Plan with clarity.
Retire with confidence.

Retirement Calculator
ⓘ

Illustrative projection only. This calculator uses simplified growth and drawdown logic. It does not model income taxes, RRIF minimum withdrawals, OAS clawback, GIS eligibility, inflation, benefit indexation, or account sequencing. Results are for educational purposes and are not personalized financial advice. Consult a qualified financial planner before making decisions.

Illustrative Retirement Projection Tool

RRSP / TFSA / Non-Reg / CPP / OAS
Personal
Top combined marginal rate: 53.53% | OAS clawback begins at $95,323 (2026)
Current Savings
Annual Contributions
Returns and Income
At Retirement
--
Portfolio Drawdown
--
Projected Runway
--
Ontario: top marginal rate 53.53% OAS clawback at $95,323 (2026)
Illustrative portfolio balance by age
RRSP
TFSA
Non-Reg
Retirement Considerations
📅

Key Figures and Assumptions

Source: CRA / ESDC. Updated April 2026.
TFSA Annual Room (2025)
$7,000
Cumulative since 2009 (age 18+): $102,000 as of 2025; $109,000 as of 2026
RRSP Contribution Limit (2025)
$32,490
18% of prior year earned income, up to this dollar limit. Deadline: March 2026 for 2025 tax year.
OAS Maximum (Apr-Jun 2026)
$743.05/mo
Age 65-74 (Apr-Jun 2026). Previous: Jan-Mar 2026 was $742.31/mo, Jan-Mar 2025 was $727.67/mo. Indexed to CPI quarterly.
CPP Maximum Retirement Pension (2025)
$1,433.00/mo
At age 65 with maximum contributions (Oct-Dec 2025: $1,433.00/mo; 2026 max: $1,507.65/mo). Most recipients receive less based on actual contribution history.
OAS Clawback Threshold (2026)
$95,323
Recovery rate: 15 cents per dollar above this threshold. Full clawback at approximately $153,771. Prior year (2025): $93,454.
GIS Thresholds (Apr-Jun 2026)
~$22,512 / ~$29,760
Single / couple (spouse receiving full OAS), Apr-Jun 2026. GIS reduces by ~50 cents per dollar of taxable income above threshold. Updated quarterly at canada.ca.
CPP Deferral Uplift
+0.7%/month
Deferring CPP past 65 to age 70 increases benefit by 42% (60 months x 0.7%). Break-even vs. age 65: approximately age 82-83.
OAS Deferral Uplift
+0.6%/month
Deferring OAS past 65 to age 70 increases benefit by 36% (60 months x 0.6%). Separate and distinct from CPP deferral.
Capital Gains Inclusion Rate (2025)
50% / 66.67%
50% on the first $250,000 of annual gains for individuals. The 2/3 (66.67%) rate applies to individual gains above $250,000, and to all gains for corporations and trusts. Verify current legislation before acting.
All figures are sourced from CRA, Service Canada, and ESDC publications. Amounts indexed to inflation are updated quarterly. Provincial tax rates and brackets vary. This table reflects the most current available figures as of April 2026 unless otherwise noted. Federal benefit amounts are updated quarterly. Always verify current amounts at canada.ca before making financial decisions.
02

RRSP Meltdown Strategy

Accelerating RRSP drawdowns to reduce lifetime tax burden

The problem

RRSP balances grow tax-deferred, but mandatory RRIF conversion at 71 forces increasing minimum withdrawals that can push retirees into higher tax brackets and trigger OAS clawbacks. A large RRIF balance at death is included as fully taxable income in the year of death unless rolled to a surviving spouse.

The strategy

Deliberately draw down RRSP funds in early retirement years when income is low, filling lower tax brackets before CPP and OAS begin. Redirect after-tax proceeds into a TFSA for permanent tax-free shelter. The goal is a smaller, more manageable RRIF by the time mandatory minimums kick in at 71.

Why it works
  • Early retirement gap years (before CPP/OAS) leave room in lower brackets
  • Drawing $30K at 20% effective tax beats drawing $100K at 40%+ later
  • TFSA shelters the reinvested after-tax proceeds permanently
  • Reduces estate tax exposure on RRIF balance at death
  • Can prevent or reduce OAS clawback in high-withdrawal years
Watch-outs
  • Withholding tax applies at source: 10% on amounts up to $5,000; 20% on $5,001 to $15,000; 30% above $15,000 (Quebec rates differ)
  • RRSP withdrawals count as income and can reduce GIS entitlement
  • Works best coordinated with a spouse to smooth combined household income
  • Pension income splitting is not available on RRSP withdrawals (only RRIF at 65+)
01
Retire early
55 to 65, income drops sharply
02
Delay CPP
Defer to 70 for +42% (0.7%/mo)
03
Delay OAS
Defer to 70 for +36% (0.6%/mo)
04
Draw RRSP
Fill lower brackets each year
05
Top up TFSA
Shelter after-tax proceeds
06
CPP + OAS start
Smaller RRIF, tax manageable
CPP deferral: +0.7%/month past age 65 to maximum +42% at age 70. OAS deferral: +0.6%/month past age 65 to maximum +36% at age 70. Source: canada.ca/cpp-when-start, ESDC quarterly benefit tables.