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Bank of Canada Rate Decision Countdown: What to Expect on July 15

  Published July 4, 2026 In eleven days, the Bank of Canada will make its fifth interest rate call of 2026. If you've got a mortgage renewing, a variable rate that moves with the Bank's decisions, or savings sitting in a high-interest account, this is the date to have circled. Here's where things stand heading into July 15, and what the smart money is expecting. Where the rate sits right now The Bank of Canada has held its policy rate at 2.25% since its last two decisions, with the Bank Rate at 2.50% and the deposit rate at 2.20%. The July 15 announcement, released at 9:45 a.m. ET, will also come with a full Monetary Policy Report, since the Bank publishes its detailed economic projections quarterly alongside the January, April, July, and October decisions. Why most economists expect another hold The case for standing pat comes down to two forces pulling in opposite directions: Inflation is running hot, but mostly for one reason. Canada's headline inflation rate jumped...
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Navigating Retirement: Converting RRSPs to RRIFs and LIRAs to LIFs

 


As you approach retirement, understanding how to convert your Registered Retirement Savings Plan (RRSP) to a Registered Retirement Income Fund (RRIF) and your Locked-In Retirement Account (LIRA) to a Life Income Fund (LIF) becomes crucial. Here’s a concise guide to help you navigate these transitions smoothly.

Converting RRSP to RRIF

By the end of the year you turn 71, you must convert your RRSP into a RRIF. This conversion is mandatory and ensures that your retirement savings start providing you with a steady income. Here are the steps:

  1. Choose a Financial Institution: Select a bank or financial institution to hold your RRIF.
  2. Transfer Funds: Move your RRSP funds into the RRIF. This process is straightforward and can be done with the help of your financial advisor.
  3. Set Withdrawal Schedule: Decide on the frequency of your withdrawals—monthly, quarterly, semi-annually, or annually. Note that there is a minimum amount you must withdraw each year, but no maximum limit.

Converting LIRA to LIF

Similar to RRSPs, LIRAs must be converted by the end of the year you turn 71. LIRAs are typically created from employer pension plans and have restrictions on withdrawals until retirement. Here’s how to convert a LIRA to a LIF:

  1. Select an Insurer or Financial Institution: Choose where you want to hold your LIF.
  2. Transfer Funds: Move your LIRA funds into the LIF. This can be done with the assistance of your financial advisor.
  3. Determine Payment Options: Decide on your payment schedule. Unlike RRIFs, LIFs have both minimum and maximum withdrawal limits to ensure the funds last throughout your retirement.

Key Considerations

  • Tax Implications: Withdrawals from both RRIFs and LIFs are taxable. Plan your withdrawals to manage your tax liabilities effectively.
  • Investment Choices: You can continue to hold investments within your RRIF or LIF, similar to how you managed them in your RRSP or LIRA.
  • Financial Advice: Consulting with a financial advisor can help tailor these conversions to your specific retirement goals and needs.

By understanding these processes and planning ahead, you can ensure a smooth transition into retirement, securing a steady income stream for your golden years.


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