You will use the balance of your RSP Account to secure an income for your retirement. The usual way of securing this income is to buy an annuity. Any income paid to you in retirement is taxable, but not subject to National Insurance contributions.
An annuity is quite simply a contract which pays an income in exchange for a lump sum payment – in this case the balance of your RSP Account. Annuities are usually purchased with an insurance company.
Conventional annuities are usually purchased on a lifetime basis. This means that they will provide you with a guaranteed income for the rest of your life and, if applicable, to your dependants.
There are a number of further options within the annuity theme that are available to you. These are discussed in more detail in the “Buying a pension” page.