Withdrawal order and decumulation comparison
Most retirees draw from several pots: RRSP/RRIF, TFSA, non-registered investments, plus CPP, OAS and maybe a pension. The order you use changes how much tax you pay over your lifetime, whether OAS recovery tax kicks in, and how much is left for your estate. This tool runs the same plan four ways.
Four drawdown orders compared
| Order | Lifetime tax | OAS recovery | Lasts? | After-tax estate |
|---|---|---|---|---|
| Non-registered first, then RRSP/RRIF, TFSA last | $216,584 | $0 | Short at 88 | $0 |
| RRSP/RRIF first, TFSA and non-registered later | $203,814 | $0 | Short at 88 | $0 |
| TFSA first, then non-registered, RRSP/RRIF last | $239,815 | $0 | Short at 88 | $0 |
| Fill a tax bracket from RRSP/RRIF each year, top up TFSA | $207,118 | $0 | Short at 88 | $0 |
Balances under one order
Today's dollars, 2026 brackets treated as indexed. RRIF minimums apply from 72 under every order. The estate value taxes any RRSP/RRIF left at the end as income in one year (no spousal rollover), and doesn't include probate, capital gains on non-registered assets, or the timing of death. These are mechanical comparisons, not recommendations — real plans also weigh flexibility, health, estate wishes and GIS eligibility.
Educational estimate, not advice. Results depend on your inputs and the assumptions listed. They are not a prediction of returns or a recommendation. Check benefit amounts in your My Service Canada Account and tax details with the CRA. Read the disclaimer.
How to use this tool
- Enter balances, spending and benefits.
- Pick your province.
- Compare lifetime tax, clawback and the after-tax estate for each order.
The four orders
- Conventional: non-registered first, then RRSP/RRIF, TFSA last — keeps tax-free money growing longest.
- RRSP/RRIF first: draws taxable money early, often in lower brackets before CPP and OAS start.
- TFSA first: spends tax-free money early and leaves the RRIF to grow — usually the most tax later.
- Bracket fill: withdraws enough RRSP/RRIF each year to reach a chosen taxable income (by default the top of the 2026 lowest federal bracket, $58,523) and shelters any surplus in the TFSA.
How to read the results
Lifetime tax and the after-tax estate can point in different directions. A strategy that pays slightly more tax early might leave a smaller RRIF to be taxed in one year at death. The estate figure here assumes any remaining RRIF is taxed as income in a single year, which is the case without a surviving spouse.
Differences between strategies are often a few percent of the total — meaningful, but smaller than the effect of spending, returns and CPP timing. Use it alongside the retirement plan model.
Frequently asked questions
Is there a single best order?
Why does TFSA-first often cost more tax?
Does the model include capital gains on non-registered money?
Official sources
- CRA — Chart: prescribed factors (RRIF minimum amount)
- CRA — Tax rates and income brackets for individuals (current year)
- Service Canada — OAS pension recovery tax
Figures checked October 30, 2026. Rules and amounts change; confirm current details on the official pages above.