Not sure how to make a savings plan? Read on…
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How to invest as a teenager in Canada + MORE Dec 5th
If you’re starting to save the money you’ve received from birthdays, holidays and part-time jobs, you may be wondering how you can invest your savings. An important life lesson for any young person is the habit of saving—so investing for some teenagers can be the next step.
In Canada,.... More »
How the Liberals’ re-election impacts RRIFs, taxes and more + MORE May 7th
The Liberals held on to power in the recent federal election, and this has tax implications for Canada’s seniors and other taxpayers—in particular, for retirees and their strategies for their registered retirement income fund (RRIF) this year and possibly in the future.
Reduced RRIF minimum w.... More »
What is an ETF? + MORE Jul 11th
If you want to think about it in really simple terms, an ETF is like a meal kit. How’s that? Well, if you’re someone who enjoys good food, but doesn’t necessarily consider yourself a good cook, you might pick up a meal kit, because it contains all of the pre-selected elements you need to prepa.... More »
The best RRSP investments 2022 + MORE Jun 26th
A registered retirement savings plan (RRSP) is an investment that is registered with the Canadian federal government. RRSPs are often described as being “tax-advantaged.” That means you don’t pay income tax on the amount you are contributing to an RRSP, in the year you earn that contribution. .... More »
The best high-interest savings accounts in Canada for 2025 + MORE Jan 7th
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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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“Should I sell off some investments to avoid OAS clawbacks?”
– moneysense.ca
Q. I’m due to receive Old Age Security (OAS) benefits next year. I’m concerned because the dividends I receive from my investments will bring my income to $90,000, putting me in a situation where my OAS will be clawed back. Should I be selling some of my dividend stocks to stay below the threshold for clawbacks? I already pay more in income tax than I receive from my Canada Pension Plan benefits.
–Cam
A. Old Age Security (OAS) is a federal government pension payable to those age 65 and older. Unlike Canada Pension Plan (CPP), it is based on years of residency in Canada, and not work history or historical contributions. Those who have lived in Canada for at least 40 years since the age of 18 are entitled to the maximum of $613.53 per month at age 65 (as of the fourth quarter of 2019). That’s $7,363.36 annualized.
OAS can be lower or higher than the standard maximum. Those with fewer than 40 years of residency may receive a prorated pension. Recipients can also defer their OAS pension past age 65 and start it as late as age 70…
–Cam
A. Old Age Security (OAS) is a federal government pension payable to those age 65 and older. Unlike Canada Pension Plan (CPP), it is based on years of residency in Canada, and not work history or historical contributions. Those who have lived in Canada for at least 40 years since the age of 18 are entitled to the maximum of $613.53 per month at age 65 (as of the fourth quarter of 2019). That’s $7,363.36 annualized.
OAS can be lower or higher than the standard maximum. Those with fewer than 40 years of residency may receive a prorated pension. Recipients can also defer their OAS pension past age 65 and start it as late as age 70…
Employees should actively investigate their options and invest accordingly.Q. Are there books or good self-help websites on retirement planning for Canadians that you can recommend? I live in Ontario and want to retire earlier than age 60 but I’m unsure how taxes will affect me when I can (and should) begin to draw down on my registered and non-registered savings. I’d also like to understand what I can do to maximize my after-tax retirement income. Any suggestions you have would be appreciated.
–Rob
A. This is a great question. There are so many sites in the web universe for online help and resources that it’s important to confirm the background and credentials of the information you are looking at.
Before you even begin, always check and make sure you are looking at Canadian sites because sometimes U.S. and U.K. sites have similar-sounding products and advice, but they work within a different regulatory framework in those countries. So those sites aren’t as helpful to you.
I would start with Canadian federal or provincial government websites that are unbiased and well researched…
–Rob
A. This is a great question. There are so many sites in the web universe for online help and resources that it’s important to confirm the background and credentials of the information you are looking at.
Before you even begin, always check and make sure you are looking at Canadian sites because sometimes U.S. and U.K. sites have similar-sounding products and advice, but they work within a different regulatory framework in those countries. So those sites aren’t as helpful to you.
I would start with Canadian federal or provincial government websites that are unbiased and well researched…
Employees should actively investigate their options and invest accordingly.
