A RRIF minimum withdrawal is the mandatory annual amount CRA requires you to withdraw from your Registered Retirement Income Fund. The minimum is calculated as a percentage of your RRIF balance on January 1st and increases with age. All withdrawals are taxable income.
How It Works
The minimum percentage starts at approximately 5.28 percent at age 71. By age 80 it is 6.82 percent. By age 90 it is 11.92 percent. You must take at least the minimum or face penalties. Using your younger spouse’s age to calculate the minimum reduces required withdrawals each year.
Why It Matters in Retirement
Minimums become increasingly large with age — often larger than needed for living expenses. This can push income into higher brackets and trigger OAS clawback. Early voluntary withdrawals, TFSA sheltering, and pension income splitting are the most effective tools for managing the impact.
Related Resources
This article provides general financial education for Canadians. It is not personalized financial advice. For guidance specific to your situation, consider speaking with a CFP professional.