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Retirement Sources of Income - Merrick Financial Inc

Updated: Aug 2



Some of the main sources of income in retirement are:

  • Canada Pension Plan - most people pay into this during their lifetime and are eligible to start collecting it at age 60 with a reduced amount. You can wait as long as age 70 to start collecting it for an increased amount.

  • Old Age Security - you can start collecting this at age 65. Note that there is a 15% clawback of OAS should your net income for the year be more than approximately $80,000.

  • RRSP or RRIF - the RRSP must be converted into a RRIF by the end of the year that you turn 71. When you put money into your RRSP you get a tax refund and the money can grow inside the account tax free. When you withdraw the money in retirement, and are ideally in a lower tax bracket, you are taxed on this withdrawal from the RRSP / RRIF.

  • TFSA - can be a very good source of retirement income as the withdrawals and growth of the account are both tax free. Note that the total amount of the TFSA is more limited due to the yearly contribution room limit. However, if you take money out one year you can put it back in the following year.

  • Workplace Pension - this can be either a defined benefit or a defined contribution pension. Either way it is a very good source of funds for retirement


Please contact Merrick Financial Inc. and we can help you sort out your retirement income sources in a tax efficient way.


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