OTTAWA URGED TO CONSIDER RAISING RRIF AGE THRESHOLD
Mar 17, 2023
By Bob Komsic
Several groups are encouraging the Trudeau government to raise the age of conversion from Registered Retirement Savings Plans (RRSPs) and delay the minimum withdrawal requirements as part of a study examining thresholds for Registered Retirement Income Funds (RRIFs).
The review by the Department of Finance is in response to a private member’s bill from Liberal MP Kirsty Duncan last June.
The finance department’s looking at population aging, longevity, interest rates and registered retirement income funds, is expected to reports its findings along with recommendations to the Commons by June.
Currently, Canadians must convert their RRSPs into RIFFs by the end of the year they turn 71.
They’re then required to withdraw a certain percentage of that every year, which is taxed as employment income.
Some groups, advocating for delaying the mandatory conversion age and reducing the minimum withdrawal, have made submissions to the government, saying the requirements are increasing the chance of seniors outliving their funds.