A senior whose 2025 net income exceeds $93,454 will lose some or all of their old age security pension. Seniors will also begin to lose their age credit if their net income exceeds $45,522. Consider limiting income over these amounts, if possible. Alternatively, deferring receipt of old age security amounts (for up to 60 months) my be beneficial if it would otherwise be eroded due to high income levels.
Canada pension plan (CPP) receipts may be split between spouses aged 65 or over (application to CRA is required). Also, it may be advantageous to apply for CPP early (age 60-65) or late (age 65-70).
You have until March 2, 2026 to make tax-deductible registered retirement savings plan (RRSP) contributions for 2025 year. Consider having the higher-income earner contribute to their spouse’s RRSP via a spousal RRSP for greater tax savings.
An additional $7,000 may be contributed to the tax-free savings account (TFSA) starting January 1, 2026. Withdrawals made up to December 31 can be re-contributed starting January 1 of the following calendar year.
Consider contributing to the tax-free first home savings account (FHSA). Eligible contributions are deductible, and withdrawals to purchase a first home are not taxable. Up to $8,000 can be contributed annually to a maximum lifetime limit of $40,000.
Contributions made in 2025 and unused contributions from 2024 can be deducted against 2025 income.
NEW! If eligible for the disability tax credit, consider applying for the income- sensitive Canada disability benefit, which provides up to $2,400/year in support to individuals aged 18 to 64. The first payments for this benefit commenced in July 2025.
