Business · Markets · 3 hrs ago
Industry groups urge Ottawa to raise the RRSP conversion age
Wealth management groups are asking Ottawa to raise the age limit for converting registered retirement savings plans, or RRSPs, into retirement income funds.
Under current rules, Canadians must convert their RRSPs by the end of the year they turn 71, then begin minimum annual withdrawals from the following year.
The groups propose raising the limit to between 73 and 75, though they differ on the age.
They say longer lifespans and changing retirement patterns mean people may need more time to save and keep money invested.
Later withdrawals could give retirees more control over their income and help avoid higher taxes or losing access to some age-related government benefits.
The proposals are part of submissions to the federal government ahead of its 2026 budget, whose date has not been announced.
Wealth management industry groups are asking Ottawa to let Canadians keep contributing to RRSPs for longer before converting them to retirement income plans.
The groups propose different limits: 73, 74 or 75, compared with the current age of 71.
They say longer lifespans and changing retirement patterns make the current threshold too low.
Supporters argue a later conversion age could help people grow retirement savings and avoid mandatory withdrawals before they need the money.
The federal government has not announced a date for the 2026 budget.
- Who
- Wealth management industry groups, including CALU, CFFiM and SIMA, are urging the federal government to change the rules.
- What
- They want Ottawa to raise the age by which RRSPs must be converted, with proposals ranging from 73 to 75.
- When
- CALU made its recommendation in a prebudget submission last month. The article was published on Oct. 13, 2026.
- Where
- Canada.
- Why
- The groups say longer lifespans and changing retirement patterns warrant more time to contribute and save before mandatory withdrawals begin.
This story does not have two clearly opposing sides.
The modern RRIF withdrawal calculation was set, according to the Canadian Forum for Financial Markets.
CALU recommended extending the RRSP conversion age to 75 in a prebudget submission.
The Globe and Mail reported that wealth management industry groups were urging Ottawa to raise the conversion age.
- Current conversion age
- 71
- CALU proposal
- Raise the conversion age to 75
- CFFiM proposal
- Raise the conversion age to 74
- SIMA proposal
- Raise the conversion age to 73
- 2026 budget date
- Not announced
What people are saying
longevity and retirement patterns have changed.
Sources
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