LAB 02 — Retirement
How much of your retirement income will you actually keep? Computed in your browser, nothing you enter leaves this page.
ON — Ontario rates used as the example; the mechanics apply Canada-wide (Quebec’s system differs in some details).
Assumes: Ontario resident taking OAS at 65 — paid in fortieths: the full amount (2026 ≈ $9,024/yr) needs 40 years in Canada after age 18, 10–39 years pays proportionally, and under 10 years doesn't qualify. Taxable income includes OAS itself, CPP, RRIF, pensions, rent, interest and dividends; recovery threshold $95,323, clawback 15%; 2026 federal+Ontario brackets (federal first rate 14%; surtax approximated), basic personal amounts credited. RRIF minimums, dividend gross-ups and pension splitting are case-specific — that's the part a diagnostic prices. The Ontario Health Premium is not included: it is a step levy — $0 below $20,000 of taxable income, then a few narrow ramps between wide flat plateaus (a fixed $750 from $72,600 to $200,000; capped at $900 above $200,600). The income range this tool covers sits almost entirely on a flat plateau, so it barely moves the totals and doesn't change the marginal rates shown (BC and Alberta have no equivalent personal levy). Educational estimate, not advice.
What is the OAS clawback?
Old Age Security is reduced by 15 cents for every dollar of net income above $95,323 (2026). A retiree with $120,000 of income repays about $3,702 of OAS; near $152,062 the pension is gone entirely. Income drawn from a TFSA or as a bank loan secured by a policy's cash value doesn't count toward the line.
Where to go from here: the OAS planning guide, or the wider Families & Retirement page on shaping income, not shrinking it.
Book a Tax Diagnostic
The first conversation is free — your situation, our method, and whether we fit. Complex files quote an analysis fee up front: you'll know before we start.
// the only variable in this plan that gets more expensive every year is your age