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Taking some time to examine your retirement income lets you see whether you are on track or need to make changes to your retirement plan. See how the following four common income sources can help fund your retirement.

Source #1: Government Retirement Benefits

Government retirement benefits may help form a predictable, lifelong part of your retirement income stream. However, it’s important to understand what you’re entitled to and what is taxable.

EligibilityMaximum monthly payment amount Taxable
Canada/Quebec Pension Plan (CPP/QPP)To qualify, you must be at least 60 years old and have made at least one valid contribution to the CPP.For 2022, the maximum monthly amount you could receive as a new recipient starting the pension at age 65 is $1,253.59.Yes
Old Age Security (OAS)To qualify, if you are living in Canada, you must be at least 65 years old, a Canadian citizen or legal resident and have resided in Canada for at least 10 years. No working or contribution requirement.If you are receiving a full OAS pension, for January to March 2022, the maximum monthly payment amount you could receive is $642.25.Yes

In addition, you may also qualify for the Guaranteed Income Supplement, the Allowance or the Allowance for the Survivor. These three benefits are not considered taxable income and amounts are calculated based on your age, marital status and your annual income.


  • To help you better understand your future financial security,
    the Government of Canada has a Canadian Retirement Income Calculator, which can provide you with an estimate of your retirement income.
  • Consider income splitting or income deferral strategies to keep your income below the OAS recovery tax (clawback) threshold. Speak to your bank advisor for more details.

Source #2: Income from Converted RRSPs

An RRSP must be converted to a RRIF or annuity, or paid out in a lump sum by the end of the calendar year in which you turn age 71.

  • Registered Retirement Income Fund (RRIF)
    • An investment plan within your control
    • Tax-sheltered until withdrawn
    • Mandatory minimum annual withdrawals
  • Annuities
    • A financial contract with an insurance company
    • Guaranteed set payments comprised of a return of original lump-sum capital (non-taxable) and interest income (taxable)

If you were part of a registered pension plan with a previous company, you may have a Locked-In Retirement Account (LIRA). A LIRA is similar to an RRSP in that you have to make decisions on what to do with it by the age of 71.


  • Ensure that any beneficiaries named in your Will do not conflict with beneficiaries named on your registered plans. This may help you avoid unnecessary legal expenses and conflicts.
  • If you are paying yourself a salary from your incorporated business, you may be able to boost your retirement savings by setting up an Individual Pension Plan (IPP). Speak to your advisor for more information on IPP


Source #3: Employer Pension Plan

In building your retirement income, (if applicable) make sure you understand your pension benefits at your current and past companies. Know what you’re entitled to, and review your annual statement.


  • If you leave your pension with your employer, ensure that you have designated your desired beneficiary.

Source #4: Personal Savings and Investments

As you plan your retirement income, don’t forget to consider your other personal savings and investments, which may include registered and/or non-registered assets, like:

  • TFSA Savings
  • Home Equity – For example, you can consider Reverse Mortgage like the CHIP Home Income Plan, in which you can convert a portion of your home equity into tax-free cash. Check with your advisor for more options
  • Other savings and investments like GIC, mutual funds and rental property that you own


  • Consider setting up a prescribed rate loan to even out the income between your family members from your non-registered assets, which may lower your family tax bill.

Regardless of how you assemble your retirement funds, if you start with a broader understanding of the options available, you’ll be equipped to build on a solid foundation. Speak to your advisor about having a financial plan prepared or updated to determine if you have enough assets and income to meet your expected expenses in retirement.