C$1 million is enough for many Canadians to retire on. At a 4% starting withdrawal, it pays about C$40,000 a year. Add an average CPP pension and full Old Age Security and a single 65-year-old has about C$59,000 a year before tax. A couple who share the C$1 million and both get average CPP and OAS have about C$79,000. Where the money sits, RRSP, TFSA or a taxable account, and when you start CPP and OAS, decide how much of that you keep.
What C$1 million pays
The pieces, in 2026 dollars:
- Savings. 4% of C$1 million is C$40,000 in the first year, then raised with inflation. The 4% figure is a US-based guideline for a safe withdrawal rate over about 30 years, not a promise.
- CPP. The average new pension at 65 was C$858.34 a month in July 2026, about C$10,300 a year. The maximum is C$1,507.65 a month, about C$18,100 a year.
- OAS. Up to C$762.50 a month at 65 to 74, about C$9,150 a year, rising 10% at 75. A full pension needs 40 years in Canada after 18.
CPP and OAS are indexed to inflation and paid for life, so they cover longevity risk that the savings can’t.
Where the money sits changes what you keep
A C$1 million RRSP isn’t C$1 million to spend. Every dollar out is taxable income, and the bank withholds tax on lump-sum withdrawals up front: 10% up to C$5,000, 20% up to C$15,000 and 30% above that, outside Quebec. A C$1 million TFSA is all yours, and withdrawals don’t count as income for the OAS clawback.
Most people have a mix. The order you draw from them is one of the biggest levers in the plan.
The rules that shape a C$1 million retirement
The RRIF minimum at 71
Your RRSP must become a RRIF by the end of the year you turn 71, and from then on a minimum comes out every year: 5.28% at 71 for most RRIFs, 5.82% at 75, 6.82% at 80 and 8.51% at 85. On a C$1 million RRIF, a 5.28% minimum is C$52,800, whether you need it or not. Drawing some of the RRSP in your 60s can even out your taxable income over the decades.
The OAS clawback
The clawback starts at C$95,323 of net income in 2026, per person, and takes 15 cents of OAS for each dollar above it. A single retiree living on C$1 million and government pensions is usually under it. A workplace pension on top, or one large RRSP withdrawal, can push you over. Our guide to OAS clawback planning covers the moves that help.
Pension income splitting
From 65, couples can allocate up to half of eligible pension income, including RRIF withdrawals, to the lower-income spouse on Form T1032. On C$1 million held mostly in one spouse’s name, that can lower the household’s tax every year. CPP and OAS can’t be split this way.
CPP and OAS timing
Starting CPP at 60 cuts it 36% for life; waiting to 70 adds 42%. OAS can be delayed to 70 for 36% more. With C$1 million, many people can afford to live on savings in their 60s and start the government pensions later. See when to take CPP.
Retiring before 65
Retire at 60 and the savings carry you alone until CPP and OAS start, unless you take CPP early at a reduced rate. Five years at C$50,000 is C$250,000 of the C$1 million before either pension starts. A workplace pension changes this; if you’re weighing a lump sum against the monthly pension, read pension commuted value decisions.
What fees do to C$1 million
A 1% fee on C$1 million is C$10,000 a year, a quarter of a C$40,000 withdrawal. That’s before the funds’ own yearly cost, the management expense ratio. In funds sold through an advisor, part of the MER is a trailer fee paid to the advisor’s firm, which the Fund Facts for each fund shows.
We don’t report a Canadian median for percentage-of-assets fees, because fewer than 12 Canadian fee-only firms published a rate we could check. The 1% above is a common round figure, not our data.
Common mistakes
- Planning from the gross balance. An RRSP of C$1 million is worth less after tax than a TFSA of C$1 million.
- Leaving the RRSP untouched until 71, then facing large forced withdrawals at higher tax rates for life.
- Taking CPP at 60 by default when savings could bridge to a larger pension.
- Ignoring the cost of advice. 1% plus fund costs can take a third or more of a 4% withdrawal.
- Using one withdrawal rate forever. Spending usually changes with age; plans should be reviewed every year or two.
- Holding the money in one spouse’s name without a plan to even out taxable income.
Questions to ask a planner
- How much can I spend each year, after tax, and what’s the plan if markets fall early?
- Which accounts should I draw from first, and how much each year?
- When should I start CPP and OAS?
- Will my income reach the OAS clawback in any year, especially after 71?
- Should we split pension income, and from what age?
- What will I pay you each year in dollars, and what are my funds’ MERs on top?
When a fee-only planner is worth it
With C$1 million, a planner who isn’t paid a percentage is usually the better deal. A fee-only or advice-only planner builds the drawdown plan, and you hold low-cost funds at your own bank or brokerage. Among Canadian fee-only planners who publish prices:
- One-time plan: a median C$1,900 (middle half C$950 to C$3,000, 46 firms)
- Hourly: a median C$250 (middle half C$170 to C$298, 15 firms)
- Ongoing planning: a median C$2,300 a year (middle half C$1,200 to C$4,000, 21 firms)
The samples are small; the Canadian cost guide explains how to read them. If you want someone to manage the money too, compare the total yearly cost in dollars, including fund costs, before you sign.
Where to find one
Browse fee-only planners by province in the public graph: Ontario, British Columbia, Alberta, Quebec, Manitoba, Saskatchewan, Nova Scotia, Newfoundland and Labrador and Yukon. Or start from the retirement planning specialty, the lists of advisors for pre-retirees, flat-fee advisors and fee-only advisors in Ontario.
The US version of this math, in US dollars, is in what a financial advisor costs on $1 million.