Life in Retirement

Where the money comes from — and how it gets taxed.

Retiring at

Funded to 95

CPP + OAS / year

$23k

Once fully flowing

Lifetime tax

$265k

Taxable first

Heaviest tax year

$13k

Age 67

Retirement income by source · today’s dollars

CPP OAS (net) RRSP / RRIF Non-registered TFSA Tax + clawback

Drawdown strategies · click to apply

Your numbers

Household

Who's this plan forA couple gets each partner's CPP and OAS, and can split eligible retirement income to lower tax. This v1 assumes both partners are the same age and that income splits evenly — an optimistic approximation.

About you

Current age40ProvincePlanned retirement age65Plan through age95

Today's savings

RRSP

TFSA

Non-registered (market value)

Non-registered — cost base (ACB)Adjusted cost base — what you originally paid for your non-registered investments. Only the gain above this is taxable when you sell.

Annual contributions

To RRSP / year

To TFSA / year

To non-reg / year

Assumptions

Expected return (nominal)Long-run average annual growth of your investments, before inflation. A balanced portfolio has historically returned roughly 5–6% nominal — adjust for your mix.5.0%InflationHow fast prices rise each year. The Bank of Canada targets 2%. Everything here is shown in today's dollars using this rate.2.0%

Retirement spending

Spending patternSpending is rarely flat in retirement. 'By phase' lets you set higher spending while you're active, easing off as you slow down.

Target spending / year (after tax)After-tax money the household wants to spend each year in retirement, in today's dollars.

Defined-benefit pension

Pension income / yearAnnual income from a workplace defined-benefit pension, in today's dollars. Leave at 0 if you don't have one.

Government benefits

Start CPP at ageCPP can start any time from 60 to 70. Starting early permanently reduces it (~0.6%/month before 65); waiting increases it (~0.7%/month after 65).65CPP entitlement (of max)CPP depends on your contribution history. Get your personalized estimate from My Service Canada Account → CPP Statement of Contributions. The 2025 max is ~$1,433/mo; the average new pension is closer to 60% of the max.85%Start OAS at ageOAS can start at 65, or be deferred up to 70 for +0.6%/month. It's based on years of Canadian residency, not work history.65

Drawdown strategy

Withdraw fromThe order accounts are drawn down. 'Taxable first' preserves tax shelters; 'RRSP meltdown' draws registered money early to shrink the big forced RRIF withdrawals (and tax) that hit later.