Must I collapse all my RRSPs?

Question: I will be 65 this year and my income will be reduced. I have a number of RRSPs in two banks. Can I purchase a RRIF with the smaller of the two accounts and leave the other account till I am 69? Or, must I collapse all RRSPs at once? 


You can have a RRIF and your RRSPs at the same time. Many people your age use a strategy of setting up a small RRIF so as to benefit from the Pension Tax Credit, which applies to the first $1,000 of pension income. That includes RRIF income if you are 65 or older.

There is no limit to the size of the RRIF you have to create, or to the size of the RRSP(s) you continue to maintain. It’s a matter of personal financial strategy.