Mandatory withdrawal rates by age, what to hold inside an RRIF, tax strategies, and the RRSP conversion decision you need to make before 71.
A Registered Retirement Income Fund (RRIF) is the income phase of your RRSP. When you've finished accumulating and are ready to draw down, you convert your RRSP into an RRIF — and start taking money out. Your investments stay invested inside the account; you're just required to withdraw a minimum amount each year, which is then taxed as ordinary income.
The mechanics are simpler than most people expect: the CRA mandates a minimum withdrawal each year based on your age and your account balance as of January 1. You can always take out more than the minimum. You can't take out less. There's no maximum.
Unlike your RRSP, which you could theoretically leave untouched for decades, the RRIF forces you to draw down the account over your lifetime. This is deliberate — the government deferred tax on your contributions and wants it eventually.
RRIF vs RIF: You may see both terms. A RIF (Retirement Income Fund) is the generic product name; RRIF specifically means a Registered Retirement Income Fund under the Income Tax Act. All RRIFs are RIFs, but not all RIFs are registered. For most Canadians, RRIF is the relevant term.
The mandatory deadline: you must convert your RRSP to an RRIF (or annuity) by December 31 of the year you turn 71. After that point, you can no longer hold an RRSP in your own name.
But the real question is whether you should convert earlier — and in many cases, the answer is yes.
Converting before 71 lets you start taking controlled RRIF withdrawals while you're in a lower tax bracket — typically between retirement (say, age 60–65) and when CPP, OAS, and other pension income kicks in fully. If your income drops when you retire, you have a window where RRIF withdrawals get taxed at a low marginal rate, potentially 20–26%.
Waiting until 71 and then being forced to take large mandatory withdrawals on top of CPP + OAS + pension income often pushes people into 33–43% marginal brackets. Levelling out the income curve saves real tax dollars.
Susan retires at 65. Her RRSP is worth $700,000. She has modest CPP ($800/month) but delays OAS and has no pension.
Her income from age 65–69: roughly $9,600/year from CPP. She could convert to RRIF and take $30,000–$40,000/year from her RRIF at marginal rates near 20–26%, putting money into her TFSA or spending it on known expenses.
If she waits until 71, the mandatory minimum on a $900,000 RRIF (after growth) starts at ~5.28% = $47,520/year, stacked on top of OAS ($8,700+) and CPP — landing her in the 33%+ bracket. The six-year window of lower-rate withdrawals is gone.
If you have significant defined benefit pension income, you may already be in a high bracket throughout retirement. In that case, deferring RRSP growth until 71 and letting the account compound tax-sheltered longer can be worthwhile — though OAS clawback risk rises if RRIF withdrawals push income above ~$93,000.
Spousal RRIF strategy: If your spouse is younger, you can base your RRIF minimum withdrawal on their age (when you open the RRIF, elect to use the younger spouse's age). This lowers your mandatory minimum, keeping more money in the account longer. You can't change this election later, so choose carefully at account opening.
Your minimum withdrawal is calculated as: RRIF balance on January 1 × the prescribed percentage for your age. The percentages below are set by federal regulation and apply regardless of which institution holds your RRIF.
| Age | Minimum % | Age | Minimum % |
|---|---|---|---|
| 65 | 4.00% | 79 | 6.82% |
| 66 | 4.17% | 80 | 7.08% |
| 67 | 4.35% | 81 | 7.38% |
| 68 | 4.55% | 82 | 7.71% |
| 69 | 4.76% | 83 | 8.08% |
| 70 | 5.00% | 84 | 8.51% |
| 71 | 5.28% | 85 | 8.99% |
| 72 | 5.40% | 86 | 9.55% |
| 73 | 5.53% | 87 | 10.21% |
| 74 | 5.67% | 88 | 10.99% |
| 75 | 5.82% | 89 | 11.92% |
| 76 | 5.98% | 90 | 13.06% |
| 77 | 6.17% | 91 | 14.49% |
| 78 | 6.36% | 94+ | 20.00% |
Note: if you opened your RRIF before age 65 (using the formula 1/(90 − age) for ages below 65), the percentages start lower and gradually step up to the table above at age 65.
The year you open your RRIF: No minimum withdrawal is required in the year you convert from RRSP to RRIF. The first mandatory withdrawal applies January 1 of the following calendar year. Many people open their RRIF in December of the year they turn 71 to delay the first withdrawal.
Every dollar withdrawn from your RRIF is added to your taxable income for that year — the same as employment income, CPP, or OAS. There's no preferential capital gains rate, no dividend tax credit, no exceptions. Your RRIF issuer is required to withhold tax on amounts above the mandatory minimum:
Withholding is not a final tax — it's a prepayment. Your actual tax owing is calculated on your return. If withholding was insufficient (common at high income levels), you may owe more at filing. Consider requesting higher withholding or making quarterly tax instalments.
If your net income (which includes RRIF withdrawals) exceeds approximately $93,454 in 2026, OAS benefits begin to be clawed back at 15 cents per dollar above that threshold. Full clawback occurs around $151,000. Large RRIF withdrawals can eliminate OAS entirely in high-income years — one more reason to smooth income across the years before mandatory minimums kick in.
RRIF withdrawals qualify for the federal pension income tax credit (up to $2,000 of eligible pension income), worth approximately $300/year in federal tax savings. If you're 65+, this credit applies to RRIF income. Spouses can also use pension income splitting on up to 50% of eligible pension income, potentially a significant tax saver for couples with unequal income.
Your RRIF can hold anything an RRSP can: equities, bonds, ETFs, mutual funds, GICs, segregated funds, and even certain alternative investments. The question is what allocation makes sense when you're drawing income rather than accumulating.
One practical approach: divide your RRIF into a "short-term bucket" (GICs or HISA for 2–3 years of withdrawals) and a "long-term bucket" (balanced or equity ETFs). Refill the short-term bucket periodically when markets are up. This prevents forced selling during downturns while keeping the bulk of your portfolio growing.
The RRIF is one of the most tax-exposed accounts in retirement. Here are the most effective legal strategies:
See also: RRSP Meltdown Strategy and OAS Clawback Avoidance for related strategies.
At death, your RRIF balance is fully included in your final tax return as income — unless it passes to a qualifying beneficiary:
Name your spouse as the successor annuitant (not just beneficiary) on the RRIF application. This is cleaner than naming them as beneficiary and avoids probate delays. Your financial institution can provide the form.
Related: Estate Planning for Registered Accounts in Canada — covers successor subscribers, designated beneficiaries, and the probate considerations for TFSA, RRSP, and RRIF.
An RRIF is not a passive account. The decisions you make — when to convert, how much to withdraw, what to hold inside, and who to name as beneficiary — have five- and six-figure tax consequences. The earlier you start thinking about these decisions (ideally in your late 50s or early 60s), the more flexibility you have to optimize. Work with a fee-only financial planner if you have a significant RRSP balance heading into retirement.
This content is for educational purposes only and does not constitute financial or tax advice. RRIF rules are set by the federal Income Tax Act; consult the CRA or a registered financial advisor for personalized guidance. Withdrawal rates and thresholds reflect 2026 federal rules and are subject to change.