What is splitting your pension worth?
When one of you has a pension and the other doesn't, the pension is taxed in the higher bracket while the lower one sits half-empty. Canada lets a couple move up to half of eligible pension income onto the other spouse's return — a defined benefit pension at any age, RRIF withdrawals from 65 — by filing form T1032 every year.
This runs your retirement year by year, both ways, with 2026 federal and provincial tax, CPP, OAS and its clawback, and RRIF minimums. Both runs draw each RRSP to even out your incomes as far as withdrawals can, so the difference is what splitting adds on top.
You
Your partner
Both of you are taken as retired today, with CPP and OAS from 65 and the plan running to 95. The pension stops when its owner dies here — many pay the survivor a reduced pension, which this doesn't add. For your own pension terms, start ages and one-time costs, build your full plan, free.
Related calculators
- CPP / OAS timing for couples
Start ages for both of you, with the survivor's pension
- 2026 income tax calculator
Federal + provincial, any jurisdiction
- Withdrawal order calculator
Which account to spend first