A RRIF changes how money leaves the account—not necessarily how it is invested.
Eligible property can transfer directly from an RRSP and certain other registered plans. Investment earnings remain tax-deferred while they stay in the RRIF. Unlike an RRSP, the account is designed to pay money out rather than accept new contributions. The investments and their value can still rise or fall.
A RRIF is not the same as an annuity and does not guarantee a fixed payment for life. How long the savings last depends on the investments, withdrawals, fees and other circumstances.
Five decisions to make when setting up a RRIF
When to open it
An RRSP must mature by the end of the year its owner turns 71, but a RRIF can be established earlier. Starting earlier also starts the annual-minimum rules earlier.
Whose age sets the minimum
At setup, the owner may be able to elect to use a spouse or common-law partner’s age. CRA says that election is made on the original application and cannot normally be changed.
How much and how often to withdraw
The minimum is a floor, not a recommended spending amount. A carrier may offer monthly, quarterly or annual payments, and more than the minimum can generally be withdrawn.
How the money remains invested
The mix still needs to reflect near-term withdrawals, market declines and the remaining time horizon.
Other taxable income
RRIF payments combine with CPP, OAS, pensions, work and other income on the tax return.
How the annual minimum is set
The opening balance and a prescribed factor determine the minimum.
The carrier calculates the amount. The factor generally rises with age, so the required percentage of the account grows over time. The applicable factor can depend on the owner’s age or an eligible spouse or partner’s age elected when the RRIF was set up.
The minimum is a required withdrawal—not a judgment about how much is safe to spend. It can be more or less than the cash the household needs, and it does not show how long the account may last.
A simplified example
A first RRIF minimum can be different from the amount needed.
Assume Dana is 71 at the beginning of the first year in which a minimum is required. The RRIF is worth $400,000 at the start of that year. Using Dana’s own age and CRA’s current 5.28% factor for an “all other RRIF,” the carrier calculates a $21,120 minimum.
If Dana needs only $18,000 of gross RRIF cash flow, the remaining $3,120 still has to leave the RRIF and is generally taxable. After considering tax, unused cash might stay in a bank account or move to a TFSA if contribution room is available, or to a taxable account.
If Dana instead needs $30,000, the extra $8,880 can generally be withdrawn too. That extra amount may be subject to withholding, and the full withdrawal affects taxable income and the amount left invested. The prescribed factor and account details should be confirmed with the RRIF carrier and CRA’s current factor table.
Illustrative only. The names and circumstances are fictional.Withholding is not the final tax calculation
RRIF withdrawals can affect more than the bank deposit.
CRA generally requires withholding on the part of a RRIF payment above the annual minimum. The minimum itself may have no withholding, but that does not make it tax-free. Final tax depends on total annual income, deductions, credits, province and household circumstances. RRIF income may also interact with income-tested benefits, including the OAS recovery tax.
Related questions
A few useful follow-ups.
Must I wait until 71 to open a RRIF?
No. A RRIF can generally be established earlier, but minimum withdrawals begin in the following year. Review the cash-flow and tax effects before acting.
Does a RRIF guarantee income for life?
No. A RRIF is an account, not a guaranteed lifetime-income promise. Its value depends on investments, withdrawals, fees and other circumstances.
Can I have more than one RRIF?
Yes. CRA permits more than one RRIF, though additional accounts can add administration.
Can I withdraw more than the minimum?
Generally yes. Amounts above the minimum can have withholding and final-tax consequences.
Does tax withholding equal the final tax bill?
Not necessarily. Final tax depends on total annual income, deductions, credits and circumstances.
Explore it in your plan
See how RRIF income could fit with your other monthly income.
The Retirement Income Planner can combine entered pensions, benefits and portfolio withdrawals. It does not calculate an individualized tax or account-withdrawal recommendation.
Official sources
These sources were reviewed July 29, 2026. Program rules and tax treatment can change; confirm the information that applies when acting.
- CRA: Registered Retirement Income Fund (opens in a new tab)
- CRA: Receiving income from a RRIF (opens in a new tab)
- CRA: Minimum amount from a RRIF (opens in a new tab)
- CRA: RRIF prescribed-factor chart (opens in a new tab)
Retired Kevin is not affiliated with or endorsed by these organizations.