Re: QROPS - Well that's that then!
 

How do RRSPs work over here ? Back in the day in the olde country, the pension fund bought an annuity and that annuity paid out the income less any cash lump sum you were able to take ?

NVM googled it.

Re: QROPS - Well that's that then!
 

You might do better to start a new thread. But my inexpert understanding is that RRSP is 'similar to' a UK personal pension and RRIF is 'similar to' a UK income drawdown (but - extreme care here as the differences are pretty profound).

So you can take the proceeds from an RRSP (note - NO tax free lump sum in a Canadian RRSP!) and roll the proceeds into an RRIF and take income from that, however much you want a year but subject to a minimum per year, until the money runs out.

Or from an RRSP you can buy an annuity like in the UK (pays a guaranteed income for the rest of your life regardless, but you would be surprised how little such a large lump sum will pay you a year).

There are other product types, like LIRA's etc. but not sure about them.

As I said, deffo NOT the Canadian pensions expert here, I am sure others will provide a better analogy between your UK understanding and what the options are in Canada.

Re: QROPS - Well that's that then!
 

I simply view the RRSP as a savings account that allows me to defer the payment of tax. I get a tax break when I pay into it and a tax liability when I make a withdrawal from it. I can withdraw whatever I want whenever I want (not a QROPS) and pay tax on any withdrawal at my marginal tax rate.

I realise that, after a certain age, I have to transfer the funds to a different investment vehicle and that I then have to make minimum withdrawals each year.