RRIF — Registered Retirement Income Fund (Canada)

The RRIF (Registered Retirement Income Fund) is the continuation of an RRSP in retirement. By December 31 of the year you turn 71, your RRSP must be converted to a RRIF (or annuity). A RRIF keeps your investments growing tax-sheltered, but requires you to withdraw a minimum amount each year.

Key RRIF features

Mandatory conversion of the RRSP by age 71
Annual minimum withdrawal, based on age and account value
Withdrawals are taxable as ordinary income
Same eligible investments as an RRSP (stocks, ETFs, bonds, GICs…)
You no longer contribute to a RRIF — you draw from it
After 65: eligible for the pension income credit and income splitting with a spouse

The minimum withdrawal

The minimum percentage rises with age: roughly 4% at 65, 5.28% at 71, 6.82% at 80 and higher beyond. It is calculated on the account value on January 1. You can always withdraw more than the minimum, never less. To reduce the minimum, you can base the calculation on a younger spouse's age.

RRIF or annuity?

At 71, you can convert your RRSP to a RRIF (you keep control of the investments) or buy an annuity (guaranteed but fixed income). Many retirees choose the RRIF for flexibility.

Frequently asked questions

When must I convert my RRSP to a RRIF?

By December 31 of the year you turn 71. You can do it earlier if you need the income.

Can I avoid the minimum withdrawal?

No, the annual minimum is mandatory and taxable. But basing the calculation on a younger spouse's age reduces it.

Are RRIF withdrawals taxed?

Yes, as ordinary income. After 65 they qualify for the pension income credit and spousal income splitting.

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