If you are mapping withdrawals and account sequencing first, start with retirement income strategies in Canada.
Best Investment Types for Retirees
| Investment |
Risk Level |
Expected Yield |
CDIC Insured |
Best For |
| GICs |
Very low |
4.0-4.5% |
✅ Up to $100K |
Conservative retirees |
| HISA |
Very low |
3.5-4.0% |
✅ Up to $100K |
Emergency cash |
| Bond ETFs |
Low |
3.5-4.5% |
❌ |
Diversified fixed income |
| Dividend ETFs |
Moderate |
4.0-5.5% |
❌ |
Tax-efficient income |
| Covered call ETFs |
Moderate |
6.5-8.5% |
❌ |
Higher income needs |
| Balanced ETFs |
Low-moderate |
3.0-4.0%* |
❌ |
Simplicity |
| Annuities |
Very low |
5.0-7.0% |
Assuris protected |
Guaranteed lifetime income |
For the fixed-income building blocks in this table, compare best bond ETFs in Canada and GIC vs bond ETF vs HISA.
*Balanced ETFs include growth and distributions combined.
Top GIC Options for Retirees
| Issuer |
1-Year |
3-Year |
5-Year |
| EQ Bank |
4.25% |
4.00% |
4.00% |
| Oaken Financial |
4.35% |
4.10% |
4.10% |
| Tangerine |
4.10% |
3.90% |
3.85% |
| Simplii Financial |
4.00% |
3.80% |
3.80% |
Rates approximate as of early 2026. Check current rates.
GIC Ladder Strategy
| Year |
Maturity |
Amount |
Rate (est.) |
Annual Interest |
| Year 1 |
1-year GIC |
$40,000 |
4.25% |
$1,700 |
| Year 2 |
2-year GIC |
$40,000 |
4.10% |
$1,640 |
| Year 3 |
3-year GIC |
$40,000 |
4.00% |
$1,600 |
| Year 4 |
4-year GIC |
$40,000 |
4.00% |
$1,600 |
| Year 5 |
5-year GIC |
$40,000 |
4.00% |
$1,600 |
| Total |
|
$200,000 |
~4.07% |
$8,140 |
Top Dividend ETFs for Retirees
Our broader best dividend ETFs in Canada guide expands on these choices.
| ETF |
Ticker |
Yield |
MER |
Holdings |
| Vanguard FTSE Canadian High Dividend Yield |
VDY |
4.5% |
0.22% |
Canadian banks, energy, telcos |
| iShares S&P/TSX Composite High Dividend |
XEI |
4.8% |
0.22% |
Top 75 Canadian dividend payers |
| iShares Canadian Select Dividend |
XDV |
4.6% |
0.55% |
30 high-yield Canadian stocks |
| BMO Canadian Dividend ETF |
ZDV |
4.5% |
0.39% |
Canadian blue-chip dividend payers |
Tax Advantage of Canadian Dividends
| Income Type |
$10,000 Income |
Tax (30% bracket) |
| Interest/GIC |
$10,000 taxable |
~$3,000 |
| Canadian eligible dividends |
$10,000 (gross-up/credit) |
~$1,200 |
| Capital gains |
$5,000 taxable |
~$1,500 |
| TFSA withdrawal |
$0 taxable |
$0 |
Top Covered Call ETFs for Higher Income
| ETF |
Ticker |
Yield |
MER |
Strategy |
| BMO Covered Call Canadian Banks |
ZWB |
7.5% |
0.72% |
Canadian banks + covered calls |
| BMO Covered Call Utilities |
ZWU |
7.0% |
0.71% |
Utilities + covered calls |
| Hamilton Canadian Bank YIELD MAXIMIZER |
HBF |
8.0% |
0.65% |
Banks + options overlay |
| CI WisdomTree Quality Dividend Growth Variably Hedged |
DGR |
3.5% |
0.40% |
Quality dividend growth |
⚠️ Higher yield comes at a cost: Covered call ETFs cap upside potential and may underperform in strong bull markets.
We cover that tradeoff in more detail in covered call ETFs Canada.
Sample Retirement Portfolios
Conservative ($500K)
| Investment |
Allocation |
Amount |
Income |
| GIC ladder |
40% |
$200,000 |
$8,140 |
| HISA |
15% |
$75,000 |
$3,000 |
| Bond ETF (ZAG) |
15% |
$75,000 |
$2,850 |
| Dividend ETF (VDY) |
20% |
$100,000 |
$4,500 |
| Balanced ETF (VBAL) |
10% |
$50,000 |
$1,500* |
| Total |
100% |
$500,000 |
~$20,000/year |
Balanced ($500K)
| Investment |
Allocation |
Amount |
Income |
| GIC ladder |
25% |
$125,000 |
$5,090 |
| HISA |
10% |
$50,000 |
$2,000 |
| Dividend ETFs (VDY/XEI) |
35% |
$175,000 |
$8,050 |
| Covered call ETF (ZWB) |
15% |
$75,000 |
$5,625 |
| Equity ETF (XEQT) |
15% |
$75,000 |
$1,500* |
| Total |
100% |
$500,000 |
~$22,250/year |
Income-Focused ($500K)
| Investment |
Allocation |
Amount |
Income |
| HISA |
10% |
$50,000 |
$2,000 |
| Dividend ETFs (VDY/XEI) |
40% |
$200,000 |
$9,200 |
| Covered call ETFs |
30% |
$150,000 |
$11,250 |
| GICs |
20% |
$100,000 |
$4,100 |
| Total |
100% |
$500,000 |
~$26,550/year |
Where to Hold Which Investment
| Account |
Best For |
Why |
| TFSA |
GICs, bonds, covered call ETFs |
Shields interest and distributions from tax |
| RRIF/RRSP |
US dividend ETFs, bonds |
Eliminates US withholding tax on dividends |
| Non-registered |
Canadian dividend ETFs |
Eligible for dividend tax credit |
If you want a fund-specific version of this retiree toolkit, see best ETFs for retirement income in Canada.
Annuity Consideration
| Feature |
Details |
| How it works |
Lump sum to insurance company → guaranteed monthly income for life |
| Typical payout (age 65) |
~$550/month per $100,000 |
| Pros |
Guaranteed income, no market risk, longevity protection |
| Cons |
Illiquid, inflation erodes value, no estate value |
| Best for |
Covering essential expenses with guaranteed income |