Ep # 4 - Pension Income Splitting: How It Works
As you approach retirement, there are several proactive steps you can take to ensure a comfortable and stress-free future. One often overlooked yet highly beneficial strategy is pension splitting. In this episode of Your Retirement Planning Simplified, we explore the advantages of pension splitting, including potential tax savings and which types of pensions qualify for this strategy.
We’ll break down the simplest ways to split income for effective retirement planning, explain which pension plans do not qualify for splitting, and provide tips on reducing your tax bill when you retire. Additionally, we’ll cover the benefits of having a Tax-Free Savings Account (TFSA), the importance of a Registered Retirement Savings Plan (RRSP), and how to optimize these accounts for maximum tax efficiency in retirement.
Tune in for actionable insights to help you save on taxes and boost your financial security during your retirement years!
What You’ll Learn In Today’s Episode:
The savings you can accomplish with pension splitting.
Why it makes sense to split income.
Which opportunities you should be aware of with pension splitting.
What type of pension income can be split.
What income splitting allows.
Which pensions are not eligible for splitting.
How to limit your tax bill when you enter retirement.
Ideas Worth Sharing:
“There are significant savings that come with pension income splitting.” – Joe Curry
“You want to be looking for opportunities to equalize your income with your spouse so that you can lower your household income [in order to save money on your tax bill in retirement].” – Joe Curry
“It is possible to share your Canada Pension Plan income with your spouse, although it is different than splitting.” – Joe Curry
Resources In Today’s Episode:
Joseph Curry: LinkedIn
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