Let’s compare the options
RRIFs and LIFs
- You choose the investment options
- You control the timing and the amount of income you receive. RRIFs have a minimum annual withdrawal and LIFs have a minimum and maximum annual withdrawal
- Your income can fluctuate due to market volatility and interest rates
Annuities
- Safe and easy
- Protection against outliving your savings
- Fixed payments mean no income fluctuations
- Once an annuity is purchased, the annual payment cannot be changed
- Responsibility for investment decisions and risk shifts to insurance company
Depending on your financial situation, RRIFs, LIFs and payout annuities may all play a role in your retirement income planning solutions. If you’re a Canada Life plan member and would like to discuss your retirement income options, call 1-800-724-3402 and ask to speak with an investment and retirement specialist.