CFFiM urges Federal Government to modernize rules governing tax-assisted retirement savings programs
October 27, 2025
The Canadian Forum for Financial Markets (“CFFiM”) has called on the Federal Government to modernize the rules governing its tax-assisted retirement savings programs in its upcoming budget.
The CFFiM’s pre-budget submission proposes gradually increasing the age at which registered retirement savings plans ("RRSPs") must be converted to registered retirement income funds, from 71 to 74. The submission notes that individuals are expected to live longer now than they were in 1992, when the original conversion age was set.
“There is an increased risk that seniors may outlive their retirement savings,” the submission reads. “Canadians should have the freedom and flexibility to manage their retirement funds in ways that meet their needs and maximize tax efficiency.”
The CFFiM submission also urged the government to gradually raise the contribution limit for RRSPs and defined contribution pension plans to 30%, up from the current limit of 18%. This cap, also set in 1992, uses “outdated demographic and economic assumptions,” the submission stated.
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