How to Maximize Your Retirement Income - Retirement Income Taxes Explained

In this video, I talk about taxes on your retirement income.

The rules around taxes can be confusing. Knowing how much to pay, when to pay, and how to make deductions can feel overwhelming, which is why most people seek out expert help when it's time to file taxes.

If you live in Canada and are employed, you probably know you are paying a portion of your earnings as income tax to the government, but what about during retirement?

A poll in 2019 found that 89% of Canadians did not fully understand how retirement income is taxed, and nearly 20% believed that the Canadian Pension Plan (CPP) was a tax-free benefit.

Since most retirement income is still considered taxable, it pays to know in advance which of your income streams will be taxed and create a strategy to pay those taxes.

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Thanks for watching Your Canadian Retirement Specialist!

Regan Schiller holds his Certified Financial Planner designation, Registered Retirement Consultant and Certified Life Underwriter designations.

These videos were produced while I was an Executive Financial Consultant with IG Private Wealth Management. As of September 27, 2024, my affiliation changed to Wellington-Altus Private Wealth where I have taken the role of Wealth Advisor.

The information contained herein has been provided for information purposes only. The information has been drawn from sources believed to be reliable. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual’s objectives and risk tolerance. This does not constitute a recommendation or solicitation to buy or sell securities of any kind. Market conditions may change which may impact the information contained in this document. Wellington-Altus Private Wealth Inc. (WAPW) does not guarantee the accuracy or completeness of the information contained herein, nor does WAPW assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. Before acting on any of the above, please contact your financial advisor.

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What about early retirement where the employer pays you 1 years wage to retire before 65? There is a 2k transfer of the employer payout per each year worked 1989 to 1996 to your RRSP and 1.5k for 1988 and before. These 2k and 1.5k per years transfers to your RRSP do not need RRSP available.