Question 1

Should I take CPP at 60, 65 or 70?

Accepted Answer

There is no single right age. Starting CPP at 60 pays 36% less a month for life than at 65; waiting to 70 pays 42% more. In total dollars, 65 overtakes 60 at about age 74, and 70 overtakes 65 at about age 82. Health, other income, a spouse and taxes decide the best age for you.

Question 2

Should I delay OAS until 70?

Accepted Answer

Deferring OAS adds 0.6% for each month you wait after 65, up to 36% more at 70. Waiting usually pays off if you live past about 84, and it can make particular sense if you are still working or have high income between 65 and 70, when much of your OAS would be clawed back anyway.

Question 3

How does the OAS clawback work, and how can I avoid it?

Accepted Answer

The OAS clawback, officially the OAS recovery tax, takes back 15 cents of OAS for every dollar of individual net income above a threshold: $95,323 for 2026 income. For ages 65 to 74, OAS is gone completely at $155,320. Pension splitting, TFSAs, withdrawal timing and deferring OAS can all reduce it.

Question 4

Can I work and collect CPP at the same time?

Accepted Answer

Yes. You can start your CPP retirement pension and keep working; you do not need to stop or reduce your hours. If you are under 65 you must keep paying CPP contributions. From 65 to 70 contributions are optional. Contributions made while receiving CPP earn a Post-Retirement Benefit, an extra lifetime pension.

Question 5

What happens to my RRSP when I turn 71?

Accepted Answer

Your RRSP must be wound up by December 31 of the year you turn 71. You can convert it to a RRIF, buy an annuity, cash it out, or combine these. Most people choose a RRIF, which keeps the money invested and tax-sheltered but requires a minimum taxable withdrawal every year starting the following year.

Question 6

How much do I have to withdraw from my RRIF each year?

Accepted Answer

Your RRIF minimum each year is your RRIF’s value on January 1 multiplied by a factor for your age at the start of the year: 5.28% at 71, 6.82% at 80, 11.92% at 90 and 20% from 95. Under 71 the factor is 1 ÷ (90 − your age). No tax is withheld on the minimum, but it is all taxable.

Question 7

Should I start withdrawing from my RRSP before 71?

Accepted Answer

Often, yes, if your income is low between retirement and 71. Withdrawing RRSP money in those years, often at lower tax rates, can reduce your lifetime tax, shrink the RRIF minimums you are forced to take later, lower the OAS clawback and leave less taxable money in your estate. It can also let you delay CPP and OAS.

Question 8

How does pension income splitting work?

Accepted Answer

Pension income splitting lets you allocate up to 50% of your eligible pension income to your spouse or common-law partner on your tax returns, using Form T1032. Workplace pension income qualifies at any age; RRIF and annuity income qualifies from 65. CPP and OAS cannot be split this way, but CPP can be shared.

Question 9

What happens to an RRSP or RRIF when a spouse dies?

Accepted Answer

If you are the surviving spouse or common-law partner, your partner’s RRSP or RRIF can usually move to you tax-deferred, either by continuing a RRIF as successor annuitant or by transferring the funds to your own RRSP or RRIF. If the estate or someone else is the beneficiary, the full value is generally taxable on the deceased’s final return.

Question 10

What government benefits does a surviving spouse get in Canada?

Accepted Answer

A surviving spouse or common-law partner may receive a CPP survivor’s pension (up to $803.54 a month under 65 and $904.59 at 65 and over, for new benefits in 2026), a one-time $2,500 CPP death benefit paid to the estate or a family member, and, at 60 to 64 with low income, the Allowance for the Survivor. None of these start automatically; you must apply.

Question 11

What happens to CPP and pensions in a divorce?

Accepted Answer

After a divorce or separation, CPP credits earned while you lived together can be divided equally between you, on application to Service Canada. In Ontario you cannot contract out of it; in British Columbia, Alberta, Saskatchewan and Quebec a spousal agreement can prevent the split. Workplace pensions and RRSPs are divided under provincial family law, usually tax-free.

Question 12

How much money do I need to retire in Canada?

Accepted Answer

Canadians told BMO in 2026 that they think they need $1.7 million, but there is no universal number. Start with what you will spend, subtract guaranteed income such as CPP, OAS and pensions, and the gap is what your savings must cover each year. For many couples with CPP and OAS, that is much less than $1.7 million.

Question 13

Are CPP and OAS taxable?

Accepted Answer

Yes. Both are taxable income. No tax is withheld unless you ask Service Canada to withhold it, so many retirees request voluntary withholding or pay quarterly instalments.

Question 14

When should I apply for CPP?

Accepted Answer

You can apply up to 12 months before you want your CPP pension to start, online through My Service Canada Account.

Question 15

Do I have to apply for OAS?

Accepted Answer

Many people are enrolled automatically and receive a letter the month after they turn 64. If you do not get one, you must apply. If you want to defer OAS, tell Service Canada.

Question 16

What is CPP pension sharing?

Accepted Answer

Spouses or common-law partners who are both at least 60, with each one who contributed already receiving CPP, can share their CPP retirement pensions, based on the years they lived together. It can lower the couple’s taxes; it does not change the total paid.

Question 17

What is the pension income amount?

Accepted Answer

A federal tax credit on up to $2,000 of eligible pension income each year, such as workplace pension income at any age, and RRIF or annuity income from 65. Provinces have their own versions.

Question 18

What is the age amount for 2026?

Accepted Answer

A federal tax credit for people 65 and over, worth up to $9,208 in 2026. It is gradually reduced as net income rises.

Question 19

Do TFSA withdrawals affect OAS or GIS?

Accepted Answer

No. TFSA withdrawals are not taxable income, so they do not affect OAS, the OAS clawback or the Guaranteed Income Supplement.

Question 20

What are the 2026 RRSP and TFSA limits?

Accepted Answer

The 2026 RRSP dollar limit is $33,810 (or 18% of last year’s earned income, if lower). The 2026 TFSA limit is $7,000, bringing total room to $109,000 for someone eligible since 2009 who has never contributed.

Question 21

Can I contribute to a spousal RRSP after 71?

Accepted Answer

Yes, if you have RRSP room and your spouse or common-law partner is 71 or younger. You can contribute until the end of the year they turn 71.

Question 22

Should I pay off my mortgage before I retire?

Accepted Answer

Often it helps: lower fixed costs mean smaller withdrawals and less tax. But using RRSP money to pay it off in one year can be costly in tax. Compare your mortgage rate with your after-tax return and keep enough cash for emergencies.

Question 23

What is the Guaranteed Income Supplement?

Accepted Answer

A tax-free monthly benefit for low-income OAS recipients. In October to December 2026 a single person can receive up to $1,138.90 a month if their income, excluding OAS, is below $23,112.

Question 24

Should I buy an annuity in retirement?

Accepted Answer

An annuity turns savings into guaranteed income for life, which protects against outliving your money. It can make sense for part of your savings, especially if you have no workplace pension, but it is usually irreversible.

Question 25

How long will my retirement savings last?

Accepted Answer

It depends on how much you withdraw, your investment returns, inflation and how long you live. Planning to age 95 is a sensible default for a healthy 65-year-old, and longer for couples.

Question 26

Who should I name as beneficiary on my RRSP and TFSA?

Accepted Answer

A spouse or common-law partner is often named as successor annuitant (RRIF) or successor holder (TFSA), which keeps the tax shelter. Outside Quebec you can name beneficiaries directly on the plan, which can also keep it out of probate.

Question 27

What should my family be able to find if something happens to me?

Accepted Answer

Your will and powers of attorney, a list of accounts and insurance, your advisor and lawyer’s contacts, and your wishes. The free Red Folder checklist puts it all in one place.

Question 28

Can I retire at 60 in Canada?

Accepted Answer

Yes, if your savings can cover your spending until CPP and OAS start and for the rest of your life. CPP can start at 60, at a reduced amount; OAS cannot start before 65. Many people bridge the gap with RRSP withdrawals.

Straight answers to the questions Canadians ask about retirement.

CPP and OAS