Tax tips for retirees

1. If your retirement income is much higher than your spouse's, consider splitting your Canada/Quebec Pension Plan (CPP/QPP) benefits to save on taxes.

2. If you still have stock options, consider exercising them over several years to ensure you don't get the tax hit all in one year...

3. Investigate the tax credits for which you may now be eligible, such as the pension income tax credit, the age credit and the GST tax credit.

4. If you're still a long way from turning 69, rely on your unregistered assets for income as long as you can, so your RRSPs can remain tax-sheltered.

5. On the other hand, if you'll be turning 69 soon, don't forget to convert your RRSPs to RRIFs to avoid a hefty tax bill.

6. Weigh the benefit of taking the CPP early. Your monthly pension will be smaller if you take it before age 65, but you'll collect it for longer.

Downloads

taxtipsretirees