Educational Disclaimer: Maple Wealth Guide provides general financial education only. We do not offer financial, investment, tax, or legal advice. Nothing on this website should be considered a recommendation. Always consult a licensed professional for personalized guidance.
Why Multiple Streams Matter
Relying on a single income source in retirement is risky. Government benefits could change, investment returns fluctuate, and unexpected expenses arise. Multiple income streams provide:
- Greater financial security and peace of mind
- Flexibility to handle unexpected expenses
- Protection if one income source decreases
- Potentially lower overall tax burden
- Options for leaving a legacy
Common Retirement Income Sources
Government Benefits
The foundation for most Canadian retirees:
- CPP/QPP — Based on contributions during working years
- OAS — Available to most Canadians 65+
- GIS — Income-tested supplement for lower-income seniors
Registered Account Withdrawals
Your personal savings provide supplementary income:
- RRIF — Converted from RRSP, minimum annual withdrawals
- TFSA — Tax-free withdrawals at your discretion
- Non-registered investments — Flexible access
Employer Pensions
If you're fortunate to have a defined benefit or defined contribution pension, this provides reliable income—though fewer Canadians have this benefit today.
Building Investment Income
Dividend Investing
Canadian dividend stocks and ETFs can provide regular income. The dividend tax credit makes eligible dividends tax-efficient in non-registered accounts.
Bond and GIC Ladders
Fixed-income investments provide predictable interest payments. Consider laddering maturities so you always have investments coming due.
Rental Income
Real estate can provide steady rental income, though it requires more active management. REITs offer real estate exposure without landlord duties.
Additional Income Options
- Part-time work or consulting in your field
- Monetizing hobbies or skills
- Annuities for guaranteed lifetime income
- Reverse mortgage (use cautiously)
- Downsizing to unlock home equity
💡 Note: Even a small part-time income in early retirement can significantly reduce portfolio withdrawals and extend your savings.
Creating Your Income Plan
Map out your expected income from each source, noting when each begins and any conditions. Identify gaps and consider how to fill them. A well-diversified income plan is your best protection against retirement uncertainty.
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About Maple Wealth Guide
Maple Wealth Guide is an independent Canadian financial education website. Our team of educational writers researches and explains investment concepts, retirement-related topics, and personal finance information for Canadians aged 50 and over. We are not licensed financial advisors and do not provide personalized recommendations. All content is for educational purposes only.