Question : Canada RSP and RIF differences Canada retirement saving plan/Canada retirement income fund?
Canada Retirement Savings Plan and Canada Retirement Income Fund.
what are the differences between the two? i only know they’re both related to the Canada saving bond and that they receive compound interest….
retirement income planning

Best answer:

Answer by nibblingbunny
A Retirement Savings Plan (RSP or RRSP) is a fund that you establish while you are working aimed at building up assets to fund your retirement. If you are working and want to save money for your retirement, this is the one you should be looking at.

A Retirement Income Fund (RIF or RRIF) is a fund that you establish when you retire aimed at providing you with income while you are retired.

The idea is that you convert your savings plan into an income fund when you retire. There are other options as well, including taking out some or all of the money as a lump sum.

The Canada RSP and Canada RIF are funds that use Canada Savings Bonds to invest your money. These bonds are an extremely safe investment that pays interest. Other investments are riskier but have more potential for growth. RSPs and RIFs are also available from banks and investment companies.