Your Retirement Income Plan
Make the most of CPP, OAS, and your registered savings
About this roadmap
Updated April 2026Retirement income in Canada isn't one decision - it's a sequence of five: when to take CPP, when to take OAS, how to handle mandatory RRIF minimums, how to avoid the OAS clawback, and in what order to draw from RRSP, TFSA, and non-registered accounts. Getting this sequence right is worth $100,000+ in lifetime after-tax income for a typical household, and the wrong order can trigger needless clawback and tax. This roadmap walks through all five with the calculator to run your specific numbers at each step.
CPP max at 65 is $1,507.65/month (2026). Taking at 60 cuts it by 36%; deferring to 70 boosts it by 42%. Breakeven between 65 and 70 is around age 82.
CRA requires minimum RRIF withdrawals starting at 72 (or 71 if converted early). See minimum rates by age and project how long your savings will last.
OAS clawback starts at $93,454 net income (2025 tax year) at 15 cents per dollar. Max OAS at 65 is $743.05/month. Consider RRSP drawdown before 65 and TFSA withdrawals.
Draw RRSP/RRIF first (ages 60-70) while in a lower bracket, then rely on higher CPP/OAS. TFSA withdrawals don't trigger clawback - save them for last.
Plan monthly spending with CPP, OAS, RRIF income, GIS (if eligible), and any employer pension.
🍁 Key Canadian numbers - 2026
- CPP max at 65 (2026)
- $1,433/month
- CPP reduction if taken at 60
- −36%
- CPP boost if deferred to 70
- +42%
- OAS max at 65 (Apr–Jun 2026)
- $743.05/month
- OAS clawback threshold (2026)
- $93,454 net income
- OAS clawback rate
- 15¢ per $1 above threshold
- OAS fully eliminated at
- ~$151,668
- Minimum RRIF withdrawal at 71
- 5.28%
- Minimum RRIF withdrawal at 95+
- 20.00%
Frequently asked questions
Should I take CPP at 60, 65, or 70?
Taking CPP at 60 reduces payments by 36% vs age 65. Deferring to 70 increases them by 42%. The breakeven age vs 65 is around 74 for age-60 start, and around 82 for age-70 start. If you're in good health with family longevity past 85, deferring to 70 is usually worth over $100,000 in lifetime income. If you have health concerns or need the cash flow, taking earlier is defensible.
How do I avoid the OAS clawback?
The 2026 OAS clawback begins at $93,454 net world income and claws back 15% of every dollar above that threshold. Common strategies: (1) draw down RRSP before 65 at a lower bracket, (2) use TFSA withdrawals (don't count as income), (3) pension-income split with a lower-earning spouse, (4) defer OAS from 65 to 70 for a 36% boost while using other income sources first.
When must I convert RRSP to RRIF?
By December 31 of the year you turn 71, you must close your RRSP and convert to a RRIF (or annuity, or cash out - but the last option is fully taxable). RRIF minimum withdrawals start the following year at 5.28% and rise annually, reaching 20% at age 95+. You can use your younger spouse's age to reduce the minimum, and you can always withdraw more than the minimum.
What order should I draw down my accounts in retirement?
The traditional order (RRSP/RRIF first, TFSA last) often works well for Canadians worried about OAS clawback - you drain registered money early while in a lower bracket, then lean on CPP/OAS plus TFSA later. Couples who expect to leave an estate often flip the order to preserve RRSP for tax deferral. The right answer depends on your income gap, health, and estate goals.