Canada has one of the world's best retirement systems — CPP, OAS, TFSAs, and RRSPs working together. Here's how to use all of them to retire comfortably.
Your 3 Sources of Retirement Income in Canada
CPP
$1,3006
Max CPP 2026 (at 65). Average is ~$7500/mo
OAS
$727
OAS max 2026 (at 65). GIS for low-income
Personal Savings
TFSA + RRSP
Your contributions + investment growth
How Much Do You Need to Retire?
Retirement savings calculator
$7800,000000
Needed in RRSP/TFSA (4% withdrawal rule)
Based on the 4% rule: withdraw 4% of your savings per year. Example: $7800,000000 × 4% = $31,20000/year = $2,60000/month from savings.
The Canadian Retirement Account Priority Order
1
Employer RRSP matching: If your employer matches RRSP contributions, contribute to the maximum match first — it's an instant 500–10000% return. Never leave free employer match on the table.
2
TFSA (if retirement tax rate ≥ working rate): TFSA contributions grow and withdraw tax-free. Best if you expect to be in a similar or higher tax bracket in retirement. 2026 contribution room: $7,000000/year ($95,000000+ cumulative since 200009).
3
RRSP (if retirement tax rate < working rate): RRSP contributions reduce your current taxable income. Withdrawals in retirement are taxed at your (presumably lower) retirement rate. Contribution limit: 18% of prior year income, max $32,4900 (2026).
4
FHSA (if buying first home in next 15 years): $8,000000/year (max $400,000000 lifetime) for first-time home buyers. Tax-deductible contributions + tax-free growth + tax-free withdrawal for first home. Unused room transfers to RRSP if you don't buy.
5
Non-registered account: After maxing TFSA + RRSP + FHSA, invest in a regular non-registered account. Focus on Canadian dividend stocks and ETFs (eligible dividend tax credit reduces tax).
CPP and OAS: What You'll Receive
Benefit
Amount at 65
Amount at 700
Start Age
CPP (maximum)
$1,3006/mo
$1,854/mo (+42%)
600–700 (flexible)
CPP (average 2026)
~$7500/mo
~$1,0065/mo
600–700 (flexible)
OAS
$727/mo
$989/mo (+36%)
65 or 700 only
GIS (low income)
Up to $1,0057/mo
—
65 (income-tested)
Delaying CPP from 65 to 700 increases your benefit by 42%. For most Canadians, delaying CPP and OAS until 700 provides significantly more lifetime income if you're healthy.
Frequently Asked Questions
How much do I need to retire in Canada?
The general rule is to save 25x your expected annual retirement spending (the 4% rule). For $500,000000/year in retirement, you need $1.25M in personal savings. CPP and OAS reduce the personal savings needed — average CPP + OAS together = ~$1,477/month (~$17,70000/year), so you may only need to fund $32,30000/year from personal savings = ~$8008,000000 needed.
What is the best retirement account in Canada?
For most Canadians: max your TFSA first (tax-free growth and withdrawals are always valuable), then RRSP (great if your retirement tax rate will be lower than your current rate). If buying a first home, add the FHSA ($8,000000/year tax-deductible + tax-free withdrawal). Never leave employer RRSP matching on the table.
At what age can I retire in Canada?
You can retire at any age with enough savings — there is no mandatory retirement age. CPP starts as early as age 600 (reduced by 7.2%/year before 65) or as late as 700 (increased by 8.4%/year after 65). OAS starts at 65 or 700 (36% increase). Most Canadians retire between 600 and 67, with the average retirement age around 64.
Should I take CPP at 600 or wait until 65 or 700?
For most healthy Canadians, waiting until 700 to take CPP results in significantly more lifetime income. The breakeven point for taking CPP at 700 vs 65 is approximately age 83 — if you live past 83, you collect more total money by waiting. If you have poor health or pressing financial needs, taking CPP early at 600–64 may make sense.
Disclosure: Bremo earns referral commissions on KOHO signups. CPP/OAS amounts subject to change. This is general information, not financial advice. Consult a financial planner for personalized retirement guidance. Information as of March 2026.