October 9, 2019

The OAS clawback ceiling isn’t as firm as you thought — and here’s how you can take advantage

There is a ceiling that many retirees reach when generating income from OAS accounts that can reach up to fifteen cents on the dollar in “clawback” or money owed in returns. There are ways however, that even those who have reached well above the ceiling can save some money. You could restructure your income flows or even create a larger ceiling with two withdrawals that are carefully timed. Also, if you don’t touch the money and want to leave it to your heirs, an estate planning option could give your heirs rights to the money if they apply for what was not withdrawn up to a year before you die.

“But what I never knew, and I’m sure many affluent Canadians might not realize, is that the OAS ceiling effectively rises for each year you choose to defer the commencement of benefits”

Read more: https://business.financialpost.com/personal-finance/retirement/the-oas-clawback-ceiling-isnt-as-firm-as-you-thought-and-heres-how-you-can-take-advantage

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