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. Non-registered withdrawals are taxed only on the capital gain portion at the 50% inclusion rate—your original cost base (ACB) is returned tax-free. 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 $95,323 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.