Home >  Money tips >  Retirement >  When and how to convert your RRSP >  Convert your RRSP now or when you turn 71?

Convert your RRSP now or when you turn 71?

The answer depends on your personal situation but generally, it is better to convert your RRSP as late as possible.

You will be able to delay the conversion of your RRSP if your income is sufficient. You may draw an income from various sources:

  • benefits from a company pension plan
  • public annuities
  • personal non-registered savings
  • personal income (from, for example, a rental unit or investments)
If you use your other sources of income first, the money in your RRSP will continue to grow tax-free.

However, if you need additional cash to pad your budget, you might have to move up conversion deadline. Then, you may convert your RRSP, in full or in part, into a retirement income plan.

If you only need cash occasionally (to travel, for example), it would be wise to withdraw only the amount you need from your RRSP without converting it all right away.

Money working for people