Service · Income Strategy
CPP, OAS, RRIF, annuities and non-registered accounts each have different tax treatments and optimal draw-down timing. We design the sequence that minimises lifetime tax.
A common mistake among new retirees is drawing from all accounts simultaneously, or converting an RRSP to a RRIF at the mandatory age of 71 without planning ahead. Deferring CPP to age 70 increases your benefit by 42% relative to taking it at 65 — but only if you have sufficient bridge income to cover the gap years. We stress-test your income plan against three scenarios: early retirement, market downturns in the first five years, and longevity to age 95. The result is a written income schedule — a year-by-year map of which accounts you draw from, in what amount, and what the estimated net tax position looks like each year.
Every income stream is modelled individually, then integrated into a single coordinated plan.
We calculate the crossover point where deferring CPP and OAS beats taking benefits early, accounting for your health, portfolio size and income needs.
Converting at 65 versus 71 has different implications for OAS clawback and bracket management. We model both paths with your actual numbers.
For clients who value income certainty, we evaluate whether a prescribed or life annuity should form part of the income base, and at what age to lock in.
Capital gains from non-registered accounts are taxed differently than RRIF withdrawals. We coordinate timing to smooth your effective tax rate across retirement.
“I retired at 63 and had no idea that drawing down my non-registered account first, while deferring CPP to 70, would save us tens of thousands in tax over a twenty-year horizon. Betajbeta built a year-by-year schedule that made the whole thing concrete. We followed it in year one and the numbers landed almost exactly as projected.”
— Richard F., Nepean
There is no single right answer — it depends on your health, your other income sources and your risk tolerance for longevity. We calculate the breakeven age for your specific situation, which typically falls between 77 and 82, then help you weigh the trade-offs.
For 2024, OAS begins to be clawed back when your net income exceeds approximately $90,997. RRIF withdrawal timing and income splitting strategies can keep you below this threshold even on a healthy retirement income.
Converting before 71 can be advantageous if you are in a lower tax bracket now than you expect to be at 71, or if you want to begin income splitting with a spouse sooner. We model the conversion decision as part of every income strategy engagement.
We build a sequence-of-returns buffer into every income plan — typically 18 to 24 months of living expenses held in cash or short-term fixed income — so that a poor market in your first years of retirement does not force you to sell growth assets at a loss.
We build your income schedule as a written deliverable — a document you can review, share with family and return to every year.
Begin Your Income Plan