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Lifetime tax planning

When I stop working, where will the income come from?

You want to stop working at 65. You have investments in your corporation and personal savings. But which money should replace your paycheque? Start with what you need to live on, then look at which accounts to use. This example does not tell you whether you can afford to retire.

See what changes the picture
The part worth a closer look

The account you use first changes the years that follow.

Replace the paycheque

Start with the life the money has to fund.

Regular spending, travel and a reserve for surprises need a funding plan. Corporate and personal accounts can play different roles in the years after work stops.

  1. Spending needs
  2. Available accounts
  3. Income plan

Keep room to adapt

A small tax bill today is only one result.

You may have to take money out of some accounts later, even if you do not need it. Other income and care costs can also change. Look ahead before using up savings you can access easily.

  1. Required withdrawals
  2. Changing needs
  3. Remaining flexibility

Plan what you leave behind

What remains needs its own plan.

A withdrawal order that suits life today may leave a different estate result. Review the owner’s security and the intended inheritance together.

  1. Owner’s security
  2. Eventual taxes
  3. Family’s inheritance

This example explores withdrawal decisions. It does not calculate whether the savings can support retirement at 65.

What this could mean for you

Retirement is a sequence of decisions.

An owner retires with investments in a corporation, an RRSP, a TFSA and a regular personal investment account. Each can help pay the bills. Which one they use first affects what stays invested and the tax they may pay later.

Fund the life you want.

Spending, travel, care costs and major family goals come first. A tax comparison that leaves one route unable to fund those needs is not a useful comparison.

Test more than one order.

Compare taking dividends, using retirement savings and selling personal investments. Include your pensions and other income. The best account to use first may change over time.

Check the ending position.

Compare what you could spend after tax with what your family could inherit. A plan that leaves more for you to spend may leave less for your family.

The right order depends on your whole plan.

Our examples estimate tax when you use your money and when you die. They do not show one best order for everyone. Tax rules, investment returns, your spending and how long you live can change the answer.

Questions worth answering early.

  1. Which accounts fund the next five years without sacrificing later flexibility?
  2. How would delayed retirement or higher care costs change the order?
  3. What should remain available for your family?
Sources and limits of this example

CRA: RRSPs and withdrawals
Income Tax Act: capital gains deduction

Tax rules checked September 29, 2026. This is a general example. The sources explain the rules, but cannot tell you what your family would save. Your situation, costs and future tax rules can change the result.

Explore your starting point

Where do CPP and OAS fit in the income plan?

Plan when to start the Canada Pension Plan (CPP) and Old Age Security (OAS), along with when to use your savings.

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