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Financial Guide for Your 60s in Canada | The Move Into Retirement

Updated

The 60s are when saving turns into spending. Most of the big retirement decisions fall in this decade: when to stop working, when to start CPP and OAS, how to turn RRSPs into income, and in what order to draw on each account. This guide lays out those decisions and links to the pages that work through each in detail. It follows the financial guide for your 50s, and the year you turn 65 has its own turning 65 checklist, all part of life stages and life events.

Key ages in your 60s

AgeWhat happens
60The earliest age to start the CPP retirement pension, at a reduced amount
65OAS can start; the standard CPP age; the age amount and, for RRIF income, the pension income credit and pension splitting
70The latest start for CPP and OAS, with the largest increase
71An RRSP must be converted (usually to a RRIF) by the end of this year of age

When to start CPP

You can start the CPP retirement pension any time from 60 to 70 (65 is the standard age): it is 0.6% lower for each month before 65 (up to 36% less at 60) and 0.7% higher for each month after (up to 42% more at 70), with no gain from waiting past 70; applying after 65, you can backdate the start up to 11 months, but not before the month after your 65th birthday.

Starting early gives a smaller pension for more years; delaying gives a larger one for fewer. The choice depends on your health, your other income and whether you need the money now. The trade-offs and break-even ages are worked through in CPP at 60 vs 65 vs 70, and the CPP calculator estimates your own amount.

When to start OAS

OAS pays up to $762.50 a month at 65 to 74 (October to December 2026). You can start OAS at 65 or delay it up to age 70; each month of delay adds 0.6% (7.2% a year), up to 36% at 70. There's no benefit to waiting past 70, or at all if you're eligible for the GIS, and OAS can't start before 65. When to apply, and whether deferring suits you, is in when to apply for OAS. Low-income seniors may also receive the Guaranteed Income Supplement on top of OAS; see the GIS guide.

The OAS recovery tax

OAS is reduced once net income passes $93,454 (2025 income). How the recovery tax works, and the ways retirees lower it (drawing down RRSPs earlier, TFSA withdrawals, pension splitting), are in the OAS clawback guide.

Turning RRSPs into income

An RRSP must become a RRIF (or an annuity) by the end of the year you turn 71, and from the year after a RRIF is opened a minimum must come out each year. From the year after you open a RRIF, you must withdraw at least the year's minimum: the January 1 balance times a factor for your age at the start of the year (or your spouse's age, if you choose), which is 1 ÷ (90 − age) up to 70 and CRA's prescribed factor from 71; you can always take more. The minimum percentages by age are in RRIF minimum withdrawals, and the conversion itself in the RRSP to RRIF conversion guide.

Some retirees draw RRSP money down in their early 60s, before CPP, OAS and RRIF minimums all stack up, so that more of it is taxed at lower rates. That approach and its trade-offs are covered in the RRSP meltdown strategy.

The order to draw on savings

Which account to draw from first (non-registered savings, RRSPs and RRIFs, or TFSAs) affects lifetime tax, the OAS recovery tax and GIS eligibility. The usual approaches are compared in what to do with your money after retirement.

Income splitting

MethodWhat it does
Pension income splittingMoves part of eligible pension income to a spouse’s return; RRIF income qualifies from age 65
CPP pension sharingSplits CPP pensions between spouses who both receive CPP
Spousal RRSPWithdrawals are taxed to the lower-earning spouse once the attribution period has passed

Health costs

Provincial plans cover doctor and hospital care, but prescription drugs (partly, depending on the province), dental, vision, hearing aids and physiotherapy are largely out of pocket once workplace benefits end. Seniors’ drug programs, the Canadian Dental Care Plan and private extended health plans fill parts of the gap; see health insurance in Canada. Care homes are a separate cost, covered in long-term care costs and retirement home costs.

A retirement budget

Retirement spending often drops for commuting, work clothes and saving, and rises for travel and health. A budget built from your own spending is more reliable than a rule of thumb; how much do I need to retire shows how to set one against your income sources, and living on CPP, OAS and GIS covers a budget built on government pensions alone.

If work ends before you planned

If a layoff ends your career earlier than expected, the severance, EI and pension decisions are in what to do when you’re laid off.

Estate updates

ItemWhat to review
WillGrandchildren, a second marriage, health changes
Beneficiary designationsRRIFs, TFSAs, insurance and pensions
Powers of attorneyFor property and for personal care
ProbateWhich assets pass outside the estate; see probate fees by province
Funeral plansWishes recorded, and whether to prepay; see funeral costs in Canada
Digital assetsWhere passwords and online accounts are listed

Sources

The figures and rules on this page come from these sources, last checked against them between September 17, 2026 and September 30, 2026. How we check facts.