What to Do - and Not Do - with Your RRIF in Volatile Markets

Market volatility feels different when you’re retired.

You’re no longer just investing - you’re relying on your portfolio to generate income. And when markets decline at the same time withdrawals are required, it can raise an uncomfortable question:

“Am I doing this right?”

The answer depends less on what markets are doing - and more on whether you have a clear plan guiding your decisions.

Why RRIFs Feel Riskier in Down Markets

A RRIF (Registered Retirement Income Fund) requires you to withdraw a minimum amount each year.

• The withdrawal is based on your age

• It is calculated using last year’s value

• It must be taken - even if markets are down

This creates a unique challenge:

You may be forced to withdraw from a portfolio that is temporarily lower in value.

Without a strategy, this can quietly erode long-term sustainability.

What To Do

1. Anchor Decisions in a Plan—Not in the Market

The most important factor is not what the market is doing today, but whether your withdrawals are aligned with a structured income strategy.

A well-designed plan:

• Accounts for market fluctuations

• Coordinates RRIF income with CPP, OAS, and other assets

• Manages taxes over time

Without that framework, decisions tend to become reactive.

2. Separate “Income Needs” from “Market Movements”

Your spending needs don’t change just because markets are volatile.

Trying to adjust withdrawals based on market direction often leads to:

• Selling at the wrong time

• Inconsistent income

• Long-term planning drift

A structured approach keeps your income stable - even when markets aren’t.

3. Maintain a Buffer for Volatility

One of the most effective strategies is holding a portion of your retirement income outside the market.

This can:

• Reduce the need to sell investments during downturns

• Provide stability and confidence

• Allow time for recovery

Many retirees don’t have this in place—and only realize its importance when markets decline.

4. Pay Attention to Tax Efficiency

RRIF withdrawals are fully taxable.

Without careful planning, this can:

• Push income into higher tax brackets

• Trigger OAS claw back

• Reduce after-tax retirement income

Tax strategy becomes more important—not less—in volatile markets.

What Not To Do

1. Don’t Move Everything to Cash

This is one of the most common reactions—and often the most damaging.

It may feel safer in the moment, but it:

• Locks in losses

• Reduces future growth

• Increases the risk of running out of money later

Retirement can last 25–30 years. Your investments still need to work for you.

2. Don’t Let Headlines Drive Decisions

Markets will always respond to economic uncertainty, global events, and changing interest rates.

But reacting to short-term news:

• Rarely improves outcomes

• Often disrupts long-term strategy

• Creates unnecessary stress

3. Don’t Treat RRIF Withdrawals in Isolation

Your RRIF is only one piece of your financial picture.

Decisions should be made alongside:

• Other investment accounts

• Tax planning opportunities

• Future income needs

Looking at RRIF withdrawals on their own can lead to missed opportunities - or costly mistakes.

A Different Way to Think About It

Volatile markets don’t necessarily mean your retirement plan is failing.

They often reveal whether a plan exists in the first place.

The difference between confidence and uncertainty in retirement is rarely about the market, it’s about clarity.

If you’ve found yourself questioning how your RRIF fits into your broader retirement strategy, you’re not alone.

Many people reach retirement with strong savings, but without a clear framework for turning those savings into sustainable income.

That’s exactly where thoughtful planning makes the difference.

If you’d like a second look at how your retirement income is structured, I’m always happy to have a conversation.