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Canada Senior Financial Planning Guide

the financial planning for the seniors in Canada. The OAS clawback (the "OAS recovery tax") — the "15% clawback on the net income above $90,997 (2025)" — the "full clawback at $141,917". The OAS deferral — the "defer the OAS beyond age 65" — the "increase by 0.6% per month (7.2% per year) — the maximum increase by age 70 is 36%". The CPP deferral — the "defer the CPP beyond age 65" — the "increase by 0.7% per month (8.4% per year) — the maximum increase by age 70 is 42%". The RRIF minimum withdrawal — the "age 65: 4.0% of the RRIF value", the "age 71: 5.28%", the "age 80: 6.82%", the "age 90: 8.99%", the "age 94+: 20.0%". The age amount tax credit — the "federal non-refundable credit of up to $8,790 (2025)" — the "income threshold at $44,325 (2025)". The pension income tax credit — the "federal non-refundable credit of 15% on up to $2,000 of the eligible pension income".

Retirement Income Optimization

• OAS deferral: The "defer the OAS from age 65 to age 70 — the 36% increase in the monthly payment". The "breakeven age: approximately age 77-79". The "defer the OAS if the income in the early retirement is high and the OAS clawback would reduce the benefit".
• CPP deferral: The "defer the CPP from age 65 to age 70 — the 42% increase in the monthly payment". The "breakeven age: approximately age 82-84". The "defer the CPP if the health is good and the retirement income from the other sources is sufficient".
• CPP early: The "start the CPP at age 60 — the 36% reduction (the 0.6% per month before age 65)". The "early CPP is better if the health is poor or the income is needed immediately".

RRIF Withdrawal Planning

• RRIF minimum schedule: The "age 65: 4.0%". The "age 66: 4.17%". The "age 67: 4.35%". The "age 68: 4.55%". The "age 69: 4.76%". The "age 70: 5.0%". The "age 71: 5.28%". The "age 72: 5.47%". The "age 73: 5.67%". The "age 74: 5.88%". The "age 75: 6.06%". The "age 76: 6.27%". The "age 77: 6.49%". The "age 78: 6.73%". The "age 79: 6.98%". The "age 80: 7.25%".
• Withdrawal strategy: The "withdraw the minimum only to maximize the tax-deferred growth". The "withdraw more in the years of the low income (the 'bracket management')". The "withdraw the RRIF funds before the OAS clawback threshold".
• RRIF and the OAS clawback: The "RRIF withdrawals increase the net income — the higher RRIF withdrawal triggers the OAS clawback". The "plan the RRIF withdrawals to stay below the OAS clawback threshold ($90,997 in 2025)".

Senior Tax Credits

• Age amount: The "federal non-refundable credit — the base amount: $8,790 (2025)". The "reduced by 15% of the income above $44,325". The "fully eliminated at the income of $103,000+".
• Pension income credit: The "15% federal non-refundable credit on the up to $2,000 of the eligible pension income". The "eligible: the RRIF withdrawals, the annuity payments, the employer pension payments". The "NOT eligible: the CPP, the OAS, the GIS".
• Medical expenses credit: The "15% federal non-refundable credit on the eligible medical expenses above the 3% of the net income (the $2,759 ceiling in 2025)". The "eligible: the prescription drugs, the dental, the eyeglasses, the hearing aids, the walkers, the wheelchair, the nursing home fees".

Elder Financial Abuse Prevention

• Signs of the financial abuse: The "unusual bank account activity", the "missing cash or the valuables", the "sudden changes in the will or the POA", the "unpaid bills — the disconnection notices", the "the caregiver who isolates the senior from the family".
• Power of attorney: The "POA for the property — the legal authority to manage the finances". The "POA for the personal care — the legal authority to make the health decisions". The "the POA should be the trusted person — the family member or the professional".
• Joint bank account risks: The "the joint account with the child or the caregiver gives the complete access to the funds". The "joint account is the estate asset — the account goes to the joint owner by the 'right of survivorship' (the 'bypasses the will')".

For the OAS and the GIS details, see our OAS & GIS Guide →. For the CPP and the contribution rates, see our CPP Guide →. For the estate planning and the will, see our Estate Planning Guide →.