If you have an RRSP, you can't keep it forever. By December 31 of the year you turn 71, the Canadian government requires you to convert it — most people convert to a Registered Retirement Income Fund (RRIF). From that point on, you must withdraw a minimum amount each year, and the government taxes those withdrawals as income.
For Muslim Canadians, the RRIF conversion raises a question that doesn't come up for conventional investors: are the investments inside the account halal? If your RRSP was invested in conventional index funds or GICs (guaranteed investment certificates that earn interest), you can't just carry those holdings into a RRIF without thinking through the halal implications. This guide covers how a RRIF works, what halal investment options exist inside one, and which providers in Canada help Muslim retirees structure this correctly.
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What is a RRIF and how does it work?
A RRIF (Registered Retirement Income Fund) is a registered account that holds your retirement savings and distributes them to you as income. When you convert your RRSP to a RRIF, the investments transfer directly — nothing is sold or liquidated at conversion (unless you choose to restructure). You then draw down the account each year, paying income tax on withdrawals.
The CRA sets a minimum annual withdrawal percentage based on your age. At 71, the minimum is 5.28% of the January 1 account balance. By age 80, it's 6.82%. By age 90, it's 11.92%. You can always withdraw more than the minimum, but you must take at least the minimum each year. These withdrawals are taxed as ordinary income.
RRIF minimum withdrawal rates by age (CRA)
The minimum you must withdraw each year is your RRIF's fair market value on January 1 multiplied by a prescribed factor set under the Income Tax Regulations. Under 71, the factor is 1 ÷ (90 − your age); from 71 the regulation table applies. These are the rates most retirees will actually use:
| Age (start of year) | Minimum withdrawal |
|---|---|
| 65 | 4.00% |
| 71 | 5.28% |
| 75 | 5.82% |
| 80 | 6.82% |
| 85 | 8.51% |
| 90 | 11.92% |
| 95 and over | 20.00% |
Two tax mechanics worth knowing: no tax is withheld on the minimum amount (you settle it at filing), but anything you take above the minimum faces withholding of 10% up to $5,000, 20% from $5,000 to $15,000, and 30% above $15,000 (rates differ in Quebec). Source: CRA — Chart of prescribed factors.
For halal investors the rising percentages are the planning constraint: by your mid-80s the account must produce cash equal to roughly 8–9% of its value every year without relying on interest-bearing bonds or GICs. That argues for keeping one to two years of withdrawals in non-interest cash and funding the rest from screened equity distributions and planned sales.
The halal challenge inside a RRIF
Inside a RRIF, you can hold most types of investments — stocks, ETFs, mutual funds, and GICs (similar to term deposits). The problem for Muslim investors is that most default investment options aren't Sharia-compliant. Conventional index funds hold interest-bearing bonds and companies that fail Islamic screening criteria. GICs explicitly earn interest. If your RRSP was invested in these products, converting to a RRIF doesn't automatically fix the halal problem — you're just moving the same investments into a different wrapper.
The conversion is an opportunity to restructure. Before or at the point of RRIF conversion, review what's in your account and replace non-halal holdings with Sharia-compliant alternatives. This is the right time to have that conversation with a halal wealth manager.
Halal investment options inside a RRIF
The same halal investing options available in a TFSA or RRSP can be held in a RRIF. The main categories:
Halal equity ETFs. Sharia-screened ETFs that exclude interest-bearing securities, companies with excess debt ratios, and haram business activities (alcohol, pork, weapons, conventional finance). These can be held in a RRIF through any standard brokerage that allows self-directed investing.
Halal mutual funds. Some providers offer Sharia-compliant managed funds that can be held in registered accounts. These give you professional management without requiring you to select individual stocks.
Individual halal stocks. If you prefer to manage your own portfolio, you can hold individually screened stocks in a RRIF. The challenge in retirement is that minimum withdrawals require liquidity — you need to ensure your holdings are liquid enough to fund annual minimum withdrawals without forced selling at bad prices.
Which Canadian providers help with halal RRIFs?
Manzil is the primary provider in Canada for halal registered accounts. They offer RRSP, RRIF, LIRA, and TFSA accounts with Sharia-compliant investment options built in. If you've been building your halal RRSP with Manzil, converting to a Manzil RRIF is the most seamless path — your investments stay in the same structure, managed within the same Sharia framework.
Manzil is available in Ontario, Alberta, Quebec, and Newfoundland. If you're in another province, you may need to use a self-directed registered account at a brokerage and fill it with halal ETFs, or work with a fee-only halal wealth manager who can advise on your specific situation.
ShariaPortfolio offers Sharia-compliant wealth management for Canadian investors and may be able to structure a halal income portfolio within a RRIF. They're available nationwide and focus on higher-net-worth investors who want managed, Sharia-screened portfolios. Contact them directly to understand their minimum investment requirements and RRIF capabilities.
How to restructure a conventional RRSP before converting to a RRIF
If you're approaching 71 with a conventional RRSP full of index funds and GICs, start the restructuring process 2 to 3 years before conversion. Selling holdings inside a registered account doesn't trigger a taxable event (unlike non-registered accounts), so you can reallocate freely. Sell the conventional holdings and replace them with halal ETFs or move the account to a halal provider like Manzil.
Don't wait until the year of conversion — give yourself time to understand the halal options and make thoughtful decisions about what to hold in retirement. The halal RRSP guide covers the accumulation phase, and the principles for what to hold carry over into the RRIF drawdown phase.
Balancing halal requirements with RRIF liquidity needs
One challenge specific to RRIFs is that you must make minimum withdrawals every year. This means your portfolio needs to hold some liquidity — you can't be fully invested in illiquid assets. Halal equity ETFs that trade on major exchanges are liquid, which makes them well-suited for RRIF portfolios. If you're working with an advisor, ask specifically about managing liquidity alongside the halal screening requirements.
What to do if you're not yet 71
If you're in your 50s or 60s and building toward retirement, the RRIF question is still worth understanding now. The investment decisions you make in your RRSP accumulation years set up the situation you'll deal with at conversion. Building a halal RRSP from the start — through Manzil or a self-directed halal approach — means there's nothing to restructure when you hit 71.
The halal TFSA guide covers the broader landscape of halal registered account investing in Canada, including how TFSA and RRSP/RRIF accounts fit together in a complete retirement plan.
Bottom line
A RRIF is a mandatory part of retirement for any Canadian with an RRSP. For Muslim investors, the key is making sure the investments inside stay halal — which means either starting with a halal provider like Manzil, or restructuring your portfolio before conversion. The minimum withdrawal rules don't interact with Islamic principles in any problematic way — it's simply income from your own savings. What matters is that the underlying investments generating growth inside the RRIF are Sharia-compliant.
Frequently asked questions
Do I have to convert my RRSP to a RRIF? You must close your RRSP by December 31 of the year you turn 71. Converting to a RRIF is the most common option. Alternatives include purchasing a life annuity or simply withdrawing the balance (which triggers a large tax hit). Most Canadians convert to a RRIF.
Can I hold halal ETFs in a RRIF? Yes. Any ETF that can be held in a RRSP can be held in a RRIF. Sharia-compliant ETFs listed on Canadian or US exchanges are eligible. You hold them through a self-directed brokerage or a provider like Manzil.
What happens to the interest from GICs already in my RRSP? If you have GICs earning interest inside your RRSP, the interest accumulates tax-sheltered but is not Sharia-compliant. Many scholars recommend purifying interest income by donating an equivalent amount to charity. Consider replacing GICs with halal alternatives at or before RRIF conversion.
Compare providers in your state
See side-by-side comparisons of Shariah-compliant products, or let our matcher recommend the best options for your situation.
Does Manzil offer RRIFs in all provinces? As of 2026, Manzil's registered account offerings are available in Ontario, Alberta, Quebec, and Newfoundland. Contact them directly for current availability. If you're in another province, a self-directed approach with halal ETFs may be necessary.
Are RRIF withdrawals taxed? Yes. All RRIF withdrawals are taxed as ordinary income in the year they're received. This is the same as RRSP withdrawals — the tax deferral ends at withdrawal. There's no Islamic issue with this; it's simply how the registered account system works in Canada.
