The Old Age Security (OAS) pension is a taxable monthly benefit available to most Canadians 65 years or over who meet the eligibility requirements. Much like the Canada Pension Plan (CPP), it’s designed to help bolster senior Canadians’ retirement income. However, you don’t have to pay ...
By contributing to your RRSP, the government “recalculates” your taxable income. In this case, it treats it like you only made $44,152.10 (5). And because you made less income, you pay less tax (6). Therefore, because there is a difference in how much tax you already paid (2) a...
2025 Contribution Limit:$7,000 (check your total room on your CRA account). RRSP Benefits (2025) Tax—Deferred Growth:You don’t pay tax on investment gains until withdrawal. Lower Taxable Income:Contributions reduce your taxable income, lowering your tax bill today. Ideal for Retirement:Withdra...
RRSP withdrawals are subject to withholding taxes and are considered taxable income. For some people, money in a TFSA might be too easy to access. The future is uncertain The younger you are, the harder it is to determine which account to put your retirement money. When in doubt – ...