All about Retirement Planning in Canada. Learn the ins and outs and get the latest news.
Latest News
Women, here’s how to save more for retirement — or you’ll live to regret it + MORE Mar 2nd
The right adviser and the right habits can impose discipline, writes Lesley-Anne Scorgie..... More »
Should RRIF withdrawals be based on the younger spouse’s age? Nov 9th
I am wondering about the minimum RRIF withdrawal calculation. We are wondering if it would be beneficial to use the younger spouse’s age to result in a lower annual combined income. Can you explain the reasoning behind this?—Bernie
When can you convert an RRSP to a RRIF?
Registered retirem.... More »
When are TFSAs and RRSPs actually taxable? + MORE Feb 29th
Ask MoneySense
I saw your blog online; thank you so much for the wonderful job that you are doing—it was very informative! That motivated me to start investing too, but now I have a couple of questions. I understand that there is tax on U.S. dividends in TFSA. Do we pay tax as well when we sell:
.... More »
Divorce over 50: managing your finances if you find yourself single in the run-up to retirement Aug 3rd
Divorce is certainly not new—but what’s emerging as a trend is the choice to split later in life. Dubbed grey divorce, these marital splits, happening close to or in retirement, are reportedly on the rise, and they can have a significant financial impact.
Married couples are generally subject .... More »
Want to know exactly what you’ll get from CPP when you retire? Here’s how to find out Jul 20th
You can even get a precise estimate years in advance, thanks to a new online service that goes where the federal government won’t, writes David Aston..... More »
Is Carol better off withdrawing all the money from her RRIF now?
– moneysense.ca
Q. I am considering deregistering my Registered Retirement Income Fund (RRIF) of $89,000 and taking the tax hit for the 2019 tax year. Doing this would leave me eligible to maximize the Guaranteed Income Supplement (GIS) as well as the Shelter Aid for Elderly Renters (SAFER) in the future.
Right now, I am 73 years old, and my income includes Old Age Security (OAS) and Canada Pension Plan (CPP) at a combined total of $622 per month; a small company pension of $228 per month; and a RRIF payment of $500 per month; for a total of $1,350 a month. Funds from deregistering the RRIF would be used to top up my TFSA, pay medical bills, as well as to pay off a bit of personal debt. I currently also receive GIS benefits of $400 a month, and SAFER benefits of $179 a month. Am I doing the right thing to make the most of my retirement money? Your comments on this strategy would be appreciated.
–Carol
A. Hi Caroline, I believe you may be correct in that it makes sense to:
Right now, I am 73 years old, and my income includes Old Age Security (OAS) and Canada Pension Plan (CPP) at a combined total of $622 per month; a small company pension of $228 per month; and a RRIF payment of $500 per month; for a total of $1,350 a month. Funds from deregistering the RRIF would be used to top up my TFSA, pay medical bills, as well as to pay off a bit of personal debt. I currently also receive GIS benefits of $400 a month, and SAFER benefits of $179 a month. Am I doing the right thing to make the most of my retirement money? Your comments on this strategy would be appreciated.
–Carol
A. Hi Caroline, I believe you may be correct in that it makes sense to:
withdraw all of the funds from your RRIF account;
forgo your GIS and SAFER income for one year;
deposit your after-tax RRIF proceeds into your TFSA; and
maximize your future GIS and SAFER benefits…
How long can you put off saving for retirement? Surprisingly, waiting until your 50s makes sense for some
– thestar.com
Ideally you should draw up a saving plan in your late 30s or early 40s. But it can still be an enormous help if you don’t manage to get to it until your late 40s or 50s or even later.
