At the age of 71, RRSPs convert into a Retirement Income Option. One of the most popular choices for this is a Registered Retirement Income Fund (RRIF). Funds remain tax sheltered in a RRIF and you’ll continue to control how they're invested. The only difference is that you can draw from these funds as income to live on. Withdrawals are considered income, so taxes must be paid on them, but if you are retired, you'll be taxed at a much lower rate.