RRIF withdrawal rates by age: the complete table and what it means

Once your RRSP becomes a RRIF, the CRA requires you to withdraw a minimum amount every year. That minimum is a percentage of your RRIF's value at the start of the year, and the percentage depends on your age. Below is the complete table, in case that is what brought you here.

A few things stand out once you look at the numbers. At 65, the minimum is 4%. By 75, it is nearly 6%. By 85, it is over 8.5%. By 95 and older, it reaches 20%. The rate climbs slowly at first, then accelerates in your later years, and the step from age 70 to 71 marks a change in how the factor is calculated.

For ages 71 and under, the prescribed factor is calculated with a simple formula: 1 divided by (90 minus your age). At 65, that is 1 / (90 minus 65) = 1 / 25 = 4.00%. At 70, it is 1 / (90 minus 70) = 1 / 20 = 5.00%. As you age, the denominator shrinks, so the percentage grows.

For ages 71 and over, the factors are no longer calculated with that formula. Instead, they are specific percentages set by CRA regulation, increasing a bit more steeply and reaching 20% at age 95 and older. If your RRIF was set up from a matured RRSP, you generally start taking minimum withdrawals the year after you establish the RRIF. A small number of older RRIFs, funded from pension transfers made before the end of 1992, use lower "qualifying RRIF" factors, though these are increasingly rare.

If your spouse or common-law partner is younger than you, you can elect to use their age instead of your own when calculating the minimum. A younger age means a smaller prescribed factor, which can lower your required withdrawal. You make this election when you set up the RRIF, and it applies to that RRIF for its entire life: you cannot switch back and forth year to year. You could also hold a second RRIF that uses your own age, for flexibility. Either way, the election only changes the minimum. You can always withdraw more if you choose.

When might the spousal election matter? If you have other income sources early in retirement, a pension, CPP and OAS, non-registered investments, you may not need the RRIF income right away. Using a younger spouse's age keeps the minimum lower, which can let more of the RRIF stay tax-sheltered for longer. But it is a trade-off: lower withdrawals now may mean larger ones later, once the rates climb. Whether that works in your favour depends on your tax situation, your other income, and how long you expect to need the funds.

The table tells you what you have to withdraw. It does not tell you what you should withdraw, and that distinction matters more than most people realize. At 71, the minimum is 5.28%. By 80, it is 6.82%. By 90, it is 11.92%. If your RRIF balance stays roughly the same, your minimum withdrawal could nearly double between your early 70s and your late 80s. For some retirees, that escalation lines up naturally with rising costs later in life. For others, it can push income into a higher tax bracket, trigger an OAS clawback, or force a withdrawal larger than what they actually need to spend.

This is why, in our look at whether to take more than the RRIF minimum, we explored a counterintuitive idea: withdrawing more than the minimum earlier, while the rates are lower, can gradually reduce the RRIF balance, so the escalating factors in your later years apply to a smaller pool of money. The minimum is a floor, not a target, and in some scenarios taking more early can lead to a smoother tax picture over your lifetime.

The prescribed factors exist to make sure RRIFs eventually pay out and the government collects tax on money that has been deferred for decades. They were not designed around your spending needs, your other income sources, or what you hope to leave behind. The right withdrawal amount for you depends on questions the table cannot answer: what other income you have, what tax bracket you are in now versus later, whether you want to preserve RRIF assets for your estate, and how your RRIF fits alongside your TFSA and non-registered accounts.

These are the kinds of questions we like to explore together, modelling a few scenarios out loud and adjusting the assumptions until the trade-offs are visible. The table is a useful reference. What you do with it is a decision that benefits from being looked at alongside everything else in your plan.

This content is for general information only and is not personalized tax, legal, or financial advice. RRIF minimum withdrawal factors are prescribed by the Canada Revenue Agency under the Income Tax Act. Your actual withdrawal strategy should consider your individual circumstances. Consult a qualified professional for advice specific to your situation.