Retirement

CPP, OAS, retirement income planning

Canadian Retirement Planning Calculators

Canada’s retirement income system has three pillars: government benefits (CPP/QPP and OAS/GIS), employer pensions, and personal savings (RRSP/RRIF, TFSA, non-registered). The maximum CPP retirement pension at age 65 is approximately $1,401/month in 2026, while the maximum OAS is $743.05/month (ages 65–74) or $817.36/month (75+).

You can take CPP as early as age 60 (reduced by 0.6% per month before 65, or 36% at 60) or as late as age 70 (increased by 0.7% per month after 65, or 42% at 70). OAS can be deferred up to age 70 with a 0.6% monthly increase. The breakeven point for deferring CPP from 65 to 70 is approximately age 82.

RRSPs must be converted to a RRIF or annuity by December 31 of the year you turn 71. RRIF minimum withdrawal rates start at 5.28% at age 72 and increase annually, reaching 20% at age 95+. Planning the timing of RRSP/RRIF withdrawals relative to OAS clawback ($95,323 threshold) and GIS eligibility is one of the most impactful retirement tax planning strategies.

Frequently Asked Questions

When should I take CPP?

It depends on your health, other income, and need for cash. If you expect to live past 82, deferring to 70 maximizes lifetime benefits. If you need income now or have health concerns, taking it at 60 or 65 may be better.

What is the OAS clawback?

If your net income exceeds $95,323 (2026), you must repay 15 cents of OAS per dollar above the threshold. OAS is fully clawed back at approximately $155,000 for ages 65–74.

How much do I need to retire?

A common guideline is 70% of pre-retirement income. With average CPP and OAS providing roughly $20,000–25,000/year, a typical Canadian needs personal savings generating another $25,000–45,000/year, requiring a portfolio of $625,000–$1.1 million using the 4% rule.