Retirement Planning
Are You on Track? Canada 2026

Using the 4% rule, you need 25× your desired annual spending. At $60,000/year that is $1.5M; at $80,000/year, $2.0M. CPP can pay up to ~$17,000/year at age 65 (2025 max) and OAS adds approximately $8,700/year — together they replace roughly 40% of pre-retirement income for an average earner, which lowers what your personal portfolio has to fund. The exact number depends on your retirement age, expected return, healthcare costs (mostly covered by provincial plans), and whether you carry a mortgage into retirement.

A common benchmark is to have 1× your salary saved by 30, 3× by 40, 6× by 50, 8× by 60, and 10× by 67. So if you earn $80,000 at age 40, having roughly $240,000 in RRSP + TFSA + non-registered savings keeps you on track. The calculator above projects your specific balance forward using your contributions and expected return — use the result alongside the milestone benchmarks for a fuller picture.

Standard CPP age is 65. Claiming at 60 reduces your benefit by 36% permanently (0.6% per month early). Delaying to 70 increases it by 42% (0.7% per month late). The break-even age for delaying from 60 to 70 is roughly 80–82 for most people — past that, delaying wins. The optimal age depends on life expectancy, OAS clawback exposure, and whether you can fund living expenses from your portfolio in the bridge years.

OAS starts at 65 (you can defer to 70 for a 36% boost). The OAS recovery tax (clawback) takes back 15¢ per $1 of net income above ~$93,500 (2025 threshold, indexed) and is fully phased out around $151,668 (65–74) or $157,490 (75+). RRSP/RRIF withdrawals count toward net income; TFSA withdrawals do not. Pension income splitting via Form T1032 (up to 50% of eligible pension income to a spouse) is the single most-effective clawback mitigation.

You must convert your RRSP to a RRIF (or annuity) by December 31 of the year you turn 71. Minimum withdrawals start the year you turn 72 based on the CRA Income Tax Regulations s.7308 percentage table — 5.28% at 72, 5.40% at 73, 5.53% at 74, 5.82% at 75, climbing to 20% at 95+. Withholding tax on RRIF amounts above the minimum is 10% on amounts up to $5,000, 20% on $5,001–$15,000, and 30% above $15,000 (federal, with Quebec a separate split).

Use TFSA for funds you may need before retirement, for the bridge years 55–64, and for any income you want kept out of the OAS clawback calculation. Use RRSP for higher-tax-bracket years when the deduction is worth more than the eventual withdrawal tax. The classic rule: contribute to RRSP if your marginal bracket today is higher than your expected retirement bracket; use TFSA if it is lower or uncertain. Most Canadians benefit from contributing to both.

The 4% rule from the Bengen and Trinity studies says you can withdraw 4% of your portfolio in year one of retirement, adjust for inflation each year, and have high probability of the money lasting 30 years. The original studies used US data; Canadian planners sometimes use 3.5–4.2% given current valuations, bond yields, and the absence of the same US Social Security inflation hedge — though CPP + OAS together provide a similar inflation-indexed floor.

A LIRA (Locked-In Retirement Account) holds the locked-in portion of a former-employer pension. Most provinces unlock at age 55, converting to a Life Income Fund (LIF) or annuity. Some provinces allow a one-time 50% unlock-and-transfer to a regular RRIF (Alberta 50% at 50, BC/Manitoba/Quebec 50% unlock at 55+). Federal LIRAs (PSPP and similar) follow federal rules. Annual withdrawal minimums and maximums apply once the LIRA becomes a LIF.

It depends on complexity. A simple plan (RRSP + TFSA + paid-off house + CPP/OAS at 65) can be self-managed using tools like this one. Advisors add the most value when you have significant non-registered assets, an unlocked LIRA, business ownership, equity compensation, or are within 5 years of retirement and making one-way decisions (RRSP-to-RRIF mechanics, Roth-conversion-equivalent CPP-deferral strategies, CPP claiming order in couples). Fee-only advisors (CFP, R.F.P.) usually charge 0.5–1% of assets per year.

No. Richify is a personal-finance education, tracking, and projection tool. It does not provide financial, investment, or tax advice and is not a registered investment adviser in Canada. The readiness calculator produces an illustrative projection based on the figures you enter and simplified assumptions — not a forecast or guarantee. Verify your circumstances with a licensed CFP, R.F.P., or fee-only fiduciary advisor before acting on any projection.