When you reach the ripe young age of 71, you must convert your RRSP into a Retirement Income Option. One of the most popular choices for this is a Registered Retirement Income Fund (RRIF). Your funds remain tax sheltered and you're still in control of how they're invested. The difference now is that you can draw from these funds as income to live on. Anything you withdraw is considered income, so you will have to pay taxes on it, but since you'll most likely be retired, you'll be taxed at a much lower rate.
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