Maximizing Your Retirement Income: Calgary Financial Planners on OAS Clawback in 2024

Understanding OAS Clawback

What is OAS Clawback?

The Old Age Security (OAS) Clawback is a mechanism by which the Canadian government reduces the OAS pension for higher-income retirees. This reduction is based on the retiree’s net income exceeding a certain threshold. The clawback ensures that OAS benefits are targeted towards those who need them most.

Income Thresholds for 2024

For the year 2024, the income threshold for the OAS clawback is set at $86,912. Any income above this amount will result in a reduction of OAS benefits. The clawback rate is 15% of the income exceeding the threshold. Here’s a quick reference table:

Income RangeClawback Rate
Up to $86,9120%
Above $86,91215%

Impact on Retirement Planning

Understanding the OAS clawback is crucial for effective retirement planning. Retirees need to be aware of their income levels and how they might affect their OAS benefits. Financial planners, such as those at Bellwether Family Wealth, can help devise strategies to minimize the impact of the clawback. This might include income splitting, utilizing TFSAs, or deferring OAS payments.

It’s essential to regularly review your retirement plan to ensure it aligns with your financial goals and the latest regulations, including the OAS clawback 2024.

Strategies to Minimize OAS Clawback

Income Splitting

Income splitting is a powerful strategy for couples to reduce their overall tax burden and minimize OAS clawback. By transferring income from the higher-earning spouse to the lower-earning spouse, you can effectively lower your combined taxable income. This can be particularly beneficial for retirees who have significant pension income.

Tax-Free Savings Accounts (TFSAs)

Utilizing TFSAs is another effective way to minimize OAS clawback. Since withdrawals from TFSAs are not considered taxable income, they do not count towards the OAS clawback threshold. This makes TFSAs an excellent vehicle for retirement savings.

  • **Key Benefits of TFSAs: **
    • Tax-free growth
    • No impact on OAS clawback
    • Flexible withdrawal options

Deferring OAS Payments

Deferring your OAS payments can also help in minimizing the clawback. By delaying your OAS payments, you can receive a higher monthly amount later, which can be advantageous if you expect your income to be lower in the future.

It’s essential to consult with a financial planner, like those at Bellwether Family Wealth, to determine the best strategy for your specific situation. Personalized advice can make a significant difference in optimizing your retirement income.

Role of Calgary Financial Planners

Personalized Financial Advice

A financial planner Calgary can provide personalized advice tailored to your unique financial situation. Understanding your specific needs and goals is crucial for creating a retirement plan that maximizes your income and minimizes OAS clawback.

Tax Optimization Techniques

Calgary financial planners are well-versed in tax laws and can help you implement strategies to reduce your taxable income. This includes utilizing tax-efficient investment vehicles and taking advantage of available deductions and credits.

Long-term Retirement Planning

Long-term planning is essential for a secure retirement. Financial planners in Calgary, such as Bellwether Family Wealth, can help you develop a comprehensive plan that includes investment strategies, income sources, and contingency plans to ensure you are well-prepared for the future.

Working with a financial planner can provide peace of mind, knowing that your retirement plan is designed to adapt to changing circumstances and market conditions.

Investment Options to Boost Retirement Income

Dividend-Paying Stocks

Dividend-paying stocks can be a reliable source of income for retirees. These stocks provide regular income through dividends, which can be particularly beneficial during market downturns when capital gains are harder to achieve. Investing in a diversified portfolio of dividend-paying stocks can help mitigate risks.

Real Estate Investments

Real estate investments offer another avenue to boost retirement income. Rental properties can provide a steady stream of income, and real estate often appreciates over time. Consider the following types of real estate investments:

  • Residential rental properties
  • Commercial real estate
  • Real Estate Investment Trusts (REITs)

Annuities and Pensions

Annuities and pensions can provide guaranteed income for life, making them a popular choice for retirees. There are different types of annuities to consider:

Type of AnnuityDescription
Fixed AnnuityProvides regular, guaranteed payments.
Variable AnnuityPayments vary based on investment performance.
Indexed AnnuityReturns are linked to a market index.

It’s essential to consult with a financial planner, such as those at Bellwether Family Wealth, to determine the best investment options for your specific needs and goals.

Tax Considerations for Retirees in Calgary

Provincial Tax Rates

Retirees in Calgary need to be aware of the provincial tax rates that apply to their income. Alberta has a progressive tax system with rates that vary based on income levels. Understanding these rates is crucial for effective retirement planning.

Income BracketTax Rate
Up to $131,22010%
$131,220 to $157,46412%
$157,464 to $209,95213%
$209,952 to $314,92814%
Over $314,92815%

Deductions and Credits

Retirees can take advantage of various deductions and credits to reduce their taxable income. Some of the key deductions and credits include:

  • Age Amount
  • Pension Income Amount
  • Medical Expenses
  • Disability Tax Credit

Tax-efficient Withdrawal Strategies

To minimize taxes, retirees should consider tax-efficient withdrawal strategies. This involves planning the order and timing of withdrawals from different income sources such as RRSPs, TFSAs, and non-registered accounts. Bellwether Family Wealth can provide personalized advice to optimize your withdrawal strategy.

It’s essential to regularly review your tax situation and adjust your strategies as needed to ensure you are maximizing your retirement income.

Monitoring and Adjusting Your Retirement Plan

Regular Financial Check-ups

Regular financial check-ups are essential to ensure your retirement plan remains on track. Scheduling annual reviews with your financial planner can help you stay updated on any changes in the market or your personal circumstances. Bellwether Family Wealth offers comprehensive review services to keep your plan aligned with your goals.

Adjusting for Market Changes

Market fluctuations can significantly impact your retirement income. It’s crucial to adjust your investment strategy in response to these changes. Consider diversifying your portfolio to mitigate risks. Here are some steps to consider:

  1. Review your asset allocation.
  2. Rebalance your portfolio as needed.
  3. Stay informed about market trends.

Rebalancing Your Portfolio

Rebalancing your portfolio is a critical step in maintaining your desired level of risk and return. This involves selling assets that have performed well and buying those that have underperformed. Regular rebalancing can help you achieve a more stable financial future.

Consistent monitoring and timely adjustments are key to maximizing your retirement income and ensuring long-term financial stability.


Navigating the complexities of retirement income and understanding the nuances of OAS clawback can be challenging. However, with the right strategies and guidance from experienced Calgary financial planners, you can maximize your retirement income and minimize the impact of OAS clawback in 2024. By staying informed and proactive, you can ensure a more secure and comfortable retirement. Remember, early planning and professional advice are key to achieving your financial goals.

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