If your spouse is younger, you have the option of using their age to calculate your minimum RRIF withdrawal. By delaying your withdrawals in this way, you can keep them in a tax-sheltered environment even longer.
There is no maximum RRIF withdrawal amount. But keep in mind that the more you take out in any given year, the more income tax you’ll pay that year.
Are you on track to meet your retirement goals?
This Retirement Income Calculator can help you get a better understanding of how long your savings will last.
What are RRIF withdrawal strategies?
You won’t find a single RRIF withdrawal strategy that works for every scenario. For how much you should take out each year, ask yourself these questions:
- How much retirement income do I need? If your other sources of retirement income, like CPP and OAS, can sustain the lifestyle you want, it may be beneficial to only withdraw the minimum from your RRIF each year. This will reduce your tax bill.
- How old is my spouse? If you and your partner are different ages, withdrawing from your RRIF using the younger spouse’s age allows you to take less out and keep more in the account to grow.
- Do I have unused TFSA room? There can be advantages to withdrawing more than the minimum from your RRIF. Though you’ll pay more tax, you may be able to generate investment returns that outweigh the tax penalty by putting the funds in other investment accounts, like a Tax-Free Savings Account. Not only will your funds be more accessible, but you’ll decrease future taxes on your estate. While RRIFs are fully taxable upon death, no tax will be owed on your TFSA when you die.
- Do I have a LIF? Since withdrawals from a LIF have a maximum annual limit, it can be difficult to use your LIF funds exactly as you want. In this case, a beneficial strategy may be to withdraw the maximum amount from your LIF, while keeping your RRIF withdrawals to a minimum. This can improve your flexibility over time by exhausting the more restrictive account first.
These are just some of the factors to consider when determining how a RRIF fits into your retirement planning strategy. For personalized advice, contact a knowledgeable Co-operators financial representative.
Now that you know more about RRIFs, is it the retirement account for you?
RRIF withdrawal rates 2022
| Age | |
|---|---|
| 81 | 7.08% |
| 82 | 7.38% |
| 83 | 7.71% |
| 84 | 8.08% |
| 85 | 8.51% |
| 86 | 8.99% |
| 87 | 9.55% |
| 88 | 10.21% |
| 89 | 10.99% |
| 90 | 11.92% |
| 91 | 13.06% |
| 92 | 14.49% |
| 93 | 16.34% |
| 94 | 18.79% |
| 95 and older | 20.00% |
If your spouse is younger, you have the option of using their age to calculate your minimum RRIF withdrawal. By delaying your withdrawals in this way, you can keep them in a tax-sheltered environment even longer.
There is no maximum RRIF withdrawal amount. But keep in mind that the more you take out in any given year, the more income tax you’ll pay that year.
Are you on track to meet your retirement goals?
This Retirement Income Calculator can help you get a better understanding of how long your savings will last.
What are RRIF withdrawal strategies?
You won’t find a single RRIF withdrawal strategy that works for every scenario. For how much you should take out each year, ask yourself these questions:
- How much retirement income do I need? If your other sources of retirement income, like CPP and OAS, can sustain the lifestyle you want, it may be beneficial to only withdraw the minimum from your RRIF each year. This will reduce your tax bill.
- How old is my spouse? If you and your partner are different ages, withdrawing from your RRIF using the younger spouse’s age allows you to take less out and keep more in the account to grow.
- Do I have unused TFSA room? There can be advantages to withdrawing more than the minimum from your RRIF. Though you’ll pay more tax, you may be able to generate investment returns that outweigh the tax penalty by putting the funds in other investment accounts, like a Tax-Free Savings Account. Not only will your funds be more accessible, but you’ll decrease future taxes on your estate. While RRIFs are fully taxable upon death, no tax will be owed on your TFSA when you die.
- Do I have a LIF? Since withdrawals from a LIF have a maximum annual limit, it can be difficult to use your LIF funds exactly as you want. In this case, a beneficial strategy may be to withdraw the maximum amount from your LIF, while keeping your RRIF withdrawals to a minimum. This can improve your flexibility over time by exhausting the more restrictive account first.
These are just some of the factors to consider when determining how a RRIF fits into your retirement planning strategy. For personalized advice, contact a knowledgeable Co-operators financial representative.
Now that you know more about RRIFs, is it the retirement account for you?
Show me why I should open a RRIF with Co-operators
Tell me about another retirement income option
*The information contained in this report was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete and it should not be considered personal taxation advice. We are not tax advisors and we recommend that clients seek independent advice from a professional tax advisor on tax related matters. Mutual funds are offered through Co-operators Financial Investment Services Inc. to Canadian residents except those in Quebec and the territories. Segregated funds and annuities are administered by Co-operators Life Insurance Company. Co-operators Life Insurance Company and Co-operators Financial Investment Services Inc. are committed to protecting the privacy, confidentiality, accuracy and security of the personal information that we collect, use, retain and disclose in the course of conducting our business. Please refer to our privacy policy for more information..
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