Back to Learn Withdrawal Sequencing

Clawback avoidance, in plain terms

The OAS clawback is a 15% surcharge on income above a threshold. Staying under it is one of the highest-return moves in retirement planning.

Why it's worth avoiding

•Above the threshold (~$93k for 2025), every extra dollar of income costs 15 cents of OAS on top of normal tax.
•That can push your real marginal rate up to 45–50%+ in the clawback zone — far higher than the bracket rate alone.

How to stay under it

•Smooth RRSP/RRIF withdrawals so no single year spikes above the threshold.
•Fund spending from TFSA and non-registered in high-income years — they don't add to the income that triggers clawback.
•Defer OAS to 70 — a bigger cheque later, and lower income in your 60s when you may still be drawing down RRSP.
•Split pension income with a lower-income spouse to move income off your return.

The Sequencer shows it

•The yearly table has a dedicated OAS clawback column — you see exactly which years trigger it and by how much.
•The strategy feed flags clawback years so you can adjust withdrawals to clear the line.

Clear the clawback line

Adjust withdrawals in the Sequencer and watch the clawback column shrink to zero.