What time of year should you retire? Sep 7th

Retirement planning getting you down? There are always smart ways to plan the financial aspects of your retirement.
Latest News

Watch: 4 things to consider before putting your money in a TFSA or RRSP Sep 28th

You know both can help lower how much income tax you pay—both are registered accounts, after all—but how do you decide whether to put your money into a tax-free savings account (TFSA) or a registered retirement savings plan (RRSP)? Watch this video to learn about the four things to consider befo.... More »

Can a non-resident open an investment account in Canada? Sep 21st

I moved to Sweden to study in 2021 and I am no longer considered a resident of Canada (to my understanding). However, I have some money to invest. I am not allowed to contribute to my TFSA which leaves me with contributing to an RRSP or an ISK (Swedish tax efficient account). In short, you pay ~0.40.... More »
 canada pension plan

How does age affect life insurance rates? + MORE Sep 14th

Most of us go through life assuming we’ll reach a ripe old age—and that’s fair, because most of us do. But if you have dependents, it’s wise to protect them from the financial fallout of your death—even if you’re still young and healthy—by getting life insurance. Your age is a pretty b.... More »
Is there a better time of the year to retire based on tax implications: December 31 versus June 30 versus January 30? —Laf

The best date to retire for tax purposes

For most Canadians planning their retirement, tax isn’t the primary factor, Laf. However, there are instances when tax can come into play for choosing a retirement date, as well as other timing and calendar-based considerations.

Tax rate for retiring in Canada

Canadian tax is levied on a graduated basis, with higher income moving into higher tax brackets. Federal tax brackets increase at about $50,000, $100,000, $156,000, and $222,000 for 2022. Provincial and territorial tax brackets vary, and this results in most taxpayers falling within many tax brackets. Only income that exceeds the tax bracket thresholds is taxed at the higher tax rate—not your entire income. 

So, I suppose it is possible for someone to decide that being in a certain tax bracket on their next dollar of income is a deterrent from continuing to work in the year they retire…

Continue Reading On moneysense.ca »

Share

PinIt
Compare insurance quotes through Kanetix.ca - save time and money!