Retirement

By Jason Heath, CFP on June 23, 2025
Estimated reading time: 8 minutes

By Jason Heath, CFP on June 23, 2025
Estimated reading time: 8 minutes

Most registered retirement savings plans are eventually converted to registered retirement income funds. Here’s what to know about RRIF withdrawals.

At some point, a registered retirement savings plan (RRSP) is typically converted to a registered retirement income fund (RRIF). The latest you can defer the conversion of your RRSP to a RRIF is the end of the year you turn 71. This means that by December 31 of your 71st year, you need to either withdraw the full balance of your RRSP and pay tax on it, use the account to purchase an annuity from an insurance company, or convert it to a RRIF. Most Canadians choose to convert their RRSP to a RRIF.

You do not have to wait until age 71 to convert your RRSP. Most people consider doing so once they have retired.

There are no penalties for withdrawing from your RRSP or RRIF before a certain age. Withdrawals are taxable as income other than exceptions for purchasing a first home using the Home Buyers’ Plan (HBP) or paying for eligible post-secondary education using the Lifelong Learning Plan (LLP).

The minimum age at which you can convert an RRSP to a RRIF varies by province. It’s 50 in some, and 55 in others. But starting the year after conversion, you must begin to take minimum withdrawals from your RRIF. The table below includes the minimum withdrawal rates for all RRIFs set up after 1992. It shows the percentage of the account balance (at the previous year-end) that must be paid out in the current year.

The withdrawal rates above represent the minimum percentages that must be withdrawn, but account holders can make larger withdrawals if they need to or want to, as long as the account is not locked in.

Download this chart to your device: Downloadable RRIF withdrawal rates chart 2024.

Why do some Canadians have locked-in accounts? When a pension plan member leaves a pension, they may have the opportunity to transfer funds from their pension to a locked-in retirement account (LIRA). If they have a defined contribution (DC) pension, they can always transfer the investments to a locked-in account. If they have a defined benefit (DB) pension plan, they may be able transfer funds to a locked-in account. Their plan rules must allow them to elect to receive a lump sum commuted value and to forgo their future monthly pension payments, which is not always an option. Some pensions restrict commuted values, often based on the age of........

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