Ontario Retirement Planning HandbookPage 1 of 78
Ontario Retirement Planning Handbook
Ontario / Canada focus — Version 6.3 — Updated July 15, 2026
Educational guide only — update annually. Intended audience: Ontario residents approaching
and in retirement (primary focus age 65+).
Version 6.3 update: Makes the handbook genuinely province-wide by removing single-
municipality dependence (rewrote §9.7, §12, and §13.1 so local property-tax/utility relief is
described generically for any Ontario municipality/upper-tier region, with regional examples);
adds Ontario health-system navigation and the capacity/guardianship framework (new §7.7 and
§8.8); and adds a dedicated housing-transition and downsizing section (new §4.4). Version
metadata, table of contents, glossary, and annual checklist updated accordingly. New content is
educational only; confirm all rules and figures with official sources and qualified professionals
before acting.
Version 6.2 update: Closed five substantive gaps for the 65+ audience: asset-location
guidance (§3.6), decumulation frameworks including the bucket strategy (§5.8), multi-year tax-
bracket smoothing/"top-up" strategy (§5.9), probate-avoidance alternatives — Alter Ego and
Joint Partner Trusts plus a warning on joint ownership with adult children (§8.6), the Principal
Residence Exemption and change-in-use risk when creating a secondary suite (§7.5), and
behavioural elder-fraud typologies (expanded §9.7).
Version 6.1 update: Corrected RRIF minimum-age timing, clarified OAS deferral, reconciled
DUPE/Estate Administration Tax terminology, expanded the glossary, and consolidated volatile
figures in the current-number appendix.
Purpose: This handbook helps Ontario residents organize retirement decisions, ask better
questions, and prepare for discussions with qualified financial, tax, legal, health, and estate
professionals. It is educational and does not provide personal financial, tax, investment,
insurance, medical, or legal advice.
What this handbook helps you do Practical result
Understand accounts, pensions, benefits, Know what is taxable, tax-deferred, tax-free,
credits, and insurance income-tested, or subject to special rules.
Back to contents
Ontario Retirement Planning HandbookPage 2 of 78
What this handbook helps you do Practical result
Assess income, expenses, debts, risks,
Plan before retirement contribution room, tax brackets, benefits, and
realistic goals.
Coordinate withdrawals, taxes, credits,
Manage during retirement insurance, investments, housing, health
costs, and estate documents.
Prepare for incapacity, survivor needs, and Organize wills, powers of attorney,
estate administration beneficiaries, executors, digital access,
liquidity, and final-tax issues.
Understand compensation, credentials,
Choose professional help more carefully conflicts, scope, and questions to ask before
hiring.
Note: Rules, thresholds, premiums, benefit amounts, municipal programs, and tax credits can
change. Confirm current details with official sources before acting. Local (municipal)
programs vary widely across Ontario — always confirm what exists in your own
municipality and upper-tier region.
Back to contents
Ontario Retirement Planning HandbookPage 3 of 78
Table of Contents
Ontario Retirement Planning Handbook .......................................................................................... 1
1. How to use this handbook ....................................................................................................................... 5
2. Retirement planning in one page .......................................................................................................... 6
3. Pre-retirement: assess your financial situation .............................................................................. 7
3.1 Build your retirement balance sheet ................................................................................................................................... 7
3.2 Estimate retirement income and income-tested benefits .......................................................................................... 8
3.3 RRSP contribution-side mechanics ....................................................................................................................................... 9
3.4 Know your tax and benefit sensitivity .............................................................................................................................. 11
3.5 Insurance and risk audit before leaving work .............................................................................................................. 11
3.6 Asset location: which investments to hold in which accounts .............................................................................. 12
4. Pre-retirement: set realistic goals ...................................................................................................... 14
4.1 Define lifestyle goals ................................................................................................................................................................ 14
4.2 Convert goals into numbers .................................................................................................................................................. 14
4.3 Use scenarios instead of one forecast ............................................................................................................................... 15
4.4 Housing transition and downsizing economics (new in v6.3) ................................................................................ 15
5. Pre-retirement: define your retirement income strategy .......................................................... 17
5.1 Make workplace pension decisions first ......................................................................................................................... 17
5.2 Decide when to start CPP and OAS .................................................................................................................................... 18
5.3 CPP pension sharing and credit splitting are different ............................................................................................. 19
5.4 Choose a withdrawal order ................................................................................................................................................... 20
5.5 Understand withholding tax on RRSP and RRIF withdrawals ............................................................................... 21
5.6 Spousal RRSPs, pension splitting, and RRIF spouse-age election ........................................................................ 21
5.7 FHSA as a pre-retirement strategy .................................................................................................................................... 22
5.8 Plan around ages 60, 65, 71, and 72 .................................................................................................................................. 22
5.9 Decumulation frameworks (protecting cash flow from market volatility) ...................................................... 23
5.10 Multi-year tax smoothing and bracket top-up ........................................................................................................... 25
5.11 Ontario locked-in accounts: LIRA/LIF unlocking options .................................................................................... 25
6. During retirement: make adjustments and corrections ............................................................. 27
6.1 Review after the first retirement year ............................................................................................................................. 27
6.2 Common corrections ................................................................................................................................................................ 27
7. Long-term care, health costs, and aging at home .......................................................................... 28
7.1 Care settings and stress testing ........................................................................................................................................... 28
7.2 Choosing a retirement home ................................................................................................................................................ 29
7.3 Aging-at-home tax credits and Ontario supports ........................................................................................................ 30
7.4 Travel and out-of-country medical insurance .............................................................................................................. 31
7.5 Insurance decisions in retirement ..................................................................................................................................... 31
7.6 Principal Residence Exemption and change-in-use ................................................................................................... 31
7.7 Navigating the Ontario health and home-care system .............................................................................................. 32
Back to contents
Ontario Retirement Planning HandbookPage 4 of 78
8. Survivor, beneficiary, will, and estate planning ............................................................................. 33
8.1 Core Ontario documents and safeguards ........................................................................................................................ 33
8.2 Multiple wills in Ontario ......................................................................................................................................................... 34
8.3 RDSP and disabled beneficiaries ........................................................................................................................................ 34
8.4 Survivor income planning ..................................................................................................................................................... 35
8.5 Final tax, probate, and charitable giving ......................................................................................................................... 35
8.6 What to do after a death ......................................................................................................................................................... 35
8.7 Probate-avoidance alternatives and their risks ........................................................................................................... 36
8.8 Capacity, incapacity, and guardianship in Ontario ..................................................................................................... 39
9. Expanded federal, Ontario, and local planning programs .......................................................... 41
9.1 Canadian Dental Care Plan (CDCP) .................................................................................................................................... 41
9.2 Ontario Seniors Dental Care Program (OSDCP) ........................................................................................................... 43
Who qualifies ...................................................................................................................................................................................... 43
What it covers ..................................................................................................................................................................................... 43
Dentures ................................................................................................................................................................................................ 44
9.3 Ontario Drug Benefit ................................................................................................................................................................ 44
9.4 Ontario Trillium Benefit ......................................................................................................................................................... 47
9.5 Snowbird tax and travel rules .............................................................................................................................................. 47
9.6 Working while receiving CPP ............................................................................................................................................... 47
9.7 Ontario and municipal property-tax and utility relief ............................................................................................... 48
9.8 Fraud prevention: technological safeguards and scam typologies ...................................................................... 48
9.9 Advanced Life Deferred Annuity (ALDA) ........................................................................................................................ 50
10. Selecting and vetting professional help ......................................................................................... 50
11. Glossary of useful retirement terms ................................................................................................ 52
12. Useful official sources for self-study ............................................................................................... 57
12.1 Canada Revenue Agency — Tax and Registered Plans .......................................................................................... 57
12.2 Service Canada — CPP, OAS and Income-Tested Benefits .................................................................................... 58
12.3 Government of Ontario — Seniors’ Benefits and Healthcare .............................................................................. 59
12.4 Ontario Health atHome — Home Care and Long-Term-Care Placement ....................................................... 60
12.5 211 Ontario — Local Community and Seniors’ Services ....................................................................................... 60
12.6 Municipal and Regional Programs .................................................................................................................................. 60
12.7 Powers of Attorney, Capacity and Guardianship ...................................................................................................... 61
12.8 Financial, Pension and Insurance Regulation ............................................................................................................ 62
12.9 Fraud Prevention and Reporting ..................................................................................................................................... 62
12.10 United States Travel, Tax and Snowbird Rules ....................................................................................................... 63
12.11 Ontario Legal and Tax Professionals ........................................................................................................................... 63
Source-verification practice ......................................................................................................................................................... 64
13. Consolidated annual review checklist and current-number appendix ............................... 64
13.1 One annual checklist ............................................................................................................................................................. 64
13.2 Current-Number Appendix ................................................................................................................................................ 65
Old Age Security ................................................................................................................................................................................ 67
Back to contents
Ontario Retirement Planning HandbookPage 5 of 78
Guaranteed Income Supplement ................................................................................................................................................ 67
Allowance and Allowance for the Survivor ........................................................................................................................... 68
Federal tax brackets — 2026 ....................................................................................................................................................... 69
Ontario tax brackets — 2026 ....................................................................................................................................................... 70
Ontario surtax .................................................................................................................................................................................... 70
Example ................................................................................................................................................................................................. 76
1. How to use this handbook
Retirement planning is a connected set of decisions: when to stop working, when to start CPP
and OAS, how to use RRSP/RRIF and TFSA assets, how much risk to keep, how to manage
health and housing costs, and how to protect a spouse, dependants, and the estate.
Best use: Review this handbook before year-end, before major withdrawals, at ages 60, 65, 71,
and 72, and after retirement, marriage, separation, widowhood, incapacity, a move, or a major
health change.
Planning stage Main question Typical decisions
Debt reduction, savings rate,
5–10 years before retirement Can I afford to retire, and RRSP/TFSA/FHSA,
what risks do I face? investment risk, housing,
insurance.
CPP/OAS timing, withdrawal
1–3 years before retirement What income will I actually order, cash reserve, tax
receive each month? estimates, benefits,
insurance, estate documents.
Back to contents
Ontario Retirement Planning HandbookPage 6 of 78
Planning stage Main question Typical decisions
Spending corrections,
First 1–3 years retired Is the plan working in real instalments, asset mix,
life? benefit eligibility, withdrawal
sequencing.
How do credits, OAS, Income control, pension
Age 65+ GIS/GAINS, ODB, and splitting, drug coverage, tax
pension rules affect me? credits, local relief.
How do RRSP conversion Conversion, spouse-age
Age 71–72+ and RRIF minimums affect election, withholding,
taxes and benefits? OAS/GIS effects, estate
exposure.
2. Retirement planning in one page
1. What will my reliable income be? Include CPP, OAS, GIS, Ontario GAINS, Allowance
benefits, employer pensions, annuities, rental income, and part-time work.
2. What will my flexible income be? Include RRSP/RRIF, LIRA/LIF, non-registered
investments, TFSA, cash, and eligible FHSA transfers.
3. What will my essential and discretionary expenses be? Separate basic housing, food,
utilities, tax, medical, dental, insurance, and care from travel, gifts, hobbies, and renovations.
4. Which tax and benefit thresholds matter? Monitor OAS recovery tax, GIS/GAINS, OTB
components, age amount, pension income amount, GST/HST credit, and municipal relief.
5. What could go wrong? Stress-test inflation, market declines, longevity, disability, spouse
death, fraud, care needs, home repairs, and family conflict.
6. What insurance and public coverage remain after work ends? Review life, disability,
critical illness, health/dental, travel medical, ODB, CDCP, and long-term-care exposure.
7. What documents and people protect the plan? Maintain wills, two Ontario powers of
attorney, beneficiaries, successor designations, account inventory, digital-access plan,
trusted contacts, and professional contacts.
Rule of thumb: Retirement planning is about after-tax, after-benefit cash flow — not just gross
income. A lower taxable income supported by TFSA cash flow may be more useful than a
Back to contents
Ontario Retirement Planning HandbookPage 7 of 78
higher gross income that causes tax or benefit clawbacks.
3. Pre-retirement: assess your financial situation
3.1 Build your retirement balance sheet
Category What to include Why it matters
Chequing, HISA (high- Provides stability and avoids
Cash and reserves interest savings account), forced selling during a
cashable and short-term downturn.
GICs.
RRSP, RRIF, TFSA, FHSA, Each has different
Registered assets LIRA, LIF, pension, DPSP, contribution, withdrawal,
RDSP. beneficiary, and tax rules.
GICs, bonds, stocks, ETFs, Interest, dividends, capital
Non-registered assets mutual funds, private- gains, and probate treatment
company shares. differ.
Principal residence, cottage, Affects cash flow,
Real estate rental property, vacant land. downsizing, capital gains,
probate, and care funding.
Debts Mortgage, HELOC, credit Debt reduces flexibility and
cards, loans, guarantees. may expose a survivor.
Life, disability, critical illness, Coverage, exclusions,
Insurance and benefits health/dental, travel, long- conversion rights, and
term care, employer retiree premiums can change at
coverage. retirement.
● ☐ List each account, owner, balance, beneficiary, tax status, fees, and access instructions.
● ☐ List each debt, interest rate, payment, maturity, security, and whether another person is
Back to contents
Ontario Retirement Planning HandbookPage 8 of 78
liable.
● ☐ Estimate current spending from at least 12 months of bank and credit-card history.
● ☐ Identify irregular costs: property tax, insurance, repairs, dental work, travel, family support,
and vehicle replacement.
3.2 Estimate retirement income and income-tested benefits
Income source Tax treatment / planning Key planning question
note
Taxable. Starting early Which start age best
CPP reduces the monthly amount; supports cash flow, longevity,
delaying to 70 increases it. tax, and survivor needs?
Taxable. Residency-based; Will taxable income create a
OAS high net income can trigger clawback?
recovery tax.
Generally non-taxable.
Highly sensitive to income; Could withdrawals or
GIS and Ontario GAINS GAINS is an Ontario top-up investment income reduce
for eligible low-income benefits?
seniors.
See §7.1 — involuntary-separation election when a spouse enters care.
Income-tested benefits for Is a pre-65 spouse or
Allowance / Allowance for the eligible people aged 60–64 survivor eligible, and how will
Survivor connected to an OAS/GIS other income affect
recipient or deceased payment?
spouse/common-law partner.
Back to contents
Ontario Retirement Planning HandbookPage 9 of 78
Income source Tax treatment / planning Key planning question
note
Usually taxable; may include
Employer pension indexing, bridge benefits, How secure, indexed, and
survivor options, and early- survivor-friendly is it?
retirement reductions.
Withdrawals are taxable. An
RRSP must be matured
(e.g., converted to a RRIF or Should some withdrawals
RRSP/RRIF annuity) by the end of the occur before mandatory
year you turn 71; mandatory RRIF years?
RRIF minimum withdrawals
then begin the following year
(age 72).
Withdrawals are tax-free and Can TFSA cash flow
TFSA do not directly increase net preserve income-tested
income. benefits?
Locked-in pension money
LIRA/LIF with jurisdiction-specific Which Ontario or federal
unlocking and withdrawal rules apply?
limits.
Interest, dividends, and Which assets should be sold
Non-registered investments capital gains receive different first and what is the
tax treatment. tax/benefit result?
3.3 RRSP contribution-side mechanics
RRSP planning is not only about withdrawals. Contribution room is generally created from prior-
year earned income, subject to the annual dollar ceiling and adjustments. Unused deduction
room can carry forward. A workplace pension normally creates a pension adjustment that
reduces the following year's new RRSP room; past-service or plan changes can also create
Back to contents
Ontario Retirement Planning HandbookPage 10 of 78
pension adjustments or reversals.
Item What to check
Use the latest CRA Notice of Assessment or
Deduction limit My Account rather than estimating from
salary alone.
A contribution can sometimes be made now
Contribution vs. deduction and deducted in a later year, but
overcontribution rules still apply.
Unused deduction room generally carries
Carryforward room forward; confirm the exact balance before
contributing.
Pension adjustment Employer pension participation can materially
reduce new RRSP room.
The contributor uses their own room, while
Spousal RRSP the account belongs to the spouse; attribution
rules can apply to near-term withdrawals.
A limited cushion may exist, but excess
Overcontribution risk contributions can attract monthly tax and
filing obligations.
Back to contents
Ontario Retirement Planning HandbookPage 11 of 78
3.4 Know your tax and benefit sensitivity
Concept Why it matters
Marginal tax rate Shows the tax cost of the next dollar of
taxable income.
Net income Used for OAS recovery tax and many credits
and benefits.
RRSP/RRIF withdrawals, employment,
GIS/GAINS income test interest, dividends, and gains may reduce
benefits.
Includes the Ontario Energy and Property
Tax Credit, Northern Ontario Energy Credit
Ontario Trillium Benefit where applicable, and Ontario Sales Tax
Credit; filing a return and completing required
forms matters.
Dividend gross-up Can increase net income beyond cash
received and affect benefits.
Only the taxable portion enters income, but
Capital gains gains may still affect benefits and tax
brackets.
Eligibility, supporting documents, and who
Medical and disability-related credits claims an amount can materially affect
household tax.
3.5 Insurance and risk audit before leaving work
Employer coverage may end, shrink, or become expensive at retirement. Obtain written details
Back to contents
Ontario Retirement Planning HandbookPage 12 of 78
before the retirement date, including conversion deadlines and exclusions.
Coverage Questions to ask
Is income replacement still needed? Is there
Life insurance estate liquidity, debt, tax, or dependent-
support exposure? Can group coverage be
converted without medical evidence?
Does coverage stop when employment
Disability insurance ends? Is there a residual benefit if hours are
reduced before retirement?
Would a lump sum help with renovations,
Critical illness private care, travel, or a spouse leaving
work? Review definitions and expiry age.
What do retiree plans cover, what are
Health and dental annual/lifetime caps, and how do they
coordinate with CDCP or provincial
programs?
What stability period applies to pre-existing
Travel medical conditions? Must medication, symptoms,
tests, or treatment changes be reported?
Is insurance available or affordable, or should
Long-term care the plan self-fund through assets, home
equity, and a care reserve?
3.6 Asset location: which investments to hold in which accounts
Asset allocation decides how much you hold in each asset class; asset location decides which
account each holding sits in so the household pays less tax over time. Because RRSP/RRIF,
TFSA, and non-registered accounts are taxed differently, the same portfolio can produce very
Back to contents
Ontario Retirement Planning HandbookPage 13 of 78
different after-tax results depending on placement. General principles:
Investment type Generally most tax- Why
efficient location
Interest is fully taxed at your
Interest-bearing (GICs, RRSP/RRIF (tax-deferred) marginal rate in a non-
bonds, HISA) registered account;
sheltering it defers that tax.
The dividend tax credit is
Non-registered (where the only useful in a taxable
Canadian eligible dividends dividend tax credit applies) or account; note the gross-up
TFSA can raise net income and
affect benefits.
Capital-gains-oriented Only the taxable portion of a
equities Non-registered or TFSA gain is included; gains can
be timed and controlled.
Growth is never taxed and
High-growth / highest- TFSA withdrawals do not raise net
expected-return assets income, protecting income-
tested benefits.
Certain foreign withholding
taxes are reduced or
Foreign (e.g., U.S.) dividend- RRSP/RRIF for U.S. equities recoverable in an
paying equities RRSP/RRIF under tax-treaty
rules; in a TFSA that
withholding is generally lost.
Planning points:
● Location interacts with the withdrawal-order and decumulation decisions in §5.4 (withdrawal
order), §5.9 (decumulation), §5.10 (smoothing) — don't optimize one in isolation.
● Holding interest-heavy assets in a taxable account while growth sits in an RRSP is often the
least efficient arrangement.
Back to contents
Ontario Retirement Planning HandbookPage 14 of 78
● Rebalancing, foreign-withholding rules, and product structure (e.g., ETFs vs. funds) can
change the answer; revisit after major market moves or tax changes.
4. Pre-retirement: set realistic goals
4.1 Define lifestyle goals
Goal area Questions to answer
Retirement date Stop fully, phase down, consult, or work
seasonally?
Housing Stay, renovate, downsize, rent, move near
family, or keep a second property?
Travel and lifestyle What annual after-tax amount is realistic for
travel, hobbies, dining, gifts, and vehicles?
Family support Will you support children, grandchildren, a
spouse, siblings, or parents?
What budget is available for dental, drugs,
Health and care therapy, home care, private care, and
accessibility?
Legacy Maximize lifetime spending, preserve an
estate, donate, or balance all three?
4.2 Convert goals into numbers
Build an annual after-tax cash-flow budget in today's dollars, then model inflation separately.
Include irregular and replacement costs, not only monthly bills. Note which income streams are
indexed (CPP and OAS are indexed; many employer pensions and most fixed annuities are
only partly indexed or not indexed at all) — unindexed income loses purchasing power over a
long retirement.
Back to contents
Ontario Retirement Planning HandbookPage 15 of 78
4.3 Use scenarios instead of one forecast
Scenario Assumptions What it tests
Base Expected spending, returns, Main working plan.
inflation, CPP/OAS timing.
Lower returns, higher Whether the plan remains
Cautious inflation/tax, larger health acceptable.
costs.
Early market decline, spouse What corrections are
Stress death, major repair, care available under pressure.
need, or housing move.
Long-life One or both live well beyond Longevity protection and
average life expectancy. late-life liquidity.
4.4 Housing transition and downsizing economics (new in v6.3)
For most Ontario retirees the home is the largest single asset and the biggest source of both
potential liquidity and hidden cost. Treat a move as a financial decision with its own budget, not
just a lifestyle choice.
Option What to weigh Watch for
Renovation and accessibility Change-in-use/PRE risk if
Stay and age in place cost vs. moving cost; §7.3; creating a secondary suite
ongoing maintenance and §7.6 rising upkeep as
property tax. mobility declines.
Back to contents
Ontario Retirement Planning HandbookPage 16 of 78
Option What to weigh Watch for
Land transfer tax on the new
purchase (provincial, plus a
Net equity freed after all separate municipal land
Downsize (buy smaller) transaction costs; simpler transfer tax in the City of
upkeep; possible condo fees. Toronto); condo fees and
special assessments; timing
gap between sale and
purchase.
Rent inflation and security of
Frees full equity to invest; tenure; investment income
Sell and rent predictable monthly cost; no from proceeds may raise net
maintenance/repair risk. income and affect income-
tested benefits.
Entry/exit terms, resale
Life lease / co-op / seniors' Community, services, and restrictions, and how the
community lower maintenance. "deposit" is returned; read
the contract with a lawyer.
Compounding interest can
Accesses home equity erode estate value; HELOC
Reverse mortgage / HELOC without selling; can bridge payments and rate risk in
income. retirement; strict conditions.
Get independent advice
before signing.
Planning points:
● Budget all transaction costs before assuming a move "frees up" a specific amount: real
estate commission, legal fees, moving, staging/repairs, land transfer tax on the next home,
and any bridge financing.
● The Principal Residence Exemption (§7.6) generally shelters the gain on a qualifying
principal residence, but a cottage or second property usually does not — coordinate which
property is designated.
Back to contents
Ontario Retirement Planning HandbookPage 17 of 78
● Investing sale proceeds shifts a tax-sheltered asset (the home) into taxable investments;
model the effect on net income, OAS recovery, and GIS/GAINS.
● Coordinate any move with survivor planning (§8.4): can the surviving spouse manage, afford,
and physically maintain the chosen housing?
5. Pre-retirement: define your retirement income
strategy
5.1 Make workplace pension decisions first
A workplace pension may be the household’s most valuable retirement asset. Some pension
choices are permanent, so make them before finalizing CPP/OAS timing or withdrawal plans.
Identify the pension
Pension type Main planning issue
Defined benefit (DB) Provides formula-based lifetime income. Review retirement date,
reductions, indexing, bridge benefits, and survivor options.
Defined contribution Income depends on contributions, investment returns, fees,
(DC) withdrawals, and longevity.
Target-benefit or Benefits may depend on plan terms and financial condition.
multi-employer
Confirm whether Ontario, federal, or another province’s pension rules apply.
Obtain written estimates
Ask the administrator for estimates at several retirement dates. Confirm:
- lifetime pension and any temporary bridge benefit;
- early-retirement reductions or subsidies;
- full, partial, or no indexing;
- survivor-pension and guarantee options;
- retiree health, dental, or life-insurance benefits; and
- election deadlines.
Compare after-tax household income before and after a bridge benefit ends.
Protect the surviving spouse
For Ontario-regulated plans, a qualifying spouse generally receives joint-and-survivor protection
unless the prescribed waiver is signed. Compare household income if either spouse dies first.
A spousal waiver can permanently remove valuable lifetime income. Obtain independent advice
before signing one.
Back to contents
Ontario Retirement Planning HandbookPage 18 of 78
Treat a commuted-value offer cautiously
A commuted value exchanges a future DB pension for a lump-sum transfer, when permitted.
Transferring may provide more control, but can also mean giving up:
- guaranteed lifetime income;
- indexing and early-retirement benefits;
- survivor protection;
- retiree benefits; and
- freedom from personal investment and longevity risk.
The transfer may also create investment fees, locked-in restrictions, and immediate taxable
income. Because the decision is generally irreversible, compare the transfer with the complete
pension being surrendered, not merely with its quoted lump-sum value.
Final checklist
- ☐ Identify every pension, including former-employer plans.
- ☐ Confirm the plan type and governing jurisdiction.
- ☐ Compare several retirement dates.
- ☐ Separate lifetime income from temporary bridge income.
- ☐ Review indexing, survivor benefits, and retiree insurance.
- ☐ Do not sign a waiver or accept a commuted value without understanding the permanent
consequences.
- ☐ Coordinate the final pension choice with CPP/OAS, taxes, withdrawals, and survivor
planning.
Official source:
Financial Services Regulatory Authority of Ontario
https://www.fsrao.ca/consumers/pensions/about-pensions
5.2 Decide when to start CPP and OAS
CPP can generally start from age 60 to 70. OAS can start at 65 and be voluntarily deferred up to
age 70. Deferral increases the monthly amount only up to age 70; there is no benefit to delaying
the start of either pension beyond 70. Compare lifetime income, break-even age, tax, GIS
exposure, health, survivor rules, and the return/risk of bridge assets.
Adjustment factors (fixed by legislation):
Pension Starting early Starting late
Reduced by 0.6% per month before age Increased by 0.7% per month after age 65,
CPP 65, up to a maximum reduction of 36% up to a maximum increase of 42% at age 70
at age 60
Back to contents
Ontario Retirement Planning HandbookPage 19 of 78
Pension Starting early Starting late
Increased by 0.6% per month of deferral
OAS Cannot start before age 65 after age 65, up to a maximum increase of
36% at age 70
Planning notes
- These percentages apply to the entitlement otherwise payable; CPP amounts also depend on
your contribution record.
- Deferring OAS also raises the income level at which the recovery tax fully eliminates OAS, but
a deferred start means forgoing payments in the meantime.
- Deferring while drawing down RRSP/RRIF assets can complement the bracket top-up strategy
(§5.10).
- GIS is not payable while OAS is deferred — low-income retirees should usually not defer OAS
without advice.
- Simple break-even math ignores taxes, benefits, survivor effects, and investment
returns on bridge assets; model after-tax household outcomes.
Official sources:
https://www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-benefit/amount.html
https://www.canada.ca/en/services/benefits/publicpensions/old-age-security/benefit-amount.html
5.3 CPP pension sharing and credit splitting are different
Rule When it applies Planning point
Eligible spouses/common-
law partners who are It changes benefit payments
CPP pension sharing together may share and is not the same as
retirement pension payments pension-income splitting on a
based on joint application tax return.
and contribution periods.
Back to contents
Ontario Retirement Planning HandbookPage 20 of 78
Rule When it applies Planning point
It can increase one person's
After divorce or separation, CPP and reduce the other's,
CPP pensionable-earnings is generally irreversible once
CPP credit splitting (Division credits for years lived applied, and operates
of Unadjusted Pensionable together may be divided outside normal property
Earnings — DUPE) equally, subject to eligibility equalization. Review after
and application rules. relationship breakdown
rather than assuming CPP
records update automatically.
5.4 Choose a withdrawal order
Strategy When it can help Watch for
Use cash/non-registered Bridge income and avoid Interest tax, capital gains,
assets early RRSP withdrawals. asset allocation, and
depleted liquidity.
Use TFSA strategically Tax-free cash flow and Room returns only the
reduced OAS/GIS effects. following year.
Controlled RRSP Reduce later RRIF Current tax, withholding,
withdrawals minimums and terminal tax. GIS/credit reductions.
Delay CPP/OAS with bridge Increase indexed lifetime Liquidity, market risk, and
funding income for long-lived loss of near-term benefits.
retirees.
Back to contents
Ontario Retirement Planning HandbookPage 21 of 78
Strategy When it can help Watch for
May help when current rates Large RRIF minimums,
Preserve RRSP/RRIF are higher than expected survivor tax, and final return
future rates. exposure.
5.5 Understand withholding tax on RRSP and RRIF withdrawals
Financial institutions generally withhold tax at source on lump-sum RRSP withdrawals and on
RRIF withdrawals above the annual minimum. For residents outside Quebec, tiered federal
rates apply by withdrawal size (see the current-number appendix for the exact rate breakpoints
as of this edition). Withholding is only a prepayment: the final tax is based on total annual
income and may be higher or lower. A series of related withdrawals may be aggregated for
withholding purposes.
Planning point: Do not treat the net cheque as the after-tax cost. Estimate the full-year tax
result and consider instalments or extra withholding when appropriate.
5.6 Spousal RRSPs, pension splitting, and RRIF spouse-age election
Planning tool Use Caution
Balance future taxable Attribution rules can apply to
Spousal RRSP withdrawals using the withdrawals after recent
contributor's room. contributions.
Allocate up to the permitted CPP and OAS are not
Pension income splitting share of eligible pension eligible for this tax election.
income on the tax return.
At RRIF setup, use a Election is made at setup
RRIF spouse-age election younger spouse's age to and is generally not
lower mandatory minimums. reversible.
Back to contents
Ontario Retirement Planning HandbookPage 22 of 78
Planning tool Use Caution
One tax return, lower credits,
Survivor modelling Test either spouse dying first. and fixed household costs
can create a sharp after-tax
drop.
5.7 FHSA as a pre-retirement strategy
An eligible first-time home buyer may use an FHSA for deductible contributions and tax-free
qualifying home withdrawals. If a home purchase does not occur, a direct transfer to an RRSP
or RRIF can generally be made without using existing RRSP deduction room, subject to FHSA
timing and transfer rules. This can be useful for an eligible pre-retiree, but it is not available
merely because someone plans to downsize or has always owned a home.
5.8 Plan around ages 60, 65, 71, and 72
Age / period Planning tasks
CPP timing; Allowance eligibility; part-time
60–64 work; RRSP withdrawals; TFSA bridge;
insurance conversion; separation/divorce
CPP review.
OAS/GIS/GAINS; ODB; pension credit and
65 splitting; age amount; CDCP/benefit
coordination; estate and POA review.
CPP/OAS deferral; controlled RRSP
65–70 withdrawals; TFSA bridge; OAS recovery and
GIS effects.
Back to contents
Ontario Retirement Planning HandbookPage 23 of 78
Age / period Planning tasks
Mature RRSP by year-end; consider RRIF,
71 annuity, withdrawal, spouse-age election,
and ALDA where suitable.
RRIF minimums begin; withholding,
72+ instalments, OAS/GIS effects, investment
risk, survivor and estate exposure.
5.9 Decumulation frameworks (protecting cash flow from market
volatility)
Choosing a withdrawal order (§5.4) answers "which account first"; a decumulation framework
answers "how do I keep drawing income without being forced to sell investments in a downturn."
Two common approaches:
Back to contents
Ontario Retirement Planning HandbookPage 24 of 78
Framework How it works Strengths Watch for
Divide assets into
three buckets:
Bucket 1 (short-
term, ~1–2 years of
spending) in Reduces "sequence-
cash/HISA/short of-returns" risk —
GICs; Bucket 2 you avoid selling Requires discipline to
(medium-term, ~3–7 equities after a refill buckets; holding
Bucket strategy years) in bonds/GIC market drop because too much cash long-
ladders/conservative near-term spending term can create a
income; Bucket 3 is already set aside. drag; still needs
(long-term, 7+ Psychologically periodic rebalancing.
years) in growth reassuring.
equities. Spend from
Bucket 1, and refill it
from Buckets 2 and 3
during normal or
strong markets.
Hold one diversified
portfolio at a target Feels harder in a
allocation; withdraw Simple, keeps the downturn because
Total-return / a set amount (or portfolio fully you may sell some
systematic percentage) and invested, tax-efficient equities; needs a
withdrawal rebalance rebalancing. rebalancing rule and
periodically, selling a cash buffer to
whatever is avoid forced sales.
overweight.
Planning points:
● Either approach should keep a defined cash reserve (see §3.1 and §6.1) so a market decline
doesn't force selling at a loss.
● Combine the framework with asset location (§3.6) and bracket smoothing (§5.10): the bucket
you draw from and the account it sits in both affect tax and benefits.
● Revisit bucket sizes after large withdrawals, big market moves, or a change in spending
Back to contents
Ontario Retirement Planning HandbookPage 25 of 78
needs.
5.10 Multi-year tax smoothing and bracket top-up
Marginal rates and OAS recovery (§3.4) matter not just this year but across your whole
retirement — and at death. A large RRSP/RRIF balance is fully included in income on the final
return if there is no surviving-spouse rollover, which can push the estate into the highest bracket
and forfeit a big share to tax. Bracket top-up (sometimes called an "RRSP/RRIF meltdown") is
the strategy of deliberately withdrawing extra RRIF/RRSP income in lower-income years, up to
a chosen tax threshold, so that income is taxed at a modest rate now instead of a very high rate
later.
How it can help:
● In early-retirement years before CPP/OAS start or before RRIF minimums rise, taxable
income is often low; filling up a lower bracket "uses" that space at a low rate.
● It shrinks the future RRIF balance, reducing large mandatory minimums and the terminal-tax
hit on the estate.
● Extra funds can be moved into a TFSA (if room exists) or non-registered account so future
growth is taxed more lightly or not at all.
Watch for:
● OAS recovery tax — pushing net income too high can claw back OAS; the "top of a tax
bracket" is not always the right ceiling.
● GIS/GAINS and other income-tested benefits — extra withdrawals can reduce or eliminate
them for lower-income seniors.
● Withholding and instalments (§5.5) — plan the cash-flow and remittance side.
● This is multi-year modelling; a tax professional can identify the right annual threshold for your
situation rather than a single fixed number.
5.11 Ontario locked-in accounts: LIRA/LIF unlocking options
Money in an Ontario LIRA or LIF is normally locked in to provide lifetime income, but several
unlocking routes exist. Missing the one-time options below can be a permanent, costly mistake.
Option How it works Watch for
Within 60 days of transferring money into This is a one-time election with a
50% an Ontario LIF, you may transfer up to strict 60-day deadline. Unlocked
unlocking on 50% of it to an unrestricted RRSP or funds lose the creditor-protection
transfer to a RRIF, or take it in cash, which is fully features of locked-in status. A cash
LIF taxable. withdrawal is fully taxable in the
year received.
Back to contents
Ontario Retirement Planning HandbookPage 26 of 78
Option How it works Watch for
At age 55 or older, if the total value of all
your Ontario locked-in accounts is below The threshold applies to all Ontario
Small-balance the prescribed threshold, based on a locked-in money combined, not to
unlocking percentage of the Year’s Maximum each account separately. Confirm
Pensionable Earnings, you may withdraw the current threshold.
or transfer the full amount.
You may apply through your financial
Financial- institution under prescribed grounds, Annual limits apply by category.
hardship including medical or disability-related Withdrawals are taxable and may
unlocking costs, risk of eviction or mortgage default, reduce income-tested benefits such
first and last months’ rent, or low as GIS or GAINS.
expected income.
A physician’s statement confirming a life The process may vary by plan.
Shortened life expectancy of less than two years may Coordinate the withdrawal with
expectancy allow full unlocking. beneficiary designations and estate
planning.
Being a non-resident of Canada, as Confirm CRA non-resident status
Non-residency determined by the CRA, for at least two first. Departure-tax and tax-treaty
years may allow unlocking. issues may require professional
advice.
Planning notes
- These rules apply to Ontario-regulated locked-in money. Federally regulated (PBSA) and other
provinces' funds have different rules — confirm the governing jurisdiction (§5.1).
- A qualifying spouse's consent may be required for some options.
- Ontario LIFs have annual maximum withdrawal limits as well as RRIF-style minimums.
Verified on: [July 13, 2026]
Official source: FSRA — https://www.fsrao.ca/consumers/pensions (locked-in accounts
guidance)
Back to contents
Ontario Retirement Planning HandbookPage 27 of 78
6. During retirement: make adjustments and
corrections
6.1 Review after the first retirement year
● ☐ Compare actual spending with the plan and separate one-time from recurring costs.
● ☐ Check tax payable, instalments, withholding, and benefit changes.
● ☐ Review cash/GIC reserves, bucket levels, and asset allocation after real withdrawals.
● ☐ Confirm CPP/OAS/GIS/GAINS and pension decisions still fit.
● ☐ Update beneficiaries, successor designations, trusted contacts, wills, POAs, and digital
access after family changes.
6.2 Common corrections
Problem Possible correction
Reduce discretionary spending, delay
Spending is high purchases, formalize monthly transfers, or
revisit housing.
Review withdrawal mix, asset location,
Tax is high capital gains timing, pension splitting,
donations, bracket-smoothing, and future
RRSP/RRIF strategy.
Draw from the cash/short-term bucket,
Portfolio decline reduce discretionary withdrawals, rebalance,
and avoid panic selling.
Review taxable withdrawals, employment,
GIS/GAINS/OTB falls interest, dividends, gains, and tax-return
accuracy.
Back to contents
Ontario Retirement Planning HandbookPage 28 of 78
Problem Possible correction
Review pension survivor options, CPP
Survivor plan is weak assumptions, insurance, housing,
beneficiaries, and liquidity.
Check ODB, CDCP, ADP, tax credits,
Health costs rise insurance coordination, home-care options,
and housing modifications.
7. Long-term care, health costs, and aging at home
7.1 Care settings and stress testing
Care option What it means Planning issue
Family support, paid help, Accessibility, transportation,
Aging at home community services, home caregiver capacity, snow
care, or modifications. removal, and home
suitability.
Private-pay housing with Contracts, fee increases,
Retirement home meals, housekeeping, and care levels, and exit terms.
varying assistance.
Residential nursing/personal Accommodation charges,
Long-term care home care through Ontario wait lists, location, and rate-
placement. reduction rules.
Back to contents
Ontario Retirement Planning HandbookPage 29 of 78
Care option What it means Planning issue
Short-term care after illness Fast discharge decisions;
Hospital/rehab transition or injury. keep POAs and contact
plans ready.
Unpaid or partly paid care by Burnout, respite, fairness,
Family caregiving family/friends. work impact, and caregiver
tax credits.
GIS involuntary-separation election. When spouses or common-law partners must live
apart for reasons beyond their control — most commonly when one enters a long-term-care
home or hospital — the couple can ask Service Canada to be treated as two single
individuals for GIS and Allowance purposes. Because the single-rate maximums and income
tests are more generous than the couple rates, this election often increases combined
benefits by thousands of dollars per year, precisely when care costs rise. Ontario GAINS
follows the federal determination. This is not automatic: notify Service Canada of the
separation and ask about the involuntary-separation provision. Also coordinate with the LTC
rate reduction application for the basic room (§13.2.12), which is based on income.
Official source: https://www.canada.ca/en/services/benefits/publicpensions/old-age-security/guaranteed-income-supplement.html
7.2 Choosing a retirement home
Ontario retirement homes are private-pay rental housing with optional care services. They differ
from long-term-care homes, where admission is coordinated through Ontario Health atHome
and government funding covers nursing and personal care.
Before signing:
• Confirm the home is licensed and review its RHRA inspection record.
• Obtain the written agreement showing rent, meals, care charges, optional services, and
increase rules.
• Ask about staffing, emergency response, medication support, and increasing care
needs.
• Review termination, transfer, and discharge provisions.
• Confirm resident rights and the complaint process.
• Estimate the total cost if care needs increase, not only the introductory rent.
Back to contents
Ontario Retirement Planning HandbookPage 30 of 78
Official source: Government of Ontario - Find a retirement home
7.3 Aging-at-home tax credits and Ontario supports
Program Planning use
Federal non-refundable credit for qualifying
Home Accessibility Tax Credit (HATC) renovations that improve access or reduce
risk for an eligible person.
Federal refundable credit for qualifying
creation of a self-contained secondary unit
Multigenerational Home Renovation Tax for an eligible senior or adult eligible for the
Credit (MHRTC) disability tax credit. See §7.6 — creating a
secondary unit can affect the Principal
Residence Exemption.
Federal non-refundable credit for eligible
support of a spouse, partner, or dependant
Canada Caregiver Credit (CCC) with an impairment; amounts and eligibility
depend on relationship, income, and
circumstances.
Helps pay for eligible devices such as
Ontario Assistive Devices Program (ADP) mobility, hearing, respiratory, visual, and
other equipment; coverage and client share
vary by device and program rules.
Track receipts, travel, attendant care,
Medical expense tax credit / disability devices, renovations, and certificates;
supports determine who in the family should claim
eligible expenses.
Back to contents
Ontario Retirement Planning HandbookPage 31 of 78
7.4 Travel and out-of-country medical insurance
Travel policies can be invalidated by changes in symptoms, tests, treatment, or medication
during the policy's stability period. Read the policy definition of stable, disclose accurately, retain
medical records, understand exclusions, and call the insurer before travelling after any health
change.
7.5 Insurance decisions in retirement
Insurance should solve a defined risk. Compare the cost of premiums with the financial harm if
the event occurs, the availability of public coverage, and the household's ability to self-insure.
Reassess life, health/dental, travel, critical-illness, and long-term-care coverage after retirement,
mortgage payoff, widowhood, and major asset changes.
7.6 Principal Residence Exemption and change-in-use
The Principal Residence Exemption (PRE) can shelter all or part of the capital gain on a
home that qualifies as your principal residence for each year of ownership. It is one of the most
valuable tax benefits available to Ontario homeowners — but it can be partly lost without the
owner realizing it.
Change-in-use risk when creating a secondary suite. Renovations that convert part of the
home into a self-contained, income-producing, or separately used unit — including projects
funded with the Multigenerational Home Renovation Tax Credit (§7.2) — can trigger a partial
change in use for tax purposes. When that happens:
● CRA may treat you as having a deemed disposition of the affected portion at fair market
value, potentially crystallizing a capital gain, and
● the income-producing portion may no longer qualify for the PRE going forward, so a partial
capital gain can arise on the eventual sale of the home.
Mitigating factors and cautions:
● A change in use may be avoided where the income use is ancillary/secondary to the main
residential use, the home is not structurally altered for the income use, and no capital cost
allowance (depreciation) is claimed — but these conditions are specific and fact-
dependent.
● In some cases a subsection 45(2)/45(3) election can defer the deemed disposition;
eligibility and timing rules apply.
● Keep records of the home's value before and after the renovation and of the area/percentage
used for income.
● Coordinate any secondary-suite plan (for a caregiver, adult child, or rental) with a tax
professional before starting, so the household weighs the MHRTC benefit against a possible
future PRE loss.
Back to contents
Ontario Retirement Planning HandbookPage 32 of 78
7.7 Navigating the Ontario health and home-care system
Knowing which door to knock on matters as much as knowing a program exists. These access
points apply province-wide, though local service capacity and wait times vary by region.
Need Where to start (province- Planning notes
wide)
Ontario Health atHome (the
provincial home-and- An assessment determines
Publicly funded home care community-care service; eligibility and hours; public
(nursing, personal support, formerly the LHIN/CCAC hours may not fully meet
therapy) home-care function). Ask needs, so budget for private
your hospital, doctor, or call top-up (see §7.1).
the provincial service to
request an assessment.
You choose preferred
Apply through Ontario homes; wait lists vary sharply
Long-term care (LTC) home Health atHome, which by home and region.
placement coordinates LTC Accommodation charges
applications, eligibility apply, with a rate-reduction
assessment, and the wait list. option for the basic room
based on income.
Local community support Availability and cost differ by
Community supports (meals, service agencies; many are municipality; respite can
transportation, adult day found through the provincial relieve caregiver burnout
programs, respite) service or 211 Ontario (dial (§7.1).
2-1-1).
Hospital care- Discharge decisions can
Hospital discharge to home coordination/discharge move quickly; keep POAs
or LTC planning team. (§8.1) and a contact plan
ready in advance.
Back to contents
Ontario Retirement Planning HandbookPage 33 of 78
Need Where to start (province- Planning notes
wide)
Health card / OHIP coverage ServiceOntario for renewals; Extended absences can
while away confirm out-of-province/out- affect coverage — relevant to
of-country residency rules. snowbirds (§9.5).
Planning points:
● Start the assessment process early — before a crisis — because wait lists and paperwork
take time.
● Public home care rarely covers 24-hour needs; combine it with private care, family
caregiving, and community supports.
● Keep a written care plan and contact list with your POA-for-Personal-Care attorney (§8.1,
§8.8).
● Use 211 Ontario as a free, province-wide referral line for local seniors' and community
services in any municipality.
8. Survivor, beneficiary, will, and estate planning
8.1 Core Ontario documents and safeguards
Document / item Purpose Ontario planning note
Review execution formalities
Will Names beneficiaries and and affidavit of execution;
estate trustee. intestacy applies without a
valid will.
Allows financial/property Use safeguards: accounting,
Continuing POA for Property decisions during incapacity. limits, monitoring, and careful
attorney selection.
Back to contents
Ontario Retirement Planning HandbookPage 34 of 78
Document / item Purpose Ontario planning note
Allows personal-care Discuss wishes, housing,
POA for Personal Care decisions during incapacity. treatment, and substitute-
decision hierarchy.
Review
Beneficiary/successor Directs registered plans and RRSP/RRIF/TFSA/LIRA/LIF/
designations insurance. pension/insurance and
contingent beneficiaries.
Helps helpers locate assets,
Account and digital inventory bills, devices, subscriptions, Keep secure; do not place
and two-factor authentication passwords directly in the will.
(2FA).
Allows an investment firm to A TCP does not have
Trusted Contact Person contact a trusted person authority to trade or make
about suspected exploitation decisions unless separately
or diminished capacity. appointed.
8.2 Multiple wills in Ontario
Ontario residents with private-company shares, shareholder loans, or other assets that may be
administered without a probate certificate sometimes use separate primary and secondary wills
so only assets requiring probate are submitted for estate administration tax. This is a
specialized legal strategy: drafting errors, executor clauses, asset classification, later
transactions, and corporate or banking requirements can defeat the plan. Use an Ontario
estates lawyer and review the wills after any corporate reorganization or major asset change.
8.3 RDSP and disabled beneficiaries
A Registered Disability Savings Plan can provide tax-deferred growth and may attract federal
grants and bonds for an eligible beneficiary. Estate plans for a disabled beneficiary should
coordinate RDSP rules, disability benefits, Henson or other discretionary trusts where
appropriate, life insurance, trustee selection, and the effect of inheritances on income-tested
Back to contents
Ontario Retirement Planning HandbookPage 35 of 78
supports. Specialized legal and tax advice is important.
8.4 Survivor income planning
● ☐ Estimate cash flow and tax if either spouse dies first.
● ☐ Confirm combined CPP retirement and survivor benefit assumptions rather than adding
two full benefits.
● ☐ Review employer-pension survivor options and indexing.
● ☐ Check whether the survivor can manage housing, bills, investments, passwords, taxes,
and care.
● ☐ Plan liquidity for final tax, funeral, legal/accounting fees, property carrying costs, and
family equalization.
8.5 Final tax, probate, and charitable giving
Death can trigger RRSP/RRIF income inclusion, deemed dispositions, capital gains, final and
estate returns, and Ontario Estate Administration Tax (EAT) when a certificate is required.
Spousal and certain dependant rollovers can defer tax. Charitable gifts, beneficiary
designations, and donated publicly traded securities may reduce tax but must be coordinated
with liquidity and family goals.
8.6 What to do after a death
The estate trustee and family should avoid rushed financial decisions. A power of attorney ends
at death; authority then comes from the will, the estate trustee appointment, and any required
court certificate.
Immediate checklist:
• ☐ Locate the original will and confirm the estate trustee.
• ☐ Obtain death certificates and secure the home, vehicles, valuables, pets, mail, and
insurance.
• ☐ Notify Service Canada, pension administrators, insurers, banks, investment firms, and
other benefit providers.
• ☐ Apply for CPP survivor and death benefits, workplace-pension benefits, and life-
insurance proceeds.
• ☐ Identify assets, debts, joint ownership, and beneficiary designations before moving or
closing accounts.
• ☐ Determine whether probate or a Certificate of Appointment is required.
• ☐ Arrange the final income-tax return and any estate tax returns.
• ☐ Keep complete records of expenses, receipts, payments, and distributions.
• ☐ Do not distribute the estate until taxes, debts, claims, and sufficient reserves have
been addressed.
Back to contents
Ontario Retirement Planning HandbookPage 36 of 78
Complex estates, family conflict, businesses, foreign assets, or uncertain tax liabilities may
require legal and tax advice.
Official source: Government of Ontario - What to do when someone dies
8.7 Probate-avoidance alternatives and their risks
Beyond multiple wills (§8.2) and beneficiary/successor designations (§8.1), retirees aged 65+
have additional tools to reduce Ontario Estate Administration Tax and simplify estate transfer.
Each has real benefits and significant risks; all require an Ontario estates lawyer and, usually,
tax advice.
Tool What it is Potential benefit Key risks / cautions
Setup and ongoing
trustee/accounting
Assets pass outside costs; trust income
the estate, avoiding taxed at top rates on
An inter vivos (living) probate/EAT; can be income not paid out;
trust available only to transferred in on a a deemed
Alter Ego Trust a settlor aged 65+, tax-deferred disposition on the
for the settlor's own rollover; provides settlor's death
benefit during life. incapacity applies; not suitable
management and for all assets (e.g.,
privacy. generally not a
principal residence
without care).
Back to contents
Ontario Retirement Planning HandbookPage 37 of 78
Tool What it is Potential benefit Key risks / cautions
Same idea as an
Alter Ego Trust but
for a settlor 65+ and Same
their Probate avoidance cost/complexity as
spouse/common- plus tax deferral until an Alter Ego Trust;
Joint Partner Trust law partner jointly; the survivor's death; both partners' assets
the deemed smooth transition for and intentions must
disposition is couples. align; specialized
deferred until the drafting required.
second partner's
death.
Back to contents
Ontario Retirement Planning HandbookPage 38 of 78
Tool What it is Potential benefit Key risks / cautions
High-risk and
frequently
misunderstood.
Under
Ontario/Canadian
law (the Pecore line
of cases), a
gratuitous transfer to
an adult child is
presumed to be
held in resulting
trust for the estate
— so it may not pass
Adding an adult child to that child as
Joint ownership as a joint owner of a intended and can
with right of home or account so On the surface, spark litigation. It
survivorship it passes to them avoids probate on also exposes the
(JTWROS) with an automatically on that asset. asset to the child's
adult child death. creditors,
divorce/family-law
claims, and
bankruptcy, can
cause loss of
control and
unintended capital-
gains or principal-
residence
consequences, and
may unintentionally
disinherit other
beneficiaries. Do not
use as a DIY probate
shortcut.
Planning points:
● "Avoiding probate" is only one goal; weigh it against tax cost, control, fairness among heirs,
Back to contents
Ontario Retirement Planning HandbookPage 39 of 78
and legal risk.
● Document intent clearly (especially for any joint ownership) and keep the strategy consistent
with the will(s) and beneficiary designations.
● Review all of these after any major asset change, relationship change, or change in the
health of the owner or a joint owner.
8.8 Capacity, incapacity, and guardianship in Ontario
Powers of attorney (§8.1) only work if they are made while you still have capacity and are
respected when needed. This section explains the Ontario framework — the Substitute
Decisions Act and Health Care Consent Act — at a plain-language level.
Concept Plain-language meaning Planning note
The ability to understand
relevant information and
appreciate the consequences A diagnosis (e.g., early
of a decision. Capacity is dementia) does not
Capacity decision-specific and can automatically mean loss of
change over time — legal capacity.
someone may be capable of
some decisions but not
others.
A formal evaluation of
whether a person is capable
of managing property or May be required before a
Capacity assessment personal care, done by a POA for Property takes effect
qualified Capacity Assessor (if the document says so) or
or, for treatment, by the before guardianship.
health practitioner proposing
it.
You appoint someone (an Make it before incapacity;
Continuing POA for Property "attorney") to manage build in safeguards
finances/property if you (accounting, limits,
become incapable. monitoring).
Back to contents
Ontario Retirement Planning HandbookPage 40 of 78
Concept Plain-language meaning Planning note
You appoint someone to Pair with expressed wishes /
POA for Personal Care make personal-care and advance care planning (see
treatment decisions if you below).
become incapable.
If there is no POA for
Personal Care, the Health Relying on the default
Substitute decision-maker Care Consent Act sets a hierarchy may put the wrong
(SDM) hierarchy ranked list of who may person in charge —
consent to treatment (e.g., appointing your own attorney
spouse/partner, then avoids this.
children/parents, etc.).
If someone becomes
incapable without a valid This is slower, more
POA, a court-appointed expensive, more public, and
Guardianship guardian, or in some cases less within your control than
the Office of the Public a POA — a strong reason to
Guardian and Trustee prepare documents early.
(OPGT), may have to step in.
Not a substitute for a POA for
Talking about and recording Personal Care, but guides
your wishes for future care your attorney and family.
Advance care planning and treatment (including end- Discuss preferences on
of-life). treatment, resuscitation,
palliative care, and where
you want to be cared for.
Planning points:
● The single most important protective step is to have valid, current POAs for both Property
and Personal Care prepared before any capacity concern arises.
● Review POAs after a move, a diagnosis, a death, or a family conflict; confirm your named
attorneys are still willing and appropriate.
Back to contents
Ontario Retirement Planning HandbookPage 41 of 78
● Discuss your wishes with your attorneys and family so they are not guessing under pressure.
● Where family conflict or complex assets exist, get advice from an Ontario estates/elder-law
lawyer; the OPGT and community legal clinics are additional resources.
9. Expanded federal, Ontario, and local planning
programs
9.1 Canadian Dental Care Plan (CDCP)
The Canadian Dental Care Plan can reduce eligible dental costs for people who meet its
income, tax-filing, Canadian-residency and private-insurance requirements. Coverage is based
on the CDCP fee schedule. A patient may still have to pay a co-payment, charges above the
CDCP fee schedule, or costs for services that are not covered or have not received required
preauthorization.
Core eligibility requirements
To qualify, all of the following must apply:
• No access to private dental insurance: You must not have access to dental insurance
or coverage through:
o your employer or a family member’s employer;
o your pension plan or a family member’s pension plan;
o a professional or student organization; or
o insurance purchased privately by you or a family member.
Having access normally counts even when you:
• choose not to enrol;
• opt out;
• do not use the coverage; or
• must pay some or all of the premium.
You are also considered to have access when you previously opted out but are permitted to opt
back into the plan.
Pension-plan exception for certain retirees
A retiree may still qualify for the CDCP despite previously having access to pension-plan dental
coverage when both of the following apply:
1. The retiree opted out of the dental insurance or coverage through the pension plan
before December 11, 2023; and
2. The pension-plan rules do not permit the retiree to opt back into that coverage.
Back to contents
Ontario Retirement Planning HandbookPage 42 of 78
This is a narrow exception. Retirees should obtain written confirmation from the pension
administrator showing the opt-out date and confirming that re-enrolment is not permitted.
Checking pension or employment dental access
Pension-plan administrators report access to dental coverage in Box 015 of the T4A slip:
• Code 1 generally means there was no access to pension dental insurance.
• Codes 2, 3, 4 or 5 generally indicate access to dental insurance.
Employers use the same codes in Box 45 of the T4 slip. Applicants should check these codes
before declaring that they have no access to private dental insurance. Where the tax slip
indicates access, the applicant may be asked to provide evidence that the coverage has ended
or that the reported information was incorrect.
Other eligibility requirements
Applicants must also:
• have filed the required Canadian income-tax return, along with their spouse or common-
law partner where applicable;
• have adjusted family net income below $90,000; and
• be Canadian residents for tax purposes.
CDCP income bands and co-payments
Adjusted family net income CDCP share of the CDCP fee schedule Patient co-payment
Under $70,000 100% 0%
$70,000–$79,999 60% 40%
$80,000–$89,999 40% 60%
$90,000 or more Not eligible 100%
The percentages apply to the amount allowed under the CDCP fee schedule, not necessarily
the dentist’s full charge. Before treatment, confirm:
• that the provider accepts CDCP patients;
• whether preauthorization is required;
• the amount recognized under the CDCP fee schedule;
• the applicable co-payment; and
• any additional amount the provider will charge above that schedule.
Coordination with government dental programs
Having dental coverage through a provincial, territorial or federal government social program
does not necessarily prevent CDCP eligibility. Where a person qualifies for both programs,
Back to contents
Ontario Retirement Planning HandbookPage 43 of 78
benefits may be coordinated to avoid duplication or gaps in coverage. This may be relevant to
Ontario seniors who also qualify for the Ontario Seniors Dental Care Program.
Annual renewal and accuracy
Eligibility must be confirmed at application and renewal. Applicants must accurately report
access to private dental coverage. A person found to have been ineligible may be removed from
the CDCP and required to repay benefits paid while they were not eligible.
9.2 Ontario Seniors Dental Care Program (OSDCP)
The OSDCP is an Ontario government program that provides free routine dental care to
eligible low-income seniors aged 65 or older. It is separate from OHIP.
Who qualifies
You may qualify when all of these apply:
• You are 65 or older
• You live in Ontario
• Your annual net income is:
o $25,000 or less for a single senior
o $41,500 or less combined for a couple
• You do not have other dental benefits, such as employer, pension, private insurance,
Ontario Works, ODSP or Non-Insured Health Benefits.
The income test generally uses net income from your tax return, not gross employment or
pension income before deductions.
What it covers
OSDCP can cover:
• Dental examinations and check-ups
• Scaling, polishing and fluoride treatments
• X-rays
• Fillings and repair of broken teeth
• Tooth extractions and some oral surgery
• Treatment of infections and dental pain
• Root-canal-related services
• Treatment of gum disease
• Anesthesia when medically required
Some procedures have frequency or clinical limits.
Back to contents
Ontario Retirement Planning HandbookPage 44 of 78
Dentures
Dentures and other dental prosthetics are only partially covered, so the senior may still have
to pay part of the cost. Coverage and availability can differ by local public health unit.
9.3 Ontario Drug Benefit
The Ontario Drug Benefit program helps eligible Ontario residents pay for approved prescription
drugs and certain pharmacy products. Ontario residents with valid provincial health coverage
generally become eligible at age 65, with coverage beginning on the first day of the month after
their 65th birthday.
ODB does not necessarily pay the full retail cost of every prescription. Coverage depends on
whether the drug is listed in the Ontario Drug Benefit Formulary and whether any clinical or
administrative conditions are satisfied.
Standard senior coverage
The ODB benefit year runs from August 1 to July 31.
Senior category Annual Patient co-payment for each covered
deductible prescription
Standard ODB senior coverage Up to $100 Up to $6.11 after the deductible
Approved Seniors Co-Payment $0 Up to $2
Program
Under standard coverage, the senior generally pays the eligible prescription costs until the
annual deductible has been reached. Afterward, the senior pays a co-payment of up to $6.11 for
each covered prescription for the remainder of the benefit year.
Co-payment versus pharmacy dispensing fee
The amount paid by the senior should be described as a co-payment, not as the pharmacy’s
full dispensing fee.
A pharmacy normally charges a dispensing fee for the professional services involved in filling a
prescription. ODB reimburses the pharmacy according to provincial rules and approved
amounts. The senior is normally responsible only for the applicable ODB deductible and co-
payment, not automatically for the pharmacy’s entire dispensing fee.
However, additional patient costs may arise when:
• the pharmacy’s charge exceeds the amount recognized by ODB;
Back to contents
Ontario Retirement Planning HandbookPage 45 of 78
• the patient chooses a higher-cost brand-name drug without an approved medical
reason;
• the prescription is not an eligible ODB benefit;
• the drug requires approval that has not been obtained;
• the quantity or refill frequency does not meet ODB rules; or
• another non-covered service or product is provided.
Before filling an expensive or ongoing prescription, ask the pharmacist to identify separately:
1. the drug cost;
2. the pharmacy dispensing fee;
3. the amount covered by ODB;
4. the ODB deductible or co-payment;
5. any brand-name or other additional charge; and
6. the final amount payable by the patient.
Seniors Co-Payment Program
Lower-income seniors can apply for the Seniors Co-Payment Program. Once approved:
• the annual $100 deductible is removed; and
• the patient pays a co-payment of up to $2 for each covered prescription.
For the benefit year beginning August 1, 2026, the general net-income limits are:
Household situation Annual net-income limit
Single senior $25,480 or less
Senior couple $42,290 or less combined
An application is required. Eligibility is not necessarily granted automatically when a senior turns
65.
What ODB may cover
ODB covers thousands of approved prescription drugs and certain other products. A drug may
fall into one of several categories:
• General Benefit: Covered when prescribed for an eligible ODB recipient.
• Limited Use: Covered only when specified clinical conditions are met and the prescriber
records the appropriate Limited Use code.
• Exceptional Access Program: The prescriber must request approval when the
patient’s circumstances meet the applicable criteria.
• Not listed or excluded: The patient may have to pay the full cost unless another public
or private plan provides coverage.
Back to contents
Ontario Retirement Planning HandbookPage 46 of 78
ODB may cover only an approved generic version of a medication. A patient who requests a
brand-name version may have to pay the difference unless the prescriber establishes an
accepted medical reason for requiring the brand.
Dispensing-frequency considerations
A separate co-payment may apply each time a prescription is dispensed. Receiving medication
in short refill intervals can therefore result in more co-payments than receiving an appropriate
longer supply.
ODB rules can limit how often dispensing fees are reimbursed for certain chronic-use
medications. Exceptions may apply where shorter dispensing intervals are medically necessary,
required for safety, or otherwise permitted under program rules.
Seniors should ask their pharmacist whether a 90-day supply is medically appropriate and
permitted. Medication should not be supplied in larger quantities when doing so could create
safety concerns or lead to waste.
Coordination with private coverage
Before cancelling employer, retiree or individually purchased drug insurance at age 65, ask a
pharmacist to check every current medication against the Ontario formulary.
Private coverage may remain valuable for:
• medications not listed by ODB;
• brand-name price differences;
• deductibles and co-payments;
• medical supplies or products outside ODB;
• drugs awaiting Exceptional Access approval; or
• travel and out-of-province prescription needs.
The comparison should consider premiums, deductibles, annual limits, exclusions and
coordination-of-benefits rules—not merely whether the senior is technically eligible for ODB.
Practical checklist
• Confirm that the Ontario health card is valid.
• Ask the pharmacy to check each medication against the ODB Formulary.
• Determine whether a Limited Use code or Exceptional Access approval is required.
• Apply for the Seniors Co-Payment Program when income is within the applicable limit.
• Ask whether a generic substitute is available and medically appropriate.
• Request a written explanation of any amount not covered by ODB.
• Review private drug insurance before cancelling it.
• Recheck coverage whenever a medication, dosage, brand or medical condition
changes.
Back to contents
Ontario Retirement Planning HandbookPage 47 of 78
This wording distinguishes the patient co-payment from the pharmacy’s dispensing fee and
makes the possible additional charges clearer.
9.4 Ontario Trillium Benefit
The Ontario Trillium Benefit combines the Ontario Energy and Property Tax Credit, Northern
Ontario Energy Credit where applicable, and Ontario Sales Tax Credit. Eligibility is income-
tested and usually depends on filing an annual tax return and completing the relevant rent,
property-tax, residence, and energy information. A senior who receives OSHPTG may also
qualify for OTB components; they are separate programs.
9.5 Snowbird tax and travel rules
Frequent U.S. visitors should track days carefully. The U.S. substantial presence calculation
uses the current year plus weighted portions of the prior two years. Eligible visitors who
maintain a closer connection to Canada may need to file IRS Form 8840 by the deadline.
Canadian provincial health-coverage residency rules and travel-insurance trip limits are
separate tests. Canadians owning U.S. real estate or substantial U.S. assets should also review
possible U.S. estate-tax exposure and currency (FX) risk on U.S.-dollar spending.
9.6 Working while receiving CPP
CPP contributions generally continue while working and receiving CPP before age 65,
generating Post-Retirement Benefits. From 65 to 70, an employee may elect to stop
contributions using the prescribed process; otherwise contributions can continue and generate
additional PRBs. No CPP contributions are made after 70. Compare contribution cost, tax
deduction/credit effects, expected PRB, employment plans, and longevity.
To stop Canada Pension Plan (CPP) contributions after age 65, you must file Form CPT30 with
your employer and the Canada Revenue Agency (CRA).
Eligibility
You are only eligible to stop contributing if you meet all of the following conditions: [1]
• You are at least 65 years old, but under age 70.
• You are actively receiving a CPP or Quebec Pension Plan (QPP) retirement pension.
• You are currently earning pensionable employment or self-employment income. [1, 2]
How to Apply
• Fill out the form: Download and complete Form CPT30, Election to Stop Contributing to the
Canada Pension Plan.
• Submit to your employer: Give a completed copy to your payroll department. Deductions will
officially stop on the first day of the month following the month you submit it to them.
Back to contents
Ontario Retirement Planning HandbookPage 48 of 78
• Submit to the CRA: Mail the original form to the nearest CRA tax center listed on the
instructions. [1, 2]
Additional Details
• Self-Employed: If you are exclusively self-employed, you do not need to file a CPT30. You
can simply elect to stop making contributions directly on Schedule 8 when you file your
personal tax return.
9.7 Ontario and municipal property-tax and utility relief
Two layers of relief exist for Ontario homeowners and tenants: provincial programs that apply
everywhere in Ontario, and local (municipal/upper-tier) programs that vary by community.
Province-wide programs (apply anywhere in Ontario):
● Ontario Senior Homeowners' Property Tax Grant (OSHPTG) — an income-tested grant
claimed on the tax return for eligible senior homeowners.
● Ontario Trillium Benefit (OTB) components — including the Ontario Energy and Property
Tax Credit and, in eligible areas, the Northern Ontario Energy Credit (see §9.3).
Local programs (vary by municipality — you must check your own):
Many Ontario municipalities and upper-tier regions offer some combination of:
● Property-tax deferral for low-income seniors or persons with disabilities (often repayable on
sale or death, sometimes with interest and a registered lien).
● Property-tax rebates, credits, or increase-cancellation programs.
● Water/utility rebate or assistance programs.
How to find yours (any community in Ontario):
● Search your municipality's (city, town, township) website for "property tax relief / deferral /
rebate for seniors," and your upper-tier region or county where applicable (e.g., a region,
county, or district).
● Larger single-tier cities (for example, Toronto, Ottawa, Hamilton, Windsor, London, Greater
Sudbury) and two-tier systems (a lower-tier municipality within a region or county) can differ
— confirm which level administers the program.
● Call 211 Ontario (dial 2-1-1) for a free referral to local relief programs.
For any program, confirm current eligibility, application deadlines, interest, liens, whether
repayment is required on sale or death, and whether annual renewal is required. Municipal
program names, availability, and rules differ across Ontario and change over time.
9.8 Fraud prevention: technological safeguards and scam typologies
Technological safeguards. Use strong unique passwords, multifactor authentication,
Back to contents
Ontario Retirement Planning HandbookPage 49 of 78
transaction alerts, call-back verification, and a waiting period before major transfers. Never rely
on caller ID. Investment firms may use a Trusted Contact Person when concerned about
exploitation or capacity, but the TCP cannot transact unless separately authorized.
Behavioural safeguards — recognizing common scams. Many scams targeting seniors
succeed by creating urgency, fear, secrecy, or emotional pressure rather than by breaking a
password. Be alert to these prevalent typologies:
Scam type How it typically works Red flags / defence
Caller or text claims you owe The CRA does not demand
tax or a benefit was overpaid payment by gift cards, crypto,
CRA / government and threatens arrest, e-transfer, or threaten arrest
impersonation deportation, or account by phone. Hang up and call
seizure unless you pay the CRA using the official
immediately. number.
Caller poses as a grandchild Urgency + secrecy ("don't tell
(or a lawyer/police for them) mom and dad") is the tell.
Grandparent / emergency in urgent trouble — an Hang up and call the family
scam accident, arrest, bail — and member directly on a known
pleads for secret, immediate number.
money.
Caller claims your account is A real bank never asks you
Bank / fraud-investigator compromised and asks you to move money to protect it
scam to "move funds to a safe or to share one-time codes.
account," share codes, or Call the number on your
grant remote access. card.
Pop-up or call claims your Legitimate companies don't
Tech-support scam computer is infected and cold-call about viruses.
requests remote access or Never grant remote access
payment to "fix" it. to an unsolicited caller.
Back to contents
Ontario Retirement Planning HandbookPage 50 of 78
Scam type How it typically works Red flags / defence
An online relationship
develops over Requests for money from
Romance scam weeks/months, then the someone never met in
"partner" requests money for person; refusal to video-call.
emergencies, travel, or
investments.
"Guaranteed" high returns, Verify registration with
Investment / crypto fraud pressure to act fast, or a tip FSRA/securities regulators;
from a new online contact; be skeptical of guaranteed
often unregistered. returns and urgency.
Defensive habits: pause before acting, verify independently through official numbers, never
move money or share codes under pressure, and talk to your Trusted Contact Person, a family
member, or your advisor before any unexpected large transfer.
9.9 Advanced Life Deferred Annuity (ALDA)
An ALDA can defer income from eligible registered funds to a later age, subject to statutory
limits and product availability. It may help manage longevity risk and reduce earlier RRIF
minimums, but it reduces liquidity and depends on pricing, insurer strength, death-benefit
options, inflation protection, and tax rules.
10. Selecting and vetting professional help
"Qualified financial planner" is not a complete description. Confirm what the person is licensed
or certified to do, how they are paid, whether they sell products, what standard applies, and who
is responsible for tax, legal, insurance, or investment implementation.
Back to contents
Ontario Retirement Planning HandbookPage 51 of 78
Question Why it matters
What credentials and registrations do you Titles vary. Verify securities/insurance
hold, and can I verify them? registration and relevant planning
designations.
Fee-for-service, percentage of assets,
How are you paid? commission, salary, referral fees, or a
combination can create different incentives.
Do you have a legal fiduciary duty in this Do not assume every advisor or salesperson
engagement? owes the same duty in every circumstance.
Will you provide a written scope, A written engagement reduces
assumptions, recommendations, costs, and misunderstanding and clarifies what is not
conflicts? included.
What products or custodians are you Limited product shelves and proprietary
restricted to? products can affect recommendations.
Who prepares tax returns and legal Planning, tax filing, legal drafting, and
documents? insurance advice are different services.
How do you model survivor, tax, inflation, Good planning should show trade-offs and
care, and market stress? adverse scenarios, not only one projection.
How can I terminate the relationship and Understand exit fees, deferred sales charges,
transfer assets? portability, and record access.
Verification: Check disciplinary history and registration through the appropriate securities,
insurance, professional, or credentialing body. Ask for references only as a supplement, not a
substitute for independent verification.
Back to contents
Ontario Retirement Planning HandbookPage 52 of 78
11. Glossary of useful retirement terms
Term Plain-language meaning
2FA Two-factor authentication — a second login
step beyond a password.
Free province-wide phone/online service (dial
211 Ontario 2-1-1) that refers people to local community,
health, and social services.
ADP Ontario Assistive Devices Program.
ALDA Advanced Life Deferred Annuity.
Living trust for a settlor aged 65+, for their
Alter Ego Trust own benefit, that can pass assets outside the
estate.
Income-tested OAS program benefit for
Allowance certain eligible spouses/common-law
partners aged 60–64.
Allowance for the Survivor Income-tested benefit for certain widowed
people aged 60–64.
Placing investments in the account type
Asset location (RRSP/RRIF, TFSA, non-registered) that is
most tax-efficient.
Advance care planning Discussing and recording wishes for future
health/personal care, including end-of-life.
Back to contents
Ontario Retirement Planning HandbookPage 53 of 78
Term Plain-language meaning
Deliberately withdrawing extra registered
Bracket top-up / RRIF meltdown income up to a chosen tax threshold to
reduce future/terminal tax.
Decumulation approach that segregates
Bucket strategy short-, medium-, and long-term assets to
protect near-term income.
The decision-specific legal/mental ability to
Capacity understand information and appreciate
consequences.
A formal evaluation of whether a person is
Capacity assessment capable of managing property or personal
care.
CCC Canada Caregiver Credit.
CDCP Canadian Dental Care Plan.
CPP credit splitting / DUPE Division of Unadjusted Pensionable Earnings
after divorce or separation.
Sharing of CPP retirement pension payments
CPP pension sharing between eligible spouses/common-law
partners.
Tax event when property use shifts between
Change in use personal and income-producing, possibly
triggering a deemed disposition.
Back to contents
Ontario Retirement Planning HandbookPage 54 of 78
Term Plain-language meaning
DB pension Defined-benefit pension with a formula-based
payment.
DPSP Deferred Profit Sharing Plan (employer-
sponsored).
DTC Disability Tax Credit.
EAT Ontario Estate Administration Tax (probate).
FHSA First Home Savings Account.
GAINS Ontario Guaranteed Annual Income System.
GIS Guaranteed Income Supplement.
Guardianship Court- or OPGT-appointed authority over an
incapable person who has no valid POA.
HATC Home Accessibility Tax Credit.
HELOC Home Equity Line of Credit.
HISA High-Interest Savings Account.
Election allowing spouses living apart for
Involuntary separation (GIS) reasons beyond their control to be assessed
as single individuals for GIS/Allowance.
Back to contents
Ontario Retirement Planning HandbookPage 55 of 78
Term Plain-language meaning
Living trust for a settlor 65+ and their
Joint Partner Trust spouse/partner; deemed disposition deferred
to the second death.
Joint tenancy with right of survivorship; asset
JTWROS passes automatically to the survivor (see
§8.7 for risks).
LIF Life Income Fund.
LIRA Locked-In Retirement Account.
MHRTC Multigenerational Home Renovation Tax
Credit.
OAS recovery tax Repayment of OAS when net income
exceeds the annual threshold.
ODB Ontario Drug Benefit.
Provincial service that coordinates publicly
Ontario Health atHome funded home care and long-term-care home
placement.
OPGT Office of the Public Guardian and Trustee.
OSHPTG Ontario Senior Homeowners' Property Tax
Grant.
OTB Ontario Trillium Benefit.
Back to contents
Ontario Retirement Planning HandbookPage 56 of 78
Term Plain-language meaning
Pension adjustment Amount reflecting workplace pension benefits
that reduces new RRSP room.
PRB CPP Post-Retirement Benefit.
PRE Principal Residence Exemption.
RDSP Registered Disability Savings Plan.
RRIF Registered Retirement Income Fund.
RRSP deduction limit Maximum deductible RRSP amount shown
by CRA, after carryforward and adjustments.
SDM Substitute decision-maker (for personal
care/treatment).
The danger that poor early-retirement market
Sequence-of-returns risk returns, combined with withdrawals,
permanently reduce a portfolio.
Successor holder / annuitant Spousal designation that can provide
continuity for TFSA or RRIF, subject to rules.
TCP Trusted Contact Person.
TFSA Tax-Free Savings Account.
Back to contents
Ontario Retirement Planning HandbookPage 57 of 78
Term Plain-language meaning
Withholding tax Tax retained at source on certain registered-
plan withdrawals; not necessarily final tax.
12. Useful official sources for self-study
Government programs, benefit amounts, income thresholds, tax rules and application
procedures can change. Use the following official sources to verify current information before
making financial, tax, legal, healthcare or estate-planning decisions.
12.1 Canada Revenue Agency — Tax and Registered Plans
Canada Revenue Agency:
https://www.canada.ca/en/revenue-agency.html
Use CRA resources for RRSPs, RRIFs, TFSAs, FHSAs, tax credits, medical expenses,
investment income, withholding tax, the Principal Residence Exemption, change-in-use rules
and the tax treatment of registered plans at death.
• RRSPs and related plans:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans.html
• Registered Retirement Income Funds — RRIFs:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/registered-retirement-income-fund-rrif.html
• Tax-Free Savings Account — TFSA:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account.html
• First Home Savings Account — FHSA:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account.html
• Medical expenses:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/lines-33099-33199-eligible-medical-expenses-you-claim-on-your-tax-return.html
• Disability Tax Credit:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/segments/tax-credits-deductions-persons-disabilities/disability-tax-credit.html
Back to contents
Ontario Retirement Planning HandbookPage 58 of 78
• Pension income splitting:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/pension-income-splitting.html
• Ontario tax credits and benefits:
https://www.canada.ca/en/revenue-agency/services/child-family-benefits/provincial-territorial-programs/province-ontario.html
• Principal residence and change-in-use rules:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/principal-residence-other-real-estate.html
• Tax consequences following a death:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/life-events/what-when-someone-died.html
12.2 Service Canada — CPP, OAS and Income-Tested Benefits
Public pensions:
https://www.canada.ca/en/services/benefits/publicpensions.html
Use Service Canada and Employment and Social Development Canada resources for CPP,
OAS, GIS, the Allowance, the Allowance for the Survivor, CPP pension sharing, credit splitting
and current benefit amounts.
• Canada Pension Plan retirement pension:
https://www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-benefit.html
• CPP payment amounts:
https://www.canada.ca/en/services/benefits/publicpensions/cpp/payment-amounts.html
• Old Age Security:
https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security.html
• OAS, GIS and Allowance payment amounts and income limits:
https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security/payments.html
• Guaranteed Income Supplement:
https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security/guaranteed-income-supplement.html
• Allowance for people aged 60–64:
https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security/allowance.html
• Allowance for the Survivor:
https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security/allowance-survivor.html
• CPP pension sharing:
https://www.canada.ca/en/services/benefits/publicpensions/cpp/share-cpp.html
• CPP credit splitting after separation or divorce:
https://www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-split-credits.html
• Canadian Dental Care Plan:
https://www.canada.ca/en/services/benefits/dental/dental-care-plan.html
Back to contents
Ontario Retirement Planning HandbookPage 59 of 78
12.3 Government of Ontario — Seniors’ Benefits and Healthcare
Government of Ontario seniors’ services:
https://www.ontario.ca/page/seniors
Use Ontario government resources for drug coverage, dental care, assistive devices, low-
income benefits, property-tax credits, long-term care, home care, powers of attorney, capacity
and guardianship.
Prescription drugs and dental care
• Ontario Drug Benefit:
https://www.ontario.ca/page/get-coverage-prescription-drugs
• Ontario Drug Benefit Formulary search:
https://www.formulary.health.gov.on.ca/formulary/• Seniors Co-Payment Program:
https://www.ontario.ca/page/seniors-co-payment-program
• Exceptional Access Program:
https://www.ontario.ca/page/applying-exceptional-access-program
• Ontario Seniors Dental Care Program:
https://www.ontario.ca/page/dental-care-low-income-seniors
The Trillium Drug Program is primarily relevant before age 65 or to people who do not otherwise
receive comprehensive public drug coverage and have high eligible drug costs relative to
household income. Most seniors should first review their Ontario Drug Benefit coverage,
formulary status, Limited Use requirements and Exceptional Access options.
Income and tax-related programs
• Ontario Guaranteed Annual Income System — GAINS:
https://www.ontario.ca/page/guaranteed-annual-income-system-payments-seniors
• Ontario Senior Homeowners’ Property Tax Grant:
https://www.ontario.ca/page/senior-homeowners-property-tax-grant
• Ontario Trillium Benefit:
https://www.ontario.ca/page/ontario-trillium-benefit
• Ontario tax credits and benefits:
https://www.ontario.ca/page/tax-credits-and-benefits
Health, assistive devices and long-term care
• Assistive Devices Program:
https://www.ontario.ca/page/assistive-devices-program
• Long-term care in Ontario:
https://www.ontario.ca/page/about-long-term-care
• Applying for long-term care:
https://www.ontario.ca/page/apply-long-term-care
• Help paying for long-term care:
https://www.ontario.ca/page/get-help-paying-long-term-care
Back to contents
Ontario Retirement Planning HandbookPage 60 of 78
• Retirement homes:
https://www.ontario.ca/page/find-retirement-home
12.4 Ontario Health atHome — Home Care and Long-Term-Care
Placement
Ontario Health atHome:
https://www.ontariohealthathome.ca/
Ontario Health atHome coordinates assessments and access to publicly funded home and
community care, including nursing, personal support, rehabilitation and long-term-care-home
placement.
• Home-care services:
https://www.ontariohealthathome.ca/home-care/• Long-term-care placement:
https://www.ontariohealthathome.ca/long-term-care/• Find a local Ontario Health atHome office:
https://www.ontariohealthathome.ca/contact/
Service availability, assessment outcomes and waiting times vary by region. Begin the
assessment process before a crisis whenever possible.
12.5 211 Ontario — Local Community and Seniors’ Services
211 Ontario:
https://211ontario.ca/
Call 2-1-1 or use the online search service for free referrals to local:
• seniors’ programs;
• meals and food support;
• transportation;
• caregiver and respite services;
• adult day programs;
• housing assistance;
• mental-health and social services;
• property-tax and utility assistance; and
• community legal resources.
Services and eligibility differ by municipality and region.
12.6 Municipal and Regional Programs
Municipal property-tax deferrals, rebates, utility assistance and accessibility programs vary
across Ontario. Search both:
Back to contents
Ontario Retirement Planning HandbookPage 61 of 78
1. the website of the city, town or township where the property is located; and
2. the applicable upper-tier region or county, where one exists.
Ontario municipal directory:
https://www.ontario.ca/page/list-ontario-municipalities
Suggested search terms include:
• “senior property tax deferral”;
• “low-income senior property tax rebate”;
• “property tax increase cancellation”;
• “water rebate for seniors”;
• “utility assistance”; and
• “accessibility renovation grant.”
Confirm whether relief is a grant, rebate or repayable deferral. A tax deferral may accumulate
interest, create a lien against the property and become repayable on sale or death.
12.7 Powers of Attorney, Capacity and Guardianship
Ontario Office of the Public Guardian and Trustee:
https://www.ontario.ca/page/office-public-guardian-and-trustee
Use these resources for general information about powers of attorney, substitute decision-
making, capacity assessments and guardianship.
• Make a power of attorney:
https://www.ontario.ca/page/make-power-attorney
• Powers of attorney information:
https://www.ontario.ca/page/powers-attorney
• Capacity assessment:
https://www.ontario.ca/page/mental-capacity
• Guardianship:
https://www.ontario.ca/page/guardianship
• Substitute Decisions Act, 1992:
https://www.ontario.ca/laws/statute/92s30
• Health Care Consent Act, 1996:
https://www.ontario.ca/laws/statute/96h02
• Legal Aid Ontario:
https://www.legalaid.on.ca/• Community Legal Education Ontario:
https://www.cleo.on.ca/
Government forms and guides are useful starting points but may not address family conflict,
complex assets, business ownership, blended families or specialized restrictions. Obtain
Ontario legal advice when the circumstances are not straightforward.
Back to contents
Ontario Retirement Planning HandbookPage 62 of 78
12.8 Financial, Pension and Insurance Regulation
Financial Services Regulatory Authority of Ontario — FSRA:
https://www.fsrao.ca/
Use FSRA resources for Ontario-regulated pensions, insurance agents, mortgage brokers,
credit unions and locked-in retirement accounts.
• Pensions:
https://www.fsrao.ca/consumers/pensions
• Life and health insurance:
https://www.fsrao.ca/consumers/life-and-health-insurance
• Check whether an insurance agent is licensed:
https://teao.fsco.gov.on.ca/agentlicencesearch/• Locked-in retirement accounts and life income funds:
https://www.fsrao.ca/consumers/pensions/events-may-affect-your-pension/leaving-your-employer
Canadian Investment Regulatory Organization — CIRO:
https://www.ciro.ca/
• Advisor and dealer information:
https://www.ciro.ca/office-investor/investing-basics/choosing-investment-advisor
• AdvisorReport — registration, qualifications and disciplinary information:
https://www.advisorinfo.ca/
Canadian Securities Administrators — National Registration Search:
https://info.securities-administrators.ca/nrsmobile/nrssearch.aspx
Check the registration and disciplinary history of both the individual advisor and the firm before
transferring money or purchasing an investment.
12.9 Fraud Prevention and Reporting
Canadian Anti-Fraud Centre:
https://antifraudcentre-centreantifraude.ca/
• Current fraud information:
https://antifraudcentre-centreantifraude.ca/scams-fraudes/index-eng.htm
• Report fraud or cybercrime:
https://reportcyberandfraud.canada.ca/
Canadian Centre for Cyber Security:
https://www.cyber.gc.ca/en
Competition Bureau fraud resources:
https://competition-bureau.canada.ca/fraud-and-scams
Back to contents
Ontario Retirement Planning HandbookPage 63 of 78
Contact the relevant bank or investment firm immediately when money, account access or
personal information may be at risk. Ask the institution about transaction holds, password
resets, account alerts and Trusted Contact Person procedures.
Call local police when there is an immediate threat or financial loss. Report identity theft and
compromised identification to the relevant government agencies and credit bureaus.
12.10 United States Travel, Tax and Snowbird Rules
Internal Revenue Service — IRS:
https://www.irs.gov/
Use IRS resources to verify the U.S. substantial presence test, closer-connection filing
requirements and U.S. estate-tax rules.
• Substantial Presence Test:
https://www.irs.gov/individuals/international-taxpayers/substantial-presence-test
• Form 8840 — Closer Connection Exception Statement:
https://www.irs.gov/forms-pubs/about-form-8840
• Taxation of nonresident aliens:
https://www.irs.gov/individuals/international-taxpayers/taxation-of-nonresident-aliens
• Estate tax for nonresidents who are not U.S. citizens:
https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax-for-nonresidents-not-citizens-of-the-united-states
U.S. tax residency, Canadian provincial health-coverage residency and travel-insurance trip
limits are separate tests. Meeting one rule does not guarantee compliance with the others.
12.11 Ontario Legal and Tax Professionals
Use a qualified Ontario estates lawyer and, where needed, a Canadian tax professional for:
• wills and multiple-will planning;
• affidavits of execution;
• Continuing Powers of Attorney for Property;
• Powers of Attorney for Personal Care;
• Alter Ego and Joint Partner Trusts;
• joint ownership with adult children;
• private-company shares and shareholder loans;
• disabled-beneficiary and Henson trust planning;
• probate and Estate Administration Tax;
• RRSP and RRIF taxation at death;
• cottage and rental-property capital gains;
• charitable giving;
• cross-border assets; and
• final and estate tax returns.
Back to contents
Ontario Retirement Planning HandbookPage 64 of 78
Law Society of Ontario — lawyer and paralegal directory:
https://lso.ca/public-resources/finding-a-lawyer-or-paralegal
Chartered Professional Accountants of Ontario:
https://www.cpaontario.ca/
Confirm the professional’s specific experience with Ontario retirement, elder-law, estate and
cross-border matters. Professional status alone does not establish expertise in every subject.
Source-verification practice
For every government amount or threshold used in this handbook:
• record the official page title and URL;
• record the date checked;
• identify the applicable tax year, benefit quarter or program year;
• retain a copy or screenshot when the figure affects an important decision; and
• recheck the information before applying, withdrawing funds, transferring property or
signing legal documents.
The links in this section were reviewed on July 13, 2026. Government agencies may reorganize
pages or change URLs without notice.
13. Consolidated annual review checklist and current -
number appendix
13.1 One annual checklist
● ☐ Update account balances, ownership, beneficiaries, fees, investment mix, and debt
balances.
● ☐ Estimate current-year taxable income before year-end and project next year.
● ☐ Review asset location across RRSP/RRIF, TFSA, and non-registered accounts for tax
efficiency.
● ☐ Check RRSP deduction limit, unused contributions, pension adjustment, and planned
contribution timing.
● ☐ Review RRSP/RRIF withdrawals, withholding, instalments, RRIF minimum, spouse-age
election, and any bracket top-up opportunity.
● ☐ Review decumulation buckets/cash reserve and rebalance as needed.
● ☐ Review CPP/OAS timing, PRB contributions, CPP sharing, and any divorce/separation
credit-splitting issue.
Back to contents
Ontario Retirement Planning HandbookPage 65 of 78
● ☐ Check OAS recovery tax, GIS, GAINS, Allowance benefits, GST/HST credit, OTB, age
amount, and pension amount.
● ☐ Renew or confirm CDCP; review ODB formulary, co-payment status, and Trillium Drug
Program if drug costs are high.
● ☐ Check HATC, MHRTC, CCC, medical expenses, DTC/RDSP, and ADP opportunities —
and any change-in-use/PRE impact of renovations.
● ☐ Apply for OSHPTG and confirm your local municipality/upper-tier region property-tax
deferral, rebate, or utility programs before deadlines (use 211 Ontario if unsure what exists
locally).
● ☐ Review any planned housing transition/downsizing: transaction costs, land transfer tax on
a new home, reverse-mortgage/HELOC terms, and effect of sale proceeds on net income
and benefits.
● ☐ Review insurance: life, disability, critical illness, health/dental, travel medical, and long-
term-care exposure.
● ☐ For travel, count U.S. days, review Form 8840, provincial residency rules, trip limits,
medical stability periods, and any U.S. estate-tax/FX exposure.
● ☐ Compare actual spending with the budget; update inflation, housing, repair, vehicle, and
care assumptions (note which income is indexed).
● ☐ Confirm home-care/LTC readiness: know how to reach Ontario Health atHome and 211
Ontario before a crisis.
● ☐ Stress-test market decline, longevity, spouse death, incapacity, care, and a home sale or
move.
● ☐ Review wills, multiple-will asset schedules, any Alter Ego/Joint Partner Trust, joint-
ownership arrangements, affidavit of execution, two POAs (Property and Personal Care),
advance-care wishes, beneficiaries, executor, TCP, and digital access.
● ☐ Review disabled-beneficiary planning, RDSP, trusts, and benefit preservation where
applicable.
● ☐ Refresh fraud defences: passwords, MFA, alerts, and review current scam typologies with
family/TCP.
● ☐ Verify advisor registration, fees, conflicts, scope, and whether recommendations remain
suitable.
● ☐ Discuss major changes with family and the relevant tax, legal, insurance, investment, or
health professional.
13.2 Current-Number Appendix
Edition date: July 13, 2026
Verified on: July 13, 2026
Geographic scope: Ontario, Canada
Back to contents
Ontario Retirement Planning HandbookPage 66 of 78
Currency: Canadian dollars unless otherwise stated
Important: This appendix is a dated reference, not a substitute for checking current government
rules. OAS, GIS and Allowance amounts are adjusted quarterly. Drug, long-term-care and
municipal figures can change during the year. Personal eligibility depends on income,
residency, marital status, contribution history and other circumstances.
13.2.1 Canada Pension Plan — 2026
Average
monthly Maximum Applicable Verified
Benefit amount for monthly period on Official source
new amount
beneficiaries
CPP Average: April Government of
retirement 2026; Canada —
pension $877.01 $1,507.65 maximum for July 13, Canada Pension
starting at age benefits 2026 Plan: Pensions
65 beginning and benefits
January 2026 monthly amounts
Government of
CPP Post- Canada —
Retirement $25.76 $54.69 2026 July 13, Canada Pension
Benefit at age 2026 Plan: Pensions
65 and benefits
monthly amounts
Government of
CPP Canada —
survivor’s $339.36 $904.59 2026 July 13, Canada Pension
pension, age 2026 Plan: Pensions
65+ and benefits
monthly amounts
Combined Government of
CPP Canada —
survivor’s and $1,103.97 $1,531.56 2026 July 13, Canada Pension
retirement 2026 Plan: Pensions
pension at and benefits
age 65 monthly amounts
Planning notes
• The maximum CPP amount is not the amount most retirees receive. It generally requires
a strong contribution record near the annual maximum pensionable earnings.
• CPP is taxable.
• Starting before age 65 permanently reduces the pension; delaying after 65 increases it,
up to age 70.
• Combined survivor and retirement benefits are subject to a combined maximum and
should not be calculated by simply adding two full pensions.
Back to contents
Ontario Retirement Planning HandbookPage 67 of 78
Official source:
https://www.canada.ca/en/services/benefits/publicpensions/cpp/payment-amounts.html
13.2.2 Old Age Security, GIS and Allowance — July to September 2026
Old Age Security
2025 net-world-
Maximum income ceiling Applicable Verified
Recipient monthly shown for period on Official source
OAS payment
eligibility
July– Government of
Age 65– $751.97 Less than September July 13, Canada — Old Age
74 $152,062 2026 2026 Security payment
amounts
July– Government of
Age 75+ $827.17 Less than September July 13, Canada — Old Age
$157,923 2026 2026 Security payment
amounts
The age-75 increase is 10% relative to the age-65-to-74 maximum. OAS is taxable and may be
reduced by the recovery tax.
Guaranteed Income Supplement
Maximum Maximum Income Applicable Verified Official
Situation monthly annual basis period on source
GIS income
Recipient’s Government
Single, annual July– of Canada —
widowed or $1,123.17 Less than income, September July 13, Old Age
divorced $22,800 generally 2026 2026 Security
excluding payment
OAS amounts
Spouse/partner Less than Couple’s July– July 13,
receives full $676.09 $30,096 combined September 2026 Same source
OAS combined income 2026
Spouse/partner Less than Couple’s July– July 13,
receives the $676.09 $42,144 combined September 2026 Same source
Allowance combined income 2026
Back to contents
Ontario Retirement Planning HandbookPage 68 of 78
Maximum Maximum Income Applicable Verified Official
Situation monthly annual basis period on source
GIS income
Spouse/partner Less than Couple’s July–
does not $1,123.17 $54,624 combined September July 13, Same source
receive OAS or combined income 2026 2026
Allowance
Allowance and Allowance for the Survivor
Maximum Maximum Applicable Verified
Benefit monthly annual period on Official source
amount income
Allowance, age 60– Government of
64, spouse/partner Less than July– July 13, Canada — Old
receives GIS and $1,428.06 $42,144 September 2026 Age Security
full OAS combined 2026 payment
amounts
Allowance for the Less than July– July 13,
Survivor, age 60–64 $1,702.34 $30,696 September 2026 Same source
2026
GIS, Allowance and Allowance for the Survivor are not taxable, but they are income-tested and
recalculated based on prior-year income.
Official source:
https://www.canada.ca/en/services/benefits/publicpensions/old-age-security/payments.html
13.2.3 OAS Recovery Tax Threshold
Item Amount Applicable Verified Official source
year on
OAS recovery- Canada Revenue
tax starting $95,323 2026 July 13, Agency — OAS recovery
threshold income year 2026 tax / indexed income
thresholds
15% of net income
Recovery rate above the threshold, 2026 July 13, Canada Revenue
until OAS is fully income year 2026 Agency
recovered
Planning note: The repayment is based on individual net income, not family income. The upper
income level at which OAS is fully recovered differs for recipients aged 65–74 and 75+ because
their maximum OAS payments differ.
Official source:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/old-age-security-repayment.html
Back to contents
Ontario Retirement Planning HandbookPage 69 of 78
13.2.4 Ontario Guaranteed Annual Income System — GAINS
Item Amount or Applicable Verified Official source
threshold period on
Current Ontario Government of Ontario
Maximum GAINS Up to $90 per program amount July 13, — Guaranteed Annual
payment month in 2026 2026 Income System
payments for seniors
Single senior
private-income $0 Current rules July 13, Same source
threshold for 2026
maximum benefit
Single senior Approximately July 13,
upper private- $4,320 annually Current rules 2026 Same source
income threshold
Senior couple
upper combined Approximately Current rules July 13, Same source
private-income $8,640 annually 2026
threshold
Planning notes
• GAINS is an Ontario supplement for qualifying low-income seniors who receive OAS and
GIS.
• Ontario normally determines eligibility automatically from the income-tax return and
federal benefit information.
• “Private income” for GAINS purposes is not identical to total cash received. Confirm the
calculation with Ontario or Service Canada.
Official source:
https://www.ontario.ca/page/guaranteed-annual-income-system-payments-seniors
13.2.5 2026 Federal and Ontario Personal Income-Tax Brackets
These are marginal tax brackets. They do not include tax credits, the Ontario health premium,
Ontario surtax, OAS recovery tax or reductions to income-tested benefits.
Federal tax brackets — 2026
Taxable-income Federal Verified Official source
portion rate on
Up to $58,523 14% July 13, Canada Revenue Agency — Tax rates and
2026 income brackets for individuals
Over $58,523 to 20.5% July 13, Same source
$117,045 2026
Back to contents
Ontario Retirement Planning HandbookPage 70 of 78
Taxable-income Federal Verified Official source
portion rate on
Over $117,045 to 26% July 13, Same source
$181,440 2026
Over $181,440 to 29% July 13, Same source
$258,482 2026
Over $258,482 33% July 13, Same source
2026
Ontario tax brackets — 2026
Taxable-income Ontario Verified Official source
portion rate on
Up to $53,891 5.05% July 13, Canada Revenue Agency — Payroll
2026 Deductions Tables, Ontario
Over $53,891 to 9.15% July 13, Same source
$107,785 2026
Over $107,785 to 11.16% July 13, Same source
$150,000 2026
Over $150,000 to 12.16% July 13, Same source
$220,000 2026
Over $220,000 13.16% July 13, Same source
2026
Ontario surtax
Ontario tax before Surtax
surtax
Up to $5,818 None
Over $5,818 to $7,446 20% of Ontario tax above $5,818
Over $7,446 20% of Ontario tax above $5,818, plus 36% of Ontario tax above
$7,446
Planning note: Ontario’s surtax is calculated on Ontario tax, not directly on taxable income.
Consequently, the effective marginal Ontario rate may be higher than the headline bracket rate.
Official sources:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/frequently-asked-questions-individuals/canadian-income-tax-rates-individuals-current-previous-years.html
https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/t4032-payroll-deductions-tables.html
Back to contents
Ontario Retirement Planning HandbookPage 71 of 78
13.2.6 TFSA and RRSP Limits — 2026
Item 2026 amount Verified Official source
on
TFSA annual July 13, Canada Revenue
contribution limit $7,000 2026 Agency — TFSA
contribution limits
Maximum cumulative
TFSA room for a person July 13, Canada Revenue
eligible for every year $109,000 2026 Agency
since 2009 and who
never contributed
Canada Revenue
RRSP annual dollar $33,810 July 13, Agency — MP,
maximum 2026 DB, RRSP, DPSP
and TFSA limits
18% of previous-year
General RRSP earned- earned income, Canada
income limit subject to the dollar 2026 July 13, 2026 Revenue
maximum and pension Agency
adjustments
Planning notes
• A person’s actual RRSP deduction limit is the amount shown on the latest CRA Notice of
Assessment or CRA My Account.
• Actual TFSA room must be calculated using personal contributions and withdrawals; CRA
records can lag behind financial-institution activity.
• A TFSA withdrawal normally creates equivalent new contribution room on January 1 of
the following year, not immediately.
Official sources:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account/contributing.html
https://www.canada.ca/en/revenue-agency/services/tax/registered-plans-administrators/pspa/mp-rrsp-dpsp-tfsa-limits-ympe.html
13.2.7 RRIF Minimum Withdrawal Factors
The minimum is calculated using the RRIF’s fair market value at the beginning of the year
multiplied by the applicable factor. The owner may elect, when establishing the RRIF, to use a
younger spouse’s or common-law partner’s age.
Age at start of year Minimum factor
72 5.40%
73 5.53%
74 5.67%
Back to contents
Ontario Retirement Planning HandbookPage 72 of 78
Age at start of year Minimum factor
75 5.82%
76 5.98%
77 6.17%
78 6.36%
79 6.58%
80 6.82%
81 7.08%
82 7.38%
83 7.71%
84 8.08%
85 8.51%
86 8.99%
87 9.55%
88 10.21%
89 10.99%
90 11.92%
91 13.06%
92 14.49%
93 16.34%
94 18.79%
95 and older 20.00%
Verified on: July 13, 2026
Official source: Canada Revenue Agency — Registered Retirement Income Funds and
prescribed minimum factors.
Official source:
https://www.canada.ca/en/revenue-agency/services/tax/registered-plans-administrators/registered-retirement-savings-plans-registered-retirement-income-funds-rrsps-rrifs.html
Back to contents
Ontario Retirement Planning HandbookPage 73 of 78
13.2.8 Canadian Dental Care Plan — CDCP
Adjusted CDCP share of Patient co-
family net the CDCP fee payment against Verified Official source
income schedule the CDCP fee on
schedule
Under July 13, Government of Canada
$70,000 100% 0% 2026 — CDCP coverage and
co-payments
$70,000– 60% 40% July 13, Same source
$79,999 2026
$80,000– 40% 60% July 13, Same source
$89,999 2026
$90,000 or Not eligible 100% July 13, Government of Canada
more 2026 — CDCP eligibility
Important: A provider may charge more than the CDCP fee schedule. The patient can therefore
owe both the applicable co-payment and any amount above the CDCP-approved fee. Some
services require preauthorization.
Official sources:
https://www.canada.ca/en/services/benefits/dental/dental-care-plan/coverage.html
https://www.canada.ca/en/services/benefits/dental/dental-care-plan/qualify.html
13.2.9 Ontario Drug Benefit — Seniors
Maximum
Senior Annual patient co- Income Applicable Verified Official
category deductible payment per threshold period on source
covered
prescription
Not ODB Government
Standard Up to $6.11 income- benefit of Ontario —
ODB Up to $100 after the tested for year: July 13, Get coverage
senior deductible basic age- August 1– 2026 for
coverage 65 July 31 prescription
eligibility drugs
Seniors Government
Co- Net Threshold of Ontario —
Payment $0 Up to $2 income of effective July 13, Seniors Co-
Program $25,480 or August 1, 2026 Payment
— single less 2026 Program
senior
Back to contents
Ontario Retirement Planning HandbookPage 74 of 78
Maximum
Senior Annual patient co- Income Applicable Verified Official
category deductible payment per threshold period on source
covered
prescription
Seniors
Co- Combined Threshold
Payment $0 Up to $2 each net income effective July 13, Same source
Program of $42,290 August 1, 2026
— senior or less 2026
couple
Planning notes
• ODB does not cover every prescription.
• Coverage may require a Limited Use code or Exceptional Access Program approval.
• Brand-name selections and pharmacy charges above the ODB-approved amount may
create additional costs.
• Before cancelling private retiree drug coverage, ask a pharmacist to check every ongoing
medication against the Ontario formulary.
Official sources:
https://www.ontario.ca/page/get-coverage-prescription-drugs
https://www.ontario.ca/page/seniors-co-payment-program
13.2.10 Ontario Senior Homeowners’ Property Tax Grant
Item Amount Verified Official source
on
Government of Ontario / Canada
Maximum Up to $500 per household July 13, Revenue Agency — Ontario
annual grant 2026 Senior Homeowners’ Property Tax
Grant
At least one spouse or
Age partner is age 64 or older on July 13, Same source
requirement December 31 of the previous 2026
year
Ontario resident who paid
General property tax on a principal July 13, Same source
eligibility residence and meets the 2026
income rules
The grant is income-tested and is claimed through the annual income-tax return. The amount is
reduced as family income rises.
Official sources:
https://www.ontario.ca/page/senior-homeowners-property-tax-grant
https://www.canada.ca/en/revenue-agency/services/child-family-benefits/ontario-senior-homeowners-property-tax-grant-oshptg.html
Back to contents
Ontario Retirement Planning HandbookPage 75 of 78
13.2.11 Home-Renovation Tax Credits
Eligible Credi Maximu Refundable Verifie
Credit expenditur t rate m credit ? d on Official source
e limit
Up to Canada
Home Up to $3,000 Revenue
Accessibility $20,000 15% federal No July 13, Agency —
Tax Credit — annually tax 2026 Home
HATC reduction Accessibility
Tax Credit
Canada
Multigeneration Up to Revenue
al Home $50,000 of Up to July 13, Agency —
Renovation Tax qualifying 15% $7,500 Yes 2026 Multigeneration
Credit — expenses al Home
MHRTC Renovation Tax
Credit
Planning notes
• HATC eligibility depends on the qualifying individual, the eligible dwelling and the nature
of the renovation.
• MHRTC generally applies to creating a qualifying self-contained secondary unit for an
eligible senior or adult eligible for the Disability Tax Credit.
• The same expense cannot normally be used twice where tax-credit anti-duplication rules
apply.
• Rental or income-producing use of part of a residence can raise Principal Residence
Exemption and change-in-use issues. Claiming the MHRTC alone does not automatically
cause a loss of the exemption.
Official sources:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/home-accessibility-expenses.html
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/multigenerational-home-renovation.html
13.2.12 Ontario Long-Term-Care Accommodation Charges
The Ontario government pays for nursing and personal care in licensed long-term-care homes.
Residents pay an accommodation co-payment. Current maximum monthly charges should be
confirmed when applying because Ontario may update rates during the year.
Back to contents
Ontario Retirement Planning HandbookPage 76 of 78
Maximum
Accommodation monthly Approximate Verified
type resident charge daily rate on Official source
used for this
edition
Government of Ontario
Basic / standard $2,085.37 $68.56 July 13, — Long-term-care
room 2026 accommodation costs
and subsidy
Semi-private room $2,520.05 $82.85 July 13, Same source
2026
Private room $2,979.32 $97.95 July 13, Same source
2026
Planning notes
• A resident with insufficient income may apply for a rate reduction for a basic room.
• The rate reduction does not normally subsidize the premium for semi-private or private
accommodation.
• Retirement homes are different from long-term-care homes and set their own private-
market prices.
Official source:
https://www.ontario.ca/page/get-help-paying-long-term-care
13.2.13 Ontario Estate Administration Tax
Estate value covered by the Tax rate Verified Official source
Certificate of Appointment on
First $50,000 of estate value $0 July 13, Government of Ontario —
2026 Estate Administration Tax
$15 for every July 13, Government of Ontario —
Estate value above $50,000 $1,000, or part of 2026 Estate Administration Tax
$1,000
This is equivalent to 1.5% on the portion above $50,000.
Example
For an estate requiring probate with a value of $1,200,000:
• First $50,000: $0
• Remaining $1,150,000 × 1.5% = $17,250 Estate Administration Tax
Important: Estate Administration Tax is separate from income tax triggered at death.
RRSP/RRIF income inclusion, deemed dispositions, capital gains and estate-return tax may be
much larger than probate tax.
Official source:
https://www.ontario.ca/page/estate-administration-tax
Back to contents
Ontario Retirement Planning HandbookPage 77 of 78
13.2.14 Annual Verification Checklist
Before releasing a new handbook edition, verify and record the update date for:
• [ ] CPP maximum and average new-beneficiary amounts
• [ ] OAS, GIS, Allowance and Allowance for the Survivor quarterly amounts
• [ ] OAS recovery-tax threshold
• [ ] Ontario GAINS maximum and thresholds
• [ ] Federal and Ontario tax brackets and Ontario surtax thresholds
• [ ] TFSA and RRSP limits
• [ ] RRIF factors, if legislation changes
• [ ] CDCP income bands and co-payment percentages
• [ ] ODB deductible, co-payment and Seniors Co-Payment Program thresholds
• [ ] Ontario Senior Homeowners’ Property Tax Grant
• [ ] HATC and MHRTC limits
• [ ] Ontario long-term-care accommodation charges
• [ ] Ontario Estate Administration Tax rates
• [ ] Every cited government page remains active
13.2.15 RRSP and RRIF Withholding Tax Rates — Residents Outside Quebec
Financial institutions withhold tax at source on lump-sum RRSP withdrawals and on RRIF
amounts withdrawn above the annual minimum.
Withdrawal amount Withholding rate (outside Quebec)
Up to $5,000 10%
$5,000.01 to $15,000 20%
Over $15,000 30%
Planning notes
- No withholding applies to the RRIF minimum amount — but the minimum is still fully taxable;
consider requesting voluntary extra withholding or paying instalments.
- A series of related withdrawals may be aggregated and withheld at the higher tier.
- Withholding is a prepayment only; final tax depends on total annual income and may be higher
or lower (see §5.5).
- Quebec residents face different combined federal/provincial withholding.
Verified on: [July15, 2026]
Official source: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/making-withdrawals/tax-rates-on-withdrawals.html
Back to contents
Ontario Retirement Planning HandbookPage 78 of 78
Source-control note
Figures in this appendix were checked against official Government of Canada, Canada
Revenue Agency and Government of Ontario pages on July 15, 2026. The figures should be
reviewed at least annually and quarterly where OAS-related benefits are involved.
Back to contents
No handbook pages match that search. Try a broader term.