Variable Benefit Payment Calculator

A Variable Benefit is essentially a P-RRIF/RRIF except your funds remain invested with the Capital Pension Plan. You can make periodic withdrawals while the remaining balance remains tax deferred. Amounts paid out of a Variable Benefit are taxable upon receipt.

It is mandatory that you convert all your registered funds (i.e. pension plan funds and RRSPs) by December 31st in the year your turn age 71. The latest you are allowed to take your first payment is December 31st in the year your turn 72.

Once you turn age 72, the Canada Revenue Agency stipulates that a minimum payment must be withdrawn from your Variable Benefit each year and reported as income.

This Variable Benefit calculator assumes the following

Using the Minimum Amount Payment option – that your payments will begin on January 1st of the year following the date you have entered as the Start Date. If you wish to delay or receive payments sooner, simply enter the appropriate date. Keep in mind that the Start Date you use should be no later than December 31 of the year you turn age 71 in order that your minimum payment will begin in the year you turn age 72, as per Canada Revenue Agency requirements.
Interest Rate Assumptions - the Capital Pension Plan uses a 6% long-term rate of return for the portion invested in the Diversified Fund and 2% long-term rate of return for the portion invested in the Pre-Retirement Fund.

Disclaimer: Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide financial advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes only. We encourage you to seek personalized advice and guidance from qualified professionals regarding your personal financial issues.