The years before pensions

I want to stop working before my pensions start. Where will the income come from?

Your paycheque may stop before you start the Canada Pension Plan (CPP) or Old Age Security (OAS). What will you live on in between? Plan which savings to use and how much to keep for later.

See what changes the picture

The part worth a closer look

The years between work and pensions can change the whole plan.

Plan the change in income

A retirement date starts a new pattern of spending and income. Regular costs, travel, family commitments and a reserve for surprises all need funding after the paycheque ends.

Look beyond one year’s tax

Taking money from an RRSP can make sense in a year when your income is lower. But check the tax and what you will have left for later before choosing which account to use.

Plan for the overlap

You can start CPP and OAS at different times. Check what each would pay and how it fits with your other income. Some benefits fall as your income rises. The plan needs to work before and after your pensions start.

This situation does not calculate whether you can afford to retire or recommend a pension start date. A personal comparison needs your pension estimates, income, spending and account details.

A large balance still needs an income plan.

It is easy to postpone the withdrawal question while the savings are growing. Once work stops, the order and timing of withdrawals can affect the tax paid, the income available and the reserves left for later. Compare those outcomes across the years.

Questions to bring into your plan.

What spending do my savings need to cover before each pension starts?
Which withdrawal patterns fit my income now and later?
What happens if returns are weaker, costs rise or retirement lasts longer?

Background and official sources

General Canadian tax and retirement information, reviewed September 2026. The visual shows how the choices connect. It does not estimate tax savings.

Explore a related question.

Explore the CPP and OAS questions See a business owner’s retirement example

What would this mean for you?

Tell us what’s changing and what you want the money to do. We’ll discuss how we can help and what happens next.

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