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Retirement Planning in Canada: How Much You Need and How the Pieces Fit

Updated

Retirement planning brings together government benefits, any workplace pension and your own savings into one picture: how much income you will have, and for how long. This hub covers the pieces and links to a guide for each.

Where retirement income comes from

SourceWhat it is
Government benefitsThe Canada Pension Plan (based on your working contributions), Old Age Security (based on years lived in Canada) and, for low incomes, the Guaranteed Income Supplement
Workplace pensionsDefined benefit or defined contribution plans, where an employer offers one (pensions)
Your own savingsRRSP/RRIF, TFSA and non-registered investments
Other incomePart-time work, rental or business income

What the government benefits pay

BenefitMonthly amount
CPP retirement pension, maximum at 65 (starting in January 2026)$1,507.65
CPP retirement pension, average for a new pension (July 2026)$858.34
OAS pension, maximum at 65 to 74 (October to December 2026)$762.50
GIS, maximum for a single pensioner (October to December 2026)$1,138.90

The CPP pension can start from 60 to 70 (CPP at 60 vs 65 vs 70); OAS starts at 65 and can be deferred to 70 (OAS deferral), and is reduced at higher incomes by the recovery tax. The retirement income floor adds up what the public programs pay together, and CPP vs OAS compares the two.

How much you need, and whether you are on track

Key rules for registered accounts

  • An RRSP must mature by December 31 of the year you turn 71: by then you convert it to a RRIF, buy an annuity, or withdraw it as taxable income (or combine these). 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. (RRIF minimum withdrawals)
  • You can allocate up to 50% of your eligible pension income to your spouse or common-law partner with a joint election on Form T1032 filed with both returns, if you were both Canadian residents on December 31 and were not living apart because of a relationship breakdown for 90 days or more including December 31; RRIF (including LIF) and RRSP annuity payments count only if you are 65 or older at the end of the year (or received them because your spouse died), and OAS and CPP/QPP never count. (pension income splitting)
  • TFSA withdrawals aren’t taxable: Income earned in a TFSA and TFSA withdrawals don't reduce federal benefits such as OAS, GIS and EI, or credits such as the Canada child benefit, the Canada workers benefit and the Canada Groceries and Essentials Benefit (formerly the GST/HST credit). (TFSA withdrawal rules)

Guides for specific situations

More retirement guides

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Sources

The figures and rules on this page come from these sources, last checked against them between September 5, 2026 and September 29, 2026. How we check facts.