Understanding RRIF Withdrawal Rates

Strategic retirement income planning.

By the end of the year you turn 71, you must convert your Registered Retirement Savings Plan (RRSP) into a source of retirement income. The most common option is a Registered Retirement Income Fund (RRIF). Understanding how RRIF withdrawal rates work - and how to manage them strategically - is one of the most important aspects of retirement income planning.

At SG Wealth, we specialize in helping clients navigate the RRSP-to-RRIF transition and create a sustainable, tax-efficient income stream for their retirement years.

What is a RRIF?

A RRIF is an extension of your RRSP. It holds the investments you accumulated during your working years and is designed to pay you a regular income in retirement. The key difference is that while an RRSP is a savings vehicle with no mandatory withdrawals, a RRIF requires you to withdraw a minimum amount each year.

All investments that can be held in an RRSP - GICs, mutual funds, ETFs, stocks, bonds, and cash - can also be held in a RRIF.

RRIF Minimum Withdrawal Rates

The government sets a minimum percentage that you must withdraw from your RRIF each year. This percentage increases as you age. The minimum withdrawal is calculated by multiplying the market value of your RRIF at the beginning of the year by the prescribed percentage for your age.

Age	Minimum Rate	Age	Minimum Rate
71	5.28%	83	8.08%
72	5.40%	84	8.51%
73	5.53%	85	8.99%
74	5.67%	86	9.55%
75	5.82%	87	10.21%
76	5.98%	88	10.99%
77	6.17%	89	11.92%
78	6.36%	90	13.06%
79	6.58%	91	14.49%
80	6.82%	92	16.34%
81	7.08%	93	18.79%
82	7.38%	94+	20.00%

There is no maximum withdrawal limit. However, all RRIF withdrawals are fully taxable as income in the year they are received.

Key RRIF Management Strategies

Use Your Spouse's Age

If your spouse is younger than you, you can elect to base your minimum withdrawal on their age. This results in a lower required withdrawal, allowing your funds to remain invested and grow tax-sheltered for longer.

Withdraw Strategically to Manage OAS Clawback

If your total income in retirement exceeds a certain threshold (approximately $93,454 in 2026), your Old Age Security (OAS) benefits begin to be clawed back at a rate of 15 cents per dollar. Careful management of your RRIF withdrawals can help you stay below this threshold.

Consider Early RRSP Withdrawals

For some clients, it makes sense to make modest RRSP withdrawals in the years between retirement and age 71, rather than waiting to convert to a RRIF. This can smooth out taxable income over a longer period and reduce the size of the mandatory withdrawals later.

Coordinate with CPP and OAS Timing

The decision of when to start collecting CPP and OAS interacts directly with your RRIF withdrawal strategy. Delaying CPP to age 70 increases your benefit by 42%, but it also means you may need to draw more heavily from your RRIF in the interim years.

All of these decisions are interconnected, and getting them right requires a comprehensive retirement income plan. This is a core part of the retirement planning work we do at SG Wealth.

The Importance of a RRIF Strategy

A RRIF is not a "set it and forget it" account. It requires ongoing management and strategic decision-making to ensure your savings last as long as you need them. An SG Wealth advisor can help you create a RRIF withdrawal strategy that provides a reliable income stream throughout your retirement while minimizing your tax burden and preserving your capital.