Retirement Planning

Retirement Income Calculator

Project your retirement income from RRIF, CPP, OAS, TFSA, and pension. Year-by-year drawdown to age 95, OAS clawback warnings, pension income splitting, and spouse scenarios. 2025 rates.

Your Information

Personal

RRSP / RRIF

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TFSA

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Government Benefits

2025 max CPP at 65: $1,364/mo · Max OAS at 65: $718/mo · Deferring to 70 increases CPP by 42%, OAS by 36%

Other Income

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Include Spouse / Partner
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Enter your ages and at least one income source above to see your retirement projection

Retirement Income Strategies

RRSP Meltdown Strategy
Draw down your RRSP/RRIF faster in your 60s, before CPP and OAS kick in at 65+. This keeps total taxable income lower in later years when mandatory RRIF withdrawals are larger.
Defer CPP to 70
Deferring CPP from 65 to 70 increases your benefit by 42%. If you have other income sources, this is often the best guaranteed-return investment available.
Defer OAS to 70
Deferring OAS from 65 to 70 increases monthly payments by 36%. Particularly valuable if you're at risk of the OAS clawback threshold in early retirement.
Pension Income Splitting
Couples can split up to 50% of eligible pension income (including RRIF withdrawals after age 65). This can dramatically reduce total household tax by shifting income to the lower-earning spouse.
TFSA as Tax Management Tool
Use TFSA withdrawals to top up income in lower-tax years. TFSA income doesn't count toward OAS clawback thresholds, making it ideal when your RRIF forces large taxable withdrawals.
Watch the OAS Clawback
OAS benefits are clawed back at 15% of net income above $93,454. Plan withdrawals carefully around this threshold to preserve benefits.

Planning Your Canadian Retirement Income

Retirement income planning in Canada involves coordinating multiple income streams — RRIF mandatory withdrawals, CPP benefits, OAS, defined benefit pensions, and TFSA savings — while managing taxes across potentially 30+ years of retirement.

How RRIF Withdrawals Work

At age 71 (or earlier if you choose), your RRSP must be converted to a RRIF. The government sets mandatory minimum withdrawal rates that increase with age — from 5.28% at 71 to 20% at 95+. These withdrawals are fully taxable as income. The key challenge is managing withdrawal amounts to avoid OAS clawback and unnecessary tax.

CPP and OAS Timing

You can start CPP as early as age 60 (at a 36% reduction) or defer to age 70 (for a 42% increase over the age-65 amount). OAS can start at 65 or be deferred to 70 for a 36% increase. The optimal timing depends on your health, other income sources, and how much you need to draw from taxable accounts in early retirement.

The OAS Clawback

The OAS Recovery Tax (clawback) reduces your OAS benefit by 15 cents for every dollar of net income above $93,454 (2025). At incomes above approximately $151,000, OAS is fully clawed back. Careful withdrawal sequencing — drawing TFSA instead of RRIF in high-income years — can preserve OAS benefits.

Pension Income Splitting

Since 2007, Canadian couples can split up to 50% of eligible pension income on their tax returns. RRIF withdrawals made after age 65 qualify. This is one of the most powerful tax planning tools for retired couples — shifting income to the lower-earning spouse can save thousands annually.

Disclaimer: This calculator provides estimates for planning purposes only. It uses 2025 tax rates and simplified assumptions. Actual investment returns, inflation, government benefit amounts, and tax rules will vary. Consult a certified financial planner (CFP) or tax professional before making retirement income decisions.