This RRIF withdrawal calculator helps you estimate your payments by calculating the minimum amount that you must withdraw each year. If you want to withdraw a fixed payment, you can also see the value of your RRIF over time.
What is a Registered Retirement Income Fund (RRIF)?
A Registered Retirement Income Fund (RRIF) is a federally registered retirement account in Canada designed to provide income during retirement. You can convert your Registered Retirement Savings Plan (RRSP) into a RRIF as early as age 55. Once you reach 71 years old, you must convert your RRSP to a RRIF by December 31 of that year. A RRIF allows you to withdraw money and receive payments, which are taxed as income.
Unlike an RRSP, you cannot make contributions to a RRIF. The account is designed purely for drawdown — your investments continue to grow tax-deferred inside the RRIF, but you must take out at least a minimum amount each year.
RRIF Minimum Withdrawal Schedule
You are required to withdraw a minimum amount from your RRIF each year. The minimum is a percentage of your RRIF’s value on January 1 of that year. This percentage increases with age, ensuring the account is gradually drawn down over your lifetime.
| Age at Start of Year | Minimum Withdrawal % | On a $500,000 Balance |
|---|---|---|
| 65 | 4.00% | $20,000 |
| 66 | 4.17% | $20,850 |
| 67 | 4.35% | $21,750 |
| 68 | 4.55% | $22,750 |
| 69 | 4.76% | $23,800 |
| 70 | 5.00% | $25,000 |
| 71 | 5.28% | $26,400 |
| 72 | 5.40% | $27,000 |
| 73 | 5.53% | $27,650 |
| 74 | 5.67% | $28,350 |
| 75 | 5.82% | $29,100 |
| 76 | 5.98% | $29,900 |
| 77 | 6.17% | $30,850 |
| 78 | 6.36% | $31,800 |
| 79 | 6.58% | $32,900 |
| 80 | 6.82% | $34,100 |
| 81 | 7.08% | $35,400 |
| 82 | 7.38% | $36,900 |
| 83 | 7.71% | $38,550 |
| 84 | 8.08% | $40,400 |
| 85 | 8.51% | $42,550 |
| 86 | 8.99% | $44,950 |
| 87 | 9.55% | $47,750 |
| 88 | 10.21% | $51,050 |
| 89 | 10.99% | $54,950 |
| 90 | 11.92% | $59,600 |
| 91 | 13.06% | $65,300 |
| 92 | 14.49% | $72,450 |
| 93 | 16.34% | $81,700 |
| 94 | 18.79% | $93,950 |
| 95+ | 20.00% | $100,000 |
The prescribed factor is based on rates released by the Government of Canada for “All other RRIFs.”
Worked Example: $500,000 RRIF at Age 71
Suppose your RRSP is converted to a RRIF with a balance of $500,000 on January 1 of the year you turn 71. The prescribed minimum withdrawal percentage at age 71 is 5.28%.
Minimum withdrawal = $500,000 × 5.28% = $26,400
If your investments earn 5% that year, your ending balance would be approximately:
- Starting balance: $500,000
- Investment growth: $500,000 × 5% = $25,000
- Minus minimum withdrawal: −$26,400
- Approximate year-end balance: $498,600
As you age, the minimum percentage increases, meaning larger mandatory withdrawals even as your balance declines. By age 80, with a hypothetical $400,000 balance, the minimum withdrawal would be $400,000 × 6.82% = $27,280.
| Age | Balance | Min % | Withdrawal | End Balance |
|---|
RRSP to RRIF Conversion Rules
You must convert your RRSP to a RRIF (or purchase an annuity) by December 31 of the year you turn 71. If you fail to act, your financial institution will typically convert it automatically, or the full balance may be paid out as a lump sum — resulting in a large tax bill.
Key conversion rules to understand:
- You can convert earlier. If you need retirement income before age 71, you can convert your RRSP to a RRIF at any time. Some retirees convert in their 60s to begin receiving income.
- No contribution to a RRIF. Once converted, you cannot add money to a RRIF. All contributions must be made while the account is still an RRSP.
- Multiple RRSPs. If you have several RRSP accounts, you can consolidate them into one or more RRIFs at conversion.
- Spousal RRSP rules. A spousal RRSP is converted to a spousal RRIF. Withdrawals are taxed in the annuitant’s (spouse’s) hands, provided the three-year attribution period has passed.
- Use a younger spouse’s age. You can elect to base your minimum withdrawal on your younger spouse’s age, resulting in lower mandatory withdrawals each year.
Tax Implications of RRIF Withdrawals
All RRIF withdrawals are added to your taxable income for the year. This can significantly affect your tax bracket, your eligibility for income-tested benefits such as OAS and GIS, and government credits.
Withholding Tax on RRIF Withdrawals
Only the minimum annual withdrawal is exempt from withholding tax at the source. Any amount withdrawn above the minimum is subject to withholding tax:
| Amount Above Minimum | Withholding Tax (All Provinces Except QC) | Withholding Tax (Quebec) |
|---|---|---|
| Up to $5,000 | 10% | 5% (+ provincial) |
| $5,001 – $15,000 | 20% | 10% (+ provincial) |
| Over $15,000 | 30% | 15% (+ provincial) |
Quebec residents also pay provincial withholding tax on top of the federal rate.
Withholding tax is not the final tax owed — it is an estimate withheld at source. Your actual tax liability is determined when you file your annual tax return. If too much was withheld, you receive a refund. If too little was withheld, you owe the difference. Use our income tax calculator to estimate your total tax burden.
Strategies to Minimize Tax on RRIF Withdrawals
1. Draw Down Your RRSP Before Age 72
Consider making RRSP withdrawals in your 60s when your income may be lower. This reduces the RRIF balance and future mandatory withdrawals, potentially keeping you in a lower tax bracket later.
2. Use Your Spouse’s Age for Minimum Calculations
If your spouse is younger, electing to use their age for minimum withdrawal calculations lowers the percentage you must withdraw each year, reducing your taxable income.
3. Pension Income Splitting
You can split up to 50% of eligible pension income (including RRIF withdrawals) with your spouse. This can lower the higher earner’s marginal tax rate and reduce or eliminate the OAS clawback.
4. Withdraw Only the Minimum When Possible
If you have other income sources — such as a TFSA, non-registered investments, or CPP — withdraw only the RRIF minimum to keep taxable income low.
5. Time Large Withdrawals Strategically
If you need a larger one-time withdrawal (for a home renovation or major expense), try to time it in a year when your other income is lower to minimize the tax impact.
RRIF vs Annuity
When converting your RRSP at age 71, you can choose between a RRIF and an annuity, or a combination of both:
| Feature | RRIF | Annuity |
|---|---|---|
| Income flexibility | Withdraw any amount above minimum | Fixed payments |
| Investment control | You choose how to invest | Insurance company invests |
| Longevity risk | You may outlive funds | Guaranteed for life (if life annuity) |
| Market risk | You bear investment risk | No market risk |
| Estate value | Remaining balance goes to beneficiaries | Usually no residual value |
| Fees | Investment management fees apply | Built into annuity pricing |
Many retirees use a combination of both — an annuity to cover essential expenses with guaranteed income and a RRIF for flexibility and potential investment growth. Use our annuity calculator to estimate annuity payments.
Related Calculators
- RRSP Calculator — Estimate RRSP contribution room and tax savings
- Retirement Calculator — Plan how much you need for retirement
- CPP Calculator — Estimate your Canada Pension Plan benefits
- OAS Calculator — Calculate Old Age Security payments and clawback
- Annuity Calculator — Estimate annuity income
- Income Tax Calculator — Calculate federal and provincial income tax
- TFSA Calculator — Plan tax-free withdrawals in retirement