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How to Retire at 65 in Canada: CPP, OAS, RRIF and Income

Updated

At 65, the main public benefits are available: CPP (which can start earlier or later), OAS, and the age amount and pension credit on your tax return. The decisions at 65 are mostly about how to combine income sources, when to start each benefit, and how to keep taxes down over what may be a 25-year or longer retirement. This page covers each piece. It is part of the retirement planning hub; other timelines are in retiring at 60 and retiring at 55.

Government income at 65

CPP

Starting CPP atMaximum a monthMaximum a year
65$1,507.65$18,092
67$1,760.94$21,131
70$2,140.86$25,690

Maximums for a pension starting in January 2026; each month of delay after 65 adds 0.7%. Most people receive less than the maximum: the average new CPP retirement pension was $858.34 a month in July 2026. Your own estimate is in My Service Canada Account.

OAS

Starting OAS atMaximum a month (October to December 2026)
65$762.50
67$872.30
70$1,037.00

OAS can start at 65 or be deferred up to 70. OAS rises 0.6% for each month deferred, up to 36% at 70, and a further 10% from 75. The full pension needs 40 years in Canada after 18 (who can get OAS).

The GIS for low incomes

If your income apart from OAS was below $23,112 in 2025 (single, for payments in October to December 2026), you may also get the tax-free Guaranteed Income Supplement, up to $1,138.90 a month; it falls as income rises.

Start CPP and OAS at 65, or later?

At the maximum CPP, starting at 70 instead of 65 pays more in total from about age 82. By 85 the later start is ahead by about $23,519, and by 90 about $61,511 (today’s dollars, before tax).

Deferring tends to suit people in good health with other savings to live on meanwhile, and it reduces the risk of outliving savings because the larger pension is indexed and paid for life. Starting at 65 suits people who need the income, have health concerns, or want the certainty. The GIS can’t be paid while OAS is deferred and doesn’t increase with the delay, so someone who would qualify for the GIS gains nothing by deferring OAS. CPP at 60 vs 65 vs 70 and OAS deferral cover each choice in detail.

How much you need to save

Your savings need to cover the gap between your spending and your guaranteed income:

With the average CPP ($10,300 a year) and maximum OAS ($9,150), guaranteed income is $19,450 a year. At a 4% withdrawal rate:

Spending targetFrom savingsSavings needed
$45,000$25,550$638,750
$55,000$35,550$888,750
$65,000$45,550$1,138,750

A defined benefit pension reduces the savings needed further: at a 4% withdrawal rate, each $1,000 a year of pension stands in for about $25,000 of savings. How much you need to retire explains the method.

RRSPs and RRIFs

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). Converting earlier spreads withdrawals over more years, which can keep taxable income lower later on; waiting leaves a larger balance and larger required minimums from 72.

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. Some of the factors:

Age on January 1Minimum withdrawal
654.00%
694.76%
715.28%
755.82%
806.82%
858.51%
9011.92%

Source: CRA’s prescribed factors (ages under 71: 1 ÷ (90 − age)). RRIF minimum withdrawals has every age.

Up to $2,000 of eligible pension income qualifies for the federal pension income amount; RRIF and annuity payments count from age 65 (or earlier if received because a spouse died), lifetime pension (life annuity) payments from a registered pension plan at any age, and CPP, OAS and GIS payments never count. The amount earns a federal credit of 14%, worth up to $280, with provincial credits on top.

Tax at 65

  • Pension income splitting. 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. The saving depends on the gap between the spouses’ incomes (pension income splitting).
  • The age amount. From the year you turn 65, you can claim the federal age amount: $9,208 for 2026, reduced by 15% of net income above $46,432. It is gone at about $107,819.
  • The OAS recovery tax. If your net world income is above the threshold ($93,454 of 2025 income), you repay 15% of the amount above it as recovery tax, taken from the OAS payments for the July 2026 to June 2027 period; the pension is fully recovered at about $152,062 (under 75) or $157,923 (75 and over). TFSA withdrawals don’t count as income for it, and pension splitting and the timing of capital gains can keep income lower.

Health and dental

Provincial drug plans have their own rules for seniors, often starting at 65; coverage and deductibles vary by province. The federal Canadian Dental Care Plan, which began taking applications from seniors in December 2023, covers eligible people without access to dental insurance, with income-based co-payments.

Checklist at 65

ItemNotes
CPPChoose a start date: 65, or later up to 70
OASCheck whether you were enrolled automatically; otherwise apply
GISIf your income is low; the OAS application can include it
RRSP to RRIFRequired by the end of the year you turn 71; earlier is possible
Pension income splittingElected jointly each year on your tax returns
Age amountClaimed on your tax return from 65
OAS recovery taxCompare your projected income with the threshold
InvestmentsReview the mix for drawing income
Will, powers of attorney, beneficiariesAvoiding probate on registered accounts

Sources

The figures and rules on this page come from these sources, last checked against them between August 29, 2026 and September 30, 2026. How we check facts.