To qualify for CPP, you need at least one valid contribution. The amount you receive depends on your contributions over your working life (starting at age 18) up to either age 65 or when you start receiving benefits.

You can start CPP as early as age 60 or as late as age 70. This decision significantly impacts your lifetime benefits:

• Health and Longevity:If you expect to live past 80, delaying generally pays off. Family history and current health are important considerations.
• Other Income Sources:If you have pension or savings to bridge, delaying CPP provides a guaranteed "return" of 7.2% per year through higher benefits.
• Tax Implications:Taking CPP while still working can result in higher taxes. Delaying until lower-income retirement years may be more tax-efficient.

To receive full OAS, you must have lived in Canada for at least 40 years after age 18. Partial OAS is available with at least 10 years of Canadian residence.

OAS payments are reduced when your net income exceeds a threshold. For 2026, the clawback begins at approximately $90,997 of net income. OAS is fully eliminated at approximately $148,000 of income.

Like CPP, you can defer OAS from age 65 to 70 for a 0.6% increase per month (36% total at age 70). However, unlike CPP:

• You cannot start OAS early (before 65)
• The break-even point is around age 83
• Deferring OAS does not affect GIS eligibility
• If you'll face clawback anyway, there's less benefit to deferring

GIS provides additional monthly income for low-income OAS recipients. It's particularly important for seniors with limited savings or pension income.

• Must be receiving OAS to qualify for GIS
• Income must be below approximately $21,000 (single) or $28,000 (couple)
• GIS is not taxable income
• RRSP/RRIF withdrawals count as income and can reduce GIS
• TFSA withdrawals do NOT affect GIS

DB pensions promise a specific monthly benefit based on a formula, typically considering years of service and salary. Common formulas include:

• Best Average Earnings: 2% × years × average of best 5 years salary
• Final Average: 2% × years × final 3 years average salary
• Career Average: 2% × years × career average salary

Example: 30 years of service × 2% × $80,000 average salary = $48,000/year ($4,000/month) pension

DC pensions work more like RRSPs—you and your employer contribute a set amount, and your benefit depends on how the investments perform. At retirement, you'll have a lump sum that can be converted to income.

When you retire with a pension, you'll face several important decisions:

Consider a 62-year-old with $500,000 in RRSPs, eligible for CPP of $1,000/month at 65, and OAS. Here are two approaches:

Start by understanding how much you'll need. Consider:

• Essential expenses (housing, food, healthcare, utilities)
• Discretionary spending (travel, hobbies, entertainment)
• One-time expenses (home repairs, car replacement, gifts)
• Healthcare costs that may increase with age

Create a timeline showing when each income source starts and how much it provides:

Use personal savings (RRSP/RRIF, TFSA, non-registered) to fill gaps between your expenses and guaranteed income. Prioritize drawing from the most tax-efficient sources first.

• Use RRSP before 72: Draw down RRSPs in early retirement to avoid large mandatory RRIF withdrawals later.
• Preserve TFSA: TFSA withdrawals are tax-free and don't affect OAS clawback or GIS. Save these for later or for unexpected needs.
• Manage OAS clawback: If your income is near the clawback threshold, consider using TFSA instead of RRSP withdrawals.
• Pension income splitting: If you're 65+, split RRIF income with your spouse to equalize tax brackets.