Retirement Income Sources
| Source |
Amount (Approx, 2026) |
Taxable? |
Start Age |
| CPP (max at 65) |
~$1,400/month |
Yes |
60-70 |
| OAS |
~$730/month |
Yes |
65-70 |
| GIS (low income) |
Up to ~$1,000/month |
Yes (but effectively tax-free) |
65 |
| RRIF/RRSP |
Varies |
Yes |
Any (RRIF mandatory at 72) |
| TFSA |
Varies |
No |
Any |
| Company pension |
Varies |
Yes |
Often 55-65 |
| Non-registered investments |
Varies |
Capital gains 50% taxable |
Any |
How Much Do Retirees Actually Receive?
Couple, Both 65, Average Scenario
| Source |
Monthly |
Annual |
| CPP (person 1) |
$1,000 |
$12,000 |
| CPP (person 2) |
$700 |
$8,400 |
| OAS (each) |
$1,460 combined |
$17,520 |
| RRIF withdrawals |
$2,000 |
$24,000 |
| TFSA withdrawals |
$500 |
$6,000 |
| Total |
$5,660 |
$67,920 |
Single, Age 65, Average Scenario
| Source |
Monthly |
Annual |
| CPP |
$1,000 |
$12,000 |
| OAS |
$730 |
$8,760 |
| RRIF withdrawals |
$1,500 |
$18,000 |
| TFSA withdrawals |
$500 |
$6,000 |
| Total |
$3,730 |
$44,760 |
Investment Income Strategies
Strategy 1: The 4% Rule
| Feature |
Details |
| How it works |
Withdraw 4% of portfolio in year 1, adjust for inflation |
| Required portfolio for $40K/year |
$1,000,000 |
| Success rate (30 years) |
~95% historically |
| Portfolio |
50-60% stocks, 40-50% bonds |
| Portfolio Size |
Annual Income at 4% |
Monthly Income |
| $500,000 |
$20,000 |
$1,667 |
| $750,000 |
$30,000 |
$2,500 |
| $1,000,000 |
$40,000 |
$3,333 |
| $1,500,000 |
$60,000 |
$5,000 |
Strategy 2: Dividend Income
| Investment |
Amount |
Yield |
Annual Income |
| VDY |
$200,000 |
4.5% |
$9,000 |
| XEI |
$150,000 |
4.8% |
$7,200 |
| ZWB |
$100,000 |
7.5% |
$7,500 |
| GIC ladder |
$150,000 |
4.3% |
$6,450 |
| HISA |
$50,000 |
4.0% |
$2,000 |
| Total |
$650,000 |
~4.9% |
$32,150 |
Strategy 3: Bucket Strategy
| Bucket |
Timeframe |
Investment |
Purpose |
| Cash |
0-2 years |
HISA + GICs |
Living expenses |
| Income |
3-7 years |
Bonds + dividend ETFs |
Replenish cash bucket |
| Growth |
8+ years |
XEQT / equity ETFs |
Long-term growth |
How it works: Spend from cash bucket. Periodically sell income bucket to refill cash. Growth bucket compounds over time.
Strategy 4: Annuity + Portfolio Hybrid
| Component |
Allocation |
Purpose |
| Life annuity |
30-40% of savings |
Guaranteed income for life |
| Balanced ETF portfolio |
40-50% |
Growth and flexibility |
| HISA/GIC |
10-20% |
Short-term needs |
CPP Timing Strategy
| Start Age |
Monthly Amount |
Annual |
Break-Even vs 65 |
| 60 |
~$896 (-36%) |
$10,752 |
β |
| 65 |
~$1,400 |
$16,800 |
β |
| 70 |
~$1,988 (+42%) |
$23,856 |
Age ~82 vs 60 |
| If you live to… |
Best start age |
| 72 or earlier |
60 |
| 73-82 |
65 |
| 83+ |
70 |
Creating a Retirement Budget
| Category |
Monthly (Couple) |
Annual |
| Housing (if owned, paid off) |
$600 |
$7,200 |
| Groceries |
$800 |
$9,600 |
| Transportation |
$600 |
$7,200 |
| Healthcare/dental |
$400 |
$4,800 |
| Insurance (home, auto, health) |
$350 |
$4,200 |
| Utilities + internet |
$350 |
$4,200 |
| Entertainment + dining |
$400 |
$4,800 |
| Travel |
$500 |
$6,000 |
| Clothing |
$150 |
$1,800 |
| Miscellaneous |
$300 |
$3,600 |
| Total |
$4,450 |
$53,400 |