Wealth Groups Urged RRSP Conversion Age Changes
Financial associations requested that Canada increase the mandatory RRSP-to-RRIF conversion age during September 2026 budget talks.
Updated on Oct. 13, 2026 in Retirement Planning
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Industry groups submitted recommendations in September 2026 to the Department of Finance proposing an increase to the mandatory age for converting RRSP accounts to RRIFs. The current requirement forces conversion by the end of the year in which a taxpayer turns 71.
Why it matters
Proponents argue that the current age threshold, established in 1992, fails to account for modern life expectancies. Raising the conversion age could prevent seniors from being forced into higher tax brackets and losing government benefits due to mandatory annual withdrawals.
Various groups proposed new conversion ages between 73 and 75 to reflect increased life expectancy. A simulated model showed that raising the age to 73 could allow a $350,000 RRSP balance to grow to $400,000 for a 71-year-old account holder.
The players
Conference for Advanced Life Underwriting
This professional organization represents advisors who focus on life insurance and retirement planning for Canadians.
Canadian Forum for Financial Markets
This entity acts as a collaborative group providing policy input on market regulation and retirement savings structures.
Securities and Investment Management Association
This association advocates for investment firms and represents the interests of the broader wealth management sector.
Department of Finance
This federal agency is responsible for developing tax policy and preparing the annual Canadian federal budget.
Conservative party
This national political party proposed adjusting the RRSP-to-RRIF conversion age to 73 during the 2025 federal election.
The details
The Conference for Advanced Life Underwriting, the Canadian Forum for Financial Markets, and the Securities and Investment Management Association submitted separate proposals to Ottawa. These groups argue that mandatory RRIF withdrawals force retirees to liquidate assets earlier than necessary, reducing potential long-term investment growth.
Timeline
The modern RRIF withdrawal schedule was established in 1992.
The Conservative party proposed raising the conversion age during the 2025 federal election.
The federal budget for 2025 was released on November 4, 2025.
Industry groups submitted their formal recommendations in September 2026.
Market Dynamics
These policy proposals suggest a departure from the historical norms set by the Income Tax Act's RRIF withdrawal rules. The industry is seeking to modernize tax-deferred savings structures to align with significantly longer life expectancies than those recorded when the current framework was codified.
If the government adopts these recommendations, retirees could defer mandatory income withdrawals, potentially keeping more of their assets in tax-sheltered accounts for longer. This shift would provide Canadians more flexibility in managing their personal tax brackets and retirement income streams.
The takeaway
The ongoing push to raise the conversion age highlights a significant gap between current tax laws and modern life spans. Canadians should monitor upcoming federal budget announcements to see if these proposed changes provide new options for extending their tax-advantaged savings.
Further reading
Learn more about the current tax framework in the Canada Retirement Planning section.
Source note: This article includes information reported by The Globe and Mail.
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Should the federal government increase the age at which RRSPs must be converted to RRIFs?
