Retirement planning looks different for Canadian women. Longer lifespans, lower average CPP benefits, career interruptions, and a persistent gender wage gap mean women must save more — yet often have fewer resources to do so. This guide covers every key element of retirement planning specifically for Canadian women in 2025.
Canadian women live approximately three years longer than men on average. A woman retiring at 65 today can expect to live into her late 80s, with a meaningful probability of living past 90. That means your retirement savings need to fund 25 to 30 years of living expenses — potentially longer. Every retirement plan for a Canadian woman must account for this extended timeline.
CPP is calculated based on your earnings history and years of contribution. Women who take maternity leave, parental leave, or career breaks for caregiving typically receive lower CPP than men with continuous careers. The CPP child-rearing dropout provision allows low-earning years while caring for children under age 7 to be excluded from your calculation — make sure this is applied to your record via Service Canada.
You can take CPP as early as age 60 (at a reduced rate) or defer as late as age 70 (at an enhanced rate of 0.7% per month after 65, up to 42% more at 70). For women with longer lifespans, deferring CPP to 70 is often the optimal strategy.
OAS begins at age 65 (or deferred to 70 for an enhanced benefit). The maximum monthly OAS in 2025 is approximately $727 at 65. OAS is clawed back for high earners above ~$90,997. The Guaranteed Income Supplement (GIS) is available to low-income OAS recipients — important for women whose retirement savings are modest.
Your RRSP must be converted to a RRIF by December 31 of the year you turn 71. RRIF withdrawals are taxable income. Minimum withdrawal percentages increase each year. For women, the key is not depleting the RRIF too quickly given the longer expected lifespan. Consider:
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Get KOHO Free — Use Code 45ET55JSYAIf you have a defined benefit (DB) pension, understand your survivor benefit options before retiring. If you are married or in a common-law relationship, your spouse is entitled to a survivor benefit — but the amount varies. Review your pension statement annually and understand what happens to your pension in the event of separation or divorce.
If you have a defined contribution (DC) pension or group RRSP, treat it like a personal RRSP and invest in low-cost diversified funds. Many group plans offer a default balanced fund — often adequate but not always optimal.
A common rule of thumb is 70–80% of pre-retirement income annually. For a woman earning $65,000 pre-retirement and expecting to live 28 years in retirement:
| Income Source | Estimated Monthly |
|---|---|
| CPP (average for women) | ~$700 |
| OAS | ~$727 |
| RRIF/TFSA withdrawals needed | ~$1,900 |
| Total target | ~$3,300/month |
To fund $1,900/month from savings for 28 years requires roughly $500,000–$600,000 in retirement assets (assuming 4–5% annual withdrawal rate). This is achievable with consistent saving and investing throughout your career.
A fee-only financial planner who understands the specific financial landscape for Canadian women — including CPP dropout provisions, Spousal RRSP strategy, and pension division rules — is worth the investment. Women in Capital Markets and the Women's Economic Council both offer directories and resources for finding women-focused financial advisors.