There is no set-up fee for most Registered Retirement Income Funds (RRIFs), but you may pay other fees once you open a plan. These fees may include an annual administrative or trustee fee, investment fees and fees for making changes to your RRIF.
Fees vary depending on:
- where you open your RRIF
- the type of RRIF you hold
- the amount of money in your RRIF
- how you invest your money
- the level of management you want.
3 types of fees
1. Administrative or trustee fees
These fees cover the time and costs of looking after your account, including activities like calculating your minimum withdrawal each year and reporting to the government on your behalf. Fees are often waived on accounts that just hold Guaranteed Investment Certificates (GICs) and Canada Savings Bonds (CSBs).
Understand the fees before you open a RRIF. Fees vary depending on the type of RRIF you have and how you invest your savings.
2. Investment fees
These fees reduce what you make because they are deducted from the value of your investment. They may include:
- sales charges or commissions for buying or selling an investment,
- annual management fee and operating expenses (called the management expense ratio (MER)) for each mutual fund, exchange-traded fund (ETF) and segregated fund you hold, and
- fees for switching from one fund to another.
You may also have to pay a fee to your financial adviser if they charge you separately for their services.
Caution
Fees reduce what you make on your investments. Before you invest, understand all the fees that could apply. Find out if there are other investment options with lower fees that may be suitable for you.
3. Fees for making changes
You may also pay fees for making changes like:
- closing your RRIF,
- changing your scheduled withdrawal amount or frequency, and
- making a lump-sum withdrawal.
You can open as many RRIFs as you choose. But the more plans you have, the more you may have to pay in fees.