Mary Keetch Financial Services

The Clawback Conundrum


How to help reduce your reported income to maximize benefits in retirement.
WHEN CANADIANS AGE 65 OR OLDER think about their overall retirement plan, most focus on ensuring their savings, investments and other forms of income are appropriately managed. But most people’s retirement income also includes a range of valuable benefits available from the government, two of the most familiar ones being Old Age Security and the Age Credit. And a critical feature of these benefits is that they’re highly connected to your taxable income. They can be clawed back or forfeited altogether if your reported income (line 234 of the federal tax return) is too high.
Therefore, in order to avoid reducing the government benefits you receive, you may want to think about ways to reduce your reported income. Here are a couple of straightforward approaches you can take.

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