The RRSP Meltdown
Between retirement and age 71, strategically withdraw from your RRSP up to the top of the lower tax bracket (~$55k). This avoids higher future tax brackets when RRIF minimums and CPP/OAS pensions kick in.
Review Tax Brackets →
PRO TOOL
Retirement Withdrawal Sequence Planner
Decumulation is harder than accumulation. Model the optimal drawdown sequence across taxable, tax-deferred, and tax-free accounts to prevent tax spikes and protect retirement longevity.
PORTFOLIO LONGEVITY
Age 90+ (Funded)
Projected sustainable spending horizon based on assumed returns.
LIFETIME TAX DRAG
$142,500
Cumulative income and capital gains tax across all decumulation years.
ENDING ESTATE VALUE
$410,000
Projected remaining legacy at age 90 to pass to heirs or charities.
Retirement Profile
Account Balances at Retirement
Government Benefits
Portfolio Trajectory (Retirement to Age 90)
Year-by-Year Cash Flow Breakdown (First 15 Years)
| Age | Pension | RRSP/401k | TFSA/Roth | Taxable | Tax Drag | Portfolio End |
|---|
Strategic Principles
Why "Taxable First, RRSP Last" is often dangerous
Delaying all RRSP/401(k) withdrawals until age 71 creates massive mandatory minimum RRIF withdrawals that push seniors into top tax brackets and trigger OAS pension clawbacks.
OAS Clawback Protection
In Canada, OAS pension begins clawing back at net incomes above ~$90,000. By keeping taxable RRIF income smoothed and supplementing with tax-free TFSA withdrawals, you keep 100% of your government benefits.
Review Retirement Module →Protecting Heirs from Estate Taxes
At death, all remaining RRSP/RRIF funds are treated as if liquidated in a single tax year, often resulting in a 53.5% tax hit. Smoothing withdrawals transfers tax-free wealth to heirs via TFSAs and designated beneficiaries.
Review Estate Planning →