🍁 Canadian Retirement Planner

RRIF Withdrawals: At retirement (typically age 65), your RRSP converts to a RRIF and withdrawals begin to fund your retirement income. At age 72, mandatory minimum withdrawals apply based on your age (starting at 5.4% and increasing each year).

Taxation: RRIF withdrawals are fully taxable as ordinary income. Combined with CPP, OAS, and other pension income, your total gross income determines your tax bracket. Provincial tax rates vary significantly.

OAS Clawback: The calculator automatically adjusts OAS based on taxable income. The clawback (15% recovery tax) starts at $93,454 net income (2026). Fully clawed back at ~$153,000. Important: TFSA withdrawals are tax-free and DO NOT count toward OAS clawback—making TFSA-first strategies particularly valuable for minimizing clawback.

Withdrawal Sequencing: Before age 72, you can choose to prioritize TFSA (tax-free and no OAS clawback impact) or Non-Registered accounts to preserve RRIF for later years. At age 72+, RRIF minimum withdrawals become mandatory (5.4% at 72, increasing annually). Your strategy then applies to remaining income needs. TFSA-first strategies are particularly effective for minimizing both taxes and OAS clawback.

Pension Income Splitting: If married, you can split eligible pension income (RRIF at 65+, other pensions) to reduce household tax and potentially avoid OAS clawback.

CPP Timing: Taking CPP early (60-64) reduces benefits by 36%. Delaying to age 70 increases benefits by 42%. Consider your portfolio strength and income needs.