Retirement taxes explained: Withholding, clawbacks, and other surprises + MORE Sep 17th

Many working-age Canadians wonder what the impact of retirement will be on their tax situation. As you save and build wealth, it is important to plan for the eventual tax treatment of your retirement assets and income as you approach that transition.  

Taxation in Canada

When you are working, your employer calculates the payroll deductions to come off your paycheque based on Canada Revenue Agency (CRA) payroll tables. If you have no other sources of income, nor any tax deductions or tax credits, you should probably have no tax owing and no refund at year-end. 

In retirement, it works differently. Since you may have different sources of income with different withholding tax rates—or lack of tax withheld—it can make for an uncertain income tax outcome. Often, retirees end up owing tax. It is important to plan for this. 

That said, the overall tax rate that a taxpayer pays tends to be lower in retirement. So, despite owing tax, the overall level of tax per dollar of income is typically less than when you are working…

Savings comparison tool

Find the best and most up-to-date savings rates in Canada using the comparison tool below. Plus, use the filters to assess your estimated return based on the size of your balance.

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Best high-interest savings account rates in Canada

Generally, savings accounts offer very low interest rates. So, if you want to earn on your deposits (rather than simply using your account as a temporary “holding tank” or directing to longer-term saving and investing vehicles), a savings account with a high interest rate is a no-brainer…

Parents today are tasked with a daunting challenge: preparing their children for a future they can’t predict. The world kids will enter as adults looks nothing like the one their parents grew up in. Artificial intelligence is already transforming work, entire industries are being disrupted, and the skills that made previous generations successful may not be the ones children will need. Many parents feel overwhelmed by this uncertainty, struggling to make decisions today about their children’s education, activities, and opportunities that will shape their success decades from now.

This uncertainty collides with harsh financial realities across every aspect of life. Families are already juggling mortgage payments, childcare costs, and rising living expenses in an increasingly expensive world. Add to this that the Canadian Scholarship Trust estimates a four-year university degree could cost as much as $192,000 by 2042.

It raises a crucial question: Is putting your hard-earned dollars toward education savings still the right choice?

The answer, according to extensive research, is a resounding yes—and the benefits extend far beyond what most parents realize…