Retirement income planning is the process of turning everything you have accumulated — RRSPs, TFSAs, a pension, CPP and OAS, non-registered savings and, for many Port Hope households, a paid-off home — into a monthly amount you can count on for the rest of your life, in the most tax-efficient order possible. The saving part is behind you. This is the part where sequence matters.
Port Hope is one of the oldest communities in Ontario in more ways than one. The median age here is 50.8 and 28 percent of residents are 65 or older, according to the 2021 Census — nearly double the Durham Region share. Many of the retirees we meet along Walton Street and out toward Welcome and Garden Hill have done the hard part well. What they have not been shown is how to draw it down.
The three accounts and the order you spend them
Most Port Hope retirees hold some combination of three account types, and each is taxed differently on the way out:
| Account | How withdrawals are taxed | Minimum withdrawal required? | Best used for |
|---|---|---|---|
| RRSP / RRIF | 100% taxable as income | Yes, once it becomes a RRIF (5.28% at 71, rising each year, per the CRA) | Filling the low tax brackets every year |
| TFSA | Not taxable; does not affect OAS or GIS | No | Topping up income without pushing your tax rate or clawback higher |
| Non-registered | Interest fully taxable; only half of capital gains taxable; eligible dividends taxed at a lower effective rate | No | Flexible income and tax-loss harvesting |
The instinct is to spend non-registered and TFSA money first “because it is easy” and leave the RRSP to grow. In most cases that is backwards. The RRSP is the account with a ticking clock — you must convert it by the end of the year you turn 71 and start mandatory RRIF withdrawals the year after — and letting it grow untouched often means larger forced withdrawals later, at a higher tax rate, at the same time OAS is being tested against your income.
A Port Hope example: $60,000 a year, three ways
Consider a single retiree, age 66, living in Port Hope with a paid-off home, a $600,000 RRSP now converted to a RRIF, a $100,000 TFSA, CPP of $900 a month and full OAS of $751.97 a month (the July–September 2026 amount from Canada.ca). She wants $60,000 a year gross, and we assume the same overall spending in each case.
| A. RRIF fills the whole gap | B. RRIF plus TFSA blend | C. RRIF plus non-registered | |
|---|---|---|---|
| CPP + OAS | $19,824 | $19,824 | $19,824 |
| RRIF withdrawal | $40,176 | $25,176 | $25,176 |
| TFSA withdrawal | $0 | $15,000 | $0 |
| Non-registered withdrawal | $0 | $0 | $15,000 |
| Taxable income | $60,000 | $45,000 | ≈ $47,500 |
| Approximate 2026 tax (federal + Ontario) | ≈ $7,800 | ≈ $4,200 | ≈ $4,700 |
| Cash in hand | ≈ $52,200 | ≈ $55,800 | ≈ $55,300 |
Tax figures are approximate, use 2026 federal and Ontario brackets with the basic personal, age and pension income credits, and include the Ontario Health Premium. Scenario C assumes a modest realized capital gain within the non-registered withdrawal. None of the three is “wrong”. Scenario B produces about $3,600 more spending money this year, but it spends TFSA room that could shelter growth for decades. The right answer depends on how long the TFSA has to work, what the RRIF minimum will look like at 71 — about $31,700 on a $600,000 balance — and whether the estate goal matters more than this year’s tax bill.
This is the kind of decision that deserves a plan rather than a rule of thumb.
The tax lines every Port Hope retiree should know for 2026
Retirement income planning is mostly about knowing where the thresholds are and steering around them. For the 2026 tax year, according to the Canada Revenue Agency:
- First federal bracket: 14 percent on taxable income up to $58,523. Ontario adds 5.05 percent up to $53,891. Income drawn inside this range is the cheapest income you will ever take.
- Age amount: a $9,208 federal credit for those 65 and over that begins to shrink once net income passes $46,432. Every dollar of RRIF income above that line quietly costs a little more than the bracket suggests.
- Pension income amount: the first $2,000 of eligible pension income — including RRIF withdrawals from age 65 — earns a federal credit. If you have no workplace pension, converting a small part of your RRSP to a RRIF at 65 is usually worth it for this alone.
- Pension income splitting: from age 65 you can allocate up to half of your RRIF or annuity income to a spouse on your tax returns. CPP and OAS do not qualify, but CPP can be shared through Service Canada.
- OAS recovery tax: OAS is reduced by 15 cents for every dollar of net income above $95,323 in 2026. A retiree with a large RRIF and no plan can lose a meaningful piece of OAS without ever feeling wealthy.
- Guaranteed Income Supplement: for lower-income seniors, GIS can add up to $1,123.17 a month for a single person with income under $22,800 (July–September 2026). TFSA withdrawals do not count against it; RRIF withdrawals do.
What about the house?
Northumberland County homes sold for an average of $721,450 in July 2026, according to the Central Lakes Association of REALTORS. For a Port Hope couple who bought a century home decades ago, that equity is often larger than every investment account combined — and it produces no income while they live in it.
There are three honest ways to bring it into the income plan:
- Stay, and treat it as the reserve. The home covers long-term care or the surviving spouse’s needs later, and the investment accounts fund life now. This is the most common choice and a perfectly good one.
- Downsize within Northumberland. Freeing $150,000 to $250,000 of equity and adding it to the portfolio can lift monthly income meaningfully while keeping you close to the Capitol Theatre and the waterfront.
- Sell, invest the proceeds, and rent. For some households, particularly single retirees, this converts a large idle asset into an income stream and removes maintenance, property tax and the stairs. It is the approach behind our Lifetime Income Portfolio work, and it requires a careful look at rent inflation and sequence risk.
Because Harmer Wealth Management is licensed in investments, mortgages and real estate, we can model all three side by side and, if a sale is the answer, list the property ourselves. The principal residence exemption means the gain on your home is generally tax-free, which is what makes option two and three worth examining.
How a retirement income plan is built
At Harmer Wealth we build the plan in five steps, and we revisit it every year:
- Inventory every income source and every account, with statements.
- Set the target — the monthly after-tax figure, and how it should change over time.
- Sequence the withdrawals year by year from now to 95, with tax calculated at each step.
- Position the portfolio so the next three to five years of withdrawals are not exposed to a bad market.
- Stress-test it: a market decline in year one, a spouse passing early, a move to long-term care, and inflation running hotter than planned.
The output is a one-page income schedule you can put on the fridge — this account, this amount, this month — and a portfolio built to deliver it.
Frequently asked questions
Should I take money from my RRIF or my TFSA first in retirement?
Usually the RRIF, at least up to the top of the low tax brackets, with the TFSA used to top up income without adding to taxable income. The right split depends on your other income, your age and your estate goals.
How do I avoid the OAS clawback in 2026?
Keep net income below $95,323 where you reasonably can: split pension income with your spouse, draw from the TFSA rather than the RRIF for extra spending, and consider drawing down the RRSP before OAS begins.
How much can I safely withdraw from my retirement savings each year?
A common planning assumption is 4 to 5 percent of the portfolio, adjusted as you age and as markets move. It is an assumption, not a guarantee, and it should be reviewed annually.
Does selling my Port Hope home affect my taxes or my OAS?
The gain on a principal residence is generally exempt from tax and does not count as income for OAS purposes. Income earned on the invested proceeds afterward does count, which is why the proceeds are usually invested across TFSA and non-registered accounts deliberately.
Do I need a financial planner if I already have a pension?
A pension solves part of the income puzzle. Bridge benefits, survivor options, CPP and OAS timing, RRIF minimums and taxes still have to be coordinated, and that is where most of the value of planning shows up.
The next step
If you are within a few years of retirement in Port Hope, Cobourg or anywhere in Northumberland County and would like to see your own income schedule, book a complimentary consultation through HarmerWealth.com — choose Book Online — or call 1.800.723.2138. We meet by Teams or in person.
Chad Harmer, PFP, CIM, FCSI, MBA
Founder & Senior Wealth Advisor, Harmer Wealth Management Corp.
Sources: Canada.ca (CPP, OAS and GIS amounts, July–September 2026); Canada Revenue Agency (2026 tax brackets, age amount, pension income amount, pension income splitting, OAS recovery tax, RRIF prescribed factors); Statistics Canada, 2021 Census Profile, Port Hope; Central Lakes Association of REALTORS, July 2026 market statistics.
This article is for general information only and does not constitute personalized investment, tax, or legal advice. Withdrawal rates and returns shown are planning assumptions and are not guaranteed; market values fluctuate and past performance does not guarantee future results. Tax and benefit figures are current as of September 2026 and are subject to change. Mutual funds are offered through Investia Financial Services Inc. Real estate services are provided through a separately licensed brokerage. Please consult a licensed professional about your specific situation.