What do I Need to Know about Mandatory RRIF Withdrawals in Canada?
Once Canadians turn 71, they must convert their RRSPs to RRIFs and begin making mandatory withdrawals at a set rate. CARP believes seniors deserve to be in control of their retirement savings.
The current mandatory RRIF withdrawal rules do not reflect increasing life expectancies, nor the reality of much shorter time spent in retirement, given that people are working longer than ever before.
COVID-19 brought fears around financial security to the forefront of CARP members’ minds.
While part of the federal government’s economic response during COVID-19 was to reduce the minimum RRIF withdrawal requirement by 25% in 2020, the fact is that many seniors would prefer to indefinitely suspend mandatory RRIF withdrawals.
When individuals are forced to draw down on their savings, they risk outliving their funds. This problem is compounded by lower rates of return, declines in personal savings rates, and reduced access to workplace pension plans. Many depend on their RRIF to provide sustained income throughout their later years.
More than 3 in 4 of our members support this change—it has never been more necessary than it is now.
How is CARP Advocating?
CARP is demanding that the government waive mandatory RRIF withdrawals.
How Can I Get Involved?
There are many ways to get involved. Find out more.