At age 71, the party's over for your RRSP. The government wants its tax revenue, so you must convert your RRSP to a Registered Retirement Income Fund (RRIF) and start making minimum withdrawals. But don't worry — with proper planning, you can minimize taxes and maximize your retirement income for decades to come.
RRIF Minimum Withdrawal Rates by Age (2026)
The RRIF minimum withdrawal percentage increases with age. Here are the key rates you need to know:
| Age | Minimum % | Example: $500K RRIF |
|---|---|---|
| 65 | 4.00% | $20,000/year |
| 70 | 5.00% | $25,000/year |
| 71 (conversion) | 5.28% | $26,400/year |
| 75 | 5.82% | $29,100/year |
| 80 | 6.82% | $34,100/year |
| 85 | 8.51% | $42,550/year |
| 90 | 11.92% | $59,600/year |
| 95+ | 20.00% | $100,000/year |
How the Minimum is Calculated
Your RRIF minimum withdrawal is calculated based on the RRIF's value on January 1st each year. For example, if your RRIF is worth $500,000 on January 1, 2026 and you're 72 years old (5.40% rate), your minimum withdrawal for 2026 is $27,000. Even if your RRIF grows or shrinks during the year, the minimum stays the same.
Pro Tip: Use Your Spouse's Age
If your spouse is younger, you can elect to use their age for calculating the minimum withdrawal percentage. This reduces your mandatory withdrawals, lowers your taxable income, and allows more money to grow tax-deferred. For example, if you're 75 (5.82% minimum) but your spouse is 70 (5.00%), using their age saves you $4,100/year on a $500K RRIF.
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Real-World Examples
Let's look at three real scenarios to see how RRIF minimum withdrawals work in practice:
Newly Converted RRIF at Age 71
Standard conversion with pension splitting
Scenario:
- •Robert, age 71: Just converted RRSP to RRIF in 2026
- •RRIF value Jan 1, 2026: $650,000
- •Other income: CPP $16,000, OAS $8,916.60
- •Spouse: Wife age 68 with lower income
Calculation:
- RRIF value:$650,000
- Minimum % at age 71:5.28%
- 2026 minimum withdrawal:$34,320
- Income split to spouse (50%):$17,160
Result: Robert withdraws $34,320 in 2026 (no withholding tax on minimum). By splitting half with his wife through pension income splitting, they reduce their combined tax bill significantly. Total household income: Robert $41,892, Wife $17,160 — both in lower tax brackets than if Robert claimed the full $76,052 alone.
Taking More Than the Minimum
Additional withdrawals for lifestyle expenses
Scenario:
- •Linda, age 75: Active retiree with high expenses
- •RRIF value Jan 1, 2026: $400,000
- •Needs: $50,000/year for travel and living expenses
Calculation:
- RRIF minimum (5.82%):$23,280
- Additional withdrawal needed:$26,720
- Withholding tax on excess (30%):-$8,016
- Net received:$42,264
Result: Linda receives $23,280 (minimum, no withholding) + $18,704 (after withholding on excess) = $41,984 deposited to her account. She'll owe more tax when filing, but the withholding covers part of it. The remaining $8,016 in withdrawals goes to pre-pay her taxes.
Using Spouse's Age for Lower Minimum
Tax optimization strategy
Scenario:
- •Michael, age 78: RRIF value $800,000
- •Wife Susan, age 71: Younger spouse
- •Strategy: Elected to use Susan's age for RRIF minimum
Result: By using Susan's age, Michael reduces his mandatory withdrawals by $8,640/year, saving approximately $3,456 in taxes annually (assuming 40% marginal rate). Over 10 years, that's $34,560 in tax savings while keeping $86,400 more invested and growing tax-deferred in the RRIF.
Frequently Asked Questions
Frequently Asked Questions
Q:Can I withdraw more than the RRIF minimum?
A:Yes, you can withdraw any amount above the minimum at any time from your RRIF. However, only the minimum amount has no withholding tax deducted at source. Any amount above the minimum is subject to withholding tax (10-30% depending on amount and province), just like RRSP withdrawals. All RRIF withdrawals are fully taxable income, regardless of whether they're minimum or above-minimum amounts.
Q:Is RRIF income eligible for pension income splitting?
A:Yes, RRIF income qualifies as pension income and can be split with your spouse once you're 65 or older. You can allocate up to 50% of your RRIF income to your spouse's tax return, which can significantly reduce your combined tax bill if one spouse is in a higher tax bracket. This is done through the T1032 election form when filing taxes. Note: RRSP withdrawals don't qualify for splitting, but RRIF withdrawals do.
Q:What happens to my RRIF when I die?
A:If you have a surviving spouse, your RRIF can be transferred directly to their RRSP or RRIF on a tax-deferred basis (no immediate tax). If there's no spouse, the full value of your RRIF is added to your income in the year of death and taxed at your marginal rate — this can result in a large tax bill for your estate. Proper estate planning can help minimize this tax hit, such as naming a financially dependent child or grandchild as beneficiary, or making charitable donations in your will to offset the income.
Q:When do I have to convert my RRSP to a RRIF?
A:You must convert your RRSP to a RRIF (or purchase an annuity, or withdraw as a lump sum) by December 31st of the year you turn 71. Once you convert to a RRIF, you must start minimum withdrawals in the calendar year after you open the RRIF. For example, if you convert in December 2026 at age 71, your first withdrawal is required in 2027. You can convert earlier if you want to start receiving pension income (useful for pension income splitting at 65+).
Q:Do I pay withholding tax on RRIF minimum withdrawals?
A:No, there is no withholding tax on RRIF minimum withdrawals — the money is deposited directly to your account without any tax deducted. However, the full amount is still taxable income and must be reported on your tax return. You'll pay tax on it when you file, based on your total income and marginal rate. If you withdraw more than the minimum, the excess amount is subject to withholding tax (10-30% depending on the province and amount).
Q:Can I base my RRIF minimum on my younger spouse's age?
A:Yes, when you set up your RRIF, you can elect to use your spouse's age instead of your own to calculate the minimum withdrawal percentage. This is beneficial if your spouse is younger because it results in a lower minimum withdrawal amount, allowing more money to stay in the RRIF and grow tax-deferred. For example, if you're 72 and your spouse is 65, using their age means a 4.00% minimum instead of 5.40% — significantly less income and tax each year.
Question: Can I withdraw more than the RRIF minimum?
Answer: Yes, you can withdraw any amount above the minimum at any time from your RRIF. However, only the minimum amount has no withholding tax deducted at source. Any amount above the minimum is subject to withholding tax (10-30% depending on amount and province), just like RRSP withdrawals. All RRIF withdrawals are fully taxable income, regardless of whether they're minimum or above-minimum amounts.
Question: Is RRIF income eligible for pension income splitting?
Answer: Yes, RRIF income qualifies as pension income and can be split with your spouse once you're 65 or older. You can allocate up to 50% of your RRIF income to your spouse's tax return, which can significantly reduce your combined tax bill if one spouse is in a higher tax bracket. This is done through the T1032 election form when filing taxes. Note: RRSP withdrawals don't qualify for splitting, but RRIF withdrawals do.
Question: What happens to my RRIF when I die?
Answer: If you have a surviving spouse, your RRIF can be transferred directly to their RRSP or RRIF on a tax-deferred basis (no immediate tax). If there's no spouse, the full value of your RRIF is added to your income in the year of death and taxed at your marginal rate — this can result in a large tax bill for your estate. Proper estate planning can help minimize this tax hit, such as naming a financially dependent child or grandchild as beneficiary, or making charitable donations in your will to offset the income.
Question: When do I have to convert my RRSP to a RRIF?
Answer: You must convert your RRSP to a RRIF (or purchase an annuity, or withdraw as a lump sum) by December 31st of the year you turn 71. Once you convert to a RRIF, you must start minimum withdrawals in the calendar year after you open the RRIF. For example, if you convert in December 2026 at age 71, your first withdrawal is required in 2027. You can convert earlier if you want to start receiving pension income (useful for pension income splitting at 65+).
Question: Do I pay withholding tax on RRIF minimum withdrawals?
Answer: No, there is no withholding tax on RRIF minimum withdrawals — the money is deposited directly to your account without any tax deducted. However, the full amount is still taxable income and must be reported on your tax return. You'll pay tax on it when you file, based on your total income and marginal rate. If you withdraw more than the minimum, the excess amount is subject to withholding tax (10-30% depending on the province and amount).
Question: Can I base my RRIF minimum on my younger spouse's age?
Answer: Yes, when you set up your RRIF, you can elect to use your spouse's age instead of your own to calculate the minimum withdrawal percentage. This is beneficial if your spouse is younger because it results in a lower minimum withdrawal amount, allowing more money to stay in the RRIF and grow tax-deferred. For example, if you're 72 and your spouse is 65, using their age means a 4.00% minimum instead of 5.40% — significantly less income and tax each year.
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