Turning 71 Financial Checklist Canada | RRSP to RRIF
Updated
December 31 of the year you turn 71 is a hard deadline: your RRSP must be converted to a RRIF, collapsed entirely (triggering full income tax on the balance), or used to purchase an annuity. Most people choose RRIF because it preserves tax-deferred growth while requiring only a minimum annual withdrawal — 5.28% at age 72, rising to 20% by age 94+. On a $500,000 RRIF, that’s $27,000 minimum at 72, climbing to $59,600 at 90.
Make your final RRSP contribution before the December 31 deadline — unused room disappears forever after this date. If your spouse is younger, elect to use their age for the RRIF minimum calculation (the “younger spouse election”), which significantly reduces your required withdrawal and keeps more money growing tax-deferred. For example, if you’re 72 but your spouse is 65, your minimum drops from 5.40% to approximately 4.00% — saving $7,000 in forced withdrawals on a $500,000 balance, which helps avoid pushing you into the OAS clawback zone.
Critical Year 71 Timeline
Key Deadlines
Deadline
Action
By December 31
Last RRSP contribution
By December 31
Convert RRSP to RRIF
Following year
Start RRIF withdrawals
Converting RRSP to RRIF
What Happens
RRSP
RRIF
Contributions allowed
No contributions
No required withdrawals
Minimum annual withdrawal
Tax-deferred growth
Still tax-deferred
Withdrawal anytime
Minimum required
Conversion Process
Step
Action
1
Contact financial institution
2
Complete RRIF application
3
Choose investments (can stay same)
4
Set withdrawal schedule
Options at 71
Option
Details
RRIF
Most common, maintain control
Annuity
Guaranteed income for life
Cash out
Not recommended (full tax)
Combination
RRIF + partial annuity
Last RRSP Contribution
Final Opportunity
Contribute
By December 31
Using
Any remaining room
Age
Of year turn 71
No more after
This deadline
Spousal RRSP Exception
If Spouse Younger
Can Continue
Contribute to spousal
Until spouse is 71
Using your room
If you have earned income
RRIF Minimum Withdrawals
Required Percentages
Age
Minimum %
71
5.28%
72
5.40%
73
5.53%
74
5.67%
75
5.82%
80
6.82%
85
8.51%
90
11.92%
94+
20.00%
Minimum Withdrawal Examples
RRIF Balance
Age 72
Age 80
Age 90
$200,000
$10,800
$13,640
$23,840
$500,000
$27,000
$34,100
$59,600
$1,000,000
$54,000
$68,200
$119,200
Younger Spouse Election
Use Spouse’s Age
If Spouse Younger
Benefit
Can use their age
For minimum calculation
Lower percentage
Smaller required withdrawal
More tax-deferred
Growth
Example
Your Age
Spouse Age
Minimum
72
72
5.40%
72
65
4.00%
Difference
Significant
Tax Planning at 71
RRIF Withdrawal Strategy
Strategy
Details
Take minimum only
If don’t need more
Take extra
If low income year
Smooth withdrawals
Consistent tax brackets
OAS consideration
Avoid clawback
Tax Withholding on RRIF
Withdrawal Amount
Withholding
Up to $5,000
10% (20% QC)
$5,001-$15,000
20% (25% QC)
Over $15,000
30% (30% QC)
Note: Minimum doesn’t have withholding unless requested.
RRIF Investment Strategy
Adjust for Age
At 71
Consider
Stocks
40-50%
Bonds/GICs
50-60%
Focus
Income + preservation
Cash Buffer
Strategy
Hold
1-2 years
Cash for withdrawals
Avoid
Selling in down market
Pension Income Splitting
Continue at 71
Already Doing
Continue
RRIF qualifies
As eligible income
Up to 50%
To lower-income spouse
Both must agree
Joint election
OAS at 71
Automatic at 75
Age
OAS Change
75
10% increase
Automatic
No application
GIS Consideration
If RRIF Withdrawal
Affects GIS
Counts as income
May reduce GIS
Minimize if
Receiving GIS
Estate Planning Review
Update Documents
Document
Review
Will
Current?
Beneficiaries
All accounts?
Power of attorney
In place?
Healthcare directive
Updated?
RRIF Beneficiary
Naming Beneficiary
Avoids Probate
Spouse
Tax-free rollover
Non-spouse
Taxable to estate
Estate
Goes through will
Health Considerations
Long-Term Care Planning
Factor
Review
Insurance
Have coverage?
Home care
Cost if needed
Facility care
Average $5,000+/month
Powers of Attorney
Type
Ensure Current
Financial
Can manage money
Personal care
Healthcare decisions
71st Birthday Checklist
Must Do By December 31
Task
Done?
Final RRSP contribution
☐
RRSP converted to RRIF
☐
Younger spouse election filed
☐
Withdrawal schedule set
☐
Should Do
Task
Done?
Review investment allocation
☐
Update estate documents
☐
Beneficiaries confirmed
☐
Tax planning reviewed
☐
OAS clawback checked
☐
Monthly Income After 71
Income Sources
Source
Amount
OAS
~$727+
CPP
(your amount)
Employer pension
(if any)
RRIF minimum
(calculated)
TFSA (if needed)
(flexible)
Total
$
Common Mistakes
Avoid These
Mistake
Problem
Missing RRSP deadline
Lose contribution room
Forgetting conversion
RRSP deregistered
Not taking minimum
Penalties
Over-withdrawing
Higher taxes
Wrong beneficiaries
Estate issues
Special Situations
If Still Working
Consider
Action
RRSP room
Make final contribution
OAS deferral
If haven’t started
Tax bracket
May increase
If In Poor Health
Consider
Action
Larger withdrawals
Use before estate
Name beneficiaries
Direct transfer
Review estate plan
Minimize taxes
The Bottom Line
Convert your RRSP to a RRIF by December 31 of the year you turn 71 — missing this deadline means the entire balance is deregistered and taxed as income. Make your last RRSP contribution before the deadline, elect to use your younger spouse’s age for the minimum withdrawal calculation, and keep one to two years of cash in the RRIF so you’re never forced to sell investments in a down market. Continue pension income splitting with your spouse and review all beneficiary designations — naming your spouse directly on the RRIF avoids both probate and immediate taxation.