Introduction

This tool calculates and compares the retirement income resulting from:

• An annuity, consisting of monthly payments, as may be purchased from an insurance company
  
  
• A Registered Retirement Income Fund (RRIF), based on the minimum withdrawal percentages required by Revenue Canada
  
  
• A Life Income Fund (LIF), as described by various pension authorities, assuming that an annuity must be purchased when you reach age 80. Until you reach age 80, the annual payment is determined on the basis of the number of years to age 90
  
  
• A customized scenario with a fixed period of up to 25 years. Payments may take into account the RRIF minimum and / or LIF maximum

Please take note of the following additional comments:

• Annuity rates are based on standard mortality and interest assumptions. Interest assumptions are based on the inflation rate selected. Spousal forms are based on unisex mortality
  
  
• Annual RRIF payments are determined in accordance with minimum percentages established by Revenue Canada.
  
  
• LIF assumes annual payments at the beginning of the year until age 80 and monthly payments after age 80. Mortality and purchase rates are the same as annuity purchase rates. An annuity purchased at age 80 is lifetime only
  
  
• Results shown are estimates only. Actual results will vary based on prevailing rates and assumptions when purchased from a financial institution