Episode 46: 8 Overlooked Ways to Save on Taxes in Retirement

Published December 1, 2025

Taxes don’t end at retirement, but smart planning can help you pay less. In this Money Monday episode, Darren Devine, CFP, CLU, walks through 8 overlooked ways Canadians can help reduce taxes in retirement—from strategic RRSP/RRIF withdrawals and CPP/OAS timing to income splitting, TFSA withdrawals, credits, and OAS clawback control—so your retirement income lasts longer.

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Darren Devine, CFP®, CLU®

Financial Planner, Sun Life
President of Devine and Associates Financial Services Inc.

Darren here, today, we’re talking about tax-saving strategies in retirement—because keeping more of your hard-earned money is just as important as growing it!
Here are 8 often-overlooked ways to help reduce your tax bill in retirement.

1. Plan RRSP Withdrawals Wisely

You don’t have to wait until you're forced to withdraw from your Registered Retirement Income Fund (RRIF). Taking strategic RRSP withdrawals early can help you avoid higher tax brackets later on.

2. Delay Your CPP & OAS Benefits

Waiting until age 70 to start collecting Canada Pension Plan (CPP) and Old Age Security (OAS) means bigger monthly payments—and potentially lower taxes by spacing out income sources.

3. Income Splitting

If your spouse is in a lower tax bracket, income splitting through pension income or RRIF withdrawals can help reduce overall family taxes.

4. Take Advantage of the Age Amount Tax Credit

Once you turn 65, you may be eligible for the Age Amount Tax Credit, which can reduce the tax you owe. Many retirees miss out on this!

5. Maximize TFSA Withdrawals

Unlike RRSPs, withdrawals from your Tax-Free Savings Account (TFSA) are completely tax-free—making it a great way to supplement retirement income without impacting your tax bracket.

6. Reduce Clawbacks on OAS

If your income is too high, you could lose part of your OAS benefits. By strategically withdrawing from RRSPs, TFSAs, or non-registered accounts, you can help keep your income below the clawback threshold.

7. Use the Pension Income Tax Credit

If you're over 65 and receiving eligible pension income, you can claim the Pension Income Tax Credit to help reduce your tax bill.

8. Claim Medical Expenses

Don’t forget to claim eligible medical expenses—from prescriptions to dental work—as they can be deducted from your taxable income.

Taxes don’t stop in retirement, but smart planning can help reduce them. Need help creating a tax-efficient strategy? Let’s talk!

Thanks for tuning into Money Monday, don’t forget to like and comment for more episodes filled with tips to help make your financial journey a breeze. Until next time, I'm Darren Devine, and you can always talk to us today at DevineAndAssociates.ca