FIRE Calculator
Canada 2026
Your FIRE number for Canada, with CPP and OAS counted — not a bare 25× your expenses. Most FIRE calculators divide your spending by 4% and stop; this one bridges CPP (60–70) and OAS (65+) separately, which is what makes the Canadian answer lower.
Read the full answer — method, rates and figures
Quick answer: The FIRE number formula is annual expenses ÷ safe withdrawal rate. Using a 4% rule, $50,000/year of expenses requires a $1.25M portfolio.
But in Canada that overstates it, because CPP and OAS cover part of your spending permanently from a known age: the portfolio only needs a core of (expenses − benefits) ÷ SWR, plus a bridge that funds the benefits themselves for the years before they start. Spending $52,000/year at 4% with average CPP ($10,300) and full OAS ($9,150) from 65, retiring at 50 needs $1,030,003 rather than $1,300,000 — $269,997 less.
Retiring at 60 shortens the bridge to five years and the target falls to $900,338. CPP and OAS are bridged separately because CPP can start at 60-70 while OAS cannot start before 65.
Canadian-specific accounts: TFSA (2026 annual limit $7,000, cumulative room $109,000 for anyone 18+ in 2009; tax-free growth and withdrawal), RRSP (18% of prior-year earned income, 2026 dollar limit $33,810; pre-tax in, taxed out), FHSA (annual $8,000, lifetime $40,000; for first-time home buyers). CPP standard age 65, maximum $1507.65/month (about $18,092/year) for benefits starting January 2026, average for new beneficiaries $858.34/month (July 2026); can be taken from 60 (~36% reduction) or delayed to 70 (~42% increase).
OAS from age 65, up to $762.50/month for ages 65-74 in the October-December 2026 quarter ($838.75 at 75+); the recovery tax claws back 15 cents per dollar of net world income above $93,454, with OAS fully recovered at $152,062 (65-74) or $157,923 (75+) for the July 2026-June 2027 period. RRSP withdrawals are subject to 10-30% withholding and full marginal income tax; TFSA withdrawals are not income and never trigger the OAS clawback.
Government benefits — the Canadian part
CPP and OAS permanently reduce what your own portfolio has to carry — but only from the age each one starts, and they do not start together. Set both to $0 to see the classic FIRE number with no benefits at all.
The average new pension at 65 is $10,300/yr; the maximum is $18,092/yr and needs about 39 years of contributions at the yearly maximum. Early retirement adds zero-contribution years, so a FIRE plan should budget below average.
Starting at 65 pays the standard amount — $10,300/yr.
Full OAS at 65-74 is $9,150/yr and needs 40 years of Canadian residency after 18; below that it is pro-rated. Unlike CPP, OAS cannot start before 65, so it is bridged to 65 no matter when you take CPP.
Lean FIRE (70%)
$910,000
$36,400/yr
FIRE Number
$1,300,000
$52,000/yr
Fat FIRE (150%)
$1,950,000
$78,000/yr
Dedicated FatFIRE Canada tool →
Years to FIRE at 37% savings rate
17
You need $1,300,000 and will reach it in 17 years
Your FIRE number after CPP and OAS
Your portfolio carries all $52,000 of spending until benefits start, then only the shortfall — forever. That is a smaller target than 25× expenses, and the earlier you retire the less it helps.
FIRE number with benefits
$1,040,387
vs $1,300,000 without
Less to save
$259,613
20% smaller target
You reach it at age
49
in 14 years
Retiring at 49 leaves 16 years before CPP and 16 years before OAS, so your portfolio funds those bridge years alone. From then on CPP and OAS contribute $19,450 a year — 37% of your spending — and your portfolio only has to produce the remaining $32,550.
What could move your FIRE date forward?
Save $500 more/month
FIRE at 50
2 yrs sooner
Spend $5,000/yr less
FIRE at 49
3 yrs sooner
Both together
FIRE at 48
4 yrs sooner
These are the generic versions. Richify's what-if scenarios run on your real accounts — RRSP, TFSA, property, with CPP and OAS built in — and update your FIRE date as life changes.
See my FIRE scenarios in Richify →What this means for you
With $52,000 in annual expenses and a 4% withdrawal rate, you need $1,300,000 to be financially independent. Starting from $150,000 and saving $30,000 per year at 7% returns, you will reach FIRE in 17 years. Your savings rate is 37%. Once CPP and OAS are counted, the target drops to $1,040,387 and you reach it at age 49 instead. Consider maximising your TFSA first for tax-free growth, then your RRSP for the tax deduction — TFSA withdrawals are not income, so they never trigger the OAS clawback.
Last reviewed 7 October 2026 by the Richify AI agent team.
Reviewed by Felix, Richify's AI CFO — an AI author, presented as one.
This is the textbook answer. Want to see this calculated against your actual accounts?
Calculate my FIRE date with real assets →Your FIRE number is only as good as your real net worth
This calculator assumes you know what you have. Richify connects your Canadian accounts — chequing, TFSA, RRSP, FHSA, brokerage, crypto and property — into one live net-worth figure, so your years-to-FIRE updates itself instead of drifting away from a number you typed in once.
Track your FIRE progress freeHow it works
This FIRE calculator determines how much you need to achieve financial independence in Canada using the safe withdrawal rate method. Your FIRE number equals your annual expenses divided by your chosen withdrawal rate. At the standard 4% rate, you need 25 times your annual expenses. Each year, your existing portfolio grows by the expected return rate, and your annual savings are added on top.
For example, with $52,000 in annual expenses and a 4% SWR, your FIRE number is $1,300,000. Starting with $150,000 in net worth and saving $30,000 per year at a 7% return, you would reach FIRE in approximately 17 years. Your savings rate of 37% is a key driver: higher savings rates dramatically reduce the time to financial independence because they simultaneously increase contributions and prove you can live on less.
RRSP and TFSA: Your Canadian FIRE Toolkit
Canadian FIRE seekers have two powerful tax-advantaged accounts. The TFSA allows completely tax-free growth and withdrawals, with no impact on government benefits. As of 1 January 2026 the cumulative TFSA contribution room for someone who was 18 or older in 2009 is $109,000, with the annual limit at $7,000. The RRSP provides an upfront tax deduction and tax-deferred growth, but withdrawals are taxed as income; the 2026 RRSP dollar limit is $33,810, or 18% of your prior-year earned income if that is lower. A smart strategy is to use the RRSP during high-earning years, then execute a gradual RRSP meltdown during early retirement when your income is low, converting to TFSA-sheltered investments over time.
CPP and OAS as FIRE Supplements
CPP pays a maximum of $1507.65 per month at age 65 for benefits beginning in January 2026 — about $18,092 per year — while OAS adds up to $762.50 per month in the October-December 2026 quarter, roughly $9,150 per year. Together a couple both receiving the maximums would collect about $54,200 per year, so for a couple spending $80,000 per year government benefits cover close to 68% of expenses after 65. Two honest caveats. Most people do not get the maximum: the average new CPP beneficiary starting at 65 receives $858.34 per month, and early retirement adds zero-contribution years that pull your own figure further below the ceiling. And none of it arrives early — the post-65 relief does nothing for the bridge years, which is where an early retiree's portfolio does its heaviest work. Our CPP calculator shows your amount at any start age between 60 and 70 with the breakeven age.
The CPP/OAS bridge: why your real FIRE number is lower than 25× expenses
Almost every FIRE calculator divides your spending by 4% and stops. That answer is right for someone whose portfolio must carry 100% of their costs forever — and wrong for every Canadian, because CPP and OAS are inflation-indexed income that arrives for life and never runs out. The honest question is not “what is 25× my spending” but “how much do I need given that part of my spending gets covered permanently from a known age?” This calculator answers the second one.
The portfolio splits into two jobs. The core funds the gap that never goes away — your expenses minus your benefits, divided by your withdrawal rate. The bridge funds the benefits themselves for the years before they start, valued as an annuity at your withdrawal rate, because a dollar reserved for the bridge is a dollar that cannot stay invested for perpetual withdrawal. CPP and OAS get separate bridges, since they do not begin together: CPP can start any time from 60 to 70, while OAS cannot begin before 65 at all.
A worked example. You spend $52,000 a year, use a 4% withdrawal rate, and expect the average CPP of $10,300 plus full OAS of $9,150 — $19,450 a year — both starting at 65. Retiring at 50, the core is ($52,000 − $19,450) ÷ 4% = $813,750, and the 15-year bridge is $19,450 × 11.12 = $216,253, for a total of $1,030,003 instead of the classic $1,300,000. That is $269,997 less, or roughly 9 years earlier at a $30,000 annual savings rate. Retire at 60 instead and the bridge shrinks to five years, so the target falls to $900,338. The model behaves correctly at both extremes: retire exactly at the benefit ages and only the core is left, while retiring absurdly early converges back to the full 25× figure — which is the mathematically correct statement that benefits you must self-fund for fifty years are worth almost nothing today.
Two cautions before you spend the difference. CPP's adjustment for start age is legislated and permanent — 0.6% off for each month before 65 (36% at 60) and 0.7% on for each month after (42% at 70) — so taking it early to shorten the bridge costs you every year afterwards. And the default here is the average new pension, not the maximum: the maximum requires roughly 39 years of contributions at the yearly maximum pensionable earnings, and every year of early retirement is a zero-contribution year that pulls your own figure down. A FIRE plan that assumes maximum CPP is not a plan.
LIRA Restrictions
If you have a Locked-In Retirement Account (LIRA) from a former employer pension, be aware that these funds cannot be withdrawn freely. LIRAs must be converted to a Life Income Fund (LIF) or annuity, typically starting at age 55 (varies by province). Annual withdrawal maximums apply, which limits how much you can access each year. FIRE planners with significant LIRA balances should factor these restrictions into their bridge strategy between early retirement and the age when LIRA funds become accessible.
Lean, Barista, Coast and Fat FIRE in Canada
FIRE is not one number but a family of them, and the variant you pick changes the target far more than any assumption about returns. Lean FIRE covers a deliberately small budget — roughly $30,000 to $40,000 a year, realistic in Winnipeg, Halifax or a smaller centre — which is a portfolio of about $750,000 to $1,000,000 at a 4% withdrawal rate. Regular FIRE at $50,000 to $70,000 a year is where most Canadian planners land, needing $1.25M to $1.75M. Fat FIRE at $100,000 or more, which is what a paid-off Toronto or Vancouver household with travel actually costs, needs $2.5M and up. Barista FIRE subtracts part-time earnings from your expenses before applying the multiple, so $52,000 of spending against $20,000 of part-time income needs only $800,000. Coast FIRE is different in kind: you stop contributing entirely and let compounding carry an already-sufficient balance to your FIRE number by a chosen retirement age, so the question is not how much you need now but whether what you already have will get there on its own.
Set the Annual Expenses slider above to the budget for the variant you are testing — your full spending for Lean, Regular or Fat FIRE, or your spending minus expected part-time income for Barista FIRE — and the calculator returns that variant's number and the years to reach it. For the two variants with their own maths we have dedicated Canadian tools: the Coast FIRE calculator and the FatFIRE calculator. To sanity-check where you are starting from, compare your balance against the average and median net worth by age in Canada.
The Impact of Savings Rate
Your savings rate is the single most important variable in your FIRE journey. Starting from zero, spending everything you do not save and retiring at a 4% withdrawal rate, a 10% savings rate takes about 42 years of work at a 7% return. At 25%, that drops to about 28 years. At 50%, it is about 15 years. At 75%, about 7 years. (At a more cautious 5% inflation-adjusted return: about 52, 32, 17 and 8 years.) This calculator shows how increasing your savings rate, whether by earning more or spending less, can shave years or even decades off your working career. The Canadian advantage is that TFSA and RRSP contributions effectively boost your savings rate through tax benefits.
Canadian figures last verified 12 September 2026. Primary sources: Service Canada / Employment and Social Development Canada for the CPP maximum ($1507.65/month) for benefits starting January 2026 and the average for new beneficiaries at 65 ($858.34/month, July 2026), the legislated CPP start-age adjustment (0.6% per month before 65, 0.7% per month after), and the quarterly OAS payment amounts, which this page imports from Richify’s single OAS source of truth rather than restating; canada.ca for the OAS recovery tax thresholds ($93,454 minimum, $152,062 and $157,923 maximum for the July 2026 to June 2027 recovery period); the Canada Revenue Agency for the 2026 TFSA dollar limit ($7,000, cumulative room $109,000) and RRSP dollar limit ($33,810); and the Bank of Canada for the 2.25% policy rate, held again at the 2 September 2026 decision, with the next announcement on 28 October 2026. Benefit amounts are re-indexed quarterly and contribution limits annually, so treat every figure as dated. The bridge model values pre-benefit years as an annuity discounted at your safe withdrawal rate; it is a planning estimate, not a guarantee. This tool is general information, not financial or tax advice.
The FIRE number formula
FIRE number = annual spending ÷ safe withdrawal rate
At the widely cited 4% rate that is simply 25× your annual spending. Spend $60,000 a year and the arithmetic gives $1,500,000. Note it keys off SPENDING, not income — two people earning the same salary can have FIRE numbers hundreds of thousands of dollars apart.
| Annual spending | FIRE number (25×) |
|---|---|
| $40,000 | $1,000,000 |
| $50,000 | $1,250,000 |
| $60,000 | $1,500,000 |
| $80,000 | $2,000,000 |
| $100,000 | $2,500,000 |
These are the unadjusted figures. For a Canadian they are an overstatement, because CPP and OAS arrive later and permanently reduce what the portfolio has to cover — which is why the calculator above nets them off rather than quoting 25× and stopping. The 4% rate itself is contested for early retirement: a 25-year study window is not a 45-year one, and a longer horizon argues for something nearer 3.25–3.75%.
FIRE number in Canada after CPP and OAS, by retirement age
The same spending levels with CPP and OAS counted, from this calculator's own formula: one person, the average new CPP pension ($10,300 a year) started at 65, the full OAS pension ($9,150 a year, October-December 2026) from 65, and a 4% withdrawal rate. The earlier you retire, the longer your portfolio carries the years before the benefits start, so the number rises toward the classic 25× figure.
| Spending | Retire 45 | Retire 50 | Retire 55 | Retire 60 | 25× |
|---|---|---|---|---|---|
| $40K | $0.78M | $0.73M | $0.67M | $0.60M | $1.00M |
| $60K | $1.28M | $1.23M | $1.17M | $1.10M | $1.50M |
| $80K | $1.78M | $1.73M | $1.67M | $1.60M | $2.00M |
| $100K | $2.28M | $2.23M | $2.17M | $2.10M | $2.50M |
A couple with two CPP and two OAS pensions needs less. Change the CPP start age and amounts in the calculator above for your own number.
Why the Canadian FIRE number is really two numbers
The single figure hides the problem that actually decides whether an early retirement works here: which account the money sits in, and when you can reach it.
- The bridge. Retire at 50 and you fund roughly 15 years before CPP and OAS begin. That stretch has to come from a TFSA and non-registered savings, or from RRSP withdrawals taken as fully taxable income in years you may prefer to keep low.
- The sequencing. A TFSA withdrawal is tax-free and does not count toward the OAS recovery tax, while an RRSP or RRIF withdrawal is fully taxable and does. Two portfolios of identical size can produce materially different after-tax incomes purely on where the money is held.
- The later problem. RRSP balances do not stay optional — they convert to a RRIF with minimum mandatory withdrawals, which can push income up exactly when OAS is being clawed back. Front-loading RRSP drawdowns during the bridge years is the usual answer — the RRIF minimum withdrawal calculator shows the schedule you would be front-loading against.
This is the part generic FIRE calculators skip: they solve for a portfolio total and ignore that a Canadian's after-tax income depends on the account mix as much as the balance.
How to use this calculator
- Enter your annual expenses. This is how much you spend per year on all living costs including housing, food, transport, healthcare, and discretionary spending. The average Canadian household spends approximately $52,000 to $65,000 per year.
- Set your current net worth (savings plus investments minus debts) and annual savings amount. Your annual savings is the amount you invest each year toward financial independence, including TFSA, RRSP, and non-registered contributions.
- Adjust the expected annual return rate. A diversified portfolio of Canadian and global index ETFs has historically returned 7% to 8% annually before inflation. A conservative estimate of 6% to 7% accounts for fees and lower future returns.
- Set your safe withdrawal rate (SWR). The standard 4% rule means withdrawing 4% of your portfolio in the first year, then adjusting for inflation. Canadian planners sometimes use 3.5% to 4% for added safety, especially before CPP and OAS begin at 65.
- Review your FIRE number, years to FIRE, and the Lean/Regular/Fat FIRE thresholds. Expand the year-by-year projection to see how your net worth grows over time toward your FIRE target.
❓ Frequently Asked Questions
What is FIRE and how does it work in Canada?
FIRE (Financial Independence, Retire Early) means building enough investments to cover your living expenses indefinitely through passive income and withdrawals. In Canada, FIRE planning involves leveraging tax-advantaged accounts like the TFSA and RRSP, factoring in CPP and OAS benefits starting at age 65, and understanding Canadian tax brackets for withdrawal strategies.
The standard approach uses the 4% safe withdrawal rate, meaning you need 25 times your annual expenses saved to reach financial independence.
How much do I need to FIRE in Canada?
Using the 4% rule, you need 25 times your annual expenses. If you spend $52,000 per year, your FIRE number is $1,300,000.
Government benefits reduce what your own portfolio has to carry from 65 onward: the maximum CPP retirement pension at 65 is $1507.65 per month (about $18,092 per year) for benefits starting in January 2026, and OAS pays up to $762.50 per month (about $9,150 per year) for ages 65 to 74 in the October-December 2026 quarter. One person receiving both maximums collects about $27,242 per year, worth about $681,050 of portfolio at a 4% withdrawal rate; a couple collects roughly $54,200, worth about $1.36 million.
The catch for early retirees is timing — CPP cannot start before 60 and OAS not before 65, so you still need a full bridge portfolio for every year before then.
How do the TFSA and RRSP help with FIRE in Canada?
The TFSA allows tax-free growth and withdrawals with no impact on government benefits like OAS or GIS, making it the ideal FIRE vehicle for early retirees. The RRSP provides a tax deduction on contributions and tax-deferred growth, but withdrawals are taxed as income and can claw back OAS.
A common FIRE strategy is to maximize TFSA contributions for the early retirement phase (before 65) and use RRSP meltdown strategies to draw down the RRSP at low tax rates before CPP and OAS begin.
Can I access my RRSP before age 65 without penalty?
Yes, you can withdraw from your RRSP at any age. There is no penalty for early withdrawal, but the withdrawal is added to your taxable income for the year and is subject to withholding tax (10% on amounts up to $5,000, 20% on $5,001 to $15,000, and 30% on amounts over $15,000).
Early retirees often use an RRSP meltdown strategy, withdrawing small amounts each year in low-income years to minimize tax. You cannot withdraw from a LIRA until age 55 in most provinces.
What is the safe withdrawal rate for Canadian FIRE?
The 4% rule, developed from US market data, is commonly used in Canada as well. Some Canadian financial planners suggest 3.5% to 4% to account for differences in the Canadian market and higher fees on Canadian investment products.
However, CPP and OAS act as a partial inflation-indexed annuity starting at 65 or 67, which provides a safety net that can justify a slightly higher withdrawal rate in the years before government benefits begin.
How does CPP affect my FIRE plan?
The Canada Pension Plan provides a retirement income starting as early as age 60 (with a 36% reduction) or as late as 70 (with a 42% increase). The maximum CPP retirement pension at 65 is $1,507.65 per month — about $18,092 per year — for benefits beginning in January 2026.
Plan on less than that: the average new beneficiary starting at 65 receives $858.34 per month (about $10,300 per year; Canada.ca, new beneficiaries, July 2026), because the maximum requires roughly 39 years of contributions at or above the year's maximum pensionable earnings. Early retirement makes this worse in a way most FIRE calculators ignore — every year you spend out of the workforce is a zero-contribution year, and CPP's dropout provisions only exclude your eight lowest-earning years.
Model CPP as a reduction in required portfolio withdrawals from your chosen start age, not from the day you stop working.
Do CPP and OAS reduce my FIRE number?
Yes, and by more than most Canadians expect — this calculator computes it rather than just mentioning it. Your portfolio splits into a core that funds your expenses minus your benefits forever, plus a bridge that funds the benefits themselves for the years before they start.
Spending $52,000 a year at a 4% withdrawal rate with the average CPP of $10,300 and full OAS of $9,150 from 65, retiring at 50 needs ($52,000 − $19,450) ÷ 4% = $813,750 of core plus a 15-year bridge of $216,253, so $1,030,003 rather than the classic $1,300,000. Retire at 60 and the bridge is only five years, dropping the target to $900,338.
The earlier you retire the less the benefits help, because you have to self-fund more years before they arrive — which is why the number converges back to 25× expenses for a very early retirement.
When should I start CPP if I retire early?
Starting CPP early shortens the bridge your portfolio has to fund, but the cut is permanent: CPP is reduced 0.6% for every month you start before 65, a 36% reduction at 60, and increased 0.7% for every month after 65, a 42% increase at 70. The maximum at 65 is $1,507.65 per month for benefits starting January 2026, so $964.90 at 60 or $2,140.86 at 70.
The breakeven is usually in the early 80s, which means taking CPP at 60 wins if you die before then and loses if you live past it. For an early retiree the trade-off is different from the usual advice: taking CPP early reduces the portfolio you need to accumulate before you can stop working, so it can be worth accepting a smaller lifetime pension in exchange for retiring sooner.
Set the start age in the calculator and watch the FIRE number move.
Can OAS start before 65?
No. Old Age Security cannot begin before age 65 under any circumstances, unlike CPP which can start at 60. You can defer OAS to as late as 70 for a 0.6% increase per month deferred, up to 36% more at 70.
This matters for FIRE planning because it means the OAS portion of your bridge is fixed: however early you take CPP, your portfolio must still cover the full OAS amount every year until you turn 65. OAS also requires 40 years of Canadian residency after age 18 for the full amount and is pro-rated below that, so anyone who has lived outside Canada for long stretches should reduce the OAS input accordingly.
What is Lean FIRE vs Fat FIRE in a Canadian context?
Lean FIRE in Canada typically means living on $30,000 to $40,000 per year, covering basic necessities in a lower-cost city like Winnipeg, Halifax, or a rural area. This requires a portfolio of $750,000 to $1,000,000.
Fat FIRE means $100,000 or more per year, allowing for a home in Toronto or Vancouver, regular travel, and premium healthcare. This requires $2,500,000 or more.
Most Canadian FIRE aspirants target Regular FIRE at $50,000 to $70,000 per year.
What is Barista FIRE and how does it work in Canada?
Barista FIRE means building a portfolio large enough to cover most of your expenses, then working part-time to cover the rest instead of quitting outright. If you spend $52,000 a year and part-time work brings in $20,000, your portfolio only has to produce $32,000 — a FIRE number of $800,000 at a 4% withdrawal rate rather than $1,300,000.
In Canada the arithmetic is friendlier than in the United States, because health coverage is not tied to your employer, so the part-time job is bought purely for income rather than for benefits. Two Canadian side-effects are worth modelling: continued employment income keeps you contributing to CPP, which protects the pension that early retirement otherwise erodes, and keeping your taxable income low lets you draw down an RRSP at a low marginal rate in the same years.
Set this calculator's annual expenses to your expenses minus your expected part-time income to see your Barista FIRE number.
How do I bridge the years between early retirement and CPP or OAS?
This gap is the part of Canadian FIRE that generic calculators get wrong. If you retire at 45 and start CPP at 65, your portfolio carries 100% of your spending for 20 years, then a reduced share afterwards.
A practical Canadian sequence is: hold enough in a non-registered account and TFSA to cover the first few years without triggering tax; run an RRSP meltdown through the low-income bridge years, withdrawing enough each year to fill up the bottom federal and provincial brackets while your employment income is zero; and shift what you do not spend into the TFSA, whose withdrawals never count toward the OAS recovery tax later. Deciding when to start CPP is part of the same plan — taking it at 60 costs 36% permanently, delaying to 70 adds 42%, and the breakeven is usually in the early 80s.
Should I pay off my mortgage before pursuing FIRE?
This is one of the most debated topics in Canadian FIRE planning. With the Bank of Canada's policy rate held at 2.25% through September 2026, the best advertised 5-year fixed mortgage rates sit near 4% while the average conventional 5-year fixed rate is closer to 5%; paying off your mortgage guarantees a risk-free return equal to whatever rate you actually carry.
However, if your investments return 7% or more over the long term, investing the money instead may build wealth faster. Many Canadian FIRE planners take a balanced approach: maximize TFSA and RRSP contributions first, then make extra mortgage payments.
A paid-off home also dramatically reduces your annual expenses, lowering your FIRE number.
How does the OAS clawback affect FIRE retirees?
Old Age Security is available at 65 and pays up to $762.50 per month for ages 65 to 74 in the October-December 2026 quarter (about $9,150 per year), rising to $838.75 per month at 75 (about $10,065 per year); the amounts are re-indexed to inflation every quarter. The OAS recovery tax claws back 15 cents of OAS for every dollar of net world income above $93,454, and for the July 2026 to June 2027 recovery period OAS is fully recovered at $152,062 (ages 65 to 74) or $157,923 (75 and over).
Two details matter for FIRE retirees. First, the clawback runs a year behind — the recovery applied to your July 2026 to June 2027 payments is assessed on your 2025 net income, so a single large RRSP withdrawal reaches forward into the following year's OAS.
Second, TFSA withdrawals do not count as income at all, which is precisely why the RRSP meltdown-then-TFSA sequence is the standard Canadian order of operations for early retirees.
What are the best investments for FIRE in Canada?
Canadian FIRE investors typically use low-cost index ETFs through a combination of TFSA, RRSP, and non-registered accounts. Popular choices include broad-market all-in-one ETFs like XEQT or VEQT for growth phase, and XBAL or VBAL for a balanced approach closer to retirement.
Canadian dividend ETFs and GICs can provide income stability. Many FIRE planners follow a simple portfolio of Canadian, US, and international equity ETFs with a small bond allocation, keeping management expense ratios below 0.25%.
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Further Reading
Your FIRE number is only as good as your real net worth
This calculator assumes you know what you have. Richify connects your Canadian accounts — chequing, TFSA, RRSP, FHSA, brokerage, crypto and property — into one live net-worth figure, so your years-to-FIRE updates itself instead of drifting away from a number you typed in once.
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