Many Canadians eventually realize that Canada Pension Plan (CPP) and Old Age Security (OAS) alone are usually not enough to comfortably fund retirement.
They help create a baseline income stream, but once you factor in housing costs, groceries, utilities, insurance, and inflation, most retirees still need investment income to bridge the gap.
That is one reason income-focused investments remain so popular among retirees. One example is the Canoe EIT Income Fund (TSX:EIT.UN), a closed-end fund specifically designed to generate high monthly cash distributions.
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What is EIT.UN?
Unlike a traditional exchange-traded fund (ETF), EIT.UN actively manages a diversified portfolio of Canadian and U.S. equities with a strong emphasis on income generation.
The fund currently holds 57 stocks and is allocated roughly 47% to Canadian equities, 41% to U.S. equities, with the remainder primarily in cash. Sector exposure leans heavily toward financials, energy, and industrials.
The strategy has performed fairly well historically. With distributions reinvested, EIT.UN compounded at an annualized rate of roughly 18.5% over the past five years.
Of course, those returns come with higher costs and higher risk. The fund charges a 1.1% management fee and also uses leverage, with borrowing permitted up to 120% of net asset value.
How much do you need for $2,000 a month?
For retirees focused primarily on income, though, the monthly payout is the main attraction. EIT.UN currently distributes $0.10 per share every month. To generate $2,000 in monthly income, you would need:
That works out to roughly 20,000 shares of EIT.UN. At a recent share price of $17.12 as of May 14, 2026, the required investment in dollar terms would be:
So, investors would need roughly $342,400 invested in EIT.UN to target approximately $2,000 per month before taxes.
A word on tax treatment
One thing retirees should also understand is that EIT.UN distributions are not purely dividends. The fund’s payouts can include a mix of eligible dividends, capital gains, return of capital, and ordinary income.
That distinction matters in taxable accounts because each component receives different tax treatment. Return of capital, for example, is not immediately taxable and instead lowers your adjusted cost base, which can help defer taxes.
Inside a TFSA, however, those distinctions largely disappear because distributions and capital gains remain tax-free. Inside an RRSP or RRIF, taxes are deferred until withdrawal. That is one reason many retirees prefer holding income-focused closed-end funds like EIT.UN inside registered accounts.
