These 3 Retirement Tax Credits Equal Up To $50,000 Per Year In Retirement Income

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When we talk about retirement planning with our clients one topic that inevitably comes up is tax planning.

Income tax is often the single largest expense in retirement. Larger than travel, food, or medical expenses.

Income tax often comes up when we talk about retirement planning because many people are worried about paying too much tax in retirement and negatively impacting their retirement spending goals.

Many people do not realize that in retirement there are new tax credits that can help reduce income tax, sometimes to zero. It’s understandable that people aren’t aware of these tax credits because they’re mostly available to those over age 65, so they’re not necessarily on someone’s radar if they’re under age 65.

Paying less tax in retirement is nice, but what if you could pay NO TAX at all in retirement? With some pre-retirement planning that is easily possible.

There are three important tax credits that can help you earn over $25,000 per year as an individual, or over $50,000 per year as a couple, and pay zero tax in retirement.

In this video we’re going to look at three important tax credits in retirement, two of which, for most people, are only available after age 65. We’re also going to work backward to craft a retirement plan that provides $75,000 per year in spending with zero tax.

Disclaimer: This video is for educational purposes only and does not constitute investment advice or financial advice. All information provided is for illustrative purposes only and you should not rely on such information as the primary basis of your investment, financial, or tax planning decisions. Every effort has been made to ensure the accuracy of its contents. No representations, warranties or guarantees are made as to the accuracy of any estimates or calculations provided. Nothing in this material should be construed as investment or tax advice, or a solicitation or offer, or recommendation, to buy or sell any financial product or securities. Before making any financial decision, you should review your situation with a financial planner.

[MeF]

Very, very helpful information. I have not seen this information in one vlog, and I have been watching vlogs related to this and retirement & RRSP/RRIF for one year now. Thank you!

[renzenker]

Thank you! Nowhere else did anyone explain that you the base amount AND age amount at age 65!

[edhuber]

Good stuff, surely, but FOR *CANADIAN* RETIREES.

[webtel]

Great info! But it seems you have not mentioned provincial age tax credit and basic personal amount or did I miss it? Thank you

[adilechavush]

This is the best way explain and fits just perfect with my plan.

[rickbold]

Thanks for the great content. Do you have to be living in Canada as a resident for these deductions?

[vladotasev]

For OAS it is important how many years you are on Canada. Does GIS aammount depends on years spent in Canada, or it depends only on your other income? Thanks

[martik]

Lets say that couple has 600k in an RRIF and 100k in a TFSA with 100k room left. How should they go about making their income tax free as possible?

[mikei]

Is the OAS income taxable? If so, how much would it be in this scenario?

[wanderingsoul]

Where in this video or description does it say that this is for Canadian Taxpayers ONLY ?

[martymendes]

Thanks for another informative video. I have a question regarding DB pensions and income splitting. I have asked 2 planners and gotten 2 different answers so you can break the tie. Can DB pension income be split before age 55, or is there an age restriction? I realize most workers are not eligible for DB pensions before 55 but some, Ontario teachers for example, can collect reduced pensions starting at 50. Thanks again and keep up your excellent work.

[jws]

This is all fine and good but I have two comments: 1) This seems analogous to the car dealer ads who advertise the price of the car if one qualifies for all the programs (first responder, first time buyer, veteran etc.). No one ever qualifies for all the incentives.
2) Could you please post a key to all the abbreviations in the text so those of us who are not familiar with them can refer to it?

[marcleblanc]

What good are tax credits when you dont get enough to live on to begin with?

[robthesailor]

With a maximum lifetime contribution limit of $88K, please tell me how two investors parlayed their TFSA into over $300K each? You even acknowledged $150K as a more reasonable number in your video - but you did not use it in your example. Using unrealistic numbers to "wow" the viewer, makes you lose credibility as a financial planner in my mind.

[missouri]

If you’re going to have this channel in the US then you should state what country that you’re talking about in the video because this waste of my time