List every income source you expect in retirement
Before you decide anything, write down what will arrive each year and which slip reports it: CPP on a T4A(P), Old Age Security on its own OAS slip, RRSP or RRIF payments on a T4RSP or T4RIF, workplace pension payments on a T4A, and investment income on T5 or T3 slips. Add rental income and any part-time earnings. Retirement income is taxed together on one return, so the total matters more than any single source.
Next to each source, note whether tax is withheld at payment. Pensions and government benefits often have little or none withheld unless you ask, and that gap is a common reason retirees owe tax when they file. If you are married or have a common-law partner, repeat the list for them. Splitting eligible pension income between spouses is covered in our guide on pension income splitting for retirees, so this checklist leaves that topic there.
Decide when to start CPP and OAS
The standard age for the CPP retirement pension is 65, and you can start as early as 60 or as late as 70. Service Canada says payments are reduced by 0.6% for each month before 65, up to 36% at age 60, and increased by 0.7% for each month after 65, up to 42% at 70. There is no benefit to waiting past 70. If you apply after 65, you can ask for a start date up to 11 months before the month you apply, but not earlier than the month after your 65th birthday.
Old Age Security starts at 65, and you can delay it to as late as 70. Each month of delay raises the payment by 0.6%, up to 36% at 70, and there is a further 10% increase the month after your 75th birthday. Service Canada says there is no benefit to delaying if you are eligible for the Guaranteed Income Supplement. Most people are enrolled automatically and receive a letter around their 64th birthday; if you turned 65 and nothing has started, contact Service Canada. Health, other income and your spouse’s situation all affect the best start date, so treat this as a decision to model, not a default.
Mark the RRSP deadline in the year you turn 71
December 31 of the year you turn 71 is the last day you can contribute to your own RRSP, and it is the point by which you need a plan for the account. Up to the end of that year, the CRA says you can move RRSP funds into a registered retirement income fund (RRIF), use them to buy an annuity, or take money out as taxable income. Transfers straight to a RRIF or annuity have no tax withheld at the time; cash withdrawals do.
Ask your financial institution for its own deadline, because it may need your instructions weeks before December 31. If you will have unused contribution room, or a younger spouse with a spousal RRSP, ask whether a final contribution still makes sense.
Plan RRIF withdrawals before the first one
Once a RRIF is set up, no more contributions can be made. You must receive a minimum amount each year starting the year after the RRIF is established. The carrier calculates it from your age at the start of each year, or from your spouse’s or common-law partner’s age if you choose that on the original application form, and the choice cannot be changed later. You can withdraw more than the minimum, never less. Growth inside the RRIF is tax-free, but payments are taxable when you receive them.
If you are 65 or older at the end of the year, RRIF income generally qualifies for the pension income amount, a modest non-refundable credit. For the 2025 return, the federal claim was the lesser of $2,000 and your eligible pension income. Ask your accountant to confirm the figures for the year you are filing. RRIF payments appear on a T4RIF slip; check the boxes before filing.
Cover the tax that is not withheld
When you withdraw from an RRSP, the institution withholds 10% on amounts up to $5,000, 20% from $5,001 to $15,000 and 30% above that for Canadian residents outside Quebec. The CRA notes this may not be enough at your tax bracket, so the balance can be due when you file. Check what, if anything, is being withheld from your pension and RRIF payments.
You may have to pay quarterly instalments if your net tax owing is more than $3,000 in the current year and was also more than $3,000 in either of the previous two years. The CRA lists certain pension payments among the income that can trigger them. Instalments are due March 15, June 15, September 15 and December 15, and the CRA sends reminders in February and August. Your first retired year is a good time to compare an estimate of tax owing with what is being withheld and either ask the payer to withhold more or budget for instalments.
Watch your net income against the OAS repayment threshold
If your net income is above a yearly threshold, you repay 15% of the excess. The threshold was $93,454 for 2025 income, which applies from July 2026 to June 2027, and Service Canada sets a new figure for each income year, so check the current one before you plan. The repayment is generally taken from your monthly OAS payments as a recovery tax. For example, if your income were $10,000 above the threshold, the repayment would be $1,500, spread over a year. This is an illustrative example only.
Large one-time amounts, such as a big RRIF withdrawal, an RRSP cash-out or a capital gain from selling property, can push a single year over the line. Bring a projection to your accountant before you take them. Keep your notices of assessment each year, since your next steps depend on the figures on them.
Your conversation checklist
- Slips and statements for each retirement income source
- Expected annual total income, projected for the next three years
- CPP statement of contributions and your chosen start age
- OAS enrolment letter, or a note to contact Service Canada
- RRSP statements and the date you turn 71
- RRIF application showing whose age sets the minimum
- Amount of tax withheld on each pension, RRSP or RRIF payment
- CRA instalment reminders and your estimate of net tax owing
- Last two notices of assessment, including the OAS repayment line
- Your spouse’s or partner’s income and pension details
Further reading & sources
- Service Canada: CPP retirement pension, when to start your pension
- Service Canada: Old Age Security, when to start your retirement pension
- CRA: RRSP options when you turn 71
- CRA: Receiving income from a RRIF
- CRA: Who has to pay income tax instalments
Tax rules and administrative requirements can change. Check the applicable official guidance and confirm your circumstances with a qualified adviser. This guide is not an assessment of your filing, payment or legal obligations.