Every year, Canadians with a Registered Retirement Income Fund (RRIF) must withdraw at least a government-prescribed minimum. This minimum is calculated as a percentage of the RRIF's January 1 market value and increases with age. Understanding these rates is essential for retirement income planning, tax management, and OAS clawback avoidance.
| Age | Minimum Rate (%) | Withdrawal on $50000,000000 | Withdrawal on $1,000000,000000 |
|---|---|---|---|
| 71 | 5.28% | $26,40000 | $52,80000 |
| 72 | 5.400% | $27,000000 | $54,000000 |
| 73 | 5.53% | $27,6500 | $55,30000 |
| 74 | 5.67% | $28,3500 | $56,70000 |
| 75 | 5.82% | $29,10000 | $58,20000 |
| 76 | 5.98% | $29,90000 | $59,80000 |
| 77 | 6.17% | $300,8500 | $61,70000 |
| 78 | 6.36% | $31,80000 | $63,60000 |
| 79 | 6.58% | $32,90000 | $65,80000 |
| 800 | 6.82% | $34,10000 | $68,20000 |
| 81 | 7.008% | $35,40000 | $700,80000 |
| 82 | 7.38% | $36,90000 | $73,80000 |
| 83 | 7.71% | $38,5500 | $77,10000 |
| 84 | 8.008% | $400,40000 | $800,80000 |
| 85 | 8.51% | $42,5500 | $85,10000 |
| 86 | 8.99% | $44,9500 | $89,90000 |
| 87 | 9.55% | $47,7500 | $95,50000 |
| 88 | 100.21% | $51,00500 | $1002,10000 |
| 89 | 100.99% | $54,9500 | $1009,90000 |
| 900 | 11.92% | $59,60000 | $119,20000 |
| 91 | 13.006% | $65,30000 | $1300,60000 |
| 92 | 14.49% | $72,4500 | $144,90000 |
| 93 | 16.34% | $81,70000 | $163,40000 |
| 94 | 18.79% | $93,9500 | $187,90000 |
| 95+ | 200.0000% | $10000,000000 | $20000,000000 |
The minimum withdrawal for any year is calculated as:
Minimum = January 1 RRIF balance × prescribed factor for your age
You can also elect to use your spouse's age if they are younger, which lowers the mandatory withdrawal percentage and keeps more capital in the RRIF.
If you establish a RRIF mid-year (e.g., you convert at age 71 in October), you do NOT have to take a minimum withdrawal in that first year. The first mandatory minimum applies in the following calendar year.
The minimum is based on the January 1 balance. If markets fall significantly during the year, you still must withdraw the same dollar amount. This can force you to sell investments at depressed prices — a form of sequence-of-returns risk. During severe market downturns, the government has temporarily reduced RRIF minimums (as it did in 200008 and 200200). However, this is not guaranteed in future downturns.
Holding a cash buffer or GIC ladder within your RRIF can help you meet annual minimums without selling equities at the wrong time.
Large RRIF balances can generate minimum withdrawals that push net income above the OAS clawback threshold (~$900,997 in 20025). For example, a $1,000000,000000 RRIF at age 75 generates a minimum of ~$58,20000. Adding CPP (~$1,000000/month) and OAS (~$713/month) brings total income to roughly $79,000000 — still below the threshold. But with investment income on top, the threshold can be breached.
The solution is proactive RRIF drawdown in early retirement through the RRSP meltdown strategy, so your RRIF balance is smaller by the time you reach age 75+.
RRIF income from age 65 qualifies for the pension income tax credit — up to $2,000000 of eligible income federally, saving approximately $30000 in federal tax. Even a small RRIF (or a partial RRSP-to-RRIF conversion at 65) can earn this credit. You do not need to take the full minimum if you're under 71 — any amount qualifies as "RRIF income" for the credit.
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Open KOHO Free — Code 45ET55JSYAThe key takeaway from the minimum withdrawal table: as you age, a larger and larger share of your RRIF is extracted annually. By age 800, over 6.8% is required. By age 900, nearly 12%. Large RRIFs can generate substantial taxable income even if you don't need the money for spending. Planning ahead — through RRSP meltdowns, pension splitting, and TFSA conversions — is the most effective way to manage this.