03 / The planning notes
How this RRIF calculator works
A Registered Retirement Income Fund (RRIF) turns registered retirement savings into income. Use the calculator above to explore how your balance, age, assumed investment return and withdrawals could affect your income and how long your savings last.
The results are projections, not guaranteed income. Compare your planned withdrawals with your lifestyle spending and other income, and remember that the amount you withdraw is not necessarily the amount available to spend after tax.
When do RRIF minimum withdrawals start?
Minimum withdrawals start in the calendar year after you establish your RRIF. The yearly minimum is calculated using the value of your RRIF at the start of the year and a prescribed factor based on your age at the beginning of that year.
When setting up the RRIF, you can elect to use your spouse's or common-law partner's age instead. Using a younger partner's age can reduce the required minimum, but it does not determine how much income you actually need.
Canada Revenue Agency: minimum amount from a RRIFCan you take more than the RRIF minimum?
For a regular RRIF, you can withdraw more than the yearly minimum. The minimum is a legal requirement, not a personalised spending recommendation. Locked-in retirement income accounts have different rules and may also have maximum withdrawals.
Extra withdrawals can help cover larger expenses, but they also leave less invested for later years. Compare different withdrawal amounts before deciding what fits your retirement plan.
Canada Revenue Agency: receiving income from a RRIFAre RRIF withdrawals taxable?
RRIF payments are generally included in your taxable income. Your final tax bill depends on your total income and circumstances, not just the amount withdrawn from the RRIF. Any tax withheld when a payment is made is not necessarily your final tax liability.
For British Columbia residents, consider both federal and provincial income tax when comparing withdrawals. Plan your RRIF income alongside CPP, OAS and other savings rather than treating each account in isolation.
Canada Revenue Agency: about RRSPs and RRIFsFit your RRIF income into your retirement plan
How much should you draw from your RRIF to support the lifestyle you want? An independent, fee-for-service review can help you look at your withdrawals alongside CPP, OAS, other savings and taxes, so you can see how they fit into your whole retirement plan.
Book a free retirement review