An RRSP (Registered Retirement Savings Plan) is where you spend decades saving for retirement. A RRIF (Registered Retirement Income Fund) is where those savings become your retirement paycheque. Your investments keep growing tax-deferred inside the RRIF, and you choose how often you’re paid and whether to take more than the minimum. You can convert at any time, but you must do it by December 31 of the year you turn 71.
Each year, your minimum withdrawal is your RRIF’s value on January 1 multiplied by the rate for your age. For example, a $200,000 RRIF at age 72 has a minimum of $10,800 (5.40%).
Review the table below to find the minimum RRIF withdrawal rates for ages 55 to 95 and over.
| Your age (or your spouse’s) on January 1 | Minimum withdrawal (%) |
|---|---|
| 55 | 2.86% |
| 56 | 2.94% |
| 57 | 3.03% |
| 58 | 3.13% |
| 59 | 3.23% |
| 60 | 3.33% |
| 61 | 3.45% |
| 62 | 3.57% |
| 63 | 3.70% |
| 64 | 3.85% |
| 65 | 4.00% |
| 66 | 4.17% |
| 67 | 4.35% |
| 68 | 4.55% |
| 69 | 4.76% |
| 70 | 5.00% |
| 71 | 5.28% |
| 72 | 5.40% |
| 73 | 5.53% |
| 74 | 5.67% |
| 75 | 5.82% |
| 76 | 5.98% |
| 77 | 6.17% |
| 78 | 6.36% |
| 79 | 6.58% |
| 80 | 6.82% |
| 81 | 7.08% |
| 82 | 7.38% |
| 83 | 7.71% |
| 84 | 8.08% |
| 85 | 8.51% |
| 86 | 8.99% |
| 87 | 9.55% |
| 88 | 10.21% |
| 89 | 10.99% |
| 90 | 11.92% |
| 91 | 13.06% |
| 92 | 14.49% |
| 93 | 16.34% |
| 94 | 18.79% |
| 95 and over | 20.00% |
How can Common Wealth help?
Common Wealth members can convert their RRSP to a RRIF online, in a few minutes, without paperwork. Online conversion is available from age 55 (60 for my65+ members).
- Convert digitally: set up your RRIF, choose your payment schedule and withholding tax, name a successor annuitant, and elect to use your spouse’s age, all in the platform.
- See your income ahead of time: a projection shows how your RRIF payments could look year by year.
- Talk to a financial planner: if you have a LIRA or a workplace pension, or you want help sequencing your withdrawals, our financial planning team can build a retirement income plan with you. Book a One-on-One Planning Session with our financial planning team.
Frequently Asked Questions
When do I need to convert my RRSP to a RRIF?
You must convert your RRSP to a RRIF by December 31 of the year you turn 71, as set by the Canada Revenue Agency. You can convert earlier if it better fits your retirement income and tax plan. The right timing depends on factors such as whether you’re still working, your other income and savings, and your household’s overall tax picture.
What happens if I don’t convert by the deadline?
If your RRSP isn’t converted by December 31 of the year you turn 71, the CRA requires it to be deregistered. This means the full value of the account is treated as taxable income for that year. That could mean a large, unexpected tax bill.
To help you avoid this, we’ll automatically convert your Common Wealth RRSP to a RRIF by December 15 of the year you turn 71 if you haven’t already. If we convert your account automatically, we’ll use default settings: the CRA minimum payment, paid once a year starting the following December, with no tax withheld. Planning ahead can help you avoid last-minute complications.
How much do I need to withdraw each year?
Each year, the CRA sets a minimum amount you’re required to withdraw from your RRIF, based on your age (or, if you choose, your spouse’s age) and the value of your account at the start of the year. This minimum percentage increases gradually as you get older. You’re always free to withdraw more than the minimum if you need it. You don’t have to withdraw anything in the year you open your RRIF. Your first minimum applies the following calendar year. See the table above for the minimum rate at each age.
Is my RRIF withdrawal taxed?
Yes, RRIF withdrawals are treated as taxable income. Tax generally isn’t withheld from the required minimum, so it’s helpful to plan for the tax you may owe. On amounts above the minimum, tax is withheld at source: 10% on up to $5,000, 20% on $5,001 to $15,000, and 30% on more than $15,000 (rates differ in Quebec). If you withdraw more than the minimum, you may want to choose a higher withholding rate to reduce the chance of an unexpected tax bill later.
If you’re 65 or older, RRIF income also qualifies for the pension income tax credit and can be split with your spouse or common-law partner, which may lower your household’s tax.
Do my investments stay the same when I convert?
Your savings remain invested after they move into a RRIF. The main change is the account’s purpose: your RRSP is designed for accumulating retirement savings, while your RRIF is designed to provide retirement income through withdrawals.
Will RRIF withdrawals affect my other benefits, like OAS or GIS?
RRIF withdrawals count as taxable income, so they can affect government benefits. Higher income can reduce Old Age Security (OAS) through the recovery tax, also called the clawback. Similarly, because the Guaranteed Income Supplement (GIS) is based on the income you reported the year before, RRIF withdrawals are factored into how much GIS you receive. Planning the timing and amount of your withdrawals alongside your government benefits can help you understand the full impact.
Why does a younger spouse or partner impact my withdrawal?
Your annual minimum RRIF withdrawal can be calculated using either your age or, if you choose, your spouse’s or common-law partner’s age. You need to make this choice when you set up your RRIF, before your first payment, and it can’t be changed later. Because the minimum withdrawal percentage increases as you get older, using a younger spouse’s age generally results in a lower required minimum. This can leave more of your savings invested and help you manage how much taxable RRIF income you receive each year.
What’s the difference between naming a spouse as a successor annuitant or as a beneficiary?
Naming a spouse or common-law partner as a successor annuitant lets them take over the RRIF intact after your death, so the account continues in their name without needing to be closed or paid out. Only a spouse or common-law partner can be named this way. If you name them (or anyone else) as a beneficiary instead, your RRIF is closed when you pass away and the funds are paid out. A spouse named this way can still choose to roll that money into their own RRSP or RRIF without an immediate tax hit. Either way, your spouse can avoid an immediate tax bill on the account, as long as the rollover is completed. The difference is whether the RRIF continues without interruption, or is closed and transferred.
In Quebec, successor annuitant and beneficiary designations are generally made in your will rather than on your RRIF account.
