1. Sign up for government benefits
Check to make sure you have applied for all of the government retirement benefits you are entitled to – this may include Canada Pension Plan (CPP) payments, Old Age Security (OAS), or the Guaranteed Income Supplement (GIS).
2. Learn about tax credits
Older Canadians may be able to use tax credits to reduce the amount of tax they pay. Look for credits that are available to you, and consider working with a tax professional to understand your options. Learn about key tax credits and other options available to older Canadians.
3. Track your spending
While this may seem like a simple suggestion, taking time to track your monthly expenses may help you understand how much you are actually spending. You may be surprised to see how much you spend on certain items – like eating out, travel, or groceries. Seeing what you spend can help you decide where you can cut back. Use the Retirement Budget Worksheet to estimate your monthly expenses.
4. Contribute to a TFSA
If you do have money left over at the end of the month, consider savings options that will maximize your returns. For example, consider saving money in a TFSA. Your savings grow tax-free and you won’t pay any tax when you withdraw. Also, you can use a TFSA to save for any goal. Learn more about how TFSAs work.
5. Rent out part of your home
Consider putting your house to work for you by renting out a room or sharing your home with a friend instead of living alone. Just remember that you will pay tax on your rental income.
6. Work part time
Finding part-time work in retirement can provide extra income and help you stay engaged and active.
Whether you feel you aren’t bringing in enough income in retirement, or you are spending more than you planned, there are easy ways to save more money and find extra income in retirement.