The Old Age Security (OAS) program includes a basic pension that are paid to almost all people 65+ and is indexed to inflation every January, April, July and October. The OAS clawback occurs if your net individual income is above a set threshold (currently $62144), your OAS pension will be reduced. The threshold figure is adjusted each year. For every dollar ($1.00) of income above the threshold, the amount of basic OAS pension reduces by 15 cents.

Strategies to help you minimize the clawback.

1. Defer RRSP income.

2. If you have a younger spouse, use the younger spouses age for RRIF planning to calculate the minimum RRIF income. It will lower your income.

3. Tax efficient income on non-RRSP investments.

4. If you have a spouse and you are able to split your income with your spouse, you may be able to reduce your net income.

6. Make your Final RRSP contribution. Up until and including age 69 if you have unused RRSP deduction room, make a final RRSP contribution.

7.Annuities etc.

Consult with your Financial Adviser.

Hope this helps...

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TS

You can contribute RRSP upto age 71 and not 69 as stated.

TFSA is another way to reduce OAS clawback

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Originally posted by Fido

With depression looming is the mutual funds RRSP better than the GIC RRSP .....

If we were to take a 2 yr GIC RRSP , then after 2 years , can we close it and divert the money to a GIC based RRSP ?

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Investpro ,

Thanks for responding . Yes , it is a typo ... I intended to write from a GIC to a non GIC RSP .... I did confirm with the Bank that it is possible ... Thanks.

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Fido.

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Originally posted by Fido
Thanks for responding . Yes , it is a typo ... I intended to write from a GIC to a non GIC RSP .... I did confirm with the Bank that it is possible ... Thanks.

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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."

-- Rhett Butler in "Gone with the Wind"

That s precisely what one of the Bank's rep told me ......... and I know its an irony of the stock market that ppl buy when the market is rising and sell when its drowning ... But being conservative , I would nt be comfortable in investing in MF s now ... will keep that for later ... to be with the flow .

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Fido.

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Originally posted by pratickm

Quote:

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Originally posted by Fido
Thanks for responding . Yes , it is a typo ... I intended to write from a GIC to a non GIC RSP .... I did confirm with the Bank that it is possible ... Thanks.

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So after 2 years, you will convert from GIC to mutual funds in your RRSP?
That mean you are betting the economy will be doing better in 2010 than now.
If so, won't you be buying high when you do that?
If you want to be in mutual funds, why not pick your funds now and starting taking your positions right now?
That way, in 2010 when the recession is over (according to you), your units will gain in value.

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