You are permitted to contribute to your RRSP up until December 31 of the year in which you turn 71, at which point your RRSP must be closed. This deadline is firm — missing it means the entire balance is treated as taxable income in that year.
When your RRSP matures, you may choose any one of the following options, or a combination of all three:
1.    Transfer your RRSP holdings into a Registered Retirement Income Fund (RRIF)
2.    Receive your RRSP funds as a lump-sum cash payment, on which you will pay tax on the full amount in that year
3.    Purchase an annuity

Your financial institution will typically contact you as you approach age 71 to guide you through the transfer process and complete the necessary transactions. It is essential to complete the transfer to a RRIF before the deadline — failing to do so will result in the entire balance being treated as taxable income in that same year.

What Can Be Transferred into a RRIF?
A RRIF is created when assets are transferred from one or more of the following registered vehicles:
•       A Registered Retirement Savings Plan (RRSP)
•       A Pooled Registered Pension Plan (PRPP)
•       A Registered Pension Plan (RPP)
•       A Specified Pension Plan (SPP)
•       A First Home Savings Account (FHSA)
•       Another RRIF

RRIFs are designed to provide regular retirement income. The rules establish a minimum amount you must withdraw each year — this minimum increases annually as you age — but there is no maximum withdrawal amount. This structure gives you a reliable cash flow in retirement, with the flexibility to increase withdrawals as needed to keep pace with rising living costs.

OAS Clawback: Key Tax Considerations (2025–2026)
The Old Age Security (OAS) pension is subject to a recovery tax — commonly called the “clawback” — if your net income exceeds a government-set threshold. For every $1 of net income above the threshold, your OAS benefit is reduced by 15 cents (15%). Because OAS clawback thresholds are adjusted annually for inflation, it is important to work with your advisor each year to manage your income accordingly.

OAS Clawback Thresholds — 2026
January to June 2026 (based on your 2024 net income):
•  Minimum threshold: $90,997
•  Full clawback for ages 65–74: income over $148,451
•  Full clawback for ages 75+: income over $154,196

July to December 2026 / July 2026–June 2027 (based on your 2025 net income):
•  Minimum threshold: $93,454
•  Full clawback for ages 65–74: income over $152,062
•  Full clawback for ages 75+: income over $157,923

2026 Income Year (for recovery tax deducted July 2027–June 2028):
•  Minimum threshold: $95,323
•  Maximum OAS pension for 2026: $8,907.72 annually

Rate of reduction: 15 cents for every $1 of income above the applicable threshold.
Talk to your financial advisor each year to plan withdrawals that minimize OAS clawback.

Example: If a 65-year-old OAS recipient has a 2025 net income of $100,000, the clawback for the July 2026–June 2027 period is calculated as follows:
($100,000 − $93,454) × 15% = $981.90 annual clawback
This clawback is applied to the $90,997 threshold for Jan–June 2026, and the $93,454 threshold for July–December 2026, depending on which income year is used for that portion of payments.

Self-Directed RRSPs and RRIFs
If you hold a self-directed RRSP, you can transfer your assets intact into a self-directed RRIF. You may continue to hold the same qualified investments in your RRIF that you held in your RRSP. The tax-sheltered growth you enjoyed in your RRSP continues within the RRIF — you do not pay tax on the funds (or any investment gains) until you make a withdrawal.
Canadian investors may invest up to 100% of their registered retirement plans in foreign securities, allowing their investment managers to pursue global diversification.

How the RRSP-to-RRIF Transition Works
During your working years, RRSP contributions are deductible from your taxable income, reducing the amount of tax you pay while you earn. All contributions and investment gains grow on a tax-sheltered basis inside the RRSP. Upon retirement, any withdrawals from your RRSP or RRIF are fully taxable as income — in theory, at a lower rate than during your higher-earning years.

RRIF payments are intended as a gradual, long-term withdrawal strategy. You may receive payments monthly, quarterly, semi-annually, or annually. Importantly, your RRIF must maintain a cash component — separate from your investments — to fund scheduled retirement income payments.

You may change the frequency and amount of your RRIF withdrawals at any time. The Canada Revenue Agency (CRA) publishes a minimum withdrawal table on its website — speak with your advisor to ensure your withdrawal strategy is optimized.

Using Your Spouse’s Age to Your Advantage
RRIF rules require an annual minimum withdrawal, typically calculated based on the RRIF holder’s age. However, if your eligible spouse or common-law partner is younger than you, you may elect to use their age when opening the RRIF for the purposes of calculating the minimum annual withdrawal. A younger spouse’s age results in a lower minimum withdrawal each year, allowing more of your savings to remain invested and growing on a tax-deferred basis.

Important Note on Spousal Strategy
Once you elect to use your spouse’s age for RRIF minimum withdrawal calculations, this decision is irrevocable — it cannot be changed, even in the event of the death or divorce of your spouse.

Locked-In Accounts: LIRAs and LIFs
If you hold a Locked-in Retirement Account (LIRA), it must be converted to a Life Income Fund (LIF) within the same timeframe as the RRSP-to-RRIF conversion — by December 31 of the year you turn 71. If you have questions about tax withholding on your RRIF or LIRA payments, speak with your financial advisor.