RRSP + TFSA + pension + other registered accounts
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Open RRSP — Get $25 Free →RRSP Converts to RRIF at Age 71
Your RRSP must be converted to a RRIF (Registered Retirement Income Fund) by December 31 of the year you turn 71. Once converted, you must withdraw a minimum amount each year based on a government-set percentage of your account balance — starting at 5.28% at age 71 and increasing each year.
RRIF withdrawals are fully taxable income. Strategic planning — like drawing down RRSP funds in lower-income years before 71, or spreading withdrawals over time — can minimize your lifetime tax bill and preserve OAS eligibility.
RRIF Guide — minimum withdrawal rates & strategies →How Much Do You Need to Retire in Canada?
A common Canadian rule of thumb is to target 70–80% of your pre-retirement income each year in retirement. So if you earn $80,000 today, you would aim for $56,000–$64,000 per year in retirement. However, actual needs vary significantly — retirees with a paid-off home and no dependents often spend far less.
The good news: you won't fund all of this from savings alone. Government programs — CPP and OAS — provide a meaningful base. The average Canadian CPP payment in 2026 is around $9,000/year, and OAS adds approximately $8,400/year starting at age 65. Together that's roughly $17,400 before drawing a single dollar from your RRSP or TFSA.
The gap between that government income and your desired lifestyle is what your personal savings need to fill. Use the calculator above to estimate that gap and see how long your savings will last.
The 4% Rule — Canada Edition
The “4% rule” is a widely used retirement withdrawal guideline: if you withdraw 4% of your portfolio in year one of retirement and adjust for inflation annually, your portfolio has historically lasted 30+ years in most market conditions.
In practice: to sustainably draw $40,000/year from your savings, you need approximately $1,000,000 invested ($40,000 ÷ 0.04). To draw $25,000/year, you need about $625,000.
Which Accounts to Use for Retirement Savings
Are You on Track for Retirement?
A rough Canadian benchmark: aim to have saved approximately 1× your annual salary by 35, 3× by 45, and 6× by 55.
Benchmarks are rough guidelines only. Consult a financial advisor for personalized projections.