Including some equity investments will help you stay ahead of inflation. You must begin withdrawing taxable income from your registered savings in the next year. A minimum percentage of the value of your RRIF, increasing annually, must be withdrawn as taxable income. Where there is a younger spouse or common-law partner, you can choose to base the withdrawals on the younger partner's age. You can use your RRSP or a portion of it to purchase a guaranteed fixed income or indexed annuity, to age 90 or for life.
Annuities offer a guaranteed income stream, which is reduced by today's low interest rates.
Alternatively, RRIFs let you invest in equities and develop a balanced portfolio with the potential to increase your income over time. Upon death, you can leave any remaining assets to your designated beneficiary. RRIFs also provide more flexibility if you need more retirement income in a particular year. You can receive your RRIF payments annually, semi-annually, quarterly or monthly. Pension benefits cannot simply be withdrawn from your employer's plan upon termination of employment.