Get your personalized retirement income illustration
This planner is used by Pankaj Bhatia, PFA, CHS to prepare personalized retirement-income illustrations. It compares 10 withdrawal strategies across your RRSP/RRIF, TFSA and non-registered accounts, CPP and OAS start ages, estimated tax and OAS recovery, RRIF minimums and the value left at the end of the plan, with a year-by-year table and a PDF report you can keep.
Please contact Pankaj Bhatia for an illustration with your own numbers.
Age 60, retiring at 65, $6,000 a month after tax, planned through age 92
Ontario resident with a $600,000 RRSP, a $150,000 TFSA and $150,000 of non-registered investments (adjusted cost base $120,000). CPP of $1,200 and OAS of $752 a month, both starting at 65. The after-tax spending goal of $6,000 a month rises 2% a year. Returns: RRSP 7% until 75 then 4%; TFSA 6% then 4%; non-registered 7% then 5%. Balanced planning priority, smart withdrawal order.
| Strategy | Retirement years funded (65–92) | Estimated lifetime tax | Accounts left at 92, before final tax |
|---|---|---|---|
| Aggressive RRSP smoothing (highest score) | 28 of 28 | $345,082 | $909,780 |
| Preserve TFSA | 28 of 28 | $396,014 | $901,672 |
| Tax-efficient multi-bucket | 28 of 28 | $432,871 | $892,978 |
| Wait until RRIF | 28 of 28 | $439,029 | $1,017,123 |
| Delay CPP & OAS to 70 | 28 of 28 | $493,840 | $617,513 |
In this example every strategy funds all 28 retirement years, so the comparison is about tax and what is left: smoothing RRSP withdrawals from age 60 lowers estimated lifetime tax by about $94,000 compared with waiting for RRIF minimums, while waiting leaves more in the accounts at 92. Raise the goal to $7,000 a month and only one of the 10 strategies still funds every year. No OAS recovery tax arises in this example. Estimates use simplified 2026 federal and Ontario tax, a single person, deterministic returns and no investment fees; the account values are before final tax at death. Hypothetical illustration, not a forecast or recommendation.
How does a Canadian multi-bucket retirement calculator work?
A multi-bucket retirement plan coordinates income from a Registered Retirement Savings Plan (RRSP), Registered Retirement Income Fund (RRIF), Tax-Free Savings Account (TFSA), non-registered investments, Canada Pension Plan (CPP), Old Age Security (OAS), employer pensions and rental income. This calculator compares 10 illustration strategies using the same income goal, account starting values and return assumptions. Its calculations run privately on your website server; no client details are saved by the calculator.
What does the spending target mean?
The spending target is the monthly amount you would like available after estimated income tax and OAS recovery. The planner calculates retirement cash available after those estimated deductions, tests where withdrawals can come from, and flags years when your target cannot be funded. It is an annual cash-flow model, not a full personal tax return.
RRSP versus RRIF: what changes at age 71?
Generally, you must mature your RRSP by December 31 of the year you turn 71. If you establish a RRIF that year, the first prescribed annual minimum applies in the following year. Standard RRIF minimums are based on the account's value at the start of the year and the applicable age factor; this version assumes the account holder's age, not a spouse's elected age. CRA RRIF guidance.
Why can withdrawal order affect tax?
RRSP/RRIF withdrawals are generally taxable, eligible TFSA withdrawals are generally tax-free, and selling non-registered investments may realize capital gains. A flexible withdrawal sequence can change the timing of taxable income and OAS recovery. The calculator estimates non-registered gains by prorating adjusted cost base (ACB), but it does not model dividend taxation, loss carryforwards, investment management fees, GIS or pension splitting.
Frequently asked questions
Are the 10 strategies automatically recommended for me?
No. The planning score ranks illustrative strategies based on your selected priorities. A high score is not a suitability assessment or a recommendation to sell investments, transfer plans or delay benefits.
Is my monthly goal before or after tax?
After estimated tax and OAS recovery. The planner separately shows gross receipts, estimated income tax, potential OAS recovery and net spendable funds.
Does the calculator use actual CPP and OAS amounts?
Your illustration uses your own Service Canada estimate or current benefit amount. The model can illustrate changes in starting ages, but your actual amount depends on contributions, residency and your benefit record.
How is the OAS recovery tax calculated?
The calculator uses a 2026 baseline threshold of $95,323 and indexes it by the selected inflation assumption in future years. Actual annual thresholds differ and recovery payments operate on an income-year schedule.
Does it calculate estate tax at death?
No. The estate figure shows remaining account values before final tax, deemed dispositions, possible rollover treatments and probate/estate administration costs.
Can I preserve my TFSA for family?
Yes. In your illustration, the TFSA or non-registered account can be set to Preserve, which keeps those amounts invested but unavailable to meet retirement spending goals. RRIF minimum distributions cannot be switched off.
Does it handle Quebec tax?
Quebec is an approximation using general provincial rates and a federal abatement; it is not a comprehensive Revenu Québec tax calculation. Tax estimates for all provinces omit some credits and benefit interactions.
Do investment returns include market downturns?
Each account has editable pre- and post-switch return assumptions. Negative annual return paths, sequence-of-returns scenarios, withdrawals timed during the year and investment fees are not fully modelled.
Important: This calculator is educational. The server-side tax estimates use selected 2026 brackets, modeled future indexation, simplified personal and age credits, and generalized cash flow. Confirm decisions with an appropriate licensed advisor and qualified tax professional.
Sources: CRA 2026 tax brackets · CRA RRIF factors · OAS recovery tax · CPP start timing.