What are the major sources of retirement income in Canada?

• CPP is based on contributions and the age you start; OAS is based on residency and is income-tested.
• Defined benefit pensions provide predictable income; defined contribution plans do not.
• RRIF withdrawals are mandatory from the year after conversion and are fully taxable.
• TFSA withdrawals are not taxable and do not affect income-tested benefits.
• Annuities convert capital into guaranteed lifetime income, at the cost of flexibility.

CPP amounts depend on contribution history and the start age, which can range from 60 to 70. OAS depends on years of Canadian residency after age 18 and is reduced above an annual income threshold. GIS is available to lower-income OAS recipients.

Defined benefit plans pay a formula-based pension. Defined contribution plans and group RRSPs accumulate a balance that must later be converted into income. Deferred profit sharing plans and pooled registered pension plans also appear in some workplaces.

RRSPs convert to RRIFs or annuities by the end of the year you turn 71. TFSAs remain flexible. Non-registered accounts offer capital gains and dividend treatment. Real estate, a business sale and insurance-based income can also contribute.

• Benefit amounts and thresholds are indexed and change; verify current figures with the Government of Canada.
• Pension splitting and credits can materially change the after-tax result.
• The right mix depends on your tax situation, health and goals — this is general information only.

• Canada Pension Plan and Old Age Security — Government of Canada
• Savings and pension plans — RRSP, TFSA, RRIF, RESP — Government of Canada
• Income tax information for individuals — Canada Revenue Agency