Tax & Retirement Planning
Looking to retire? Or have you been offered different retirement buyout packages? Do you collect a lump sum or a salary continuation? Can you roll some retiring allowances into your RRSP? Do you or your spouse have RRSP contribution room available?
Canada Pension Plan benefits can be applied for early, at age 60, or late, at age 70, but you need to know how much your benefits are reduced by for early enrollment and how much benefits are enhanced by delaying your application. Old Age Security benefits currently can be applied for at age 65 but be aware that the age of eligibility changes in 2023 to age 67. OAS benefits can also be deferred up to 5 years by choosing to defer application and your benefits will be enhanced by delaying. Please consider that your OAS benefits can be clawed back when your net income reaches a certain threshold (indexed annually) and consider applying for Guaranteed Income Supplement (GIS) if you have low income (GIS is tax-free income). Much time and planning is needed to calculate your after-tax retirement income. A tax plan should be prepared to forecast your retirement and your personal taxes.