Retirement Income Funds

What are Retirement Income Funds?

Retirement income funds have many names, such as: Income Replacement Funds, Managed Payout Funds, Registered Retirement Income Funds (RRIF, in Canada).

These funds started around 2007, and only a few have ten years of history to review.

They are newer investments - money managers started to see the need when employer's gave up their pension plans and folks needed additional sources of income.

Employers with a Defined Benefit Plan, mostly, have huge pension liabilities. They funded the plan, annually, as the actuaries advised, but took huge hits in the market the past ten years and just generally realized what a huge liability these plans were with retirees living longer, etc.

They also saw all the Boomers headed toward retirement, and came up with one more retirement vehicle to get our assets.

Retirement Income Funds are mostly invested in the mutual fund market.

More retirement plans to check out: