When and how to convert your RRSP

By law, you are allowed to contribute to and keep your RRSP until December 31 of the year in which you turn 71. Then, you will have to convert it. You have several retirement income options: a Registered Retirement Income Fund or an annuity.

People are retiring earlier these days, often at age 55. In this case, is it better to convert your RRSP immediately at age 55 or wait until you turn 71? When the time comes for you to convert your RRSP into retirement income, you have some options: a Registered Retirement Income Fund (RRIF) or an annuity?