Canada’s Three Income Layers for Retirement

The 4% rule gave a useful starting estimate, but it did not show which assets to sell in crashes or handle faster inflation.
Layer one paired public pensions and any workplace pension. In 2026, maximum public benefits alone topped $2.2K monthly before tax for retirees.
If annual portfolio withdrawals were $24K, keeping $48K reserved could cover ~2 yr of monthly income during market weakness without forced stock sales.
Layer three emphasized globally diversified equities and Canadian dividend growers, while tax differences between TFSA, RRSP, and RRIF accounts shaped asset placement.
Together, the three layers explained where the next retirement payment could come from, even when markets were weak and optional spending needed temporary cuts.