Tax Season Is Over. Now the Real Planning Starts.

Tax Season Is Over. Now the Real Planning Starts.

Proactive RRSP and TFSA retirement planning can make a significant difference in how much you keep and how long it lasts.

Tax season has a funny way of feeling like a finish line.

You filed, you got your refund (or wrote the cheque), and now it's done for another year. Most people close the browser and move on.

But if you're retired, or getting close, what happens after you file matters more than the filing itself. Strategic RRSP and TFSA retirement planning doesn't stop when you submit your return. In many ways, that's exactly when it should begin.

Here's why.

Your Return Is a Snapshot of Your Financial Life

Every year, your tax return tells a story. What you earned, where it came from, how much you kept. For retirees and near-retirees, that story has a few specific chapters worth paying attention to.

RRSP: The Clock Is Ticking

If you're still contributing to an RRSP, you have until the end of the year you turn 71 to do so. After that, it converts to a RRIF and minimum withdrawals become mandatory whether you need the money or not.

That mandatory withdrawal income gets added to everything else you're receiving. CPP. OAS. Pension income. It stacks up fast, and if it pushes you past certain thresholds, it can trigger OAS clawback or bump you into a higher tax bracket.

Strategic RRSP retirement planning isn't just about contributing, it's about timing those contributions and eventual withdrawals in a way that minimizes your lifetime tax burden.

TFSA: The Most Underused Tool for Retirees

Most people know about the TFSA. Far fewer use it strategically in retirement.

Once you're drawing income, the TFSA becomes incredibly valuable as a place to shelter investments that would otherwise generate taxable returns. Growth inside the TFSA doesn't affect your OAS, doesn't show up in income-tested benefit calculations, and withdrawals are completely tax-free.

If you received a refund this year, or if you have unused TFSA contribution room sitting idle, this is one of the first places your RRSP and TFSA retirement planning conversation should start.

Employer Pension: Don't Leave Money on the Table

If you're still working and your employer offers a pension plan whether defined benefit or defined contribution, post-tax season is a good time to confirm you're maximizing it.

Many employees contribute the minimum required and never revisit it. But your pension is likely your single largest retirement asset, and small decisions made now about contribution levels, survivor benefits, and bridging options can have a significant impact on the income you actually receive in retirement.

If you're already retired and drawing pension income, your return is a good prompt to review whether your withholding elections still make sense or whether you're consistently over or under-remitting through the year.

The Real Gap Isn't Knowledge, It's Follow-Through

Most people know something about RRSP and TFSA retirement planning. The gap is in translating that general awareness into a specific plan that reflects your actual numbers, your actual timeline, and what you actually want retirement to look like.

Filing your taxes is the starting point for that conversation, not the end of it.

If you'd like to look at what your return is telling you and what to do about it before year-end, we'd be glad to walk through it with you. Reach out to the ANR team to start the conversation.

Frequently Asked Questions

1. What is the RRSP contribution deadline and what happens when I turn 71?

You can contribute to your RRSP until December 31 of the year you turn 71. At that point, your RRSP must be converted to a Registered Retirement Income Fund (RRIF), an annuity, or taken as a lump sum. Once converted to a RRIF, you are required to withdraw a minimum amount each year based on your age. Those withdrawals are fully taxable, so planning your RRSP wind-down well in advance is an important part of retirement income strategy.

2. How much TFSA contribution room do I have and how do I find out?

Your total TFSA contribution room depends on your age, residency history, and any withdrawals you've made in prior years. The CRA tracks your available room and you can check it through your My Account portal online. Unused room carries forward indefinitely, and any amounts you withdraw in a given year are added back to your contribution room the following January 1.

3. Can RRSP and TFSA retirement planning reduce OAS clawback?

Yes, this is one of the most important and overlooked aspects of retirement income planning. OAS benefits begin to be clawed back once your net income exceeds a certain threshold (adjusted annually by CRA). Strategic use of your TFSA for investment income, combined with careful timing of RRSP or RRIF withdrawals, can help keep your net income below that threshold and preserve more of your OAS entitlement.

4. Is it worth converting my RRSP to a RRIF early?

In some cases, yes. Early RRIF conversion, before age 71,  can make sense if drawing smaller, controlled amounts now reduces the size of mandatory withdrawals later and lowers your overall tax exposure across retirement. It depends heavily on your other income sources, marginal tax rate, and estate goals. This is a decision best made with a full picture of your retirement income plan, not in isolation.

5. What should I do with my tax refund if I'm near retirement?

A refund means you overpaid through the year, it's not a bonus, it's your money returned without interest. That said, putting it to work thoughtfully matters. For near-retirees, the most common high-value uses are maximizing available TFSA contribution room, making an RRSP contribution if it still makes sense given your timeline, or directing it toward a non-registered investment account with a tax-efficient strategy. The right answer depends on your specific income picture and what gaps exist in your current plan.