Amend pension, RRIF rules: CD Howe - MoneySense

Amend pension, RRIF rules: CD Howe

Rules regarding pension, RRSP contributions and RRIF withdrawals should change with the times, says think tank report.


A Canadian think tank is calling on the federal government to amend rules regarding the age at which contributions to RRSPs and pensions cease and RRIF withdrawals begin.

The CD Howe Institute’s 2011 Shadow Budget makes a case for raising the age of RRSP and pension contributions to 73 from the current 71. The commencement of withdrawals from Registered Retirement Income Funds (RRIFs) should also be raised to 73, and then indexed thereafter to improvements in life expectancy, say the report’s authors.

In addition, they call for mandated minimum annual RRIF drawdowns to be reduced, thereby increasing the amount of tax-deferred reinvestment available to seniors who want to lower their risk of outliving their money.