Which retirement plan is specifically designed for income disbursement to retirees?

The chosen option is correct because a Registered Retirement Income Fund (RRIF) is specifically designed to provide individuals with a steady income during retirement. When individuals retire, they often need to start drawing financial support from their retirement savings. A RRIF allows them to convert their Registered Retirement Savings Plan (RRSP) savings into income, following government regulations that mandate a minimum withdrawal amount each year.

A RRIF is unique as it is primarily focused on the ongoing disbursement of funds to recipients who have entered their retirement years. This is an essential aspect of financial planning, as it helps ensure that retirees have a regular income flow, thereby supporting their living expenses and lifestyle after transitioning from their working life.

In contrast, other options are not primarily aimed at providing income. A Registered Retirement Savings Plan (RRSP) is focused on accumulating savings during an individual's working life for retirement, a Tax-Free Savings Account (TFSA) is meant for savings and investments without immediate tax implications but does not serve as a direct income source for retirees, and a Locked-In Retirement Account (LIRA) is used primarily to hold pension money that can't be accessed until the owner reaches retirement age, serving more as a savings vehicle rather than providing ongoing income.