Retirement Calculator Canada 2026
Plan your retirement with confidence. Estimate your income from CPP, OAS, RRSP, TFSA, and employer pensions to see if your savings will last.
Your Income Sources at Retirement
How to Plan Your Retirement in Canada
Planning for retirement in Canada involves understanding multiple income sources and how they work together. The Canadian retirement system is built on three pillars: government benefits (CPP and OAS), employer pensions, and personal savings (RRSP and TFSA). This retirement calculator helps you project your retirement income from all sources and determine if you're on track to maintain your lifestyle.
Financial experts recommend targeting 70-80% of your pre-retirement income to maintain your standard of living. This "replacement ratio" accounts for reduced expenses in retirement (no commuting, work clothes, or mortgage payments for many) while ensuring you can enjoy your retirement years comfortably.
The Three Pillars of Canadian Retirement Income
Canada's retirement income system consists of three main components:
| Pillar | Components | 2026 Maximum | Notes |
|---|---|---|---|
| Government Benefits | CPP + OAS | $2,250/month | Indexed to inflation, guaranteed for life |
| Employer Pensions | Defined Benefit (DB) or Defined Contribution (DC) | Varies | Only ~37% of Canadians have workplace pensions |
| Personal Savings | RRSP, TFSA, Non-registered | No limit | You control contributions and investments |
2026 Government Benefit Amounts
Here are the current maximum and average amounts for government retirement benefits:
| Benefit | Maximum Monthly (2026) | Average Monthly | Start Age |
|---|---|---|---|
| CPP Retirement (at 65) | $1,507.65 | $803.76 | 60-70 |
| OAS (ages 65-74) | $742.31 | ~$600 | 65-70 |
| OAS (ages 75+) | $816.54 | ~$660 | 75+ |
| GIS (single, max) | $1,096 | ~$620 | 65+ |
| Combined CPP+OAS Max | $2,249.96 | ~$1,400 | 65 |
RRSP vs TFSA: Which to Prioritize?
Both RRSPs and TFSAs are powerful retirement savings tools, but they work differently:
| Feature | RRSP | TFSA |
|---|---|---|
| Tax on Contributions | Tax-deductible | No deduction |
| Tax on Growth | Tax-deferred | Tax-free |
| Tax on Withdrawals | Fully taxable | Tax-free |
| 2026 Contribution Limit | 18% of income (max $33,810) | $7,000 |
| Impact on OAS/GIS | Withdrawals affect clawback | No impact |
| Best For | High earners, tax deferral | Flexible access, GIS protection |
General guidance: If your marginal tax rate will be lower in retirement than now, prioritize RRSP. If you expect similar or higher tax rates, or want flexibility and GIS protection, prioritize TFSA. Most Canadians benefit from using both.
The 4% Rule and Sustainable Withdrawals
The "4% rule" is a common guideline suggesting you can withdraw 4% of your retirement savings annually (adjusted for inflation) without running out of money over a 30-year retirement. For example, with $500,000 in savings, you could withdraw $20,000 per year ($1,667/month).
However, this rule has limitations in the Canadian context. Consider that CPP and OAS provide inflation-indexed guaranteed income, reducing the amount you need from savings. Many Canadian retirees can safely withdraw 4-5% from personal savings when combined with government benefits.
RRIF Minimum Withdrawals
You must convert your RRSP to an RRIF by December 31 of the year you turn 71 and begin minimum withdrawals. Here are the minimum withdrawal percentages:
| Age at Jan 1 | Min Withdrawal % | Age at Jan 1 | Min Withdrawal % |
|---|---|---|---|
| 71 | 5.28% | 80 | 6.82% |
| 72 | 5.40% | 85 | 8.51% |
| 73 | 5.53% | 90 | 11.92% |
| 75 | 5.82% | 94 | 18.79% |
| 77 | 6.17% | 95+ | 20.00% |
OAS Clawback Considerations
If your net income exceeds $95,323 in 2026, you'll face the OAS recovery tax (clawback). You lose 15 cents of OAS for every dollar above this threshold, with OAS completely eliminated at $154,708 (ages 65-74) or $160,647 (ages 75+). Strategic withdrawal planning from RRSPs and TFSAs can help minimize clawback.
When to Start CPP and OAS
Both CPP and OAS can be started early or delayed:
- CPP: Start as early as 60 (36% reduction) or delay to 70 (42% increase). Break-even age is approximately 74 when comparing 60 vs 65, and 82 when comparing 65 vs 70.
- OAS: Start at 65 or delay to 70 (36% increase). Break-even is approximately age 82.
If you're healthy, have other income, and expect to live past 82, delaying both CPP and OAS can significantly increase your lifetime benefits.