Justin Tang/The Globe and Mail
We asked Ian Calvert, a financial planner and portfolio manager at HighView Financial Group in Toronto, to look at Elliott and Eva’s situation.Because neither Elliott nor Eva has a defined benefit pension, they will have to prudently manage their personal assets and spending throughout their retirement years, Mr. Calvert says.
If they each withdrew $35,000 from their RRIFs, that plus the investment income from their non-registered portfolio would give them taxable income of about $50,000 each, the planner says. “That’s until they both begin taking Canada Pension Plan and Old Age Security benefits at age 65,” he adds. “The years between the start of retirement and age 65 will be their lowest-income years, so they should take advantage of the low marginal tax rate.