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The effect of income tax (not a simple marginal tax rate, but the complete tax formula with various brackets, thresholds, clawbacks, age credits etc) makes these types of determinations very specific to each person's situation.

In addition, you have to consider whether you are concerned with just your lifestyle and not what kind of estate issues you might have. Furthermore, is it conceivable that you may have need for a major lump sum draw sometime in the future. Normally, when there is an expectation of a smooth continuous after tax income, the RRSP and TFSA are a virtual saw-off, with the RRSP just winning out in most cases. If estate concerns exist or you are certain that there will be a need for a future lump sum draw... the TFSA can make sense.

BTW, by 'estate concerns', I am referring to the situation that you die prematurely. In that situation, the TFSA strategy would have been better (for your estate)... it is an actuarial issue.

There is no cut and dried answer, however.
 
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