Retirement Puzzles
Canada’s retirement income system is complex. Public programs such as OAS, GIS, and CPP/QPP interact with private pensions, savings, and tax credits in ways that aren’t always understood. There isn’t just one retirement puzzle in Canada—there are several.
Broadly, retirees tend to fall into one of five groups. Each group faces a different planning challenge.
- Public‑program–reliant retirees
Individuals who depend mainly on CPP/QPP and OAS, often supplemented by GIS.
- Retirees with modest private savings
Those combining CPP/QPP and OAS with small RRSPs, TFSAs, or modest workplace pensions.
- Workplace‑pension retirees
Retirees with significant defined benefit or defined contribution pensions, alongside CPP/QPP and OAS.
- High‑income retirees with multiple pools of capital
Individuals with RRIFs, non‑registered investments, TFSAs, pensions, holding companies, and CPP—where OAS is often fully clawed back.
- Legacy‑focused retirees
Those with substantial assets who are primarily concerned with estate outcomes and how retirement income decisions affect what remains for heirs.
The Canadian Retirement Planner’s Software can guide you in assembling the pieces of your retirement puzzle. For more information, visit https://www.gobeilretire.ca/
David R. Gobeil, MSc, CPA, CA, CFP®