What is a successor annuitant on a RRIF and how is it different from a beneficiary?

A RRIF successor annuitant designation allows your surviving spouse or common-law partner to take over your RRIF exactly as it is — keeping it as a RRIF in their own name, with the same investment holdings and without triggering any immediate tax. The RRIF simply continues paying out to your spouse at whatever payment schedule applies, which they can then adjust.

This differs from naming your spouse as a "direct beneficiary" on the RRIF. As a beneficiary, your spouse receives the RRIF proceeds, which can then be transferred (rolled over) into their own RRSP or RRIF — but this involves more paperwork and requires the financial institution to process the rollover, which may take more time.

Both options defer tax on the RRIF until the surviving spouse draws from the account or dies. However, the successor annuitant route is often simpler and more seamless because the account continues automatically.

If you have a RRIF, ask your financial institution whether you have designated a successor annuitant or just a beneficiary, and whether a successor annuitant designation is available. If your spouse would prefer more flexibility in how they receive the money, a beneficiary designation with a spousal rollover might be considered.