You may have heard that you should convert your Registered Retirement Savings Plan (RRSP) into a Registered Retirement Income Fund (RRIF) when you retire. But what you may not know is that there is no set age for this conversion.
There are a few factors to consider when deciding when to convert your RRSP into a RRIF. One is your age. If you are younger than 71, you can keep your RRSP until you turn 71, at which point you must convert it to a RRIF or annuity.
Another factor to consider is your income. If you need the money from your RRSP to help cover your living expenses in retirement, you may want to convert it to a RRIF sooner rather than later.
Finally, you should also consider your tax situation. If you are in a lower tax bracket in retirement than you were during your working years, you may want to convert your RRSP to a RRIF sooner so that you can take advantage of the lower tax rates.
Ultimately, there is no right or wrong answer when it comes to deciding when to convert your RRSP to a RRIF. It depends on your individual circumstances. However, it is important to understand all of the factors involved before making a decision.
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