A common and very practical option for drawing income from your RRSP accumulations is the RRIF. There are a number of advantages to RRIFs:

  1. You can employ a fairly large variety of income options.
  2. Within certain limits, you can change the amount of income you draw.
  3. When compared with an annuity, a RRIF offers significantly greater flexibility.
  4. Provided you understand that income tax will be withheld, you are able to draw lump sum amounts from a RRIF.
  5. Any balance remaining in the RRIF at your death can become a part of your estate.
  6. You are able to direct the investment of funds inside your RRIF account.

RRIF payment schedule

Using the table below, you can calculate the minimum required RRIF withdrawal starting at age 69. For those RRIFs that were in existence in 1992, use the schedule designated “Qualifying RRIF.” For a RRIF account opened in 1993 or later, use the schedule designated “General schedule.”

RRIF MINIMUMS – NEW – 2015
Age Factors
55 2.86%
56 2.94%
57 3.03%
58 3.13%
59 3.23%
60 3.33%
61 3.45%
62 3.57%
63 3.70%
64 3.85%
65 4.00%
66 4.17%
67 4.35%
68 4.55%
69 4.76%
70 5.00%
71 5.28%
72 5.40%
73 5.53%
74 5.67%
75 5.82%
76 5.98%
77 6.17%
78 6.36%
79 6.58%
80 6.82%
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 20.00%
96 20.00%
97 20.00%
98 20.00%
99 20.00%
100 20.00%

Ages under 69: The formula for calculating minimum withdrawals from RRIFs for individuals under the age of 69 is: 1 divided by 90 minus current age and multiplied by the account value of the RRIF.

For an individual age 65: 1 divided by 90 minus 65 = 4.00%

RRIF income options

Fixed term: Where you arrange to have a set amount paid to you over a specific period of time or to a particular age.

Minimum withdrawal: Only the minimum required by law is paid to you.

Level payment: You arrange for a specific amount to be paid to you over an extended period of time. If and when that amount is less than the required legal minimum, then the minimum is paid to you.

Indexing payment: The payment is adjusted each year for inflation.