Turning 65 Financial Checklist Canada | What to Do
Updated
Turning 65 unlocks a cascade of financial benefits that you need to apply for, not just wait for. Apply for OAS 11 months before your 65th birthday through My Service Canada Account — while some people receive an auto-enrollment letter, many don’t, and a late application means lost monthly payments of roughly $727. If you don’t need the income and your net income is near the clawback threshold ($91,000+), deferring OAS to age 70 earns you a 7.2% annual increase (36% total), one of the best guaranteed returns available.
The age amount tax credit (≈$8,790 federal, plus provincial amounts) and the ability to split up to 50% of RRIF/pension income with a lower-income spouse are the two biggest tax levers that become available at 65. Even if you have no employer pension, converting a small amount of your RRSP to a RRIF and withdrawing exactly $2,000 gives you the pension income tax credit worth $400–$500 in combined federal and provincial savings — and you can put that $2,000 straight into your TFSA if you don’t need it for spending.
Turning 65 Timeline
11 Months Before
Action
Why
Apply for OAS
Processing time
Check for auto-enrollment letter
May be automatic
Decide OAS deferral
Wait until 70?
6 Months Before
Action
Why
Final CPP decision
If haven’t started
Review pension
Employer plan options
Tax planning
For next year
At 65
Action
Why
Claim age credits
On tax return
Review budget
New income sources
Health coverage review
Changes at 65
Old Age Security (OAS)
Apply for OAS
Method
Details
Online
My Service Canada Account
Auto-enrollment
If you get letter
Timeline
11 months before
OAS Amounts 2026
Age
Monthly
65-74
~$727
75+
~$800 (10% bonus)
Defer or Take at 65?
Take at 65 If
Defer to 70 If
Need income
Other income sources
Health concerns
Good health
Below clawback
Would be clawed back anyway
Deferral Benefit
Defer
Increase
Per month
0.6%
Per year
7.2%
To age 70
36% more
Canada Pension Plan at 65
If Not Yet Receiving
Option
Details
Start at 65
Standard amount
Defer to 70
42% more total
Already receiving
Post-retirement benefit if working
CPP Maximum at 65
Year
Approximate Maximum
2026
~$1,433/month
GIS (If Low Income)
Guaranteed Income Supplement
If OAS Income Below
May Qualify
~$21,624 (single)
For GIS
~$28,560 (couple)
For GIS
GIS Application
When
How
With OAS application
Combined
Or separately
If missed
Annual renewal
Based on income
Tax Changes at 65
Age Amount Credit
Federal
Amount
Maximum
~$8,790
Tax savings
~$1,319
Reduced if
Income > ~$44,325
Eliminated at
~$102,850
Provincial Age Amounts
Province
Additional
Ontario
~$5,839
BC
~$5,903
Alberta
~$6,064
Quebec
~$3,807
Total Age Credit Value
In Ontario
Savings
Federal
~$1,319
Provincial
~$300
Total
~$1,619
Pension Income Splitting
Now Available at 65
Before 65
Only RPP
At 65
RRIF also qualifies
How It Works
Step
Details
Split up to 50%
Of eligible pension
To spouse
Must be lower income
Both file
Joint election
Benefit Example
Without Splitting
With Splitting
You: $80,000
You: $60,000
Spouse: $30,000
Spouse: $50,000
Higher tax
Lower total tax
Pension Income Credit
$2,000 Credit
Eligible Income
Examples
Company pension
Always
RRIF withdrawal (65+)
Yes
RRSP withdrawal
Only if 65+ and converted
CPP/OAS
No
Tax Savings
| Federal | ~$300 |
| Provincial | ~$100-200 |
| Total | ~$400-500 |
Create Eligible Income
Strategy
Action
Convert RRSP to RRIF
Even small amount
Withdraw $2,000
Get full credit
Put in TFSA
If don’t need it
Health Coverage Changes
What Changes at 65
Province
Change
BC
Some drug coverage changes
Ontario
ODB (Ontario Drug Benefit)
Alberta
Seniors coverage
Ontario Drug Benefit
At 65
Coverage
Most prescriptions
$100 deductible + $6.11/prescription
Low income
$2/prescription
Extended Health
Review
Options
Employer retiree benefits
Keep if available
Private insurance
May need
Blue Cross/Green Shield
Options available
Employment Income at 65
If Still Working
Consideration
Details
Still contribute to CPP
Creates post-retirement benefit
RRSP room
Can still contribute
OAS clawback
Watch total income
Post-Retirement Benefit (PRB)
If Working While Receiving CPP
Get
Additional CPP
Earned on contributions
~2.5% per year
Added to CPP
Can opt out
At 65-70
Investment Changes
Asset Allocation
At 65
Typical
Stocks
50-60%
Bonds
40-50%
Adjust for
Your risk tolerance
Withdrawal Strategy
Account
Withdrawal Order
Taxable
First (tax efficiency)
RRSP/RRIF
Second (tax bracket)
TFSA
Last (tax-free)
65th Birthday Checklist
Must Do
Task
Done?
OAS application (11 months early)
☐
CPP decision made
☐
Pension splitting setup
☐
Age amount claimed
☐
Pension income credit ($2,000 RRIF)
☐
Health coverage reviewed
☐
Prescriptions coverage checked
☐
Should Do
Task
Done?
Budget updated
☐
Investment allocation reviewed
☐
Estate plan current
☐
Beneficiaries updated
☐
Financial Projection
Monthly Income at 65
Source
Amount
OAS
$727
CPP
(your amount)
Employer pension
(your amount)
RRIF withdrawal
(planned)
Other income
(if any)
Total
$
Compare to Expenses
Test
Pass?
Income ≥ expenses
Yes needed
Buffer for inflation
Recommended
Emergency fund
Still have one
The Bottom Line
Apply for OAS 11 months early, claim the age amount credit, convert a small RRSP to RRIF and withdraw $2,000 for the pension income credit, split eligible pension income with your spouse, and check whether Ontario Drug Benefit or your province’s seniors’ drug program covers your prescriptions. These five steps alone can redirect $2,000–$4,000 back into your pocket annually with no downside.