Skip to main content

Turning 65 Financial Checklist Canada | What to Do

Updated

Turning 65 Timeline

11 Months Before

Action Why
Apply for OAS Processing time
Check for auto-enrollment letter May be automatic
Decide OAS deferral Wait until 70?

6 Months Before

Action Why
Final CPP decision If haven’t started
Review pension Employer plan options
Tax planning For next year

At 65

Action Why
Claim age credits On tax return
Review budget New income sources
Health coverage review Changes at 65

Old Age Security (OAS)

Apply for OAS

Method Details
Online My Service Canada Account
Auto-enrollment If you get letter
Timeline 11 months before

OAS Amounts 2026

Age Monthly
65-74 ~$727
75+ ~$800 (10% bonus)

Defer or Take at 65?

Take at 65 If Defer to 70 If
Need income Other income sources
Health concerns Good health
Below clawback Would be clawed back anyway

Deferral Benefit

Defer Increase
Per month 0.6%
Per year 7.2%
To age 70 36% more

Canada Pension Plan at 65

If Not Yet Receiving

Option Details
Start at 65 Standard amount
Defer to 70 42% more total
Already receiving Post-retirement benefit if working

CPP Maximum at 65

Year Approximate Maximum
2026 ~$1,433/month

GIS (If Low Income)

Guaranteed Income Supplement

If OAS Income Below May Qualify
~$21,624 (single) For GIS
~$28,560 (couple) For GIS

GIS Application

When How
With OAS application Combined
Or separately If missed
Annual renewal Based on income

Tax Changes at 65

Age Amount Credit

Federal Amount
Maximum ~$8,790
Tax savings ~$1,319
Reduced if Income > ~$44,325
Eliminated at ~$102,850

Provincial Age Amounts

Province Additional
Ontario ~$5,839
BC ~$5,903
Alberta ~$6,064
Quebec ~$3,807

Total Age Credit Value

In Ontario Savings
Federal ~$1,319
Provincial ~$300
Total ~$1,619

Pension Income Splitting

Now Available at 65

Before 65 Only RPP
At 65 RRIF also qualifies

How It Works

Step Details
Split up to 50% Of eligible pension
To spouse Must be lower income
Both file Joint election

Benefit Example

Without Splitting With Splitting
You: $80,000 You: $60,000
Spouse: $30,000 Spouse: $50,000
Higher tax Lower total tax

Pension Income Credit

$2,000 Credit

Eligible Income Examples
Company pension Always
RRIF withdrawal (65+) Yes
RRSP withdrawal Only if 65+ and converted
CPP/OAS No

Tax Savings

| Federal | ~$300 | | Provincial | ~$100-200 | | Total | ~$400-500 |

Create Eligible Income

Strategy Action
Convert RRSP to RRIF Even small amount
Withdraw $2,000 Get full credit
Put in TFSA If don’t need it

Health Coverage Changes

What Changes at 65

Province Change
BC Some drug coverage changes
Ontario ODB (Ontario Drug Benefit)
Alberta Seniors coverage

Ontario Drug Benefit

At 65 Coverage
Most prescriptions $100 deductible + $6.11/prescription
Low income $2/prescription

Extended Health

Review Options
Employer retiree benefits Keep if available
Private insurance May need
Blue Cross/Green Shield Options available

Employment Income at 65

If Still Working

Consideration Details
Still contribute to CPP Creates post-retirement benefit
RRSP room Can still contribute
OAS clawback Watch total income

Post-Retirement Benefit (PRB)

If Working While Receiving CPP Get
Additional CPP Earned on contributions
~2.5% per year Added to CPP
Can opt out At 65-70

Investment Changes

Asset Allocation

At 65 Typical
Stocks 50-60%
Bonds 40-50%
Adjust for Your risk tolerance

Withdrawal Strategy

Account Withdrawal Order
Taxable First (tax efficiency)
RRSP/RRIF Second (tax bracket)
TFSA Last (tax-free)

65th Birthday Checklist

Must Do

Task Done?
OAS application (11 months early)
CPP decision made
Pension splitting setup
Age amount claimed
Pension income credit ($2,000 RRIF)
Health coverage reviewed
Prescriptions coverage checked

Should Do

Task Done?
Budget updated
Investment allocation reviewed
Estate plan current
Beneficiaries updated

Financial Projection

Monthly Income at 65

Source Amount
OAS $727
CPP (your amount)
Employer pension (your amount)
RRIF withdrawal (planned)
Other income (if any)
Total $

Compare to Expenses

Test Pass?
Income ≥ expenses Yes needed
Buffer for inflation Recommended
Emergency fund Still have one