RRSP Centre

• Self-Directed RRSP
• Deduction Limit
• Spousal RRSP
• Investment Options
• Investment Strategies
• RRSP Loans
• How Much Will I Need to Save?
• RRSP Maturity Options
• Annuities
• RRIFs
• Self-Directed RRIF
• How Much Income Will I Need?
• How Long Will My RRIF Last?
• Naming a Beneficiary
• Retirement Planning for Small Business Owners

RRSP Centre

RRSP Maturity Options
An RRSP is a great way to save for retirement. But you are only allowed to maintain an RRSP until December 31 of the year in which you turn 71. After that, you are required to rollover your RRSP into one (or more) of the three RRSP maturity options (from which you will start earning retirement income), or you can convert your RRSP to cash.

Your RRSP maturity options are

1. Take a cash payment;
2. Transfer to a life annuity;
3. Transfer to a fixed term annuity (also known as a term certain annuity)
4. Transfer to a Registered Retirement Income Fund (RRIF).

While you are required to take a minimum amount out of whichever maturity option you select (unless you are taking a cash payment), a significant portion of your retirement funds will remain invested for many years. It's important that the RRSP maturity option you choose protects your capital and ensures that it maintains its purchasing power as the decades pass. For many Canadians a Self-Directed RRIF is the vehicle that helps to make retirement dreams a reality.

For more information, please contact your BMO Nesbitt Burns Investment Advisor who with an Estate and Insurance Advisor (in Quebec, Financial Security Advisor) from BMO Nesbitt Burns Financial Services Inc. will work with you to determine the solution that's right for you.

For more information, contact an Investment Advisor at a BMO Nesbitt Burns branch near you.

If you would like a BMO Nesbitt Burns Investment Advisor to contact you, simply complete this brief contact form.

Note: Using borrowed money to finance the purchase of securities involves greater risk than a purchase using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines.