Politics · Canada · 2 hrs ago
Canada proposes combining RRSPs and RRIFs into one retirement account
Canada’s 2026 federal budget proposes combining RRSPs and RRIFs into one account for retirement savings.
Today, Canadians must convert their registered retirement savings plans, or RRSPs, into registered retirement income funds, or RRIFs, by the end of the year they turn 71.
Under the proposal, they could keep one account, but would still have to begin minimum withdrawals by age 71.
Surviving spouses could take over an RRSP more directly, and other eligible survivors could transfer savings into registered accounts without first reporting the money as income and claiming a deduction.
The changes are mainly intended to reduce paperwork, rather than change how much retirees receive.
Planners say questions remain about contributions after age 71, tax withholding and existing tax benefits for retirees.
The government has set no timeline, and says consultations and changes to federal and provincial laws may be needed.
Canada’s 2026 federal budget proposes combining registered retirement savings plans and registered retirement income funds into one account.
The proposed “RRSP-for-life” would remove the requirement to convert an RRSP into a RRIF by the end of the year a person turns 71.
Account holders would still have to begin minimum withdrawals by that age.
The proposal also aims to simplify transfers of retirement savings to spouses and other eligible survivors after an account holder dies.
The government has not set an implementation timeline, and financial planners say questions remain about how tax rules would apply.
- Who
- The federal government proposed the changes. They would affect Canadians with RRSPs and RRIFs and eligible survivors.
- What
- The budget proposes combining RRSPs and RRIFs into a single account called an “RRSP-for-life.
- When
- The proposal was included in the 2026 federal budget, released Thursday.
- Where
- Canada.
- Why
- The government says the changes could reduce paperwork for account holders and survivors and simplify transfers of retirement savings.
This story does not have two clearly opposing sides.
This story does not have a timeline yet.
- Proposed account
- RRSP-for-life
- Conversion age
- 71
- Minimum withdrawals
- Would still have to start by the end of the year an account holder turns 71
- Implementation timeline
- Not provided by the budget
What people are saying
It is a significant improvement to the way the system actually works