Many Canadians are aware of RRSPs, or Registered Retirement Savings Plans, where individuals can put savings away tax-free. But RRSPs are only eligible until retirement (or no later than age 71). That’s when the RRIF, or Registered Retirement Income Fund, comes into play.

The RRIF behaves a lot like an RRSP – the money in a RRIF can still earn interest, except that you withdraw payments from it instead of contributing to it. You can set up monthly, quarterly, annual or even lump sum payments into your account. And then you get to have fun spending it! You can take the minimum amount required by the government, or you can elect to take a specified amount within a year.