At What Age Should You Stop Investing in an RRSP?
Learn when you must stop contributing to your RRSP and how to transition to a RRIF for retirement income by age 71.
Video transcript
You should stop contributing to your RRSP (Registered Retirement Savings Plan) by the end of the year you turn 71. At that time, you must convert your RRSP to a RRIF (Registered Retirement Income Fund) or annuity to start drawing retirement income. This ensures compliance with regulations and allows you to start benefiting from your savings.
Questions and answers
When do I have to stop contributing to my RRSP?
You must stop contributing to your RRSP by December 31 of the year you turn 71.
What happens to my RRSP after I turn 71?
You are required to convert your RRSP into a RRIF or annuity to begin receiving retirement income.
Can I continue contributing to an RRIF after turning 71?
No, RRIFs are designed for withdrawals, not contributions, so you cannot contribute to a RRIF after conversion.
What is the difference between an RRSP and a RRIF?
An RRSP is a savings plan to accumulate retirement funds, while an RRIF is a fund from which you withdraw retirement income.
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