Rethinking RRIFs: A Smarter Path to Retirement Security for Canadian Seniors
As Canada’s population ages and retirement planning becomes more complex, longstanding policies around Registered Retirement Income Funds (RRIFs) are being brought into question. At the forefront of this discussion is Schulich Professor Amin Mawani, whose research explores how mandatory RRIF withdrawals impact seniors’ income security—especially those with modest retirement savings. His findings have sparked national interest and informed public discourse, including endorsement by Rob Carrick, a leading financial columnist at The Globe and Mail.
Currently, Canadians must begin withdrawing from their RRIFs at age 71 based on a schedule tied to their age. While this may have once aligned with retirement realities, Professor Mawani’s data shows that most seniors today have relatively small RRIF balances, often under $200,000, and the fixed withdrawal requirements can result in unwanted tax burdens, lost government benefits, and diminished financial flexibility. Rather than enabling retirees to use their savings according to actual need, these withdrawals may force seniors to liquidate their retirement assets prematurely reducing long-term income and security.
In response, Professor Mawani proposes a targeted reform: exempt RRIF holders with lower balances from mandatory withdrawals. He also recommends allowing these individuals to transfer excess funds into Tax-Free Savings Accounts (TFSAs), giving seniors more control over when and how they access their retirement savings. These solutions aren’t just hypothetical—they’re practical, balanced, and fiscally sound.
Rob Carrick echoes this sentiment in his article, calling the proposal “a tax-smart plan” that addresses the financial needs of most retirees without harming government revenue. He emphasizes that over 90% of RRIF holders could benefit from this exemption, particularly those who rely heavily on home equity or limited savings in retirement. Moreover, Carrick highlights how the current system fails to reflect shifting demographic and economic realities—including longer lifespans, lower investment yields, and a rising dependence on non-traditional financial resources.
Together, Mawani and Carrick call for a thoughtful re-evaluation of how retirement savings are managed and regulated in Canada. Their insights contribute to an important national conversation about retirement equity, tax efficiency, and aging with dignity. As debates around pension reform and aging intensify, this work exemplifies how academic research can shape real-world policy and improve lives.
At Schulich, we are proud to support research that translates directly into public value—empowering future leaders, informing decision-makers, and elevating discourse on the challenges that matter most.
