Retirement budget (monthly)
Modelled on the FCAC Budget Planner on canada.ca. Enter what you expect to spend each month in retirement, in today's dollars.
Each option is a different plan for the same person. Change any setting, or let Optimize search for the RRSP/RRIF withdrawal level (and optionally CPP/OAS start ages) that leaves the most after-tax money while still meeting your spending.
Scenario comparison (today's dollars)
Total savings by age (today's $)
Income tax + OAS clawback per year (today's $)
Where the money comes from
Year-by-year plan
RRIF minimum withdrawal factors
Prescribed by CRA (canada.ca chart). Minimum = factor × RRIF value on January 1, using your age at January 1 (or your younger spouse's age if you choose that when opening the RRIF). No minimum in the year the RRIF is opened. Under 71 the factor is 1 ÷ (90 − age).
Key rules used
RRSP → RRIF
- RRSP must be converted (RRIF or annuity) by Dec 31 of the year you turn 71; first minimum is due the next year (age 72).
- Converting earlier (e.g. at 64) makes RRIF withdrawals at 65+ eligible for the $2,000 pension income credit and pension splitting.
- Withholding on amounts above the minimum: 10% up to $5,000, 20% $5,001–$15,000, 30% over $15,000 (outside Quebec). It's a prepayment, settled on your return.
- At death, the remaining RRIF is fully taxable on the final return unless rolled to a spouse.
Couples
- Pension income splitting: up to 50% of eligible pension income can be moved to a spouse on your tax returns (form T1032) — RRIF withdrawals at 65+ and DB pension at any age. The planner picks the split that minimizes combined tax each year.
- Younger spouse's age: when the RRIF is set up you can base minimums on the younger spouse's age, which lowers the required withdrawal.
- At the first death: RRSP/RRIF, TFSA (successor holder) and non-registered assets pass to the surviving spouse tax-free. The survivor gets a CPP survivor benefit (≈60% of the deceased's CPP at 65+, capped at the max pension) and any DB survivor pension. The deceased's OAS stops.
CPP
- Start 60–70. −0.6% per month before 65 (−36% at 60), +0.7% per month after 65 (+42% at 70). Get your estimate from My Service Canada Account.
OAS
- Start 65–70, +0.6% per month deferred (+36% at 70). +10% from age 75. Partial OAS = years in Canada after 18 ÷ 40.
- Recovery tax: 15% of net income above the threshold (≈ $95,323 for 2026).
TFSA
- Withdrawals are tax-free and don't count toward OAS clawback. Amounts withdrawn get their room back the next January. New room $7,000/yr (2026).
Non-registered (savings, chequing, GICs, mutual funds, stocks)
- Interest is fully taxed. Eligible dividends are grossed up 38% (this raises net income for OAS clawback) with a dividend tax credit. Only 50% of capital gains are taxed; the cost base (ACB) of what you sell comes back tax-free.
FHSA
- Qualifying home purchase: tax-free. Otherwise transfer to RRSP/RRIF tax-free without using RRSP room. Must close by the 15th year after opening or end of the year you turn 71.
RESP
- Your contributions come back tax-free. Grants + growth paid to a student (EAPs) are taxed in the student's hands. If no child studies: grants are repaid, and growth (AIP) can go to your RRSP (up to $50,000 if you have room); otherwise it's taxed at your rate +20%.
Official tools
Educational planning tool, not financial or tax advice. Tax figures are 2026 estimates (no Quebec/QPP, no GIS); future years assume brackets and benefits rise with inflation. Verify against canada.ca and consider a fee-only planner before acting.