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The 4% Rule Just Dropped to 3.9% — But Your RRIF Doesn't Care

  Published August 5, 2026 Morningstar's newest research says retirees can safely start withdrawing 3.9% a year. Ottawa's RRIF rules don't ask what's "safe" — they just tell you how much to take out, whether the math agrees or not. For years, the shortcut retirees leaned on was simple: take out 4% of your portfolio in your first year of retirement, bump it up with inflation every year after, and your savings should last three decades. Morningstar's 2026 State of Retirement Income report just trimmed that number to 3.9%. On its own, that's a small adjustment. On a $500,000 portfolio, it's the difference between withdrawing $19,500 or $20,000 in year one. But for Canadians, the number that actually controls the withdrawal isn't Morningstar's — it's the Canada Revenue Agency's. And once your RRSP becomes a Registered Retirement Income Fund, the CRA's required minimum can blow right past whatever a "safe" withdrawal rate i...
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Canada’s Carbon Price Increases: What You Need to Know


Canada’s carbon price has taken center stage once again as it ramps up despite calls from several provincial leaders for a pause. Prime Minister Justin Trudeau’s minority Liberal government considers the carbon price a cornerstone policy in the fight against climate change. But what does this increase mean for Canadians?

The looming April 1 carbon price hike is not an unexpected surprise. The idea behind it is simple: by putting a price on pollution, people will be incentivized to use fewer fossil fuels, ultimately driving down emissions from our economy. This incremental approach is part of the government’s overall pricing scheme, with planned increases until at least 2030. Provinces and territories can voluntarily adopt the federal pricing system or face the federal backstop plan to ensure consistent carbon pricing across Canada.

The planned increase will be most noticeable at the gas station and on energy bills in provinces and territories where the federal backstop plan applies. While it’s true that the carbon price contributes to energy costs, it remains a smaller factor compared to global oil prices and corporate profitability. So, while you might notice a slight uptick at the pump, it’s essential to recognize that the effects on household affordability are not as dramatic as some might fear.

Canadians will also experience indirect effects, such as transportation costs filtering down into food prices. But remember, this is part of a broader effort to create a more sustainable future for our planet.

In summary, brace yourselves for the carbon price increase, but keep in mind that it’s a step toward a greener, cleaner Canada. 

Sources:

  1. Global News
  2. Global News Video
  3. Global News
  4. Global News
  5. Global News
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