Options today

Visit any TD Canada Trust Branch

Call 1-866-222-3456 to discuss your options

1 RIF refers to Retirement Income Fund (RIF), Life Income Fund (LIF), Locked-in Retirement Income Fund (LRIF), and Prescribed RIF (PRIF).

TD helps you plan for retirement

The most common Retirement Income Option is a Retirement Income Fund (RIF)1. A RIF gives you the flexibility to determine the amount of income you withdraw each year from your retirement savings. The only requirement is that you receive a minimum annual amount, according to a predetermined schedule set by the federal government. You only pay tax on the money you withdraw from your plan each year.

What types of RIF Accounts are available?


TD Flexi-RIF

A TD Flexi-RIF lets you customize your plan to suit your needs. You can choose to have your required annual minimum payment (AMP) paid to you monthly, quarterly, semi-annually or annually, and funds are deposited directly into your TD Canada Trust savings or chequing account to ensure there are no delays in your payments. If you choose, you can make additional withdrawals from your Flexi-RIF at any time.

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LIF, LRIF, RLIF and PRIF

Convert your Locked-in Retirement Account (LIRA), Locked-in RSP (LRSP) or Restricted Locked-in Savings Plan (RLSP) into a steady stream of retirement income.

If you've been saving for retirement by contributing money to a LIRA or LRSP or hold a RLSP, you've probably discovered the impressive potential of tax-deferred investment growth. When you retire, you can continue to enjoy tax-deferred investment growth by converting your savings into a Retirement Income Option such as a Life Income Funds (LIF), a Locked-in Retirement Income Fund (LRIF), Restricted Life Income Fund (RLIF) or a Prescribed Retirement Income Fund (PRIF).

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Life Income Funds (LIFs)

A LIF is a plan that allows you to maintain full control of your investment choices while allowing the flexibility of withdrawing funds, within prescribed limits, as you require. Minimum and maximum withdrawal amounts apply to LIFs and in some provinces, they must be converted to a Life Annuity at certain age limits (see chart below).

Province Age at which you must convert to a Life Annuity
New Brunswick, Quebec, Nova Scotia, Manitoba, Alberta, Federal, British Columbia, Ontario Not Applicable
Newfoundland 80
Locked-in Retirement Income Funds (LRIFs)

A LRIF is a plan governed by Manitoba or Newfoundland legislation that allows you to maintain full control over your investment choices throughout retirement. Minimum and maximum withdrawal limits apply and a LRIF may be held indefinitely.

Restricted Life Income Fund (RLIFs)

RLIFs hold locked-in funds governed by the federal Pension Benefits Standards Act, 1985. Minimum and maximum limits apply. There is no requirement to convert an RLIF to a life annuity at age 80.

Prescribed Retirement Income Funds (PRIFs)

PRIFs are only available to investors who have pension funds governed by Saskatchewan or Manitoba legislation. There are minimum withdrawal limits but no maximum withdrawal limits. You are not required to purchase a Life Annuity, and your spouse is automatically named as your beneficiary. Spouses may sign a waiver allowing you to designate a different beneficiary.


TD Mutual Funds Retirement Income Options

When it comes time to convert your RSP into a Retirement Income Fund, make your retirement money work hard for you on a tax-deferred basis by investing it in a mutual fund.

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  • Industry-leading mutual funds
  • Lump sum withdrawals and transfers between funds can be made at any time for no charge
  • 24-hour support with a TD Mutual Funds Representative
  • Three different retirement income options are available depending on your situation:
    • TD Mutual Funds Retirement Income Fund (RIF): Enjoy all the benefits of a mutual fund plus total flexibility of anytime withdrawals at no charge.

A RIF is designed to provide income using your RSP savings. Although you can convert your RSP savings to a RIF at any age, it must occur prior to the end of the year in which you turn 71.

With a TD Mutual Funds RIF, you'll enjoy control, flexibility and convenience:

  • You decide how much income you require (subject to an annual minimum amount)
  • You decide which TD Mutual Funds to invest in and which funds to receive income from
  • You decide when to receive your payments, as often as every week or simply once a year
  • You decide how to receive your payments, either through direct deposit into your bank account or a cheque by mail
  • You decide who should become beneficiary of your assets in the event of your death

You'll continue to benefit from tax-deferral and you have the freedom to invest your holdings as you wish.

As a registered account, your TD Mutual Funds RIF maintains the benefits of tax-deferral. Only the amount withdrawn from the account is subject to tax. Income tax will be deducted at source from any amount withdrawn over the annual minimum payment. Although you may not contribute additional funds to your TD Mutual Funds RIF, you are free to reallocate your holdings between the family of TD Mutual Funds and TD Managed Assets Program Portfolios.

Discover the many advantages of a TD Mutual Funds RIF.

A TD Mutual Funds Retirement Income Fund can help you make the most of your assets when it's time to convert your RSP to retirement income.

When you open a TD Mutual Funds RIF account, you'll enjoy all of these advantages: Income

  • Total flexibility - change withdrawal amounts at any time and at no charge (subject to a minimum amount required by law)
  • Lump sum amounts can be withdrawn at any time and at no charge
  • A wide choice of mutual fund options geared to providing the appropriate diversification required to meet your individual needs

TD Mutual Funds Life Income Fund (LIF): Strengthen your portfolio with a mutual fund and get complete control over how you receive your retirement income. LIF is designed to provide income using your Locked-In RSP or pension savings. Although you can convert your locked-in savings to a LIF whenever it is allowed by the rules governing your plan (age 55 in most provinces), it must occur prior to the end of the year in which you turn 71.

For funds governed by the legislation of Newfoundland & Labrador, by the end of the year in which you reach the age of 80, you must use the remaining amount left in your LIF to purchase a life annuity. You may also convert it to a Locked-In Retirement Income Fund (LRIF).

TD Mutual Funds Locked-In Retirement Income Fund (LRIF): your retirement savings at a locked-in rate without having to convert it to a life annuity at age 80.

LRIFs, RLIFs and PRIFs are similar to LIFs with one notable exception: there is no requirement to convert your LRIF, RLIF or PRIF to a life annuity at age 80. You can maintain your LRIF, RLIF or PRIF indefinitely throughout your retirement years.

Whether you choose a TD Mutual Funds LIF, LRIF, RLIF or PRIF, you'll enjoy control and flexibility:

  • You decide how much income you receive (subject to annual minimum and maximum amounts)
  • You decide which TD Mutual Funds to invest in and which funds to receive payments from
  • You decide when to receive your payment, from as often as every week to as little as once a year
  • You decide how to receive your payment, either through direct deposit into your bank account or a cheque by mail
  • You decide who should become beneficiary of your assets in the event of your death

You'll continue to enjoy tax-deferred growth potential. As registered accounts, the funds within TD Mutual Funds LIFs and LRIFs maintain the benefits of tax deferral. Only the amount withdrawn from the account is subject to tax. Income tax will be deducted at source for any amount withdrawn over the annual minimum payment.

Maximum withdrawals help your income last. In addition to the annual minimum amount you must withdraw, there is also an annual maximum you are able to withdraw. This maximum is designed to ensure you will have income until age 80.

Find out where LIFs, LRIFs, RLIFs and PRIFs are available. It's important to note that the availability of LIFs, LRIFs, RLIFs and PRIFs varies across Canada Please be aware that LIFs are not available under the pension legislation of Saskatchewan, Yukon, Nunavut or Northwest Territories.

Additionally, please note that LRIFs are only available for locked-in plans governed by legislation of certain provinces. Currently, LRIFs are only available under the pension legislation of Newfoundland & Labrador. RLIFs are available for locked-in plans governed by the federal pension legislation. PRIFs are covered by Saskatchewan and Manitoba legislation. Please contact your local TD Canada Trust branch for more details.

Important Mutual Funds Information

TD Waterhouse RIF

A TD Waterhouse RIF gives you the freedom of a self-directed plan designed to meet your needs.

The options:


TD helps you make the most of your pension

If you were a member of a Registered Pension Plan (RPP), your employment has ended, and your plan was fully vested, the proceeds of that RPP would be considered 'locked-in'. These locked-in funds can only be transferred into certain locked-in plans.

What types of RIF Locked-in Plans are available?


TD Life Income Funds (LIFs)

A Life Income Fund (LIF) is a plan that allows you to maintain full control of your investment choices with flexibility.

 

The highlights:

  • Tax-deferred investment growth
  • Ability to withdraw funds

TD Locked-in Retirement Income Fund (LRIF)

A Locked-in Retirement Income Fund (LRIF) is a plan governed by Manitoba or Newfoundland legislation.

 

The highlights:

  • Full control of investment choices
  • Minimum and maximum withdrawal limits apply
  • LRIF may be held indefinitely

TD Restricted Life Income Funds (RLIF)

A Restricted Life Income Fund (RLIF) is a plan governed by federal legislation.

 

The highlights:

  • Full control of investment choices
  • Minimum and maximum withdrawal limits apply
  • RLIF may be held indefinitely

TD Prescribed Retirement Income Funds

A TD Prescribed Retirement Income Funds are only available to investors who have pension funds governed by Saskatchewan and Manitoba legislations.

 

The highlights:

  • No maximum withdrawal limits
  • Not required to purchase a Life Annuity
  • Spouse is automatically named as your beneficiary

Explore your Retirement Income Options today

Visit any TD Canada Trust Branch

Call 1-866-222-3456 to discuss your options

1 RIF refers to Retirement Income Fund (RIF), Life Income Fund (LIF), Locked-in Retirement Income Fund (LRIF), and Prescribed RIF (PRIF).
2 Refers to the TD Waterhouse Self-Directed RIF.

Government Regulations & Tax Considerations

The federal government requires that holders of retirement income funds withdraw a minimum amount of retirement income from their RIFs each year. The calculation of your minimum annual RIF withdrawal is based on your age or your spouse's age (as of January 1st of the current calendar year) and the value of the RIF at the previous year's end. If your spouse is younger, consider using your spouse's age. This will result in a lower minimum withdrawal, allowing more of your capital to grow in a tax-deferred environment.


Annual minimum withdrawal schedule

Your age —
or your spouse's (the choice is yours)3
Annual minimum withdrawal %4
55 2.86
56 2.94
57 3.03
58 3.13
59 3.23
60 3.33
61 3.54
62 3.57
63 3.70
64 3.85
65 4.00
66 4.17
67 4.35
68 4.55
69 4.76
70 5.00
71 7.38
72 7.48
73 7.59
74 7.71
Your age —
or your spouse's (the choice is yours)3
Annual minimum withdrawal %4
75 7.85
76 7.99
77 8.15
78 8.33
79 8.53
80 8.75
81 8.99
82 9.27
83 9.58
84 9.93
85 10.33
86 10.79
87 11.33
88 11.96
89 12.71
90 13.62
91 14.73
92 16.12
93 17.92
94+ 20.00

RIF tax treatment

All RIF withdrawals are subject to income tax in the year that income is received. In the year the plan is opened, there is no prescribed minimum amount and all the income you withdraw is subject to withholding tax. Every year after that, you are only taxed at source on the amount that exceeds your prescribed minimum.

TD Canada Trust will send you a tax slip in time for tax season, reflecting all RIF income you received in the previous year, which should be included as taxable income with your tax return. The slip will also indicate any tax that was already deducted.


Tax tips for retirement income earners

  1. Take advantage of the federal age tax credit on your tax return. If you're 65 or older, you may be eligible for an additional age deduction, depending on your income.
  2. Use the pension tax credit. The first $2,000 of eligible pension income is eligible for a 15% federal pension income tax credit, as well as a provincial tax credit that varies from province to province (some exceptions may apply).
  3. Generate income from non-registered investments. It's generally better to draw income from non-registered investments before you use tax-deferred, registered assets.
  4. Elect on your tax return to include all Canadian dividends received by the lower-income spouse as part of your income in order to maximize the spousal tax credit. This may not be advantageous in all situations, so be sure to check with your tax professional.
  5. Split CPP benefit payments with a lower-income spouse in order to tax the income at a lower rate. This may help you reduce or avoid the impact of the Old Age Security (OAS) clawback.
  6. Make sure additional income doesn't have a negative impact on government payments and credits you may be eligible for. Before you withdraw additional income from your RIF or other retirement plan, find out what impact it may have. For example, if your income exceeds $69,562*, you would be subject to a clawback tax on your OAS payments. Age credits, GST credits and provincial tax credits could also be affected. Check Canada Revenue Agency Tax Guides and your provincial tax office for details.
  7. Maximize spousal RSP contributions for the spouse who is expected to have the lower taxable income at retirement. This will permit more retirement income to be taxed at the lower rates.
  8. Apply for the GST credit every year. You may qualify after you retire, even if you didn't before.
  9. Combine your - and your spouse's - charitable donations on a single tax return to maximize the tax credit.
  10. Transfer unused age, pension, disability, tuition and education tax credits from the lower-income spouse to the higher-income spouse.

Explore your TD Market Growth GIC options today

Visit any TD Canada Trust Branch

Call 1-866-222-3456 to discuss your options

Apply now
3 For customers under 71 years of age, Annual Minimum Payment for non-qualifying RIF is calculated as follows:

* As of 2012.