Steady income during retirement.

FHSA Unveiled: Your Key Facts and Figures

Conversion from RRSP

As an individual approaches retirement age (usually no later than the end of the year they turn 71), they are required to convert their RRSP into a RRIF or another retirement income option. This conversion is mandatory, and it marks the transition from accumulating savings to generating retirement income

Income Withdrawals

Once the RRSP is converted into a RRIF, the account holder must start withdrawing a minimum amount of money from the RRIF each year. These withdrawals are subject to taxation as they are treated as regular income. The minimum withdrawal amount is determined based on the individual’s age and the balance of the RRIF


While there is a minimum withdrawal requirement, individuals can choose to withdraw more than the minimum if needed. However, withdrawing more than the minimum can have tax implications, as larger withdrawals may result in higher taxable income.

Investment Options

A RRIF allows the account holder to continue investing their funds in a variety of financial instruments, including stocks, bonds, mutual funds, and other investment vehicles. This enables the account to continue growing while generating income.


Similar to RRSPs, the income generated from a RRIF is taxable. The amount withdrawn from the RRIF is added to the individual’s taxable income for the year in which the withdrawal is made. It’s important to manage RRIF withdrawals in a way that minimizes the tax impact.

Spousal RRIFs

Married or common-law partners can use spousal RRIFs to split retirement income, potentially reducing the overall tax burden.

is it better to invest your RRSP before reaching to RRIF? 

(Registered Retirement Income Fund) stage is often advisable. RRSPs offer a tax-deferred growth environment, allowing your investments to compound over time without immediate taxation. Contributing to your RRSP during your earning years can help you build a substantial retirement nest egg. When you eventually convert your RRSP to an RRIF, you’ll have more funds available for generating retirement income. It’s generally a wise strategy to maximize your RRSP contributions before transitioning to an RRIF to ensure a stronger financial foundation during retirement.

Is a FHSA Right for You?

Deciding if a RRIF (Registered Retirement Income Fund) is suitable for you depends on factors like your age, income needs, investment approach, tax considerations, financial flexibility, estate planning goals, risk tolerance, and professional guidance. A RRIF can offer steady retirement income and investment potential, but it’s important to align its features with your individual circumstances and preferences. Consulting with financial experts will help you make an informed choice that complements your retirement goals.