Once you open a Registered Retirement Income Fund (RRIF), you’re required to make a minimum taxable withdrawal each year, starting the year after it’s opened. The amount is based on a percentage of your RRIF’s value and your or your spouse’s age.
Every withdrawal is taxed as income at your marginal tax rate, but you may be able to minimize the effect of the tax liability through one or more of the following strategies.
Using your spouse’s age. If your spouse is younger, you can elect to use their age in the calculation of the minimum required withdrawal. This locks in a lower minimum amount and less tax payable in any year that you want only the minimum withdrawal. Note that you must make this choice when you establish the RRIF.
Splitting RRIF income. Pension income splitting allows you to save tax as a couple by allocating up to 50% of eligible pension income from the higher-income spouse to the spouse in a lower tax bracket. Once you turn 65, you can use RRIF withdrawals to split income, regardless of your spouse’s age.
Making a partial RRSP to RRIF conversion. If a couple would normally plan to split pension income when one spouse converts their Registered Retirement Savings Plan (RRSP) to a RRIF at the maximum age of 71, they may decide to implement a partial-conversion strategy. Instead of waiting until 71, you open a RRIF at 65, transfer $14,000 from your RRSP to the RRIF, and withdraw $2,000 each year from age 65 to 71. This allows you to take advantage of the federal pension income tax credit on the first $2,000 of eligible pension income.
Funding your TFSA. This strategy saves you taxes down the road, rather than reducing your tax burden immediately. Any year you don’t need the full amount of your minimum RRIF withdrawal to support your retirement, you can contribute the unrequired funds to your Tax-Free Savings Account (TFSA), up to your contribution limit. This way, future growth and withdrawals of these funds are tax-free.
Customizing your withdrawals. In any year when you don’t require income from your RRIF to cover your cost of living, you may choose to receive your minimum payment at the end of the year, potentially maximizing the account’s tax-deferral benefits. But you can base your withdrawal schedule on your income needs; for example, choosing monthly, quarterly or semi-annual payments.
Withdrawing more than the minimum. A retiree may want to withdraw more than the minimum amount, even if they don’t require the extra funds that year. In some cases, this strategy might result in paying less tax on the withdrawn funds in the current year than the amount payable in future years. Typically, the extra funds are in an amount that reaches the threshold of the retiree’s current tax bracket.
We’ll work with you to assess and, if appropriate, implement these strategies, as each one’s value depends on an individual’s or a couple’s personal and financial situation.
This article is excerpted from the Well‑Advised Summer 2026 Newsletter and published on behalf of your financial advisor for clients residing in jurisdictions where they are registered. This material is provided solely for informational and educational purposes and is not to be construed as an offer or solicitation for the sale or purchase of any securities or as providing individual investment, tax or legal advice. Consult your professional advisor(s) prior to acting on the basis of this material. Insurance products are available through advisors registered with applicable insurance regulators. In considering any particular investment, please remember that past performance is no guarantee of future performance. Although this material has been compiled from sources believed to be reliable, we cannot guarantee its accuracy or completeness. All opinions expressed and data provided herein are subject to change without notice. Neither CI Assante Wealth Management Ltd. their affiliates or their respective officers, directors, employees or advisors are responsible in any way for any damages or losses of any kind whatsoever in respect of the use of this material. CI Assante Wealth Management is a registered business name of Assante Wealth Management (Canada) Ltd. CI Assante Wealth Management Ltd is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization.
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