This calculator does not work for RRIFs started prior to
1993. For calculating annual withdrawals for these RRIFs, see our RRIF
calculator.
Do you want to retire early, using your RRSPs to
provide your retirement income? Use this combined RRSP/RRIF calculator
to
help determine the before-tax income that can be provided
by your registered investments at different rates of
return. This tool will calculate:
the fixed annual withdrawal amount that can be
provided by your investments using a specified annual
return
the maximum annual withdrawals that can be made for your
investments to last a specified number of years
Factors that you enter:
current value of RRSPs
estimated rate of return
estimated inflation factor
your current age
age at which you want to convert your RRSPs into a
RRIF (maximum age 71)
different rate of return for any year
different withdrawal amount for any year, in the fixed
annual withdrawal case
number of years that you want the investment to last,
in the maximum withdrawal case
The calculator will calculate minimum annual withdrawals
as specified by the Income Tax Act, once the RRSP is
converted to a RRIF.
As per 2008
Federal Economic and Fiscal Statement, the 2008 minimum withdrawal is
reduced by 25% in this calculator. The calculator also waives the minimum
withdrawal in 2008 for taxpayers who turned 70 in 2007.
If you turned 70 in 2007, and are using the age of
a spouse or common-law partner to determine the prescribed factor for your
minimum withdrawals, you will have to use the RRIF calculator in 2 stages if you
want to take advantage of the minimum withdrawal being waived in 2008.
First, input your age and other information, with
2008 as the current year, and
Calculate.
Use the calculated ending
balance from 2008 as the beginning balance for the next calculation.
Change the current year to 2009.
Input your spouse's age at Dec 31, 2008, and
Calculate
The information on this site is not intended to be a
substitute for professional advice. Each person's situation differs, and
a professional advisor can assist you in using the information on this web
site to your best advantage.
See our Business
Directory for tax, accounting and finance-related firms in your
area.
Please see our legal
disclaimer.
