Can You Retire on $1 Million in Canada?

A million dollars. For many Canadians, that number feels like the ultimate retirement milestone. But is it really enough to fund the lifestyle you’ve imagined? Let’s walk through a real scenario and see how Optiml can help make sense of it.

Meet John and Sarah

John and Sarah are both 60 and have just stepped into retirement. Here’s where they stand:

• Total savings: $1,000,000 combined
• $100,000 each in TFSA
• $400,000 each in RRSP
• Home: Completely paid off, no plans to sell or downsize

Their goal? Enjoy an active retirement while they’re young enough to travel, explore, and spend more on hobbies and experiences.

Their Spending Plan

John and Sarah want to frontload their spending using the “Go-Go, Slow-Go, No-Go” framework, higher spending early on, tapering over time:

• Ages 60–75: $100,000 per year (after tax)
• Ages 75–90: $75,000 per year
• Ages 90–95: $55,000 per year

They also plan to start CPP and OAS benefits at age 65.

Reality Check: Will $1 Million Last?

When John and Sarah model their plan using Optiml’s Max Value analysis, which tests thousands of tax and withdrawal strategies they uncover a problem: at their desired spending level, they would begin running out of savings in their early 70s and would need to cut spending by about 20% to stay on track.

Testing Different Scenarios with Optiml

Rather than panic, John and Sarah test different scenarios in Optiml to see how they can make their plan work:

Scenario 1: Reduce Expenses Slightly

By trimming spending by 15% (mainly travel and extras), their plan becomes sustainable and they still maintain their TFSA balances for emergencies or legacy goals.

Scenario 2: Spend More, Leave Less

They realize they don’t want to leave a big cash estate beyond their home, so they use Optiml’s Max Spending strategy to draw assets down to zero. This approach lets them spend about 5% more annually in their 60s and 70s, roughly $90,000 per year until 75, and $65,000 until 80 while still preserving long-term security.

Bonus Optimization: CPP & OAS Timing

Finally, they test different CPP and OAS start ages. By delaying benefits strategically, Optiml uncovers an additional $20,000 in lifetime spending, a huge win most retirees overlook.

The Bottom Line

Even with $1 million saved, the difference between guessing and optimizing can mean tens of thousands of dollars in retirement income.

Optiml helps you:

• Decide which accounts to withdraw from first
• Optimize CPP and OAS timing
• Model your spending patterns and see how long your money will last

Retirement planning doesn’t have to be overwhelming and it doesn’t have to involve spreadsheets or guesswork. With Optiml, you can test every decision, understand your tradeoffs, and create a plan that actually works for you.

Curious how your own numbers stack up? Model your retirement in minutes with Optiml and see exactly what’s possible.