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You can split pension income so that some of the income goes to your spouse in a lower tax rate. Pension income splitting can mean a lower household tax bill.

You can split pension income so that some of the income goes to your spouse in a lower tax rate. Pension income splitting can mean a lower household tax bill.

Pension splitting is a powerful tax strategy that allows Canadians to give up to 50% of their eligible pension income to their spouse for tax purposes.

Pension splitting is a powerful tax strategy that allows Canadians to give up to 50% of their eligible pension income to their spouse for tax purposes.

Many people confuse the rules of pension splitting and CPP splitting so I thought I would share the 4 key differences between the two.

Sometimes rules can be confusing so I thought I would share a few examples of real life people who were able to take advantage of pension splitting.

To qualify to get your CPP early, you basically have to meet two key criteria. The first is you must be over the age of 60. The second is you must have made at least one valid contribution into Canada Pension Plan.

Although Defined Benefit Pension coverage is dropping, employers are not giving up on retirement plans. 50% of Canadians participate in a Capital Accumulation Plan (Group RRSP, DC Pension or DPSP) of some sort.

With the crisis going on over in Europe, austerity measures going on around the world, and people having to prolong their retirement dreams due to decreased income and terrible market returns, I have been reading a lot of material that focuses on an increasing phenomenon known as "pension envy."