How much do I need to retire in Canada?

It depends on your spending, your CPP and OAS, any pension, and how long you need the money to last. A common guide is that savings can support an inflation-adjusted withdrawal of roughly 4 percent a year at the start of retirement, but tax on RRSP withdrawals and the OAS recovery tax can change the picture, which is what this tool estimates for your numbers.

Are RRSP and RRIF withdrawals taxed in retirement?

Yes. RRSP and RRIF withdrawals are fully taxable as income at your combined federal and provincial rate, and from age 72 you must withdraw a minimum percentage each year whether you need it or not. TFSA withdrawals are tax free and do not count toward the OAS recovery tax, which is why the order you draw accounts matters.

What is the OAS clawback?

The Old Age Security recovery tax reduces your OAS by 15 cents for every dollar of net income above $95,323 in 2026, and can eliminate it entirely near $155,000. RRSP and RRIF withdrawals, CPP, and pension income all count toward that threshold, while TFSA withdrawals do not, so managing taxable income in retirement can protect your OAS.

Canadian Retirement Calculator (Tax, OAS Clawback, Drawdown)

Interactive Tool

Retirement income and drawdown

Put in your RRSP, TFSA, CPP, OAS, pension, and target spending. See your total at retirement, the monthly income it can sustain, the estimated tax along the way, and whether the money lasts or runs out.

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Last reviewed June 2026

Current age

Retirement age

Plan to ageHow long the money needs to last.

Province or territorySets the combined federal and provincial tax brackets.

RRSP or RRIF balance (CAD)

Withdrawals are fully taxable as income.

TFSA balance (CAD)

Withdrawals are tax free and do not count toward the OAS clawback.

Annual saving until retirement (CAD)

Expected annual return

4.5%

Inflation

2.0%

CPP at retirement (monthly)

2026 maximum is about $1,433 at age 65; the average is closer to $900. Check your CRA statement.

OAS at retirement (monthly)

2026 maximum is about $743 at ages 65 to 74. Less with fewer than 40 years in Canada.

Other pension income (monthly)

A workplace pension or annuity. Taxable.

Desired monthly spending (today's dollars)

After tax. Grown with inflation each year.

Withdrawal order

Which account to draw down first to meet spending.

Your retirement at a glance

Total savings over time

Combined RRSP and TFSA balance at five-year points through retirement.

1.What it does. Starting at your retirement age, the tool draws from your savings each year to meet your spending after tax, on top of CPP, OAS, and any pension. It applies combined federal and provincial tax, the OAS recovery tax, and the mandatory RRIF minimum withdrawal from age 72, then reports when the money runs out or what is left at your planning age, plus the monthly income your savings could sustain to that age.

2.Tax. Income tax uses the 2026 combined federal and provincial marginal brackets for the province you select, with the basic personal amount built in as the zero-rate band. The OAS recovery tax reduces OAS by 15 cents per dollar of taxable income above $95,323, indexed with inflation here. The estimate does not model the age amount, the pension income credit, pension income splitting between spouses, or the Guaranteed Income Supplement, so a real tax bill is often lower. Quebec figures are approximate and do not reflect the Quebec abatement and separate credits.

3.Withdrawal order. RRSP first draws taxable savings before tax-free TFSA, which usually means more tax early and less later. TFSA first preserves the RRSP, which can mean larger forced RRIF withdrawals and more total tax in later years. Neither is optimal for everyone, and a blended approach is often better. The tool shows the effect of each.

4.Assumptions. A constant return and inflation are used for illustration. CPP, OAS, and pension income are grown with inflation, though a workplace pension may not be fully indexed. Balances entered are treated as today's amounts and grown to your retirement age, with any annual saving split across your accounts in proportion to their current size. This is a single-person model and does not handle spousal planning.

5.Not advice. An educational projection, not financial or tax advice, and not a guarantee of any outcome. Markets, rules, and rates change. For a plan built around your situation, speak with a qualified financial or tax professional. Confirm benefit estimates with Service Canada and the CRA. See disclosures and the registered account selector.

Retirement income and drawdown

Total savings over time

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