# Retirement income and benefits in Canada

> Plan retirement income in Canada. Guides and calculators for CPP, OAS, RRSP withdrawals, TFSA, GIC and how pension income is taxed, all in one place.

Retirement income in Canada usually comes from four places: government pensions (CPP and OAS), registered accounts such as an RRSP or TFSA, a workplace pension and plain savings. Most of it is taxed as income, and TFSA withdrawals are the main exception. CPP and OAS do not qualify for the $2,000 pension income amount. This page helps you find the piece you are working on. We are an information site and do not offer tax preparation services.

## What will CPP and OAS pay me?

CPP depends on what you contributed and when you start, and OAS depends on residence and income. Both are taxable. OAS is the one that starts at 65, according to the government's [Old Age Security page](https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security.html), while you choose your own CPP start date, as the [Canada Pension Plan retirement pension page](https://www.canada.ca/en/services/benefits/publicpensions/cpp.html) explains. Start with the calculators, then the maximums.

- [CPP Pension by Start Age, 60 to 70](https://tax-services.ca/calculators/rrsp-retirement/cpp-calculator)See how the start age changes the monthly amount.

- [CPP Maximum in 2026 for Contributions and Pension](https://tax-services.ca/cpp/cpp-maximum)Both maximums: what you pay in and what a new retiree can receive.

- [OAS Pension Estimate and Recovery Tax](https://tax-services.ca/calculators/rrsp-retirement/oas-calculator)An estimate, plus the clawback at higher incomes.

- [OAS clawback for seniors: age, amount and what to do](https://tax-services.ca/articles/seniors-oas-clawback-age-amount-canada)Who gets hit by the recovery tax and how it is worked out.

- [Retirement Savings and Monthly Income Planner](https://tax-services.ca/calculators/rrsp-retirement/retirement-calculator)Roughly what your savings could pay each month.

## How does an RRSP work, and what happens when I withdraw?

An RRSP gives you a deduction when you contribute and taxes the money as income when you take it out. The CRA's [RRSPs and related plans page](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans.html) is the official reference. Withdrawals get tax held back at the source, and that withholding is often lower than what you really owe at tax time, so set a few bucks aside in case the balance comes due in April.

- [How an RRSP Works in Canada, From Deposit to Payout](https://tax-services.ca/articles/rrsp-canada)The whole life of an RRSP in one read.

- [RRSP Contribution Refund and Room Calculator](https://tax-services.ca/calculators/rrsp-retirement/rrsp-calculator)Your room and the refund a contribution brings.

- [RRSP Tax Savings: What a Contribution Gives Back](https://tax-services.ca/income-tax-calculator/rrsp-tax-savings-calculator)Two worked examples of what you get back.

- [RRSP Limit: What Happens If You Go Over It](https://tax-services.ca/articles/rrsp-limit)The small cushion, then the monthly charge.

- [Spousal RRSP calculator](https://tax-services.ca/calculators/rrsp-retirement/spousal-rrsp)See how contributing to a partner's RRSP can even out retirement income.

- [RRSP Withdrawal Tax: Withheld vs Real Tax](https://tax-services.ca/calculators/rrsp-retirement/rrsp-withdrawal-tax)Why the tax withheld is not the whole story.

- [RRIF withdrawal tax calculator](https://tax-services.ca/calculators/rrsp-retirement/rrif-withdrawal-tax)What the tax looks like once the RRSP becomes a RRIF.

- [T4RSP Slip: What It Reports and How to Use It](https://tax-services.ca/articles/t4rsp)The slip you get after a withdrawal.

## Is a TFSA or a GIC the better home for savings?

A TFSA is an account and a GIC is an investment that can sit inside one, so the real choice is often where to hold a GIC, not which of the two to pick. The CRA's [Tax-free Savings Account page](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account.html) sets out how the account works, and there is no tax on TFSA withdrawals. The table sets the options side by side.

- [TFSA Calculator: Your Contribution Room by Birth Year](https://tax-services.ca/calculators/rrsp-retirement/tfsa-calculator)Find your room based on when you turned 18.

- [TFSA vs RRSP calculator](https://tax-services.ca/calculators/rrsp-retirement/tfsa-vs-rrsp)Compare the two on your own income and time frame.

- [GIC Calculator: Value at Maturity and Interest](https://tax-services.ca/calculators/savings-budget/gic-calculator)What a GIC is worth when it matures.

- [RRSP, TFSA, FHSA and retirement income in Canada](https://tax-services.ca/guides/savings-and-retirement)How the registered accounts compare.

| Option | Tax on what you put in | Tax on what you take out | Read more |
| --- | --- | --- | --- |
| RRSP | Deductible | Taxed as income | RRSP article |
| TFSA | Not deductible | Not taxed | TFSA calculator |
| GIC | Depends on the account that holds it | Depends on the account that holds it | GIC calculator |

## How is my retirement income taxed?

In Canada, pension income is added to your other income and taxed together. CPP and OAS are taxable too, but they do not qualify for the pension income amount, which catches many retirees off guard. Picture Dale, who retires at 65 with a workplace pension, CPP and OAS: all three land on one return and are taxed together, so the total decides his bracket and not any single cheque.

- [Retirement Tax on CPP, OAS, Pension and RRIF](https://tax-services.ca/calculators/rrsp-retirement/retirement-income-tax)Estimate tax on a mix of retirement income.

- [How Pension Income Is Taxed in Canada After 65](https://tax-services.ca/articles/pension-tax)What each kind of pension means for your bill.

- [What Counts as Pension Income on Your Tax Return](https://tax-services.ca/articles/pension-income)Which payments qualify for the credit, by age.

- [Pension Tax Credit in Canada: Who Gets It, How Much](https://tax-services.ca/articles/pension-tax-credit-canada)Up to $2,000 of eligible income, and who can claim it.

## Where should I start if I'm close to retiring?

If you're a few years out, begin with the CPP and OAS estimates so you know your floor, then look at how much room you have in your RRSP and TFSA. If you've already retired, the retirement tax estimator above shows how the pieces stack on one return. Questions about your own file belong with the CRA or a qualified preparer. This site is independent and has no connection with any government.

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Source: https://tax-services.ca/retirement-income-and-benefits
Last updated: 2026-10-09
Independent information site. Not affiliated with the CRA. No services, no guarantee of accuracy. See https://tax-services.ca/disclaimer