- Retirement income usually comes from CPP, OAS, RRSP/RRIF and other savings such as a TFSA.
- In the example, $3,884 a month before tax replaces about 52% of a $90,000 salary.
- Plan around age 60, 65, 70, 71 and 75, when the rules change.
Retirement income in BC usually comes from four sources: CPP, OAS, your registered savings and everything else you have built (TFSA, workplace pension, property, work). The task is to choose when to start each one and how to draw them down in a tax-efficient order.
The four pillars
- CPP. Up to $1,507.65 a month at 65 in 2026, higher if you wait, lower if you start early. See the CPP guide.
- OAS. $762.50 a month from 65, subject to the recovery tax above $95,323. See the OAS guide.
- RRSP/RRIF. Taxable withdrawals, with minimums from the year after you open a RRIF. See the RRIF guide.
- TFSA and other savings. Tax-free withdrawals that do not count toward the OAS recovery tax.
Example: retiring at 65 on a $90,000 salary
Suppose a 45-year-old earning $90,000 has $200,000 in an RRSP, retires at 65 after 35 years of work, and earns 5% a year on investments. The calculator estimates:
| Source | Estimate per month |
|---|---|
| CPP | $1,353 |
| OAS | $762.50 |
| RRSP/RRIF at the minimum withdrawal (balance about $530,660) | $1,769 |
| Total before tax | $3,884 |
That is about 52% of the pre-retirement salary. Many planners use 60% to 70% as a starting target, but your own needs may be higher or lower, particularly if the mortgage is paid and work-related costs disappear. The example withdraws only the RRIF minimum, assumes no further contributions and does not include a workplace pension or TFSA.
Key ages and deadlines
| Age | What happens |
|---|---|
| 60 | Earliest CPP, reduced 0.6% per month before 65 |
| 65 | OAS can start; CPP at full rate; RRIF income qualifies for pension credit and income splitting |
| 70 | Latest age to start CPP and OAS (both increased if you wait) |
| 71 | RRSP must be converted by December 31; RRIF minimum withdrawals follow |
| 75 | OAS increases by 10% |
Order of withdrawals
Common approaches: spend taxable accounts first and let the TFSA grow; draw RRSP gradually in lower-income years rather than all at 71; consider delaying CPP and OAS if you have other income to live on; and keep an eye on the OAS recovery threshold of $95,323. The best order depends on your tax bracket, health, spouse and goals, so it is worth a session with a fee-only planner or CPA.
Test your own plan with the retirement income calculator.
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Frequently asked questions
How much income do I need in retirement?
Many planners use 60% to 70% of pre-retirement income as a starting point, then adjust for housing, health and lifestyle.
When should I take CPP?
Between 60 and 70. Starting later increases the pension; starting earlier gives you cash sooner.
Should I use my RRSP or TFSA first?
Often taxable savings first, then RRSP, then TFSA, but your tax rate and OAS recovery tax change the best order.
Do I need a financial planner?
Not necessarily, but a one-time review is worthwhile if you have several account types or a large RRSP.
Sources
- Government of Canada — Canada Pension Plan
- Government of Canada — Old Age Security
- Canada Revenue Agency