Retirement income calculator
RRIF Minimum Withdrawal Calculator
Estimate the prescribed annual minimum withdrawal from a RRIF using its value at the beginning of the year and the age used for the calculation. The projection also illustrates how future minimum withdrawals and the account balance may change under the entered return and withdrawal-timing assumptions.
What this calculator estimates
The calculator estimates the gross minimum withdrawal for the first projection year. It then applies the relevant prescribed factors and the entered projection assumptions to illustrate future minimum withdrawals, total projected withdrawals, and the remaining account balance.
The prescribed minimum is not a recommended withdrawal amount, a personal spending target, or an estimate of after-tax income. The RRIF carrier determines the official minimum using its records and the applicable rules.
How to use the calculator
Enter the RRIF owner’s age at the start of the first projection year, the account’s opening value, and the owner’s age at the beginning of the final projection year. The annual return and withdrawal-timing assumptions affect the projected balances, not the prescribed factor for the first year.
If a valid election to use a spouse or common-law partner’s age was made when the RRIF was established, enter that person’s age at the start of the first projection year. Entering an age here does not make or change that election.
This calculator assumes the first projection year is one in which an annual minimum is required. RRIF minimum payments begin in the calendar year after the RRIF is established.
How the minimum and projection are calculated
- For each year, multiply the RRIF’s fair market value at the beginning of the year by the prescribed factor for the applicable age.
- For age 70 or younger, the factor is calculated as 1 ÷ (90 − age). For ages 71 through 94, the calculator uses the CRA “All other RRIFs” factor for that age. The factor is 20% at age 95 or older.
- The applicable age is the age at the beginning of the year. If a valid spouse or common-law partner age election was made when the RRIF was established, the projection uses that person’s age instead and advances it by one year for each later projection year.
- Under the beginning-of-year timing assumption, the minimum withdrawal is deducted before the annual return is applied. Under the end-of-year assumption, the annual return is applied before the minimum withdrawal is deducted.
- Each year’s projected ending balance becomes the following year’s opening balance. The return assumption is constant throughout the projection.
Some RRIFs established under older rules, qualifying RRIFs, and RRIFs holding certain annuity contracts may require different treatment. This calculator uses only the standard “All other RRIFs” factors.
A simple example
Suppose the RRIF was established in an earlier year, its beginning-of-year value is $200,000, and the age used for the calculation is 72. The 5.40% factor from CRA’s “All other RRIFs” category produces a gross annual minimum withdrawal of $10,800.
$200,000 × 5.40% = $10,800
The following year’s minimum is recalculated using that year’s opening value and applicable age, so it will not necessarily be the same dollar amount.
How to interpret the results and limits
The displayed minimum is a gross withdrawal amount, not the amount remaining after tax. RRIF payments generally have to be reported as income. Withholding treatment is separate: the minimum itself generally does not require withholding, while an amount above the minimum may be subject to withholding. This calculator does not estimate withholding or final income tax.
The prescribed minimum is not a personal retirement-income recommendation. The projection does not determine whether a withdrawal level is sufficient for spending needs or whether retirement spending will be sustainable.
For a life income fund (LIF), this calculator estimates only the minimum withdrawal. It does not calculate the maximum withdrawal or other restrictions imposed by the applicable federal or provincial pension rules.
Future balances use a constant annual return. The projection does not model investment volatility, fees, taxes, transfers, withdrawals above the minimum, account-specific transactions, or changes to the entered assumptions.
Confirm the applicable factor and official minimum with the financial institution administering the account. Different treatment may apply to older or qualifying RRIFs and RRIFs holding certain annuity contracts.