How much money do I need to retire at 65 in Canada?

With CPP and OAS both available at 65, most Canadians need $500,000 to $1 million in personal savings to retire comfortably — significantly less than retiring at 55 or 60. Combined CPP and OAS for someone with a full contribution history can provide roughly $24,000–$26,000/year. To top that up to $60,000/year in retirement income, you need roughly $900,000 in savings at a 3.5% withdrawal rate. If you have a defined benefit pension, you may need very little in personal savings.

Should I take CPP at 65 or defer to 70?

Deferring CPP from 65 to 70 increases your monthly benefit by 42% permanently. The breakeven age is approximately 82–83 — meaning if you live past that age, deferring will pay more in total lifetime income. Given average life expectancy at 65 is approximately 86 for women and 84 for men, deferring CPP to 70 is often the better math for healthy retirees. However, if you have health concerns, a shorter family history, or need the income, taking CPP at 65 is a valid choice.

When does OAS start and should I defer it?

OAS can start at 65 or be deferred to any age up to 70, earning 0.6% more per month deferred (up to +36% at age 70). The breakeven for deferring OAS from 65 to 70 is approximately age 82–83. If you have other income sources and expect a long life, deferring OAS makes financial sense. You must apply for OAS — it is not automatic, although Service Canada may proactively enrol you if your tax records show you are eligible.

When do I have to convert my RRSP to a RRIF?

You must close your RRSP by December 31 of the year you turn 71. The most common option is to convert it to a RRIF. From age 71 onward, you must withdraw a minimum percentage each year (starting at approximately 5.28% at age 71, rising to 20% at age 95+). There is no maximum withdrawal. You can convert to a RRIF earlier than 71 — many people convert in their late 60s as part of a strategic withdrawal plan.

What is the OAS clawback threshold in 2026?

The OAS recovery tax (clawback) begins when your net income exceeds $90,997 in 2026. OAS is reduced by 15 cents for every dollar above this threshold. Full OAS is eliminated at approximately $148,000. If RRIF withdrawals, CPP, investment income, and rental income push you above $90,997, managing your income to stay below the clawback threshold is an important tax planning goal.

Can I still work after taking CPP or OAS at 65?

Yes. Working after taking CPP at 65 or later means you continue to contribute to CPP, which earns you additional CPP Post-Retirement Benefits (PRB). PRBs are added to your monthly CPP payment the following year. You can work full-time, part-time, or occasionally with no impact on your OAS entitlement.

How to Retire at 65 in Canada 2026 | CPP, OAS, RRIF, and Income Guide

Age 65 is when Canada’s retirement system is designed to work — CPP, OAS, pension income splitting, and the Age Amount credit all become available. The key decisions at 65 are not whether to retire but how to structure income, time government benefits, and minimize taxes over a 25+ year retirement.

For those considering a different timeline, see how to retire at 60 or how to retire at 55. For the government income floor at any retirement age, read about the Canadian retirement income floor.

Government Income at 65: Your Foundation

CPP at 65 (2026)

Taking CPP at…	Monthly Benefit (maximum)	Annual (maximum)
65	~$1,364	~$16,368
67	~$1,528	~$18,336
70	~$1,937	~$23,244

Most Canadians receive less than the maximum — the average CPP payment at 65 is approximately $760/month. Check your personal CPP estimate through My Service Canada.

OAS at 65 (2026)

Taking OAS at…	Monthly Benefit	Annual Benefit
65	~$727	~$8,724
67	~$815	~$9,780
70	~$990	~$11,880

OAS increases by 0.6% per month deferred, for a maximum of +36% at age 70. Those 75 and older receive an automatic 10% top-up to their base OAS — this is on top of any deferral increase.

GIS if Low Income

If your annual income outside OAS is below approximately $22,000 (single), you may qualify for the Guaranteed Income Supplement (GIS) — up to ~$1,086/month in 2026 tax-free. GIS is income-tested and phases out as your income rises. It is especially relevant for Canadians with minimal RRSP savings, no employer pension, and moderate CPP.

Should You Defer CPP and OAS?

CPP Deferral Math

The breakeven for deferring CPP from 65 to 70 is approximately age 82–83. This means:

If you live to 85, deferring to 70 pays about $36,000 more in total lifetime CPP
If you live to 90, deferring to 70 pays about $85,000 more in total lifetime CPP

Arguments for deferring CPP:

Healthy and expect to live into mid-80s or beyond
Have enough savings to fund the 5-year bridge
Want to reduce longevity risk (CPP is guaranteed for life)
RRSP meltdown in low-income years is more tax-efficient

Arguments for taking CPP at 65:

Health concerns or shorter family history
Need the income now
Want certainty over maximizing lifetime total

OAS Deferral: Less Common but Worth Considering

OAS deferral is less commonly discussed but follows the same logic. The key difference: OAS is not based on contributions, so deferring OAS also defers the clawback risk trigger if your income is high.

How Much You Need to Save to Retire at 65

Savings Required by Income Target (2026)

Target Income	Less: CPP ($760 avg) + OAS ($727)	Annual Gap	Portfolio Required (3.5%)
$45,000	~$17,844	~$27,156	~$776,000
$55,000	~$17,844	~$37,156	~$1,062,000
$65,000	~$17,844	~$47,156	~$1,347,000
$75,000	~$17,844	~$57,156	~$1,633,000

Uses average CPP + OAS. Adjust based on your actual CPP estimate and whether you defer OAS.

Key insight: Every additional dollar of defined benefit pension income reduces the required savings by approximately $28.57 (at a 3.5% withdrawal rate). A $3,500/month defined benefit pension replaces roughly $1 million in personal savings.

RRSP and RRIF Strategy at 65

The RRSP Conversion Deadline

You must convert your RRSP to a RRIF (or buy an annuity) by December 31 of the year you turn 71. However, many planners recommend converting earlier to enable smoother withdrawals.

Converting at 65 vs 71:

Converting at 65 allows 6 years of smaller, tax-efficient withdrawals before mandatory minimums kick in
Waiting until 71 means a larger RRIF balance and higher mandatory minimums — potentially pushing you into higher tax brackets or OAS clawback territory

RRIF Minimum Withdrawal Rate at Age 65

Age	Minimum Withdrawal %
65	4.00%
69	4.76%
71	5.28%
75	5.82%
80	6.82%
85	8.51%
90	11.92%
95	20.00%

Pension Income Tax Credit

RRIF income qualifies for the pension income tax credit — up to $2,000 of qualifying pension income (including RRIF) is eligible for a federal 15% tax credit ($300 of federal tax savings). Provincial credits also apply.

Tax Planning Opportunities at 65

Pension Income Splitting

At 65, pension income splitting becomes available. You can allocate up to 50% of eligible pension income (including RRIF withdrawals, registered pension plans, and annuities) to your spouse, potentially reducing the household tax bill significantly.

Example: One spouse has $60,000 in RRIF and CPP income; the other has $25,000. Splitting pension income equalizes income, reducing combined taxes by $3,000–$8,000/year depending on province.

Age Amount Credit

At 65, you qualify for the Age Amount federal tax credit — $8,396 in 2026. This credit phases out if your net income exceeds $40,495 and is fully eliminated above $93,997.

OAS Clawback Threshold

If your net income exceeds $90,997 in 2026, OAS begins to be clawed back at 15 cents per dollar. To stay below the threshold:

Draw from TFSA rather than RRIF (TFSA withdrawals are not counted as income)
Income-split pension income with a lower-income spouse
Time capital gains realizations

Healthcare and Benefits at 65

At 65, provincial seniors’ drug plans typically expand coverage. In Ontario, the Ontario Drug Benefit (ODB) program covers most seniors. In BC, the Fair PharmaCare program adjusts to lower deductibles at 65.

Dental coverage remains a gap for most seniors — though the Canadian Dental Care Plan (CDCP) launched in 2024 provides coverage for seniors without employer dental insurance, with income-based co-payments.

Retirement Checklist at 65

Action	Notes
☐ Apply for CPP	Start date decision: 65 or defer to 70?
☐ Apply for OAS	Not automatic for everyone — apply via Service Canada
☐ Apply for GIS if applicable	Low-income supplement; apply when applying for OAS
☐ Plan RRSP conversion to RRIF	By age 71 mandatory; consider earlier
☐ Set up pension income splitting	Review with spouse and accountant
☐ Claim Age Amount credit	Starts at 65
☐ Review OAS clawback exposure	Model income against $90,997 threshold
☐ Arrange CDCP enrollment	Canadian Dental Care Plan
☐ Review investment allocation	Shift to income-generating portfolio
☐ Update will, POA, beneficiary designations	Critical at retirement

Key Numbers at a Glance (2026)

Item	Amount
Max CPP at 65	~$1,364/month
Average CPP at 65	~$760/month
Max OAS at 65	~$727/month
Max OAS at 70 (deferred)	~$990/month
OAS 75+ top-up	+10% automatically
Max GIS (single)	~$1,086/month
OAS clawback starts	$90,997 net income
Age Amount (federal)	$8,396
Pension income credit	15% on first $2,000
RRSP conversion deadline	Age 71

Use the retirement calculator to model your specific CPP, OAS, and savings combination. To understand the government income floor, read our Canadian retirement income floor guide. For RRIF withdrawal rules and strategy, see RRIF withdrawal rules in Canada. Visit the retirement planning hub for the full guide series.