What it will pay you.
Project the balance to your retirement date, convert it into a sustainable income, then add CPP and OAS to see the whole picture.
CPP and OAS amounts from Service Canada, 2026 quarterly tables; clawback threshold from the Canada Revenue Agency.
| Current savings | $0 |
| Future contributions | $0 |
| Investment growth | $0 |
| Balance at retirement | $0 |
| Annual income from savings | $0 |
| CPP and OAS | $0 |
| Total retirement income | $0 |
The three pillars
CPP replaces about 25% of your average lifetime earnings, rising toward 33% as the enhanced plan matures. Taking it at 60 permanently reduces it by 36%; deferring to 70 permanently increases it by 42%.
OAS is residency-based rather than contribution-based: roughly $735 a month at 65 with 40 years of Canadian residency after age 18, rising 10% at 75.
Your own savings — RRSP, TFSA, workplace pension, non-registered — cover the rest. That gap is what this sizes.
Government benefits at 65, 2026
| Benefit | Average monthly | Maximum monthly |
|---|---|---|
| CPP retirement pension | about $845 | about $1,450 |
| Old Age Security | about $735 | about $735 |
| Guaranteed Income Supplement | income-tested | about $1,095 single |
Very few people receive the CPP maximum — it requires roughly 39 years of contributions at the ceiling. Plan around the average unless you have checked your own statement of contributions in My Service Canada Account.
How much income a nest egg produces
This calculator solves for a level payment that drains the balance exactly over the years you specify, at your retirement rate of return. That is more realistic than the well-known 4% rule, which assumes the capital outlives you. At 3.5% over 30 years, a $700,000 balance supports roughly $37,000 a year before tax.
Watch the OAS clawback
OAS is reduced by 15 cents for every dollar of net income above roughly $93,500, and disappears entirely around $151,000. Large RRIF withdrawals push you into that range; TFSA withdrawals do not count as income at all.
Order of withdrawals matters
- Drawing down RRSP or RRIF income before 65 can let you defer CPP and OAS, increasing both permanently.
- TFSA withdrawals never trigger the clawback or reduce the GIS — useful for smoothing a high-spending year.
- Spouses can split up to 50% of eligible pension income, often saving thousands a year in tax.
- Your RRSP must become a RRIF or annuity by the end of the year you turn 71, and RRIFs carry a minimum annual withdrawal that rises with age.