We are 54 & 46 yrs old and have just retired. We plan to withdraw from RRSP to cover our expenses until one of us reach 65. We also plan to get early CPP at the age of 60. We will not touch TFSA and will let it grow as long as possible.
To put me in your shoes, here's what I would do if I don't have other sources of income:
1. Starting next year until when you are 54 yrs old: Withdraw from RRSP (e.g. 125k/11 yrs = 11300/yr) & Taxable (e.g. 23700/yr); withdraw extra $6000 from taxable to contribute to TFSA annually.
2. from 55-64 yrs old: withdraw from LIRA (maximum percentage; need to convert to LIF first, depending on the rules in your province) & the rest from taxable; continue to contribute to TFSA.
3. from 65 yrs old and onward: CPP+OAS+GIS+LIRA+taxable+TFSA
In other words, withdraw from RRSP and LIRA annually as early as you can, before you reach 65. Grow your TFSA as much as you can. The income generated from TFSA is tax-free and will not affect your OAS/GIS eligibility and clawback.
Hope that makes sense.
