The proposed RRIF measure was announced in April as stock markets dropped in response to U.S. trade tariffs. Currently, the S&P\/TSX composite index is up nearly 25% year-to-date.<\/p>\n
Given strong market performance, the proposed RRIF measure is \u201cno longer required,\u201d Finance\u2019s statement said. The government \u201cwill continue to monitor market conditions.\u201d<\/p>\n
In an email, Jamie Golombek, managing director and head of tax and estate planning with CIBC Private Wealth in Toronto, said, \u201cIt\u2019s unfortunate that the government hasn\u2019t addressed the need for RRIF reform, as the current RRIF withdrawal age and current minimums force some retirees to withdraw more than they need, and pay tax prematurely. If you haven\u2019t yet taken out your 2025 RRIF minimum, hoping for this change (i.e., the proposed RRIF measure) to pass, now is the time to do so using the standard RRIF table.\u201d<\/p>\n
Wilmot George, managing director of tax and estate planning with Canada Life in Toronto, said in an email that Finance\u2019s position means \u201ca missed opportunity to bring more flexibility to seniors with RRIFs. While the election promise was promoted as a temporary measure, in periods of global uncertainty, every dollar counts.\u201d<\/p>\n
Further, \u201cthe conversations of a reduction to RRIF minimum amounts and an increase to the mandatory RRSP-to-RRIF conversion age have continued to pick up steam as health-care costs and life expectancies increase,\u201d George said. \u201cI would expect that these conversations will continue until changes are made.\u201d<\/p>\n
As things stand, \u201cgiven that the promised RRIF minimum reduction was not included in Budget 2025, seniors can take that as a sign that the change is not an immediate priority for the current government and continue on, based on current rules,\u201d he said.<\/p>\n
As Golombek and George indicated, industry groups have been calling for permanent changes to the RRSP and RRIF framework, including reducing the RRIF minimum payout formula, raising the age of RRSP conversion or eliminating minimum withdrawals completely.<\/p>\n