u/CanadaRewardsFamily

More of a hypothetical here...

Assuming rules don't change around GIS & OAS in the future (maybe a big assumption) would it make sense for this 55 year old firing to meltdown their RRSP aggressively to $0 by age 64 and dump it all to TFSA in order to optimize GIS and OAS payments?

Current 55 Year Old Profile
House paid for
Expenses per year are $50,000 in today's dollars

Investment Accounts
TFSA= 400k
RRSP= 600k
No additional work pensions
$1000/mo from CPP at age 65 if retired today unless delayed

Age 55-64
Withdraw aggressively 85k yearly from RRSP (assumed safer 5% return)
Pay ~$25k in taxes and have 60k after tax
contribute 8k to TFSA yearly (on average)
RRSP is $0 at age 64.
TFSA has grown to over $800,000 (assumed 7% return)

Age 65-70
CPP Delayed (not sure this is worth it?)
Income on paper is $0, so OAS and GIS maximized $21,600 in today's dollars (inflation adjusted in future)
Need to close gap of $28,600, adjust for inflation ~$35k-$40k TFSA withdrawal (~4-5% withdrawal of TFSA)
$0 income tax (only ~$9000 income from OAS)

Age 70+
CPP of $1420/mo taken with 42% increase for delaying
GIS Clawed back at 50% of CPP (I think?)
Minimal income tax (OAS + CPP)

Would draining RRSP before age 64 to maximize OAS & GIS strategy at age 65+ make sense or am I missing something?

Edit: math was a bit off on RRSP. 600k should last 9 years under these constraints