Retirement

Retirement drawdown

Which accounts to draw, and when to start CPP and OAS, to pay the least tax and leave the most behind. Showing Delayed CPP/OAS.

Lifetime tax paid$249,275Plus $10,956 at death
Terminal value$2,190,282$2,179,327 to the estate after tax, in 2061
Tax at death$10,956Final return $10,697 + probate $259
Plan success…Simulating market paths…
Compare strategies
Each strategy on the expected-return path, with Monte Carlo success across market paths. Click a row to chart it.
Rank by
StrategyLifetime taxTax at deathTotal taxTerminal valueAfter-tax estateSustainable spendingSuccessEstate p10 · p50 · p90
Conventional
CPP at 65 / 65, OAS at 65 / 65 (You / Spouse)
$230,721$4,224$234,945$2,080,224$2,076,000
-$103,327
$104,100/yr……
TFSA first
CPP at 65 / 65, OAS at 65 / 65 (You / Spouse)
$293,342$105,782$399,124$2,064,379$1,958,597
-$220,730
$104,500/yr……
Proportional
CPP at 65 / 65, OAS at 65 / 65 (You / Spouse)
$199,440$110,878$310,319$2,160,182$2,049,304
-$130,022
$106,100/yr……
RRSP meltdown
CPP at 70 / 70, OAS at 70 / 70 (You / Spouse)
$231,112$259$231,371$2,172,851$2,172,592
-$6,735
$107,200/yr……
Early CPP/OAS
CPP at 60 / 60, OAS at 65 / 65 (You / Spouse)
$199,620$259$199,879$1,856,528$1,856,269
-$323,058
$100,100/yr……
Delayed CPP/OASBest
CPP at 70 / 70, OAS at 70 / 70 (You / Spouse)
$249,275$10,956$260,230$2,190,282$2,179,327$106,700/yr……
Optimized
Searching strategies…
Searching withdrawal order, meltdown and benefit ages for the best after-tax estate.
Income by source
Where each year's cash comes from under Delayed CPP/OAS, on the expected-return path. Tax is drawn below zero; the dashed line is what you need to spend.
One-time and recurring expenses
Big costs on top of regular spending, in today's dollars. For Delayed CPP/OAS, each one shows the cheapest account to pay it from and what the others would cost over the whole plan.
$
yrs
yrs
yrs

Working out the cheapest way to pay for this…

$

Working out the cheapest way to pay for this…

Year by year
Income, tax and end-of-year balances under Delayed CPP/OAS.
YearAgesNeedYouSpouseHouseholdEnd-of-year balances
CPPOASRRIFNon-regTFSASplitTaxableTaxCPPOASRRIFNon-regTFSASplitTaxableTaxTaxSavedRRIFTFSANon-regHome
202762 / 60$90,000$0$0$0$72,000$0—$10,800$0$0$0$0$18,000$0—$900$0$0$0$1,102,500$315,000$168,000$927,000
202863 / 61$90,000$0$0$0$72,000$0—$12,000$0$0$0$0$18,000$0—$1,286$0$0$0$1,133,815$323,947$78,272$935,171
202964 / 62$150,000
incl. $60,000 expenses
$0$0$43,397$61,330$0—$54,592$7,804$0$0$43,397$15,332$0—$44,805$5,651$13,455$0$1,074,886$333,148$0$943,415
203065 / 63$135,000
incl. $45,000 expenses
$0$0$82,407$0$0-$22,655$59,752$7,103$0$0$82,407$0$0+$22,655$105,062$22,711$29,814$0$932,362$342,611$0$951,731
203166 / 64$90,000$0$0$50,874$0$0-$3,467$47,407$3,995$0$0$50,874$0$0+$3,467$54,341$7,753$11,748$0$852,009$352,342$0$960,120
203267 / 65$90,000$0$0$49,535$0$0—$49,535$4,535$0$0$49,535$0$0—$49,535$4,535$9,070$0$772,186$362,350$0$968,584
203368 / 66$90,000$0$0$49,546$0$0—$49,546$4,546$0$0$49,546$0$0—$49,546$4,546$9,092$0$690,073$372,642$0$977,122
203469 / 67$90,000$0$0$49,557$0$0—$49,557$4,557$0$0$49,557$0$0—$49,557$4,557$9,113$0$605,604$383,226$0$985,735
203570 / 68$90,000$18,744$12,496$18,327$0$0—$49,567$4,567$0$0$49,567$0$0—$49,567$4,567$9,135$0$551,517$394,111$0$994,424
203671 / 69$90,000$18,744$12,496$39,063$0$0-$18,903$51,400$5,039$0$0$28,853$0$0+$18,903$47,756$4,117$9,156$0$495,870$405,306$0$1,003,190
Assumptions & limitations
  • Federal and Alberta tax uses the 2026 brackets and credits (basic personal, age and pension amounts), indexed each year at the bracket indexation rate. The federal lowest rate is 14%. Pension income splitting of RRIF income from 65 is chosen optimally each year.
  • One portfolio return applies to every account. Non-registered growth is treated as deferred capital gains at 50% inclusion; withdrawals realize gains in proportion to the adjusted cost base. Annual interest and dividend distributions aren't taxed.
  • Withdrawals happen on January 1 and growth over the year. CPP and OAS pay a full year from the start age and rise with inflation. OAS recovery tax (the clawback) is applied per person.
  • The RRSP converts to a RRIF by the end of the year you turn 71 and CRA minimums apply from 72. Earlier withdrawals from 65 are treated as RRIF income for the pension credit and splitting.
  • Spending is after-tax and grows with inflation. Withdrawals are grossed up for the tax they cause. Surplus cash from RRIF minimums or a meltdown goes to TFSA room first, then non-registered.
  • Each person dies on December 31 of the year they reach their life expectancy. Accounts roll to the surviving spouse tax-free. The survivor CPP benefit is approximated as 60% of the deceased's CPP, capped so combined CPP stays under the maximum; the deceased's OAS stops.
  • Canada has no inheritance tax. Tax at death is the extra tax on the last survivor's final return (the remaining RRIF as income and deemed capital gains on non-registered savings) plus provincial probate on the home and non-registered assets. TFSA and RRIF pass by beneficiary designation. The home is a tax-free principal residence.
  • Monte Carlo draws log-normal annual returns from your return and volatility on a fixed seed, so results are stable. Inflation is not random. Every strategy is scored on the same market paths.
  • Not modelled: income other than CPP, OAS and your accounts (DB pensions, work, rent), GIS, the dividend tax credit, low-income tax reductions, LIRA/LIF, annuities, and Quebec.
  • Alberta surrogate fees are capped at $525, so probate barely moves the ranking.
  • Alberta indexes brackets and credits at the lesser of 2% and the plan's indexation rate.
  • This is an educational model, not financial or tax advice. Talk to a fee-only planner or accountant before acting on a drawdown plan.