Retirement planning getting you down? There are always smart ways to plan the financial aspects of your retirement.
Shutterstock Q. I have $103,490 left on my mortgage and I pay $325 bi-weekly on it @2.89% fixed rate (mortgage is being renewed shortly). I have the ability to pay off up to 15% ($18,700) of the original mortgage annually in a lump sum without fees. Should I pull money out of my mutual funds (averag.... More »
iStock Q. I am 68 years old and already retired. Is there any point in contributing to a TFSA? – Michelle A. Any point? Why yes. There are lots and lots of points. I’ll make a few of them here. The Tax-Free Savings Account is a great vehicle to reduce your taxes whatever your age. You’re .... More »
Canada Pension Plan Investment Board says its main fund grew to $366.6 billion of net assets at the end of June, up $10.5 billion from the end of March..... More »
Q: My husband is retired military and will turn 60 this year. He’s been told by his military buddies that he should apply soon for his CPP as then he can receive it and the bridge for the next five years. I thought he should be delaying on taking his CPP but perhaps it’s the OAS he should dela.... More »
Q: I am 62 years old and I receive a pension from my work. At the same time, I am still working part time. My question is can I split my pension with my husband who is 64 years old? He is retired with no pension from his work.
I would appreciate if you can educate me regarding income splitting.
A: Pension income splitting turns 10 this year, Sally, having been introduced for the 2007 tax year. I’ll explain how it works and give you some tips for minimizing your tax and maximizing your pension income sources.
To begin, eligible pension income from age 55 to 65 includes only defined benefit (DB) pension income or eligible foreign pensions that are taxable in Canada. There are exceptions for annuities, deferred profit sharing plans (DPSPs), registered retirement savings plans (RRSPs), registered retirement income funds (RRIFs), and a few other sources of income, but only if the income is because of the death of a spouse. The full list can be found here.
After age 65, the income eligible for splitting expands to include RRIF and annuity income, amongst other sources…