RRIF withdrawals: how much to take and when

A RRIF has to pay you a minimum every year after the year you open it: the balance on January 1 times a factor set by age. That’s 4.00% at 65, 5.28% at 71 and 6.82% at 80, rising to 20% from 95. On a C$500,000 RRIF at 72, the 2026 minimum is C$27,000. You can always take more. The planning is in how much more, and when.

The minimum, by age

The minimum is a floor, not a plan. Taking only the minimum keeps the balance large in your 70s, and the factor rises faster than most portfolios grow in your 80s. Taking more early can smooth your taxable income across the years.

Rules that matter

1. The deadline is the end of the year you turn 71. Your RRSP has to be cashed out, used to buy an annuity, or moved to a RRIF by then. You can convert any time before.
2. No minimum in the first year. The minimum starts the year after the RRIF is set up. Converting in the year you turn 71 means the first required payment is in the year you turn 72.
3. You can base the minimum on a younger spouse’s age. It lowers the minimum each year, but you have to choose it on the original application, and you can’t change it later.
4. No tax is withheld on the minimum. Amounts above it are withheld at the RRSP rates: outside Quebec, 10% up to C$5,000, 20% from C$5,000 to C$15,000 and 30% above. Withholding is a prepayment; the full withdrawal is taxed at your rate when you file.
5. From 65, RRIF payments are pension income. They qualify for the C$2,000 federal pension income amount, and up to half can be split with a spouse or common-law partner on your tax returns. See our guide to pension income splitting.
6. Every dollar counts toward the OAS clawback. Net income above C$95,323 for 2026 costs 15% of the excess in OAS repayment. TFSA withdrawals don’t count.
7. At death, the balance is generally included in your final-year income, unless a spouse or common-law partner becomes the successor annuitant or rolls it into their own plan.

Locked-in money from a former employer’s pension follows its own rules in a LIF; see LIRA and LIF.

How a withdrawal plan is built

A good plan sets a target taxable income for each year and fills it from accounts in order:

• Guaranteed income first: CPP, OAS and any workplace pension.
• RRIF next, up to a bracket. Often the top of the 20.5% federal band (C$117,045 in 2026) or the OAS threshold, whichever is lower for you.
• TFSA and non-registered savings for the rest. TFSA withdrawals are tax-free and don’t count as income for OAS or the GIS.

For a couple, the plan works on both returns at once: which partner’s RRIF to draw, how much to split, and whether one partner should convert earlier. Many people open a small RRIF at 65 just to use the C$2,000 pension income amount each year.

Common mistakes

• Waiting until 71 to think about it. By then the CPP and OAS start dates are often fixed, and the minimums are already large. Our guide to the RRSP meltdown covers drawing down earlier.
• Missing the spouse’s-age choice. It’s offered once, on the application.
• Taking a big December lump sum. It can push you into a higher bracket or the OAS clawback for that year, and the withholding may not cover the tax.
• Selling investments at a bad time to meet the minimum. Ask your institution whether the payment can be made by moving investments to a non-registered account instead of selling them, and how that’s reported.
• Forgetting the second death. A surviving spouse who inherits a RRIF faces the same minimums alone, often in a higher bracket.

Questions to ask a planner

1. What should my taxable income be each year, and how much should come from the RRIF?
2. Should I convert before 71? Should I open a small RRIF at 65?
3. Should I base the minimum on my spouse’s age?
4. How much pension income should we split each year?
5. How do these withdrawals affect my OAS, now and if I defer it?
6. Do you or your firm earn anything from the investments the RRIF holds?

When a fee-only planner is worth it

RRIF planning is mostly arithmetic, but it’s arithmetic over 25 years, two tax returns and rules that are indexed every January. A one-time plan sets the target income and the account order, and a short yearly review keeps it current.

In Canada, fee-only planners who publish prices charge a median C$1,900 for a one-time plan (middle half C$950 to C$3,000), C$250 an hour, or C$2,300 a year for ongoing planning. The samples are small, 46, 15 and 21 firms, so treat them as a guide and compare quotes. An advice-only planner won’t hold your RRIF, which leaves it at your own bank or brokerage and keeps their advice separate from what the account pays them. Avoiding even a few years of OAS clawback usually covers the fee. Our guides to what fee-only advisors charge in Canada and advice-only planning explain the options.

Find a planner

Browse fee-only planners by province in the public graph: Ontario, British Columbia, Alberta, Quebec, Manitoba, Saskatchewan and Nova Scotia, or see the list of fee-only advisors in Ontario. If you still have money to save, see RRSP vs TFSA.