Retirement Income Forecast

Important notes and assumptions

Planning estimates only, not a tax return or personal financial advice. Amounts are nominal CAD for each projected year. The 2026 federal and B.C. rates are used throughout. CPP and OAS use 2% annual indexation. The forecast applies your inflation assumption to the spending goal, federal tax brackets and credits, and the OAS recovery threshold. B.C. bracket and credit amounts remain at 2026 levels from 2027 through 2030, then are indexed from 2031, reflecting the announced pause. When a spouse is included, each spouse is taxed separately using B.C. rates.

When selected, the Disability Tax Credit reduces estimated federal and B.C. income tax as a non-refundable credit, using the 2026 base amounts of $10,341 federally and $9,913 in B.C., indexed with the worksheet’s inflation assumption. It cannot reduce tax below zero. Eligible unused amounts are assumed transferable between spouses when a spouse is included; confirm that the supporting-person rules are met. The credit does not reduce OAS recovery, which is based on net income. Employer pension income is assumed eligible for the pension income amount, up to $2,000 federally and $1,000 in B.C. from age 65. The model does not apply a pension income amount to RRSP / RRIF withdrawals. TFSA withdrawals are tax-free. Non-registered withdrawals are assumed to realize gains in proportion to the account’s unrealized gain over its adjusted cost base, with a 50% capital-gains inclusion rate. Tax on non-registered assets at death is not modelled. Other funds added at retirement are assumed to have an adjusted cost base equal to their value.

The worksheet projects two automatically calculated strategies for each set of inputs. The lower taxable income priority draws RRSP / RRIF income up to the remaining room in the first federal bracket after CPP, OAS, and pension income. Non-registered withdrawals and TFSA withdrawals cover any remaining after-tax income need. The 2026 first federal bracket ends at $58,523 and is indexed for inflation; mandatory RRIF minimums may exceed the available room. Taxable capital gains from non-registered withdrawals can put total income above the bracket. The estate tax priority compares withdrawal sequences and RRSP / RRIF income targets to minimize projected retirement tax plus estimated tax on remaining RRSP / RRIF funds at the plan age. Both strategies meet the income goal as far as available assets allow.

CPP and OAS are modelled with 2% annual indexation. OAS is calculated from the October–December 2026 full monthly rate at age 65 ($762.50), increased by 0.6% for each month deferred to age 70, then prorated by years lived in Canada after age 18 divided by 40. It receives an automatic 10% increase at age 75 and is forecast with 2% annual indexing. Eligibility rules and international social-security agreements are not determined by this worksheet. Employer pension income is adjusted for inflation up to retirement, then follows the separate pension-indexing input (0% by default). The forecast includes estimated RRIF minimums from age 72, assuming the RRSP is converted to a RRIF by the end of age 71.

Any net income above the after-tax goal is counted in that year and is not carried forward as a separate asset. “Other funds at retirement” are added to the non-registered spending pool, so the year-by-year non-reg draw can include these funds even when the current non-registered balance is zero. The death estimate assumes any remaining RRSP / RRIF is fully taxable to its owner and does not model a spouse or dependent rollover; a qualifying transfer can defer the tax, and the survivor’s future tax should then be modelled separately. Tax on unrealized non-registered gains at death is not modelled. The worksheet excludes pension splitting, the pension income amount on RRSP / RRIF withdrawals, and other deductions or credits. OAS recovery is estimated at 15% above the inflation-adjusted $95,323 threshold and capped at OAS received. These are planning estimates, not a tax return or personal financial advice.

2026 sources: Canada Revenue Agency tax rates · B.C. personal tax rates · B.C. basic tax credits, including the 2026 disability amount · CRA Disability Tax Credit and transfers · OAS amounts and residency rules · OAS recovery tax · CRA capital-gains guide · CRA prescribed RRIF factors · CRA RRSP/RRIF death transfers.