Retirement income in Canada: how the pieces fit together
Most Canadians retire on a mix of government pensions, a workplace pension if they have one, and their own savings. Knowing roughly what each piece will pay is the first step in working out how much you need to save yourself.
The pieces
- Canada Pension Plan (CPP) or Quebec Pension Plan (QPP)
- A contributory pension based on your earnings and years of contributions. The 2026 maximum at 65 is $1,507.65 a month, but most people get less; the average for new retirees at 65 in July 2026 was $858.34. You can start between 60 and 70 (60 and 72 for the QPP), with a smaller or larger pension. Quebec workers are covered by the QPP instead of the CPP.
- Old Age Security (OAS)
- A monthly pension from age 65 based on how long you have lived in Canada, not on work. For October to December 2026 the maximum is $762.50 a month at 65 to 74 and $838.75 at 75 and older. Part or all of it is taxed back from higher-income seniors.
- Guaranteed Income Supplement (GIS)
- An extra, non-taxable monthly payment for OAS recipients with low income. For October to December 2026 a single person with income under $23,112 can get up to $1,138.90 a month.
- Workplace pensions
- Defined benefit plans promise a set pension, often based on salary and years of service. Defined contribution plans and group RRSPs build an account whose value depends on contributions and returns. Money you take with you when you leave a job may be "locked in" in a LIRA.
- RRSPs and RRIFs
- Your own tax-deferred savings. An RRSP must be converted by the end of the year you turn 71, usually into a RRIF, which then pays you a minimum amount every year. Withdrawals are taxable.
- TFSAs
- Tax-free savings. TFSA withdrawals are not income, so they don't reduce OAS or the GIS. This makes the TFSA a useful complement to the RRSP.
- Other savings and assets
- Non-registered investments, home equity, a business, an annuity or part-time work can all add to retirement income.
Putting numbers on it
A simple example for a single person retiring at 65 in late 2026 with average CPP: $858.34 (CPP) + $762.50 (full OAS) = about $1,621 a month, or about $19,450 a year before tax, from government sources. Someone who wants $50,000 a year would need about $30,550 a year from a workplace pension, a RRIF, a TFSA or other savings. The retirement calculator and financial planning steps help you work out your own gap.
Your own CPP estimate is available from Service Canada, and QPP members can get theirs from Retraite Québec. The pages below explain each piece in detail.
Pages in this section
- RRSP to RRIF at 71Your RRSP options by the end of the year you turn 71, the full RRIF minimum withdrawal table, withholding tax, the pension credit, income splitting and LIFs.
- CPP, QPP, OAS and GIS2026 public pensions: CPP up to $1,507.65 a month at 65, OAS $762.50 or $838.75, the $95,323 clawback threshold, the GIS, and the QPP and RREGOP in Quebec.
- Retiring earlyRetiring before 65 in Canada: bridging income until OAS, the 36% CPP cut at 60, pension reductions, health benefits, RRSP drawdown, market risk and a checklist.
- Is my RRSP protected?How RRSP savings are protected: CDIC insures deposits up to $100,000 per category, CIPF covers dealer failure, Assuris covers insurers, plus creditor protection.