Retirement in 2026: What Ontario Retirees Need to Know

As we begin a new year, many retirees and soon-to-be retirees in Ontario are asking the same question:
“What should I be focusing on right now to protect and grow my retirement income?”

Retirement planning isn’t a one-and-done exercise — it’s an ongoing strategy that must adapt to changing tax rules, government programs, cost of living pressures, and income needs. This year, there are several important developments and opportunities that Ontario retirees should understand.

1. Maximizing Your Guaranteed Income Sources

Canada Pension Plan (CPP) Enhancements

The phased enhancements to the Canada Pension Plan continue into 2026. While these increases were introduced in recent years, the impact on monthly retirement income will be ongoing. If you haven’t yet applied for CPP, it can be an excellent time to assess your optimal start date — earlier for income needs, later for higher monthly payments.

Tip: Delaying CPP past age 65 can increase your monthly benefit by up to 42% by age 70 — a powerful tool for longevity planning.

2. Old Age Security (OAS): Timing Matters

OAS continues to be one of the most important income sources for Canadian retirees, but it is taxable and partially clawed back for higher income retirees (the OAS Recovery Tax). Ensure your income streams are structured in ways that minimize unnecessary clawback — this could mean managing RRSP/RRIF withdrawals, capital gains timing, or other taxable income sources.

Tip: Speak with your advisor before taking large RRIF withdrawals — timing can save you thousands in taxes and preserve your OAS benefits.

3. Tax-Smart Withdrawals from Your Registered Accounts

Registered Retirement Income Funds (RRIFs)

Once you turn 71, your RRSP converts to a RRIF and you must begin withdrawals. The minimum withdrawal schedule can create a tax burden if not planned. Now is the year to:

  • Review your RRIF withdrawal strategy

  • Consider splitting income with your spouse if eligible

  • Use pension income credits where applicable

Tax-Free Savings Account (TFSA)

If you haven’t already contributed your full annual TFSA room, doing so earlier in the year maximizes tax-free growth potential. TFSAs also provide flexibility to supplement income without affecting OAS or GIS.

4. Home Equity: A Hidden Retirement Resource

Many retirees hold significant equity in their homes. There are a few ways to access this wealth without selling:

  • Reverse mortgages (useful in specific scenarios)

  • Home equity lines of credit (HELOC)

  • Downsizing and using proceeds to fund retirement income

Tip: Any use of home equity should be weighed against your overall cash-flow, estate planning, and lifestyle goals.

5. Government Credits and Benefits That Matter to Retirees

Ontario Sales Tax Credit (OSTC)

Eligible retirees with modest income can receive non-taxable quarterly payments to help offset sales tax — this can add up over a year.

Guaranteed Income Supplement (GIS)

For low-income seniors, GIS provides an income top-up in addition to OAS. Eligibility is income-tested, but worth applying for if you think you qualify. Even small amounts help.

Ontario Property Tax/Land Tax Grant

For eligible seniors, Ontario offers property tax assistance that may reduce your annual property tax burden.

6. Health-Related Financial Supports

While much of retirement planning is about income, healthcare expenses are a reality:

  • Ontario Drug Benefit Program (coverage after age 65)

  • Assistive Devices Program (ADP) for medical devices

  • Home and Community Care supports through the LHINs

Even if you haven’t needed these supports yet, staying registered and informed puts you ahead.

7. Estate and Legacy Planning Shouldn’t Wait

Retirement isn’t just about income — it’s about security and legacy. In 2026, consider:

  • Updating your will and powers of attorney

  • Reviewing beneficiary designations on RRSP/RRIF/TFSAs

  • Discussing estate freezes or tax-efficient transfers if applicable

These may save your loved ones significant legal and tax costs down the road.

A Few Practical Moves for 2026

✔ Create a Retirement Cash-Flow Plan
Map your income vs. expenses quarterly — this helps minimize taxes and maximize benefits year-round.

✔ Schedule a Tax Review Before April 30
Early planning on RRIF withdrawals and income splits can reduce tax impact.

✔ Check Your CPP/OAS Statements
Make sure you’re on track and understand your best claim age.

✔ Maximize Grants/Credits
Don’t leave money on the table — especially with OSTC, GIS, and provincial tax credits.

Final Thought: Retirement Planning Is Dynamic

Retirement is not “set it and forget it.”
It’s about adapting your plan to changes in your life — and to changes in tax law, government programs, and your own goals.

2026 offers opportunities if you’re strategic — but it also brings complexity.

If you’d like help turning these insights into a custom retirement strategy that fits your unique story, I’d be glad to help. Because retirement should be enjoyed, not merely managed.

Let’s make this year your most secure and fulfilling yet.

Mike Gomes, CFP