Should I draw from my RRSP/RRIF or TFSA first?

There is no one-size-fits-all answer. Drawing from your RRSP/RRIF first can keep your TFSA growing tax-free longer. However, large RRIF withdrawals may push you into a higher tax bracket or trigger OAS clawback. Many advisors recommend a blended approach: draw enough from your RRIF to fill lower tax brackets, and supplement with TFSA withdrawals to avoid crossing into higher brackets.

How does inflation affect my retirement income plan?

At 2% annual inflation, $50,000 of purchasing power today becomes equivalent to about $33,600 in 20 years. CPP and OAS are indexed to inflation, which provides some protection. However, RRIF income and personal savings are not automatically adjusted. This calculator factors in inflation so you can see the real purchasing power of your retirement income over time.

What is the CPP survivor benefit?

The CPP survivor's pension provides a monthly payment to the surviving spouse or common-law partner of a deceased CPP contributor. The amount depends on the survivor's age and whether they are already receiving their own CPP. At age 65+, the maximum combined amount (own CPP + survivor's) cannot exceed the maximum single CPP pension of $1,364.60 (2025).

Retirement Payout Calculator

Plan your retirement withdrawals and see how long your savings will last

How to use this tool

Advanced Mode

Enable to visually see your retirement income based on pensions (CPP/QPP, OAS) and other income sources. Compare your total income with savings withdrawals to understand how long your money will last and what you'll have each year.

Retirement Savings

TFSA Balance

Tax-free withdrawals

RRSP/RRIF Balance

Fully taxable withdrawals

Other Retirement (LIRA, L-RRSP, RDSP)

Fully taxable withdrawals

Non-Registered Savings

Growth is taxable

Total Balance$800,000.00

Years to Payout

How many years the money should last

Withdrawal Settings

Gross Amount: Enter your desired withdrawal before taxes. The calculator will show both gross and net (after-tax) amounts.

Gross Withdrawal Amount

Withdrawal Frequency

Adjust for inflation annually

Increase withdrawals by inflation rate each year

Gross Annual (Year 1)

$36,000.00

Net Annual (After Tax)

$28,575.00

Investment & Tax Assumptions

Expected Return (%)

Annual return on remaining balance

Inflation Rate (%)

Effective Tax Rate (%)

Applied to RRSP/RRIF and non-reg growth

Liquidation Strategy

Order accounts are withdrawn from

Sustainable Withdrawal

$3,564.42

Monthly (Gross)

Annual: $42,773.00

This amount will last exactly 25 years

Money Lasts

25 Years

Exactly as planned

Total Withdrawn (Gross)

$1,229,680

Over 25 years

Net Income (After Tax)

$1,038,742

What you receive

Balance Depletion Timeline

Account Breakdown

Current Strategy: Industry Standard - Withdrawing from Non-Registered first, then RRSP/Other Retirement, then TFSA last to maximize tax-sheltered growth.

TFSA

$150,000

18.8% of total

RRSP/RRIF

$400,000

50.0% of total

Other Ret.

$50,000

6.3% of total

Non-Reg

$200,000

25.0% of total

Account Liquidation Over Time

Liquidation Visualization: This chart shows how each account type is depleted over time based on your chosen strategy. The industry standard approach prioritizes withdrawing from taxable accounts first, preserving tax-sheltered growth in RRSP/RRIF and TFSA accounts as long as possible.

Withdrawal Comparison

Your Planned Withdrawal

Monthly (Gross)

$3,000.00

Monthly (Net)

$2,381.25

Annual Net: $28,575.00

Sustainable Withdrawal

Monthly (Gross)

$3,564.42

Annual: $42,773.00

Difference (Annual):+$6,773.00

You're withdrawing less than sustainable - your money will last beyond 25 years

Financial Summary

Starting Balance$800,000

Investment Growth$913,823

Total Available$1,713,823

Gross Withdrawals$1,229,680

Net Income$1,038,742

Key Insights

Your retirement savings will provide income for 25 years

After taxes, you'll receive $1,038,742 over your retirement

Investment growth will add $913,823 to your withdrawals

Total tax paid on withdrawals: $190,938 (15.5% of gross)

Withdrawals will increase by 2.5% annually to maintain purchasing power

Methodology & Important Disclaimer

How This Calculator Works

This retirement payout calculator projects how long your savings will last based on your withdrawal strategy. It accounts for investment growth, inflation, taxes on different account types, and different liquidation strategies. The calculator uses monthly compounding and applies withdrawals at the end of each period.

Liquidation Strategies Explained

Industry Standard (Recommended): Withdraws from non-registered accounts first, then RRSP/RRIF/Other, and TFSA last. This maximizes tax-sheltered growth and preserves tax-free TFSA funds as long as possible.
Tax-Deferred First: Withdraws from RRSP/RRIF first, then non-registered, then TFSA. May be beneficial if you expect to be in a higher tax bracket later or want to reduce RRIF minimums.
Tax-Free First: Withdraws from TFSA first to preserve taxable account balances. Generally not recommended as it eliminates tax-free growth early.
Proportional: Withdraws equally from all accounts based on their current balance percentages.

Tax Treatment by Account Type

TFSA: Completely tax-free withdrawals (0% tax)
RRSP/RRIF: Fully taxable at your effective tax rate
Other Retirement (LIRA, L-RRSP, RDSP): Fully taxable at your effective tax rate
Non-Registered: Only growth portion is taxable (calculator assumes 50% is growth). In reality, tax depends on capital gains vs dividends vs interest income.

Key Assumptions

Effective tax rate remains constant throughout retirement
Investment returns compound monthly at the specified rate
Withdrawals remain constant (or adjust with inflation if selected)
No consideration of RRIF minimum withdrawal requirements after age 71 (enable Advanced Mode to include)
No consideration of OAS clawback based on income levels (enable Advanced Mode to include)
No emergency withdrawals or unexpected expenses
Spousal income, pensions, and investments are not included in these calculations - this tool focuses on individual retirement planning

Important Disclaimer

This calculator is provided for educational and illustrative purposes only. It should not be considered financial advice. Actual investment returns, tax rates, and personal circumstances will vary significantly. This tool does not account for many important factors including: pension splitting strategies, estate planning considerations, healthcare costs, changing tax legislation, or individual health and longevity factors.We strongly recommend reviewing your retirement payout strategy with a qualified financial planner who can provide personalized guidance based on your complete financial situation, risk tolerance, tax position, and retirement goals. A professional can help optimize your withdrawal strategy to minimize taxes and maximize your retirement income.

Why Consult a Financial Planner?

A professional financial planner can provide crucial guidance on: optimal withdrawal sequencing to minimize lifetime taxes, pension income splitting with a spouse, managing RRIF minimums efficiently, avoiding OAS clawback, incorporating CPP/OAS timing strategies, coordinating with your estate plan, and adapting your strategy as tax laws and personal circumstances change. Professional advice can often save you significantly more in taxes than the cost of the advice itself.

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Frequently Asked Questions

Last updated: July 2026

This depends on your total savings, annual withdrawal rate, investment returns, and inflation. A common rule of thumb is the 4% rule: withdraw 4% of your portfolio in year one, then adjust for inflation each year. However, Canadian retirees should also factor in CPP, OAS, and any pension income when determining how much they need from personal savings.

Research suggests 3.5% to 4% is sustainable for a 30-year retirement. However, this depends on asset allocation, fees, and market conditions. Canadian retirees receiving CPP and OAS may need a lower personal withdrawal rate since government benefits cover part of their expenses. Tax-efficient withdrawal sequencing (TFSA vs RRIF) also plays a role.

Reviewed by Alexandre Bernier, CFP®, CIM®

Educational tool - estimates only. Not individualized financial, investment, tax, or legal advice. Using it does not create an advisor-client relationship. Rules and figures change; verify against current CRA sources and consult a qualified professional. Editorial policy →