Ask a Planner

By Jason Heath, CFP on May 5, 2025
Estimated reading time: 5 minutes

By Jason Heath, CFP on May 5, 2025
Estimated reading time: 5 minutes

The party’s platform proposals may impact RRIF minimum withdrawals, income tax and more. Here’s how Canadians can plan for the changes.

The Liberals held on to power in the recent federal election, and this has tax implications for Canada’s seniors and other taxpayers—in particular, for retirees and their strategies for their registered retirement income fund (RRIF) this year and possibly in the future.

The Liberals’ primary RRIF proposal is to decrease the minimum withdrawal that is required for 2025. The party announced on April 7, 2025, its intention to “protect retirement savings by reducing the minimum amount that must be withdrawn from a Registered Retirement Income Fund (RRIF) by 25% for one year. This will allow Canadian seniors more flexibility in choosing when to draw from their retirement savings.”

This proposal was made in response to U.S. tariffs, which have created economic uncertainty and triggered stock market volatility in recent weeks. Reducing RRIF minimum withdrawals is a measure to “help Canadian seniors and retirement savings weather this storm.” The government has not yet announced when the decrease in minimum withdrawals will begin.

Once a registered retirement savings plan (RRSP) is converted to a RRIF, there are minimum withdrawals that must be taken starting in the year after conversion. These minimums are calculated based on the December 31 market value of the account for the previous year. Each year, the minimum percentage rises based on the age of the account holder or their spouse. (See RRIF withdrawal rates by age.)

You can base the RRIF withdrawals on the age of your spouse if they are younger and you want to have a lower required........

© MoneySense