Retirement

Retirement Withdrawals

Retirement withdrawals turn accumulated assets into spending money. The amount, account type, taxes and market conditions all affect how long assets may last.

4 min

Retirement 101 • 09

Retirement turns a portfolio into a paycheque.

Money that was accumulated for years may now need to fund regular spending.

Withdrawal decisions have several moving parts.

You choose which accounts to draw from, how much to take and how to manage taxes and investment risk.

Withdrawals can come from

01RRIFs02TFSAs03Non-registered accounts04Workplace plans05Cash savings06Other assets

Account value and annual spending are different numbers.

01

Portfolio value

The stock of assets you own.

02

Withdrawal

The flow of money taken out for spending.

A large balance still has to support many years.

Portfolio$600,000
Annual withdrawal$30,000
Years$600,000 ÷ $30,000 is not a complete forecast
WhyReturns, inflation, tax and changing spending matter

There is no one withdrawal percentage that fits everyone.

Age, guaranteed income, portfolio mix, spending flexibility, taxes and longevity all change the decision.

A withdrawal plan should consider

01Essential spending02Guaranteed income03Taxable versus tax-free accounts04Market conditions05How long the money may need to last

Remember this

Retirement spending is a cash-flow problem, not just a portfolio-size problem.

The question is how assets and income can support spending over time.

Lesson complete

Reviewed 2026-08-18

Sources

Financial Consumer Agency of CanadaRetirement planning ↗Canada Revenue AgencyMinimum amount from a RRIF ↗
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