Is Carol better off withdrawing all the money from her RRIF now?

Carol is weighing whether to cash out her entire RRIF in one year, swallow the tax bill, and clear the way to collect more income-tested support such as the Guaranteed Income Supplement and the Shelter Aid for Elderly Renters program. It is the kind of move that looks counterintuitive but can make sense for a lower-income retiree, because RRIF income counts against those benefits while TFSA income does not. Allan works through the trade-off: a real tax hit up front against years of larger, benefit-friendly cash flow afterward, and the appeal of money that no longer runs out on a schedule. He also flags the cautions, including the risk of spiking income in a single year and the value of confirming the plan with a planner first. The piece speaks to modest-income retirees who rent and rely on government supports.