Calculator - Minimum RRIF withdrawals

One savings option where the money invested is tax-sheltered is the Registered Retirement Savings Plan (RRSP). A variety of investment options are available within an RRSP, including stocks, bonds, guaranteed investment certificates, and more.

You can pay less tax because the amount invested is subtracted from your current year's taxable income. All withdrawals, however, are taxed at the time of withdrawal and are added to the year's income.

The maximum RRSP contribution is 18% of earned income, up to $31,560 for 2024 and $32,490 in 2025.


The Registered Retirement Income Fund (RRIF) is the direct evolution of the RRSP (and certain other vehicles such as a PRPP, an RPP, an RPD, or even another RRIF).
In actuality, when we make contributions to an RRSP, we enter into a contract with the government to postpone taxes until a later date, usually at a reduced tax rate. As a result, this arrangement is frequently beneficial.

We must convert our RRSPs into RRIFs at the age of 71 years old maximum (note that an RRSP can be converted into an RRIF at any age before 71 years old). The government gives us this gift during our working lives, but they still want to take what is due at some point.

The owner of this investment vehicle will be obliged to make minimum withdrawals from the time an RRSP is converted into an RRIF, the year after the conversion, and all years after that until the account is depleted; all withdrawals are taxable as soon as the person receives them.

Upon the death of a RRIF annuitant, all remaining funds are deemed to have been received just prior to the death, and as such, must be fully reported on the deceased's income tax return. The remaining sums, however, could be given to his or her spouse or another qualified beneficiary (a dependent child under the age of 18 or a dependent child with a disability).

The minimum withdrawal amount is a relatively simple calculation, the federal government provides a table of prescribed factors by age of the individual: RRIF : Chart – Prescribed factors^[1]

For example, at age 80, the factor is 0.0682; which means that the individual would have to withdraw 6.82% of the amount remaining in his or her RRIF.

Before age 71, the factor corresponds to the following calculation: 1 divided by (90 minus age).
For example, at age 65, the prescribed factor will be:

$$\frac{1}{\mathrm{(90-65)}}\mathrm{=}\mathrm{0.04\; (4\%)}$$

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Current age: years
Age for converting RRSPs to RRIFs: years
Life expectancy: years

Inflation: %

Current value of my RRSPs: $
Expected average annual return: %

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