CanIRetireCanada.ca

Complete Canadian Retirement Planning Guide

Everything you need to know about retiring in Canada — CPP, OAS, RRSP, TFSA, tax strategies, and more.

The Pillars of Canadian Retirement Income

Canadian retirement income typically comes from four sources, often called the three pillars plus personal savings:

Government Benefits

CPP (Canada Pension Plan) and OAS (Old Age Security) form the government pillar. CPP is based on contributions; OAS is universal residency-based. Together they provide roughly $18,000–$24,000/year per person.

Workplace Pensions

Defined benefit (DB) pensions from employers provide guaranteed income. Defined contribution (DC) plans and Group RRSPs accumulate capital. DB pensions are increasingly rare in private sector but common in government.

Personal Savings

RRSP (pre-tax) and TFSA (post-tax) are Canada's two primary registered savings vehicles. Each offers unique tax advantages depending on your income and retirement goals.

Other Income

Rental income, business income, annuities, and inheritances round out the picture. Non-registered investment accounts provide taxable income from dividends and capital gains.

How Much Do You Need to Retire in Canada?

The Rule of 25: multiply your desired annual spending by 25 to get your target nest egg (based on the 4% safe withdrawal rate).

Annual SpendingTarget Nest EggWith CPP+OAS ($18,500)
$40,000$1,000,000$537,500
$60,000$1,500,000$1,037,500
$80,000$2,000,000$1,537,500
$100,000$2,500,000$2,037,500

Retirement Planning Tools

Main Retirement Calculator
Get your full readiness score
CPP Calculator
Optimize your CPP start date
OAS & Clawback Calculator
Maximize OAS income
RRSP Withdrawal Calculator
Minimize withdrawal tax
TFSA Growth Calculator
Project tax-free growth
TFSA vs RRSP
Which to prioritize?
RRSP Meltdown Strategy
Save tens of thousands in tax
OAS Clawback Guide
Avoid the 15% penalty

The Optimal Withdrawal Order

1.
Non-Registered Investments
Realize capital gains in low-income years (before CPP/OAS start). Only 50% of capital gains are taxable — very efficient.
2.
RRSP/RRIF
Withdraw during low-income years (post-retirement, pre-CPP/OAS) to avoid high brackets. Must convert to RRIF by 71.
3.
TFSA
Save TFSA withdrawals for high-income years or unexpected expenses. TFSA doesn't affect OAS clawback or GIS eligibility.

Next Steps

  1. 1
    Get your retirement readiness score

    Takes 2 minutes — personalized results