What is the required minimum withdrawal and what happens if I don’t withdraw the minimum?
Prior to age 72, there is no required minimum withdrawal. You can withdraw any amount you wish or nothing at all. After age 72 you must withdraw at least the required Income Tax Act minimum each calendar year. The minimum withdrawal is calculated each January 1st. The calculation involves your total account balance multiplied by a prescribed factor. The factors increase with age. Upon enrolment you decide to use your age or your spouse’s age to determine the factor for use in this calculation. The Minimum Withdrawal Schedule is posted to the website. There’s an example of this calculation in the PEPP Talk on Variable Pension Benefit. If you don’t withdraw the required minimum any remaining balance up to the required minimum will be automatically transferred electronically to your bank account at calendar year end.
