What does this retirement calculator work out?
This retirement calculator works out how much you could spend each year in retirement, after tax, from four sources together: your RRSP (which becomes a RRIF), your TFSA, the Canada Pension Plan and Old Age Security, plus a workplace pension if you have one. The headline figure is sustainable spending: the highest level after-tax amount, in today’s dollars, that your money could pay every year until age 95.
Many retirement calculators stop at the savings target. This one keeps going through the drawdown years, which is where Canadian rules start to matter: RRIF minimum withdrawals, the age and pension tax credits, and the OAS recovery tax (the clawback). It then compares three withdrawal orders, the earliest, standard and latest CPP and OAS start ages, and a set of what-if scenarios, and shows a year-by-year table to 95 that you can download.
How to use this calculator
- Enter your age, retirement age and province. The province sets the provincial income tax on RRIF, CPP, OAS and pension income.
- Add your savings. Put RRSPs, RRIFs, LIRAs and defined-contribution pension balances in the RRSP field, because all of them are taxed as income when withdrawn. TFSAs go in their own field.
- Add yearly contributions until retirement, including any employer match. Leave them at zero if you are already retired.
- Enter your spending goal after tax, in today’s dollars. This is what you want to have available to spend each year.
- Enter CPP and OAS estimates at 65. Your CPP estimate is in My Service Canada Account; OAS depends on your years in Canada after age 18. Pick the start age for each.
- Choose a withdrawal order. The results compare all three, but your choice drives the year-by-year table.
- Open “Returns and RRIF timing” to change the return before and after retirement, or the age RRIF minimums start.
The result opens with your sustainable spending, savings at retirement, whether your goal is covered to 95, and the lifetime tax and clawback. Below that are the comparison tables and the year-by-year plan.
How much do you need to retire in Canada?
How much you need to retire in Canada depends on the gap between the spending you want and the income CPP, OAS and any pension will pay, grossed up for tax and stretched over a retirement that could last 30 years or more. There is no official target. A calculator that includes tax and government pensions gives a better answer than a rule of thumb, because the same savings go much further for someone with a full CPP and OAS than for someone with a partial OAS and no workplace pension.
The calculator answers the question from your side: it shows the spending your savings support, and if your goal is higher, the age at which money would run short and the total gap. Raising contributions, retiring later or changing CPP and OAS start ages in the what-if tables shows which lever closes the gap fastest.
Worked example: $400,000 RRSP and $100,000 TFSA at 65
Take a hypothetical Ontario retiree who is 65 and retiring now with $400,000 in an RRSP and $100,000 in a TFSA. Their CPP estimate at 65 is $900 a month and their OAS is $700 a month, both starting at 65. They want $45,000 a year after tax, assume a 3% real return in retirement and use the bracket fill order.
- Government pensions: CPP and OAS pay $19,200 a year before tax, rising to $20,040 from 75 with the OAS increase.
- First-year withdrawal: the RRSP pays $39,323, bringing taxable income to the top of the lowest federal bracket.
- First-year tax: about $7,944, an average rate of 13.6%. That leaves $50,579, so $5,579 above the goal is saved in the TFSA.
- Sustainable spending: about $39,900 a year, which is $5,100 below the goal. At $45,000 a year, money runs short from age 87, with a total gap of about $225,874.
| Withdrawal order for this example | Sustainable spending to 95 | Goal of $45,000 covered until | Income tax to 95 at the goal |
|---|---|---|---|
| Bracket fill (RRSP meltdown) | $39,900 | Age 86 | $99,785 |
| RRSP/RRIF first, TFSA last | $40,360 | Age 86 | $98,511 |
| TFSA first, RRIF minimums only | $40,410 | Age 86 | $112,459 |
How to read this table: each row is the same person with a different withdrawal order. For this saver the three orders land within about $510 a year of each other, because income stays near the lowest federal bracket every year whatever the order. Leaving the RRSP untouched early (TFSA first) means larger taxable withdrawals later, which is why that row pays the most tax at the goal. The order matters much more when a big RRIF, a workplace pension or a late CPP start pushes income toward the OAS clawback threshold.
| What if, for this example | Sustainable spending | Change |
|---|---|---|
| The plan as entered | $39,900 | — |
| Returns 1 point lower | $37,490 | −$2,410 |
| Returns 5 points lower for the first 5 years only | $35,920 | −$3,980 |
| CPP started at 70 instead of 65 | $40,920 | +$1,020 |
| Retire at 67, with CPP and OAS starting at 67 | $45,200 | +$5,300 |
How to read this table: each row changes one input, except the last, where CPP and OAS also wait until the later retirement (the calculator does not model pensions paid while still working). The third row is the sequence-of-returns test: the same retiree loses more from weak returns early in retirement than from the same weakness later, because withdrawals lock in the losses.
Which account should you withdraw from first?
The account to withdraw from first depends on whether your tax rate is lower now or later, and whether later income could reach the OAS clawback. The calculator compares three orders so you can see the difference on your own numbers instead of relying on a general rule.
- Bracket fill (RRSP meltdown). Each year the RRSP pays enough to bring taxable income up to the top of the lowest federal bracket, $58,523 for 2026, and any after-tax cash beyond the goal is saved in the TFSA. It uses low brackets in the years before CPP and OAS start and shrinks the RRIF before minimums apply.
- RRSP/RRIF first, TFSA last. The RRSP pays whatever the goal needs; the TFSA is used only when the RRSP runs out. It keeps the tax-free TFSA for late life or the estate.
- TFSA first, RRIF minimums only. The TFSA pays first and the RRSP pays only the RRIF minimum until the TFSA runs out. It keeps early taxable income low, but a large RRIF left for later can mean higher tax at the end, or on death, when the whole balance is taxed as income unless it passes to a spouse.
TFSA withdrawals never count toward the OAS clawback or income-tested benefits, which is why the TFSA is often kept for the years when other income is highest. For the trade-off before retirement, the TFSA vs RRSP guide explains which account to fund first, and the RRSP calculator estimates the tax refund on contributions.
Should you start CPP and OAS early or late?
CPP and OAS can be started early or late, and each choice changes the payment for life. CPP can start at 60 with a reduction of 0.6% for each month before 65, up to 36%, or be delayed to 70 with an increase of 0.7% for each month after 65, up to 42%. OAS starts at 65 at the earliest and grows by 0.6% for each month of deferral, which is 7.2% a year, up to 36% at 70. OAS also rises 10% from age 75.
For an early retiree the question is how to bridge the years before a later start. Take a hypothetical Ontario retiree who is 60 with $600,000 in an RRSP and $150,000 in a TFSA, a CPP estimate of $1,100 a month and OAS of $700 a month at 65, a 3% real return and the bracket fill order:
| Start ages | CPP a month | OAS a month (65 to 74) | Sustainable spending to 95 |
|---|---|---|---|
| CPP 60, OAS 65 | $704 | $700 | $43,800 |
| CPP 65, OAS 65 | $1,100 | $700 | $45,610 |
| CPP 70, OAS 65 | $1,562 | $700 | $46,550 |
| CPP 70, OAS 70 | $1,562 | $952 | $46,940 |
How to read this table: every row uses the same savings. Delaying both pensions to 70 raises sustainable spending by about $3,140 a year compared with taking CPP at 60, because larger inflation-indexed pensions replace withdrawals in the later years. The cost is drawing more from savings in the 60s. The result assumes living to 95; with a shorter life expectancy, earlier starts look better. The CPP early vs late guide covers the break-even ages, and the OAS, CPP and GIS planner adds the Guaranteed Income Supplement for lower incomes.
How are RRIF minimum withdrawals calculated?
A RRIF minimum withdrawal is the RRIF balance at the start of the year multiplied by a CRA prescribed factor for your age at the start of that year. Up to age 70, the factor is 1 divided by (90 minus your age), so at 65 it is 4%. From 71 the factors come from a table in the Income Tax Regulations:
How to read this table: multiply the RRIF balance on January 1 by the factor for your age that day. The last row applies at 95 and every age after. No minimum applies in the year the RRIF is set up.
| Age at the start of the year | Minimum as a share of the balance |
|---|---|
| 71 | 5.28% |
| 72 | 5.4% |
| 73 | 5.53% |
| 74 | 5.67% |
| 75 | 5.82% |
| 76 | 5.98% |
| 77 | 6.17% |
| 78 | 6.36% |
| 79 | 6.58% |
| 80 | 6.82% |
| 81 | 7.08% |
| 82 | 7.38% |
| 83 | 7.71% |
| 84 | 8.08% |
| 85 | 8.51% |
| 86 | 8.99% |
| 87 | 9.55% |
| 88 | 10.21% |
| 89 | 10.99% |
| 90 | 11.92% |
| 91 | 13.06% |
| 92 | 14.49% |
| 93 | 16.34% |
| 94 | 18.79% |
| 95 | 20% |
Source: Chart – Prescribed factors (RRIF) — Canada.ca; Minimum amount from a RRIF — Canada.ca; Income Tax Regulations, C.R.C., c. 945, section 7308 — Justice Laws Website; Economic Action Plan 2015 Act, No. 1 (S.C. 2015, c. 36), section 23 — Justice Laws Website. In effect from January 1, 2015; checked September 29, 2026.
The calculator starts minimums at the age you choose in the advanced settings, 71 at the latest, and never withdraws less than the minimum. When a minimum is more than you need, the after-tax surplus goes into your TFSA, and the calculator warns you. The RRIF minimum withdrawal rates guide explains the spouse-age election, which lowers the minimum when a younger spouse’s age is used.
How does the OAS clawback work?
The OAS clawback, officially the OAS pension recovery tax, takes back 15% of your net income above a yearly threshold until the whole OAS pension is repaid. Net income here is line 23400 of the tax return, which includes RRIF withdrawals, CPP, OAS and pension income but not TFSA withdrawals.
How to read this table: the threshold applies to one year's net income, and the repayment is taken from OAS payments over the following July-to-June period. Thresholds rise with inflation each year.
| Income year | Deducted from OAS paid | Clawback starts above | OAS fully repaid at (65 to 74) | OAS fully repaid at (75+) | Status |
|---|---|---|---|---|---|
| 2024 | July 2025 to June 2026 | $90,997 | $148,451 | $154,196 | Final |
| 2025 | July 2026 to June 2027 | $93,454 | $152,062 | $157,923 | Final |
| 2026 | July 2027 to June 2028 | $95,323 | $155,320 | $161,320 | Final |
Source: Old Age Security pension recovery tax — income recovery thresholds table (Canada.ca); Old Age Security pension recovery tax — footnote 1, estimates to September and final from October (Canada.ca); Old Age Security pension recovery tax — non-residents (Canada.ca); Old Age Security pension recovery tax — Return of Income deadline (Canada.ca); Repayment of Old Age Security pension — income line and return lines (Canada.ca); Repayment of Old Age Security pension — worked example (Canada.ca); Repayment of Old Age Security pension — deductions spread over 12 payments (Canada.ca); Repayment of Old Age Security pension — financial hardship (Canada.ca); Line 23500 – Social benefits repayment (CRA); Line 23500 – Social benefits repayment, withheld recovery tax (CRA); Repayment of Old Age Security pension — contact to check or increase the deduction (Canada.ca); Contact the Canada Revenue Agency — individual income tax enquiries line (CRA); Old Age Security pension recovery tax — CRA contact for tax questions (Canada.ca); T1213OAS Request to Reduce Old Age Security Recovery Tax at Source (CRA); Pension income splitting — 50% limit (CRA); Pension income splitting — RRIF and annuity income at 65 or older (CRA); Pension income splitting — OAS and CPP not eligible (CRA); Pension income splitting — effect on OAS repayment (CRA); Line 21000 – Deduction for elected split-pension amount, Form T1032 (CRA); What is a TFSA — TFSA impact on government benefits and credits (CRA). In effect from July 1, 2026; checked October 11, 2026.
The calculator uses the threshold for the 2026 income year and holds it constant in today’s dollars. Every year your net income passes it is flagged, and the clawback is subtracted from spending money. The deeper guide to the OAS clawback covers repayment timing, Form T1213(OAS) for reducing deductions after an income drop, and pension income splitting.
How is retirement income taxed in Canada?
Retirement income in Canada is taxed as ordinary income: RRSP and RRIF withdrawals, CPP, OAS and workplace pensions are added together and taxed with federal and provincial brackets, while TFSA withdrawals are tax-free. The calculator uses the 2026 rules, including the federal lowest rate of 14% on the first $58,523 of taxable income.
Three federal credits make retirement income cheaper to receive than the same salary:
- Basic personal amount: $16,452 for most incomes in 2026, credited at 14%.
- Age amount: up to $9,208 from age 65, reduced by 15% of net income above $46,432.
- Pension income amount: up to $2,000 of eligible pension income. Workplace pensions qualify at any age; RRIF payments qualify from 65. RRSP lump-sum withdrawals do not, which is one reason some retirees convert part of an RRSP to a RRIF at 65.
Provincial tax uses your province’s brackets and basic personal amount; in Ontario it adds the surtax and the Ontario health premium. Quebec residents also get the federal abatement of 16.5% of basic federal tax. The tax brackets guide for Canada lists every province’s 2026 brackets. For one withdrawal at a time, the RRSP withdrawal tax calculator shows the withholding tax and the final tax.
How does the maths work?
The calculator runs one year at a time, in today’s dollars:
- Before retirement, each account grows at your pre-retirement return and your yearly contributions are added at year end. RRSP contributions stop after the year you turn 71, when the RRSP must become a RRIF.
- In each year of retirement, CPP, OAS (with the increase from 75) and any workplace pension are added. If RRIF minimums apply, the minimum is the start-of-year balance times the CRA factor.
- The withdrawal is solved, not guessed. For each order, the calculator finds the RRSP withdrawal that brings after-tax cash to your goal, using the full tax calculation, including the clawback, at every step. The TFSA fills whatever the order says it should.
- Tax and clawback are worked out with the 2026 federal and provincial rules. The clawback is 15% of net income above the threshold, capped at the OAS received, and it is deducted before income tax, as on the return.
- Balances grow for the rest of the year at your retirement return. Any after-tax surplus is saved in the TFSA.
- Sustainable spending is found by testing spending levels until the highest one that never runs short before the end of age 95 is found, to the nearest ten dollars.
Because every rate, bracket, credit, RRIF factor and CPP or OAS adjustment comes from versioned official data files, the sources and the date each was last checked are listed under the calculator.
Common mistakes with retirement calculators
- Counting RRSP money as spending money. A dollar out of a RRIF is taxable income; the calculator nets the tax off before comparing with your goal.
- Ignoring the OAS clawback. A large RRIF minimum in your late 70s or 80s, plus CPP and a pension, can cross the threshold even if your spending is modest.
- Using a return before inflation. With spending in today’s dollars, a nominal return makes savings look years longer-lasting than they are.
- Taking the maximum CPP as a given. Few people receive the maximum; the average new pension at 65 was $858.34 a month in July 2026 against a maximum of $1,507.65. Use your own estimate.
- Forgetting partial OAS. Fewer than 40 years in Canada after 18 means a partial OAS pension.
- Assuming a smooth ride. The poor-first-years scenario shows how much early losses cost while withdrawals are running.
- Planning to an average life expectancy. Roughly half of people outlive the average; the calculator plans to 95 for that reason.
If you are still building savings, the net worth and FIRE calculator tracks progress toward a retirement portfolio.
When should you talk to a professional?
A fee-only financial planner or a tax professional is worth consulting before acting on a retirement plan, because this calculator models one person with the inputs you give it. That matters most when you are:
- deciding when to start CPP or OAS, especially with health concerns or a spouse who would rely on a survivor pension;
- planning RRSP withdrawals before 71 or choosing between a RRIF and an annuity;
- a couple who could split eligible pension income, or who hold spousal RRSPs;
- holding a defined-benefit pension with a bridge benefit, a LIRA, or a large non-registered account;
- close to the OAS clawback threshold, or likely to qualify for the Guaranteed Income Supplement;
- moving to or from Canada, which changes tax residency and OAS eligibility.
Limits of this estimate
The calculator assumes steady real returns, constant real spending and 2026 tax rules carried forward in today’s dollars. It does not model pension income splitting, the Guaranteed Income Supplement, non-registered accounts, provincial age and pension credits, or tax on the RRIF balance at death. CPP and OAS are your own estimates at 65. Use the results to compare choices and see which levers matter, then check your exact CPP in My Service Canada Account and your tax in CRA My Account, and revisit the plan each year.