Individual Planning

Retirement Planning in Canada

Understand your retirement savings options, income strategies, and how to connect with a licensed advisor to build a plan that fits your timeline and goals.

What Is Retirement Planning?

Retirement planning is the process of setting income goals for your retirement years and identifying the strategies needed to achieve them. It involves determining when you want to retire, how much income you will need, and where that income will come from.

For Canadians, retirement income typically comes from a combination of government programs, employer pensions, registered savings accounts, and personal investments. A licensed financial advisor can help you understand how these sources work together for your specific situation.

Key Retirement Savings Vehicles in Canada

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RRSP (Registered Retirement Savings Plan)

A tax-deferred savings account where contributions reduce your taxable income. Funds grow tax-sheltered until withdrawal.

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TFSA (Tax-Free Savings Account)

Contributions are made with after-tax dollars, but all growth and withdrawals are completely tax-free.

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CPP & OAS

Canada Pension Plan (CPP) and Old Age Security (OAS) are government benefit programs available to eligible Canadians at retirement age.

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RRIF (Registered Retirement Income Fund)

When you retire, your RRSP converts to a RRIF. You draw a minimum income each year. Proper timing of this conversion matters.

Important Retirement Planning Considerations

How much income will you need in retirement?
At what age do you want to retire?
How will inflation affect your purchasing power over time?
Do you have an employer pension plan?
What is your current RRSP and TFSA contribution room?
What is your CPP entitlement based on your contribution history?
How will you minimize tax in retirement?
Do you have a surviving spouse or dependents to plan for?

Retirement Income Strategies

A licensed advisor can help you build a retirement income strategy that considers RRIF withdrawals, CPP/OAS timing, TFSA drawdowns, pension income splitting, and non-registered investments. The right sequence of withdrawals can significantly reduce your lifetime tax burden.

Frequently Asked Questions About Retirement Planning

The earlier you start, the more you benefit from compound growth. However, it is never too late to begin. A licensed advisor can help you determine the right savings approach based on your current age, income, and retirement goals.

The answer depends on your current income level, expected retirement income, and tax situation. Generally, RRSP contributions are more beneficial for higher earners, while TFSA is often better for lower-income individuals or those expecting higher income in retirement. A licensed advisor can help you determine the right balance.

You can start CPP as early as age 60 or delay until age 70. Delaying CPP increases your monthly benefit. OAS typically starts at 65 but can be delayed to 70. The optimal timing depends on your health, other income sources, and financial goals.

A commonly cited rule of thumb is 70–80% of pre-retirement income, but the real answer depends on your lifestyle, planned retirement age, health, location, and other income sources. A personalized retirement projection with a licensed advisor gives you a far more accurate picture.