RRSP meltdown
RRSP meltdown: which drawdown strategy wins?
Empty the RRSP early, take only the minimum, or fill a tax bracket? Compare all three over your full retirement on lifetime tax, OAS clawback, and what's left for your estate.
After 71, your RRSP must convert to a RRIF with mandatory minimum withdrawals — and a large RRIF can push you into the OAS clawback. The order you draw down accounts (RRSP vs TFSA vs non-registered) changes how much tax you pay over your lifetime and how much is left at the end. This simulator runs three strategies side by side over your full horizon.
After-tax dollars you want each year.
After inflation, e.g. 3.
RRSP first
Fund spending from the RRSP before touching TFSA or non-registered.
Minimum RRIF · Lowest lifetime tax
Withdraw only the mandatory RRIF minimum; spend TFSA first.
Bracket fill
Draw the RRSP up to a tax-bracket ceiling each year, banking the rest.
Show the data table
| Age | RRSP first | Minimum RRIF | Bracket fill |
|---|---|---|---|
| 65 | $674,581 | $721,000 | $643,126 |
| 70 | $535,577 | $835,837 | $332,114 |
| 75 | $374,434 | $728,690 | $0 |
| 80 | $187,625 | $607,456 | $0 |
| 85 | $0 | $470,385 | $0 |
| 90 | $0 | $315,996 | $0 |
Scenario projection for education, not advice. Modelled on 2026 federal and provincial rates with a flat real return; non-registered withdrawals are treated as return of capital and the ending estate is shown pre-tax. Real results depend on markets, timing, and your full situation.
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