Retirement income outcomes for capital accumulation plan members dipped in the first quarter of 2026, amid market volatility and ongoing geopolitical tensions, according to a new report by Eckler Ltd.
The consultancy’s latest CAP income tracker found a typical male CAP member retiring at the end of March 2026 achieved a gross income replacement ratio of 68.6 per cent, down slightly from 68.9 per cent in December. A typical female member achieved 66.9 per cent, down from 67.1 per cent.
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The report noted for many members, the transition from saving to spending is one of the most complex and consequential phases of retirement, adding the various decumulation options offer a different balance of flexibility, income stability and longevity protection.
“While life income funds and registered retirement income funds allow members to retain control over their capital and adjust withdrawals over time, they can expose retirement income to market volatility and the risk of outliving savings. Annuities provide guaranteed lifetime income which helps to mitigate longevity risk but require members to give up access to capital and flexibility.”
The timing of Canada Pension Plan/Quebec Pension Plan benefits also plays a critical role in shaping these decisions, it said.
“For some members, using LIF or RRIF withdrawals to bridge income needs in early retirement can allow CPP to be deferred, improving long‑term income security. For others, taking CPP earlier may reduce pressure on personal savings but can result in lower lifetime benefits. The ‘right’ approach depends on health, longevity expectations, tax considerations and the structure of other income sources.”
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