When you retire, your financial picture shifts drastically. You go from having one main income source—your job—to managing multiple income streams from various accounts and pensions. While that flexibility can be great, it can also become overwhelming—and very costly if not done correctly.

Most Canadians don't realize how important income withdrawal planning is. The order in which you draw from your accounts can make the difference between a secure, tax-efficient retirement… and giving away tens or even hundreds of thousands more to the CRA than necessary.

Why Retirement Income Planning Matters

Once you stop working, you may suddenly find yourself juggling:

• Canada Pension Plan (CPP) and Old Age Security (OAS)

• One or more employer pensions

• RRSPs or RRIFs

• TFSAs

• Non-registered investment accounts

• Locked-in retirement accounts (LIRAs/LIFs)

• Corporate accounts (if you own a business)

If you’re married or in a common-law partnership, those numbers can double—giving you 10 to 20+ different income sources to coordinate.

The problem? Some are taxable, some aren’t, and some can affect government benefits depending on when and how you use them. That’s why blindly following the default path often results in higher taxes, lower government benefits, and reduced long-term income.

The Default is Not in Your Favour

If you don’t have a plan, you’ll likely:

• Take CPP early without knowing the long-term tradeoffs

• Wait too long to draw down RRSPs, leading to large tax bills later

• Miss opportunities to maximize your TFSA

• Accidentally trigger OAS clawbacks or lose GIS eligibility

• Leave your estate with less, despite earning the same return

Why? Because the default system is designed to maximize tax collection, not your retirement income. But when all your income sources are coordinated properly, it opens up powerful tax planning opportunities—ones you may have never had while earning a T4 salary.

Key Questions Your Plan Should Answer

To ensure your income plan is optimized, ask yourself:

• Which accounts should I draw from first—and when?

• Should I delay CPP or take it early?

• How do I minimize my taxes both now and later?

• Can I spend more now without risking running out later?

• How do I ensure my spouse and estate are protected?

The truth is, you may not need more money to retire—just a better plan.

Watch the Full Breakdown

In this video, we walk through how to coordinate multiple income sources in retirement, comparing two strategies side-by-side. The difference in results? Over $100,000 in extra retirement income, with $300,000 more in government benefits—and no change to estate value.

▶️ Watch the full video here: 

Ready to Build Your Plan?

We offer:

• Fee-for-service retirement planning

• Ongoing guidance through our Retirement Income Program

• A tax-efficient, customized approach that helps you retire with clarity and confidence

👉 Learn more at parallelwealth.com/planning

Final Thoughts

When it comes to retirement, the goal is simple: pay less tax, spend more confidently, and avoid costly mistakes. With the right plan in place, you can enjoy more income and peace of mind—without having to work longer or take on more risk.

If you’re approaching retirement, don’t leave it to guesswork. Start with a plan that works.