Registered Retirement Income Fund (RRIF)

Registered retirement income fund providing regular income from RRSP savings during retirement.

Understanding Registered Retirement Income Funds (RRIFs)

Registered Retirement Income Funds (RRIFs) play a crucial role in providing retirees with a reliable source of income post-retirement. RRIFs are designed to provide retirees with financial flexibility and security, offering tax-efficient income streams throughout their retirement years, offering several key advantages and considerations:

  • RRIFs are funded typically by rolling over your investments as they are currently invested (in-kind) from an RRSP, as RRSPs cannot be maintained beyond the end of the calendar year you turn 71
  • Funds within a RRIF can only originate from another RRIF, an RRSP, or another pension plan, ensuring they are designated for retirement income
  • While capital and earnings within a RRIF grow tax-free, withdrawals are subject to taxation at the time of withdrawal
  • Unlike Locked-In Plans, RRIFs have no maximum withdrawal limit, but there is a mandatory minimum withdrawal amount based on the account holder’s age (see chart below)
  • Withdrawals beyond the minimum amount are subject to varying degrees of withholding tax, providing flexibility with tax implications

RRIF withdrawal rules

In the calendar year after you open a RRIF, you have to start withdrawing money from it. The minimum amount is based on your age and a percentage of the value of your RRIF on January 1.

RRIF minimum withdrawal chart
Age
RRIF Factors
Age
RRIF Factors
Age
RRIF Factors
Age
RRIF Factors
55
2.86%
65
4.00%
75
5.82%
85
8.51%
56
2.94%
66
4.17%
76
5.98%
86
8.99%
57
3.03%
67
4.35%
77
6.17%
87
9.55%
58
3.13%
68
4.55%
78
6.36%
88
10.21%
59
3.23%
69
4.76%
79
6.58%
89
10.99%
60
3.33%
70
5.00%
80
6.82%
90
11.92%
61
3.45%
71
5.28%
81
7.08%
91
13.06%
62
3.57%
72
5.40%
82
7.38%
92
14.49%
63
3.70%
73
5.53%
83
7.71%
93
16.34%
64
3.85%
74
5.67%
84
8.08%
94
18.79%
95+
20.00%

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