PRO RETIREMENT TOOL
OAS Clawback & Pension Shield Simulator
Under CRA rules, earning over $90,997 triggers a 15% recovery surtax that claws back your Old Age Security pension. Model your post-71 mandatory RRIF income and discover how early RRSP meltdowns preserve tens of thousands in guaranteed government benefits.
PROJECTED TAXABLE INCOME
$86,100/yr
CPP + Private Pension + Mandatory RRIF.
ANNUAL OAS CLAWBACK
$0 (Safe)
15% surtax on income above threshold.
NET OAS RECEIVED
$8,560/yr
Actual annual government check kept.
LIFETIME PENSION SAVED
$0
Government cash preserved over retirement.
Retirement Income Sources
CRA mandates minimum annual withdrawals starting at age 71.
Proactively withdraw RRSP funds between ages 60 and 70 (in lower tax brackets) to shrink the age-71 RRIF and dodge the OAS clawback.
Clawback Exposure Meter
How the RRIF-to-OAS Clawback Trap Works
1. Mandatory RRIF Conversion at Age 71: You can no longer defer taxes. At age 71, you must withdraw at least 5.28% of your total balance, increasing every year (6.82% by age 80).
2. The $90,997 Threshold: The CRA looks at line 23600 (Net Income). Every $10,000 you earn above this threshold automatically deducts $1,500 directly from your OAS pension checks.
3. The Early Meltdown Solution: By intentionally melting down $30,000–$50,000/yr from your RRSP during the "gap years" (ages 60–65 or 65–70), you fill low marginal brackets, max out your TFSA, and keep your post-71 income safely under the clawback threshold.