Retirement in Ontario means juggling CPP, OAS, RRIF withdrawals and potential Ontario surtax — all at the same time. Here's a practical framework for retirement income planning in 2026.
The 4 Pillars of Ontario Retirement Income
1. CPP
Earnings-based. Average ~/mo, max $1,507/mo at 65. Consider deferring to 70 (+42%).
2. OAS
Residency-based. /mo at 65, /mo at 75+. Clawback above $95,323.
3. RRSP/RRIF
Tax-deferred savings. Mandatory minimum withdrawals from RRIF starting the year after conversion.
4. TFSA
Tax-free withdrawals. Doesn't affect OAS/GIS clawback thresholds. Ideal for top-up income.
Sample Ontario Retirement at 65 — ,000 Gross Income
| Source | Annual | After Tax* |
|---|---|---|
| CPP (defer to 70) | ,159 | ,200 |
| OAS (defer to 70) | ,863 | ,100 |
| RRIF withdrawal (5.4% at 72) | ,400 | ,800 |
| TFSA drawdown (tax-free) | ,578 | ,578 |
| Total | ,000 | ~,678 |
*Estimated after federal + Ontario tax, age credit, pension credit
Key Deadlines and Planning Triggers
- Age 60: Can start CPP (at −36% reduction)
- Age 64: Apply for OAS 11 months before 65 to avoid delays
- Age 65: OAS begins (or defer). Apply for GIS if low income.
- Age 71: Convert RRSP to RRIF by Dec 31
- Age 72: First mandatory RRIF minimum withdrawal
- Age 75: OAS increases 10% automatically
Is there a minimum income needed to retire comfortably in Ontario?
Rules of thumb suggest 70% of pre-retirement income. For a ,000 earner, that's ,000/year. After the federal age credit, pension income credit and Ontario senior benefits, a ,000 retirement income in Ontario results in very modest tax — especially if structured with TFSA drawdowns.
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