What is a key advantage of using a RRIF as explained to Victoria?

Using a Registered Retirement Income Fund (RRIF) offers significant flexibility in withdrawals, which is one of its key advantages. With a RRIF, retirees can withdraw funds at a rate that suits their financial needs, providing them with control over their income in retirement. This flexibility is important because it allows individuals to manage their tax liabilities effectively, ensuring that withdrawals can be spaced out to minimize the tax burden.

Retirees can also adjust their withdrawals based on their personal circumstances, such as unexpected expenses or changes in lifestyle. This adaptability is crucial for maintaining financial security during retirement years.

While guaranteed returns, tax liability, and fees may be considerations in managing retirement funds, they do not represent the primary advantage of a RRIF. The freedom to select withdrawal amounts and timing stands out as a significant feature that supports personalized financial planning in retirement.