Plan retirement
In retirement the question stops being how much you have and becomes which account you draw from first.
Who it is forCanadians within fifteen years of retirement, or already drawing on a portfolio.
- 01
Decide when CPP starts
Every month before 65 costs 0.6% permanently; every month after adds 0.7%. Taking it at 70 instead of 60 is a 122% difference in the monthly cheque.
Do thisFind your break-even age, then decide based on health and other income — not on the break-even alone.
CPP and OAS timingRetirement - 02
Know your RRIF minimums before 71
Conversion is mandatory by the end of the year you turn 71, and the minimum withdrawal is fully taxable whether you need the money or not.
Do thisConsider drawing down the RRSP in your sixties to shrink the forced withdrawal later.
RRIF withdrawalsRetirement - 03
Check the OAS clawback threshold
Net world income above $95,300 triggers a 15% recovery tax. RRIF withdrawals count toward it; TFSA withdrawals do not.
Do thisBuild a TFSA balance before 71 so you have a source of income that is invisible to the test.
OAS clawbackRetirement - 04
Set the drawdown order
Non-registered, then RRSP or RRIF, then TFSA last is the usual default — but pension splitting and the clawback can reverse it.
Do thisRe-check the order annually; it shifts as balances and thresholds move.
Account optimizerSaving & investing - 05
Test the retirement budget against real income
CPP and OAS are taxable. Plan on net income, never on the gross benefit figures.
Do thisModel the first three years in detail, since that is when spending is highest.
Budget plannerIncome & tax
The sequence is the strategy
Two retirees with identical portfolios can differ by six figures in lifetime tax purely on withdrawal order and CPP timing. Neither decision requires picking a single investment.
Run it on your own numbersCPP and OAS timingTake CPP at 60, 65 or 70 — and find the age where deferring wins.