Build the paycheque in layers.
Retirement income may arrive from several places on different dates. Begin with must-cover monthly spending, then add flexible spending. Next place CPP, OAS, workplace pensions, annuities and part-time income on the timeline. Savings fill some or all of what remains.
What can change the answer?
Must-cover spending
Which costs would be difficult to reduce?
Flexible spending
Which goals could pause or adjust during pressure?
Income timing
When do CPP, OAS, pensions and work income begin or stop?
Accounts
Which withdrawals are taxable, tax-free or subject to minimums?
Portfolio resilience
How could withdrawals change after weak markets or higher inflation?
A simplified example
The portfolio may fund a gap—not the whole paycheque.
Noor wants $5,000 a month for retirement life. Entered pensions and benefits provide $3,400, leaving $1,600 for savings to fund. A planner can test distributions, a percentage withdrawal or a target-funding approach, then show a range of future balances and income. It cannot promise the amount will be sustainable.
Illustrative only. The names and circumstances are fictional.Explore it in your plan
Build a monthly retirement paycheque.
Enter spending and income sources, see the remaining gap, compare ways savings could help and review the modelled range. The tool illustrates choices rather than prescribing one.
A checkpoint
How much of the desired paycheque must come from savings?
Subtract dependable monthly income from desired monthly spending. Then separate the remaining amount into must-cover and flexible portions.
Related questions
A few useful follow-ups.
Do I need to live only on dividends?
No. Distributions are one possible cash-flow source. Total-return withdrawals can also include selling investments.
Is one withdrawal percentage safe forever?
No percentage guarantees an outcome. Time horizon, portfolio, inflation, spending flexibility and market sequence all matter.
What if pension income starts later?
Savings or work may temporarily bridge the gap. Model the start and stop dates rather than treating every income source as immediate.
How often should the plan be reviewed?
A scheduled annual review is a useful baseline, with additional review after major life, income, spending or market changes.
Official sources
These sources were reviewed July 29, 2026. Program rules and tax treatment can change; confirm the information that applies when acting.
- Government of Canada: Learn and plan for retirement (opens in a new tab)
- Service Canada: Canadian Retirement Income Calculator (opens in a new tab)
- FCAC: Retirement planning (opens in a new tab)
Retired Kevin is not affiliated with or endorsed by these organizations.