When you retire, your RRSP turns into a Registered Retirement Income Fund (RRIF) that you can withdraw money from. (Those withdrawals will be taxed as income.) If you shuffle your mortal coil before retiring, however, your RRSP is usually rolled over to a beneficiary on a tax-deferred basis. The beneficiary would be designated by you, but if no beneficiary has been named then the proceeds for your RRSP are considered part of your estate and will be distributed accordingly.