By postponing CPP until age 70 and not touching an RRSP until age 69, they could receive the GIS for four years, but it might not be the most tax efficient strategy
Since the Guaranteed Income Supplement is an income-tested benefit, retirees who are receiving income from both CPP and RRSPs will generally not be entitled to it. But there is still a way to receive it. Consider a couple, both age 65, who retire with $500,000 in RRSPs and $200,000 in TFSAs.
If they don’t touch their RRSPs until age 69 and postpone their CPPuntil age 70, they could receive the GIS for four years. Total GIS payments would exceed $59,000 after tax. Attractive as this sounds, it still might not be the most tax-effective strategy since it would put the couple into a higher income tax bracket after age 69. No GIS is payable at age 65 in this example because the couple had employment income in the year preceding retirement.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Costs of first phase of construction at American Lithium’s Peru project up to US$700-million, CEO saysIf all goes according to plan, construction could begin at Falchani by late 2024 or late 2025, American Lithium CEO Simon Clarke said, to begin production in late 2026 or early 2027
Read more »
Guaranteed Government Support Would Attract More Airlines to YYT: Airport CEOThe CEO of St. John's International Airport believes an income guarantee from the province would help attract ...
Read more »
Fidelity and Citadel-backed EDX Markets launches its digital asset marketplaceEDX Markets has announced the successful launch of its digital asset marketplace and the completion of an investment round with new equity partners.
Read more »
What Bitcoin’s falling volatility says about investor sentimentBitcoin is increasingly being seen as a long-term investment option, rather than a short-term speculative asset.
Read more »
Four offers rejected for large Belleville house before successful $700,000 bidTwo-storey house sat on market for months until the market picked up in the spring
Read more »