Opening a RRIF is the final step in your RRSP journey — converting from the saving phase to the income phase. The process is straightforward (your financial institution handles most of it), but the decisions you make at conversion have permanent consequences. Choosing to use your younger spouse’s age for minimum withdrawals, selecting the right payment frequency, and naming a spouse as successor holder (for tax-free rollover) all need to be done correctly at setup. If you have a large RRSP, consider whether an early conversion strategy in your 60s makes more tax sense than waiting until the mandatory deadline at 71.
What Is a RRIF?
Registered Retirement Income Fund
Feature
Details
Purpose
Provide retirement income
Tax status
Tax-deferred growth
Withdrawals
Minimum required annually
Withdrawals taxed
As regular income
Conversion
From RRSP
RRIF vs. RRSP
RRSP
RRIF
Contribution phase
Withdrawal phase
No mandatory withdrawals
Minimum withdrawals required
Contribution limit
No contributions
End by age 71
Starts after conversion
When to Open a RRIF
Mandatory Timeline
Age
Requirement
Before 71
Can convert anytime
During year turn 71
Must convert by Dec 31
Options
RRIF, annuity, or lump sum
Strategic Timing
Situation
Consider Converting
Need income
When income needed
Low income year
May reduce taxes
Still working
Maybe wait
Spouse younger
Use their age
Opening a RRIF: Step by Step
Step 1: Gather Information
Document
Why Needed
Government ID
Identity verification
RRSP account details
Source of funds
SIN
CRA reporting
Beneficiary info
Name, SIN, DOB, relationship
Step 2: Contact Financial Institution
Option
Process
Same institution
Simple conversion
New institution
Transfer + conversion
In person
Most support
Online
Major banks, robo-advisors
Phone
Schedule appointment
Step 3: Complete Paperwork
Form
Purpose
RRIF application
Open new account
Transfer authorization
Move funds from RRSP
Beneficiary designation
Name beneficiaries
Spouse age election
If using younger spouse
Withdrawal schedule
How much, how often
Step 4: Set Up Withdrawals
Decision
Options
Amount
Minimum or more
Frequency
Monthly, quarterly, annual
Method
Deposit to account, cheque
Tax withholding
None on minimum, rates on excess
Step 5: Investment Selection
Option
Consideration
Transfer in-kind
Keep same investments
Reallocate
May want safer mix
Investment type
GICs, ETFs, mutual funds
Choosing Where to Open
Types of RRIF Providers
Provider
Best For
Major banks
Full service, branches
Credit unions
Local service
Online brokers
Self-directed, low fees
Robo-advisors
Managed, low cost
Insurance companies
Annuity options
Fee Comparison
Provider Type
Typical Fees
Bank full-service
1-2%+ MER
Bank self-directed
$0-$10/trade
Online broker
$0-$10/trade
Robo-advisor
0.4-0.5%
Considerations
Factor
Questions
Service level
How much help needed?
Fees
What are total costs?
Investments
What options available?
Withdrawals
How flexible?
Location
Branch access important?
Setting Up Withdrawals
The most important decision at RRIF setup is your withdrawal strategy. Many retirees default to the minimum, but that may not be optimal — if you have CPP, OAS, and pension income covering your needs, minimums keep more growing tax-deferred. If you need income, monthly payments provide predictable cash flow. Remember: no withholding tax applies to minimum withdrawals, but anything above the minimum triggers 10–30% withholding depending on the excess amount.
Minimum Withdrawal Rates
Age
Minimum %
65
4.00%
70
5.00%
71
5.28%
75
5.82%
80
6.82%
85
8.51%
90
11.92%
95+
20.00%
Withdrawal Frequency Options
Frequency
Pros
Cons
Monthly
Regular income
More transactions
Quarterly
Less admin
Lumpy income
Annual
Maximum growth
Large single payment
Tax Withholding
Amount Over Minimum
Withholding
Minimum only
None
Up to $5,000
10%
$5,001-$15,000
20%
Over $15,000
30%
Quebec rates differ.
Beneficiary Designation
Options
Designation
Result
Spouse/CLP
Tax-free rollover
Adult child
Taxable to estate
Minor child/grandchild
May have options
Estate
Taxable to estate
Successor Holder (Spouse)
Benefit
Details
What happens
RRIF continues
Tax
None at death
Spouse continues
Withdrawals
Spouse’s age
Can use for minimum
Younger Spouse Election
Using Spouse’s Age
When to Decide
At RRIF creation
Benefit
Lower minimum withdrawals
Requirement
Spouse exists at setup
Irrevocable
Can’t change later
Example Impact
Your Age
Your Minimum
Spouse Age 60
71
5.28%
3.85%
75
5.82%
4.35%
80
6.82%
5.00%
Lower withdrawals = more tax-deferred growth.
Converting RRSP to RRIF
Transfer Options
Option
Result
In-kind transfer
Keep investments
Sell and transfer cash
Simplifies
Partial conversion
Some to RRIF, some other
In-Kind Transfer
Benefit
Details
No selling
Avoid timing market
No fees
No trade costs
Seamless
Same investments
Rebalance later
If desired
RRIF Investment Strategies
Age-Appropriate Allocation
Age
Stock %
Bond/Fixed %
65-70
40-60%
40-60%
70-80
30-50%
50-70%
80+
20-40%
60-80%
Income-Focused Options
Investment
Yield
Risk
GICs
3-5%
Low
Bond ETFs
3-5%
Low-Med
Dividend ETFs
3-5%
Medium
Balanced funds
Varies
Medium
Withdrawal Management
Strategy
Approach
Interest/dividends
Withdraw income first
Systematic
Sell proportionally
Bucket
Cash + growth portions
Multiple RRIFs
Rules
Rule
Details
Number allowed
Unlimited
Minimum applies
Each RRIF separately
Flexibility
Withdraw from any
Consolidation
May simplify
Why Multiple RRIFs
Reason
Benefit
Different strategies
GIC + stocks separate
Simplify beneficiaries
One per beneficiary
Different institutions
Compare service
The Bottom Line
Convert your RRSP to a RRIF at the same institution for the simplest process (investments transfer in-kind), elect your younger spouse’s age for lower minimums, and name your spouse as successor holder for a tax-free rollover. Consider a low-cost brokerage or robo-advisor if your current provider charges high fees — those fees compound against you during 20+ years of retirement withdrawals.