Eligible for CDIC coverage
Among the highest RIF rates available in Canada
Our rates are among the best around, with no teaser rates, hidden fees or any other gimmicks. This means you can enjoy the combination of guaranteed principal and the opportunity to securely build your savings over time.
What is a RIF?
The Canada Revenue Agency (CRA) requires you to convert your RSP to a retirement income option by December 31 of the year you turn 71. This can either be done with an annuity or a Retirement Income Fund (RIF).
With an annuity, you pay a lump sum up front, and get a guaranteed and fixed amount of money back each month for a set period of time. Annuity payments can continue for your lifetime, or for a chosen period of time.
With a RIF, your income options are more flexible, as you can make withdrawals as often as you like, and can withdraw more than the minimum amount set by the CRA – so you’re in control of your retirement income. Plus, your money will continue to grow tax-sheltered, meaning it keeps working for you.
Minimum income payments
You don’t contribute to a RIF – rather, you take minimum payments out every year. The amount of those payments is determined by a calculation based on your age and your assets. Payments can also be based on the age of your spouse. You can withdraw more than your minimum amount, if you like, and receive your payments according to your schedule – annually, semi-annually, quarterly or monthly.
Any retirement income – whether it’s from a RIF or an annuity – is considered taxable in the year it is withdrawn, so keep in mind it will be added to your other sources of income at tax time. RIF payments are also subject to a withholding tax, the amount of which varies depending on how much you withdraw and where you live.
A RIF from Oaken
With a RIF from Oaken, the funds you transfer from your RSP can remain tax-sheltered while you continue to earn tax-deferred income, giving your savings the opportunity to keep growing. Plus, you benefit from the security provided by the guaranteed principal and interest features of our GICs that are eligible for the Canada Deposit Insurance Corporation (CDIC) coverage, up to applicable limits.
Make the most of your retirement income with proven investment strategies
Creating a seamless income stream in retirement is something that many Canadians find challenging. One strategy to consider is to open multiple GICs across several terms – this way, your investments mature at different times, giving you access to funds over time instead of all at once.
Invest in security
All Oaken GICs are eligible for the Canada Deposit Insurance Corporation (CDIC) coverage through either Home Bank or Home Trust Company, up to applicable limits, so your savings are protected and your money will be there when you need it.
Current minimal withdrawal percentages
The table below lists the annual minimum withdrawal percentages as they stand today.
Age (at the start of the calendar year) | Current RIF factors (effective from 2015) | Non-qualifying RIFs (purchased after 1993) | Qualifying RIFs (purchased before 1993) |
|---|---|---|---|
60 | 3.33% | 3.33% | 3.33% |
61 | 3.45% | 3.45% | 3.45% |
62 | 3.57% | 3.57% | 3.57% |
63 | 3.70% | 3.70% | 3.70% |
64 | 3.85% | 3.85% | 3.85% |
65 | 4.00% | 4.00% | 4.00% |
66 | 4.17% | 4.17% | 4.17% |
67 | 4.35% | 4.35% | 4.35% |
68 | 4.55% | 4.55% | 4.55% |
69 | 4.76% | 4.76% | 4.76% |
70 | 5.00% | 5.00% | 5.00% |
71 | 5.28% | 7.38% | 5.26% |
72 | 5.40% | 7.48% | 5.56% |
73 | 5.53% | 7.59% | 5.88% |
74 | 5.67% | 7.71% | 6.25% |
75 | 5.82% | 7.85% | 6.67% |
76 | 5.98% | 7.99% | 7.14% |
77 | 6.17% | 8.15% | 7.69% |
78 | 6.36% | 8.33% | 8.33% |
79 | 6.58% | 8.53% | 8.53% |
80 | 6.82% | 8.75% | 8.75% |
81 | 7.08% | 8.99% | 8.99% |
82 | 7.38% | 9.27% | 9.27% |
83 | 7.71% | 9.58% | 9.58% |
84 | 8.08% | 9.93% | 9.93% |
85 | 8.51% | 10.33% | 10.33% |
86 | 8.99% | 10.79% | 10.79% |
87 | 9.55% | 11.33% | 11.33% |
88 | 10.21% | 11.96% | 11.96% |
89 | 10.99% | 12.71% | 12.71% |
90 | 11.92% | 13.62% | 13.62% |
91 | 13.06% | 14.73% | 14.73% |
92 | 14.49% | 16.12% | 16.12% |
93 | 16.34% | 17.92% | 17.92% |
94 | 18.79% | 20.00% | 20.00% |
95+ | 20.00% | 20.00% | 20.00% |
Fulfilling your RIF minimum payment requirement
When determining the annual minimum withdrawal requirements for your RIF, funds are withdrawn from your account in the following order:
1. Interest that has accrued on the GIC investments held in the plan.
2. If the interest amount does not satisfy the minimum annual withdrawal requirement, Oaken will withdraw the outstanding balance from the principal.
If there are multiple GICs in your plan, funds are withdrawn from the principal in the following order:
1. The GIC with the lowest interest rate.
2. If the interest rate is the same between 2 or more GICs, funds will be withdrawn first from the GIC with the earlier issue date.
3. If the interest rate is the same between 2 or more GICs, and 2 or more GICs also have the same issue date, funds will be withdrawn first from the GIC with the lowest balance.