Thanks for having me on David! I hope this video helps highlight the opportunities around Guaranteed Income Supplement (GIS) and retirement planning for low and moderate income households!
This is great for people who are genuinely struggling but on paper don’t qualify for the GIS they need. Where it gets less great is when planners help those who are doing well for themselves and retired comfortably move their money around so that on paper they qualify for GIS when in reality they are far from low income. This is like dressing up in rags to take food from the food bank to top up your well stocked fridge and pantry. And people say the younger generations are self-entitled. The CRA should close this loophole so taxpayers aren’t funding this nonsense and the folks who actually really need GIS can be better served.
The other think is that lots of people who never work in Canada and after 10 years ln the Country even thou they have reduced OAS they still receive the maximum GIS.i don't think it's fair to low income people that work here all they lives.
@@irenapesula7772I have always felt that way. The entitlement should be based on how many years as well as how much you put in. I started working at the age of 16. I worked as a single mom 3 jobs and all three jobs I paid into CPP. To think 10 year immigrants get the same amount as me from a minimum wage job after only 10 years of Canadian employment from that I think what the born and raised generationally get is an absolute disgrace to seniors as it is. My Dad gets the top up. His total income near the second if not first most expensive city in Canada… his total is $2000 a month with the GIS . He worked since he was 16 in the logging industry and always earned a good living. He was a tug boat captain and managed to retire by 65 after double knee replacement in his late 50’s. He went through a bankruptcy after a long layoff and didn’t have enough time in life to rebuild everything he lost. It isn’t right with me. I was a care aid from the age of 19. I took care of seniors for over 30 years of my life and I miss them all dearly. It breaks my heart to see so many even in subsidized seniors housing not afford cable and quality food. my home care team we would go the food bank for some of them. I’d be called in to do a dinner visit… when I go to open the fridge there’s nothing but a half dozen eggs a loaf of bread and little bit of cheese. Freezers empty other than some Freezer jam and another loaf of bread. Nothing for dinner no potatoes ? So I took all the ingredient and made a kick ass omelette. You have to work with what’s you’ve got. I have so many heartbreaking stories I could write a book. It’s just WRONG! I shouldn’t have any sad stories in Canada as a Care worker .
GIS (GUARANTED INCOME SUPPLEMENTS ) is money given to people who do not worked and contribute to CPP ( Canada pension plan ) everybody who work in Canada contribute or if you have a business you are still obligated to contribute to CPP !
Retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My parents both spent same number of years in the civil service, but my mom was investing through a wealth manager, and my dad through the 401k.
This is true. I'm in my mid 50's now. My wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more. I'm making money even before retiring, and my retirement fund has grown way more than it would have with just the 401(k). Haha.
Its unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $287k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
@@hasede-lg9hj I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same.
Firms can be unscrupulous as they prioritise their own commission over your profitability. On the other hand, I prefer working with individual investors like Vivian Carol Gioia, who only take a share from your profits, not your initial capital. I must say, my experience with her has been exceptional thus far.
I am 67, retired on CPP, only income, at 61, and get GIS. My wife turned 60 a yr ago and got the GIS allowance, they gave her $500/month and took $300/month off mine. Then, they jacked her Trillium premium from $269/yr to $939/yr.
If you have to use RRSPs or other investments to help make ends meet, the CRA makes sure to take away your GIS. There is virtually nothing for low-income seniors in Canada either federally or provincially. It's time we remind the government (whichever party is in power) that we are the largest block of voters in this country.
This is a terrible video imo as it is for higher income earnings that saved bucket loads in TFSA or non reg. The average poorer senior couple won’t ever get 14,000 K a year This is so misleading
Outstanding. I never knew about the hidden opportunity about applying for the GIS based on income. I will follow through with your most welcomed advice.
You btecha! This is an excellent strategy. I used cash on hand and TFSAs to keep my reportable income as low as possible and capitalized on the GIS for a lot of tax free money. People should really plan on capitalizing the GIS.
Serious question: are you a low income retiree in the true sense of low income or does that cash on hand and tfsa mask wealth that lets you qualify for a low income supplement when in reality you’re doing just fine?
@BusterDarcy No one asks how much money you have or where it is. All you have to do is make sure your tax return income is a certain amount. I forget what it is and they're not saying but Google GIS and it tells you. I filled up 2 tax free savings accounts so I live off that, CPP, OAS and GIS. Once I have to start moving my RRSP's to RIF's, I'll move it to a tax free account.
Get GIS from 65-70 by deferring CPP to 70, making a big RRSP contrib at 65, and spreading out the rrsp deduction over those 5 years to reduce taxable income. Requires cash on hand and unused rrsp contribution room, or advance planning to NOT claim your RRSP deductions for a few years prior.
Can the residency Requirements of 10 years be relaxed in special cases that is lesser than 10 years for Canadian Nationals who are 70 years old or more. O A S is paid only to those Canadian Nationals who are residents and have been residents for at least 10 years.The G I S should be tied to C P P instead of O A S , so that in some genuine cases a smaller number of people can also be benefited. It would be highly appreciated if both O A S & G I S are attached to C P P. This will greatly benefit a very smaller percentage of Canadian Seniors who due to reasons beyond their control couldn't complete 10 years Residency Requirements.
No, the government was generous enough to give the OAS to people who have lived in Canada for only 10 years. People who have lived in Canada less than 10 years should contact the other country where the lived their life. It cannot be based on CPP as, for example, a stay at home mom, who never contributed to CPP would not have CPP benefits, still can qualify for OAS (even with only 10 year residency) and can probably get GIS if she meets the criteria.
Do assets affect GIS? The GIS benefit is based on income not assets. It's possible to have substantial assets and still collect a GIS benefit. Each dollar of income reduces your GIS benefit by at least 50 cents. In 2022 each dollar of income between $2040 and $9480 reduces GIS by 75 cents. So, you can have 10 million on your real estate assets and you are not effected, so long you have low taxable income.
I am currently 66 yrs old and have applied for GIS. My CPP, and a couple of pensions add up to $17772. without OAS. My ex wife will want CPP splitting when she turns 60 in two years. Will my GIS increase???
You must file your income tax every year in order to completely qualify for GIS yearly. Payments are automatically discontinued until your income tax has been processed by CRA. GIS office will contact you promptly and inform you on renewing your qualification. Once you have filed your income tax and has been processed by CRA, your GIS benefit automatically and promptly resumes a regular schedule.
What I don't get...is why was I always told I need more than a million dollars to retire? I just retired a year ago at 62. I started drawing my CPP a month before by 63rd birthday. (Just under $14,000 a year. minus 14% tax) I have another 164,000 in my employer pension and another 312,000 in bank investments. I jacked up my Canada Life pension to the max in hopes most of it would be depleted by the time I'm 70 ish. I'm also starting in Feb 2024 to draw from my RIFF's of 14,400 per year before tax. I have no debt, very few bills. I have solar on the roof, so paying power and gas is cup change. Like literally about $260 a year total for those two bills. My friends living in the basement pay the land tax, house insurance and water bills. All I have is a home internet bill of $100 and a cell phone bill of $48 and food. Please help me learn how to spend it all.
I think you're wrong: The Guaranteed Income Supplement has to be entered in total income; and there's no way on the year end tax form to avoid this declaration---you are taxed on it. There's a box on the T4 that tells you which line to enter it on and it's reflected on Total Income.
This is so confusing....first he say withdraw from rif to supplement low income, so ok if oas is maximum right now-713.00month=8556 year, why would GI be reduced?even if you get 5000 from rif which isr10% tax, it is still only 15556 per year.....and no other income, does gi needs to be reduced? then he says to call cra and ask for , income to be calculated on this year earnings ....what? how can cra calculate earning for this year?????very confusing....
I tend to disagree with some of the statements. The forms to apply for these are confusing and require qualified exonomist, for an average person is difficult and the Service CANADA officers do not bother to explain. As example I had in the year of retirement(2023), reduced income, close to zero and did receive 70 $ GIS/month. My request for recalculation was rejected and calculation was made on the base of my 2022 income. The next review is in July 2024. So is 1 and a half year with 70 $ GIS AND low OAS and CPP. It is all arbitrary and I believe they think the income from the previous year as income for the current year, which is false. So this is arbitrary and should not be considered and even mentioned as helping. Plus for the seniors with really low income all these CPP and OAS and GIS together they are I think a bit higher than welfare . With the prices today, you can make your own conclusions.
It’s about $2000 a month. My dad gets the GIS and my ex husband is on disability in kidney failure he too gets the GIS that amount to about $2000. I wanted to ask if this is Canada wide the GIS or is it a provincial top up?
@@tracywatts1459 GIS can not be that high. From Service Canada website is maximum around 1800$. So your father get $2000 including OAS probably. I found this calculator on Service Canada web site. I hope I will get the same amount in July this year when they recalculate.
This is partially true, but there are important nuances. The pension income tax credit is $2,000 at a federal level but different by province. It is also only available after age 65 on RRIF income. It is also only a tax credit, and not a tax deduction, so it will only help reduce tax at the first federal tax rate, if you have high income in retirement from other sources, perhaps if you are still working past age 65, then there will still be tax to pay on that income if it is taxed at a higher marginal tax rate. Finally, it is important to highlight that for GIS recipients this tax credit is not helpful as a $2,000 RRIF withdrawal will cause anywhere from $1,000 to $1,500 in GIS clawbacks. So even though there is a $300 tax credit at a federal level, the GIS clawbacks caused by that RRIF withdrawal are much larger.
It depends what type of questions you have or what advice you are looking for. If you are looking for investment-related advice including what account types (RRSP, TFSA, etc.) to open or how to invest your money to reach your goals, you could reach out to a firm that offers investment advice, such as Steadyhand. Feel free to reach out to us at www.steadyhand.com/contact/ if you are based in Canada and we would be happy to help. If you are looking for more cash flow planning or tax planning, you could be looking for a financial planner. We created a directory of Canadian advice-only financial planners here: www.steadyhand.com/education/advice-only-planners/
Having moved out of the country we are not allowed GIS. Here in the Netherlands, we get an extra $78 monthly pay because our income is lower than the Dutch old age pension they received. CRA however wants to know this amount so they can tax it.
Hi Sarah, Canadians can apply for CPP at any age between age 60-70 while applying for OAS between age 65-70. They do not have to be at the same time. There are many examples of Canadians opting to defer their CPP to age 70 in order to avoid GIS clawback from age 65-69 amongst other GIS strategies. Generally, you would only apply for CPP once you are ready to begin taking it.
Will the gis benefit change yesr to year depending on the latest income tax? For example, my 2023 income is 50k... and assuming my gis benefit is $100 due to that 50k income. What if my 2024 income goes down to say, 20k, will my gis benefit goes up much higher that $100?
GIS OAS also works for very wealthy folks in Canada whose assets are held in private corp, did not contribute to CPP and did not do RRSP - folks whom were self employed business owners, farmers and the like. Add in the credit they may have banked when transferring personal assets into said private hold corp, plus their ability to borrow against assets for living expenses - no doubt there are hundreds of thousands of Canadians making 6 or 7 figure incomes and also collecting OAS and GIS because they do not show personal taxable income on T1. A little back door to take back a tiny bit of the gigantic amount of excessive income tax and carbon tax they had to pay in their working years.
You think that’s bad. I worked in the care field with seniors for 30 years. Both community and facility. I cared for both the wealthy and the poor. In care facilities the senior or resident only gets charged based on 70% of their income for their care plus room, board and meals. I had residents with $8000 a month income next to residents from very low income that required higher expenses. The system is set up democratically so it works out for everybody . No matter what you pay your standard of care is the same for every resident that’s great. But I have a problem with residents holding millions of dollars in assets that get will to their children when the go when the government is flipping the bill and subsidizing part of their cost. Because the ones that do pay more don’t get any batter care. The system only charges based on income not assets. That’s wrong.
I do not agree. The LOSS and GIS are peanuts,you can barely make a leaving . People's with 6 and 7 figures income. And peoples who have businesses they will report an income so can not take GIS. You confuse assets with income. And punish the poor because of the rich? The rules are correct in Canada, true a bit confusing but I trust Service Canada can figure it out.
The fee range varies depending on the complexity of your personal situation and the time and work involved to establish a plan (could be starting anywhere from $500-1,000 up to $10,000 for a plan). Many financial planners offer a complimentary consultation in which they can provide a quote for the fee. We created a Canadian Advice-Only Planner Directory that includes fee ranges for many planners across Canada which will be helpful: www.steadyhand.com/asset/2022/06/23/canadian%20advice%20only%20planners.pdf
Thanks ahead if you can help. I have always travel quite bit, so technically I'm eligible to live abroad 6 months per year and still benefit GIS. My question is; how is that 6 months abroad counted like? 6 months in a yearly calendar from Jan 1st until Dec 30th? or not more than 6 consecutive months? For example could I leave Canada from sept 1st until juns 30th of next year. That would be 10 months in line but never more than 6 months in a calendar year.
You don't apply, they just give it to you after tax season......I got it on occasion before my pension was enacted. If you don't do your taxes, you won't get it.
Unfortunately no, CPP-D is only pre-65 (it converts to regular CPP automatically at 65) and OAS/GIS is only available after 65 (with the exception of GIS Allowance for younger spouses between age 60-64)
My friend has never got a penny in pension. She is 90 years old has mental issues, although she applied has not been able to get one penny. The Canadian gov. Is a cheat by not giving people their pension when they reach 65. I understand they are many people like this
And pray tell me what that $14,000 pays for????? Not even your rent in today's market, after that there are your utilities, food prices going through the roof......... UNSUSTAINABLE!!!
Another example of Canada being a socialist country. You work hard and save in RRSP' s and maximize your CCP contributions and at the end the government claws back the GIS on those contributions. If you are lazy and on welfare and don't pay into the system and upon reaching retirement age you apply for OAS and the GIS suppliment and get both and are not paying taxes again on the GIS. Where is the incentive for people to work if at the end the lazy bum is again rewarded.
I love all of your videos. I am currently collecting CPP ,OAS and GIS . Last month i was informed by a company i used to work with that i am going to receive about $20/000 as a pension benefit from them. If i invest this money into TFSA , how does it affect relating to my GIS earning ? if so, how much deduction ?
Any money invested into a TFSA is tax free (given that you have available contribution room) and therefore has no negative implications on your GIS benefits. However, the pension benefit may be a taxable benefit which could result in GIS clawback for the year in question. This can be potentially avoided if you have RRSP contribution room and are allowed to rollover the pension benefit directly into your RRSP (instead of a TFSA).
That is correct, the new process for OAS is to automatically start benefits at 65 unless you opt to defer. The GIS benefit is not quite as automated, so the best thing to do is manually apply for GIS and let Service Canada determine if you are eligible. This eligibility will be reevaluated every year based on prior year's income.
@@planeasy I'll be 65 next June and last month,Service Canada completed and filed electronically my application for CPP+OAS+ GIS.She told me that I will be eligible for less the 300 a month from GIS.Are you saying that this may change,since I'm not working,and earned only $ 4,200 all year!
GIS is not big amount really as most people have been working thru retirement, lot of boomers still working and even when they quit with a spouse or partner might only get and extra 200-300 each per month on GIS
An important consideration if you're working past age 65, there is a new exemption when calculating GIS benefits on the first $5,000/year of employment and a partial exemption on the next $10,000/year of employment income (going from $5,000 to $15,000). This can make part-time employment more attractive in retirement. Due to the GIS clawback being 50% to 75% it is less beneficial to earn over $15,000 per year in retirement if you're receive GIS.
Yes that's correct, the GIS clawback calculation is "based on" line 23600 but there are certain adjustments. OAS is one adjustment. Employment income is another adjustment for the first $5,000 of employment income and another partial adjustment for the next $10,000 in employment income (going from $5,000 to $15,000). GIS also shows up in line 23600 but gets subtracted out so it is another adjustment. The detailed calculation for GIS is more nuanced than what we could cover in the video itself.
It depends. RDSP income is a mixture of both taxable and non-taxable income. Each LDAP payment will be split and only the taxable portion will be included in the tax return for the year. The amount of taxable income within the LDAP payment depends on contributions, grants, growth, bonds etc that make up the RDSP balance.
A question : If I move with a friend 70 yrs. retire-single. I am71yrs.sngle too OAS GIS income . If I move together split rent, it is affect my GIS income?
No, living with another person does not affect your GIS income unless you are in a common law relationship. Expenses such as rent do not factor into GIS calculations, only a person’s taxable income does.
No! Those who received gis are SMART... just like those billionaires who pays peanuts in personal taxes. They knew how to ccurcumvent paying taxes... the opposite is true for those who dont recieve gis...
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Thanks for having me on David! I hope this video helps highlight the opportunities around Guaranteed Income Supplement (GIS) and retirement planning for low and moderate income households!
Fantastic interview! Thanks for this invaluable information. I’m going to their website now!
Awesome video. Thank you. Subscribed.
This is great for people who are genuinely struggling but on paper don’t qualify for the GIS they need. Where it gets less great is when planners help those who are doing well for themselves and retired comfortably move their money around so that on paper they qualify for GIS when in reality they are far from low income. This is like dressing up in rags to take food from the food bank to top up your well stocked fridge and pantry. And people say the younger generations are self-entitled. The CRA should close this loophole so taxpayers aren’t funding this nonsense and the folks who actually really need GIS can be better served.
The other think is that lots of people who never work in Canada and after 10 years ln the Country even thou they have reduced OAS they still receive the maximum GIS.i don't think it's fair to low income people that work here all they lives.
@@irenapesula7772I have always felt that way. The entitlement should be based on how many years as well as how much you put in.
I started working at the age of 16. I worked as a single mom 3 jobs and all three jobs I paid into CPP. To think 10 year immigrants get the same amount as me from a minimum wage job after only 10 years of Canadian employment from that I think what the born and raised generationally get is an absolute disgrace to seniors as it is.
My Dad gets the top up. His total income near the second if not first most expensive city in Canada… his total is $2000 a month with the GIS
. He worked since he was 16 in the logging industry and always earned a good living. He was a tug boat captain and managed to retire by 65 after double knee replacement in his late 50’s. He went through a bankruptcy after a long layoff and didn’t have enough time in life to rebuild everything he lost.
It isn’t right with me. I was a care aid from the age of 19. I took care of seniors for over 30 years of my life and I miss them all dearly. It breaks my heart to see so many even in subsidized seniors housing not afford cable and quality food.
my home care team we would go the food bank for some of them. I’d be called in to do a dinner visit… when I go to open the fridge there’s nothing but a half dozen eggs a loaf of bread and little bit of cheese. Freezers empty other than some Freezer jam and another loaf of bread. Nothing for dinner no potatoes ? So I took all the ingredient and made a kick ass omelette. You have to work with what’s you’ve got. I have so many heartbreaking stories I could write a book.
It’s just WRONG! I shouldn’t have any sad stories in Canada as a Care worker .
GIS has been auto enroll for at least 2 yrs now.
GIS (GUARANTED INCOME SUPPLEMENTS ) is money given to people who do not worked and contribute to CPP ( Canada pension plan ) everybody who work in Canada contribute or if you have a business you are still obligated to contribute to CPP !
Retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My parents both spent same number of years in the civil service, but my mom was investing through a wealth manager, and my dad through the 401k.
This is true. I'm in my mid 50's now. My wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more. I'm making money even before retiring, and my retirement fund has grown way more than it would have with just the 401(k). Haha.
Its unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $287k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
@@hasede-lg9hj I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same.
Firms can be unscrupulous as they prioritise their own commission over your profitability. On the other hand, I prefer working with individual investors like Vivian Carol Gioia, who only take a share from your profits, not your initial capital. I must say, my experience with her has been exceptional thus far.
Thanks a lot for this recommendation. I just looked her website up, and I have sent her an email. I hope she gets back to me soon.
Thanks for putting this information out there. A lot of people are not aware that they would qualify for GIS.
I am 67, retired on CPP, only income, at 61, and get GIS. My wife turned 60 a yr ago and got the GIS allowance, they gave her $500/month and took $300/month off mine. Then, they jacked her Trillium premium from $269/yr to $939/yr.
Terrible!
I don't get it. On the gov website it says its automatic if you qualify but you guys keep saying you have to apply.
the best gis oas video ever made thank's Owen you are the best
If you have to use RRSPs or other investments to help make ends meet, the CRA makes sure to take away your GIS. There is virtually nothing for low-income seniors in Canada either federally or provincially. It's time we remind the government (whichever party is in power) that we are the largest block of voters in this country.
That is so true I have a small RRIF and am heavily penalized by reduced GIS.by not doing good planning.now it's too late.
This is a terrible video imo
as it is for higher income earnings that saved bucket loads in TFSA or non reg.
The average poorer senior couple won’t ever get 14,000 K a year
This is so misleading
Good stuff, guys! Thanks for making this video - I'll be passing it along.
Outstanding. I never knew about the hidden opportunity about applying for the GIS based on income. I will follow through with your most welcomed advice.
You btecha! This is an excellent strategy. I used cash on hand and TFSAs to keep my reportable income as low as possible and capitalized on the GIS for a lot of tax free money. People should really plan on capitalizing the GIS.
Serious question: are you a low income retiree in the true sense of low income or does that cash on hand and tfsa mask wealth that lets you qualify for a low income supplement when in reality you’re doing just fine?
@BusterDarcy No one asks how much money you have or where it is. All you have to do is make sure your tax return income is a certain amount. I forget what it is and they're not saying but Google GIS and it tells you. I filled up 2 tax free savings accounts so I live off that, CPP, OAS and GIS. Once I have to start moving my RRSP's to RIF's, I'll move it to a tax free account.
CPP does not automatically enrol recipients. You must reach-out to them and make an application yourself.
Get GIS from 65-70 by deferring CPP to 70, making a big RRSP contrib at 65, and spreading out the rrsp deduction over those 5 years to reduce taxable income. Requires cash on hand and unused rrsp contribution room, or advance planning to NOT claim your RRSP deductions for a few years prior.
What is benefit of making a big RRSP at 65 compared to making a yearly contribution from 65 to 70?
Ah, in my scenario I have house sale proceeds to minimize in order to reduce investment income. For the same reason I would top up TFSA at 65.
Can the residency Requirements of 10 years be relaxed in special cases that is lesser than 10 years for Canadian Nationals who are 70 years old or more. O A S is paid only to those Canadian Nationals who are residents and have been residents for at least 10 years.The G I S should be tied to C P P instead of O A S , so that in some genuine cases a smaller number of people can also be benefited. It would be highly appreciated if both O A S & G I S are attached to C P P. This will greatly benefit a very smaller percentage of Canadian Seniors who due to reasons beyond their control couldn't complete 10 years Residency Requirements.
No, the government was generous enough to give the OAS to people who have lived in Canada for only 10 years. People who have lived in Canada less than 10 years should contact the other country where the lived their life. It cannot be based on CPP as, for example, a stay at home mom, who never contributed to CPP would not have CPP benefits, still can qualify for OAS (even with only 10 year residency) and can probably get GIS if she meets the criteria.
Great video. But it's calculated based on net income, not taxable income.
New subscriber, I have done a lot of similar videos on my channel. Unfortunately lots of folks are not familiar with how these benefits work.
Do assets affect GIS?
The GIS benefit is based on income not assets. It's possible to have substantial assets and still collect a GIS benefit. Each dollar of income reduces your GIS benefit by at least 50 cents. In 2022 each dollar of income between $2040 and $9480 reduces GIS by 75 cents. So, you can have 10 million on your real estate assets and you are not effected, so long you have low taxable income.
RRSP was sold to us as a great retirement help,but not for low income people.if I new this at the time I would never do it.
yup! great system eh!
It will be increasingly difficult to continue providing these supplements. We are running out of other people’s money and cannot take on further debt
Owen is the best! Great info thank you 😊
unfortunately, unless you shut down all other income , you are not going to get GIS. you have to let go a lot to get GIS
So what about us that are on CPP-D???? The government was supposed to develop a Disability Benefits but still it has not been successful
Utilize RRSP contribution to lower income and be GIS eligible
If you're only eligible to OAS and GIS you are allowed to earn up to 5000$ a year before GIS starts to go down.
I am currently 66 yrs old and have applied for GIS. My CPP, and a couple of pensions add up to $17772. without OAS. My ex wife will want CPP splitting when she turns 60 in two years. Will my GIS increase???
You must file your income tax every year in order to completely qualify for GIS yearly.
Payments are automatically discontinued
until your income tax has been processed by CRA. GIS office will contact you promptly and inform you on renewing your qualification.
Once you have filed your income tax and has been processed by CRA, your GIS benefit automatically and promptly resumes a regular schedule.
What I don't get...is why was I always told I need more than a million dollars to retire? I just retired a year ago at 62. I started drawing my CPP a month before by 63rd birthday. (Just under $14,000 a year. minus 14% tax) I have another 164,000 in my employer pension and another 312,000 in bank investments. I jacked up my Canada Life pension to the max in hopes most of it would be depleted by the time I'm 70 ish. I'm also starting in Feb 2024 to draw from my RIFF's of 14,400 per year before tax. I have no debt, very few bills. I have solar on the roof, so paying power and gas is cup change. Like literally about $260 a year total for those two bills. My friends living in the basement pay the land tax, house insurance and water bills. All I have is a home internet bill of $100 and a cell phone bill of $48 and food. Please help me learn how to spend it all.
Give it to the poor 😂
Want my adress ?
Great talk
I think you're wrong: The Guaranteed Income Supplement has to be entered in total income; and there's no way on the year end tax form to avoid this declaration---you are taxed on it. There's a box on the T4 that tells you which line to enter it on and it's reflected on Total Income.
That is not so........You declare GIS as income on line 14600 and then you deduct it on line 25000.....
This is so confusing....first he say withdraw from rif to supplement low income, so ok if oas is maximum right now-713.00month=8556 year, why would GI be reduced?even if you get 5000 from rif which isr10% tax, it is still only 15556 per year.....and no other income, does gi needs to be reduced? then he says to call cra and ask for , income to be calculated on this year earnings ....what? how can cra calculate earning for this year?????very confusing....
ALLONS NOUS AVOIR UNE AUGMENTATION DE RETRAITE.....??
je suis francophone et je seche sur la traduction google
Does a lira count as income if you don’t start taking money out of a lira till your 70
Yes, when the LIRA is converted to a LIF and withdrawals begin they will be counted as taxable income and will impact GIS benefits.
I need an advisor for my personal finance for retirement. Where can i look for or find an ad isor like you. Thanks
I tend to disagree with some of the statements. The forms to apply for these are confusing and require qualified exonomist, for an average person is difficult and the Service CANADA officers do not bother to explain. As example I had in the year of retirement(2023), reduced income, close to zero and did receive 70 $ GIS/month. My request for recalculation was rejected and calculation was made on the base of my 2022 income. The next review is in July 2024.
So is 1 and a half year with 70 $ GIS AND low OAS and CPP.
It is all arbitrary and I believe they think the income from the previous year as income for the current year, which is false. So this is arbitrary and should not be considered and even mentioned as helping. Plus for the seniors with really low income all these CPP and OAS and GIS together they are I think a bit higher than welfare . With the prices today, you can make your own conclusions.
It’s about $2000 a month. My dad gets the GIS and my ex husband is on disability in kidney failure he too gets the GIS that amount to about $2000. I wanted to ask if this is Canada wide the GIS or is it a provincial top up?
@@tracywatts1459 GIS can not be that high. From Service Canada website is maximum around 1800$. So your father get $2000 including OAS probably. I found this calculator on Service Canada web site. I hope I will get the same amount in July this year when they recalculate.
2K pension benfit RRIF tax free after age 65
This is partially true, but there are important nuances. The pension income tax credit is $2,000 at a federal level but different by province. It is also only available after age 65 on RRIF income. It is also only a tax credit, and not a tax deduction, so it will only help reduce tax at the first federal tax rate, if you have high income in retirement from other sources, perhaps if you are still working past age 65, then there will still be tax to pay on that income if it is taxed at a higher marginal tax rate.
Finally, it is important to highlight that for GIS recipients this tax credit is not helpful as a $2,000 RRIF withdrawal will cause anywhere from $1,000 to $1,500 in GIS clawbacks. So even though there is a $300 tax credit at a federal level, the GIS clawbacks caused by that RRIF withdrawal are much larger.
Where does one find a good advisor?
It depends what type of questions you have or what advice you are looking for. If you are looking for investment-related advice including what account types (RRSP, TFSA, etc.) to open or how to invest your money to reach your goals, you could reach out to a firm that offers investment advice, such as Steadyhand. Feel free to reach out to us at www.steadyhand.com/contact/ if you are based in Canada and we would be happy to help.
If you are looking for more cash flow planning or tax planning, you could be looking for a financial planner. We created a directory of Canadian advice-only financial planners here: www.steadyhand.com/education/advice-only-planners/
Having moved out of the country we are not allowed GIS. Here in the Netherlands, we get an extra $78 monthly pay because our income is lower than the Dutch old age pension they received. CRA however wants to know this amount so they can tax it.
Well yes, it is income after all. I receive a small British pension and have to report it on my income tax form.....it's only fair.
Thanks for sharing. Can Canadians apply for OAS and GIS at age 65 but delay the CPP to age 70?
Hi Sarah, Canadians can apply for CPP at any age between age 60-70 while applying for OAS between age 65-70. They do not have to be at the same time. There are many examples of Canadians opting to defer their CPP to age 70 in order to avoid GIS clawback from age 65-69 amongst other GIS strategies.
Generally, you would only apply for CPP once you are ready to begin taking it.
I would like to ask question. Threshold limit is oas and cpp or oas and another income only?thank you
Will the gis benefit change yesr to year depending on the latest income tax? For example, my 2023 income is 50k... and assuming my gis benefit is $100 due to that 50k income. What if my 2024 income goes down to say, 20k, will my gis benefit goes up much higher that $100?
It supposed to go up as the income goes down.
Service Canada calculator available on the website.
I applied for the supplement they gave me 3,168.00 a year so that is a lot of crap of 14,000.00
Fire
What’s the amount of uncome
GIS OAS also works for very wealthy folks in Canada whose assets are held in private corp, did not contribute to CPP and did not do RRSP - folks whom were self employed business owners, farmers and the like. Add in the credit they may have banked when transferring personal assets into said private hold corp, plus their ability to borrow against assets for living expenses - no doubt there are hundreds of thousands of Canadians making 6 or 7 figure incomes and also collecting OAS and GIS because they do not show personal taxable income on T1. A little back door to take back a tiny bit of the gigantic amount of excessive income tax and carbon tax they had to pay in their working years.
You think that’s bad. I worked in the care field with seniors for 30 years. Both community and facility. I cared for both the wealthy and the poor. In care facilities the senior or resident only gets charged based on 70% of their income for their care plus room, board and meals.
I had residents with $8000 a month income next to residents from very low income that required higher expenses. The system is set up democratically so it works out for everybody . No matter what you pay your standard of care is the same for every resident that’s great. But I have a problem with residents holding millions of dollars in assets that get will to their children when the go when the government is flipping the bill and subsidizing part of their cost. Because the ones that do pay more don’t get any batter care. The system only charges based on income not assets. That’s wrong.
I do not agree. The LOSS and GIS are peanuts,you can barely make a leaving . People's with 6 and 7 figures income. And peoples who have businesses they will report an income so can not take GIS. You confuse assets with income. And punish the poor because of the rich?
The rules are correct in Canada, true a bit confusing but I trust Service Canada can figure it out.
Can you advise of an average cost of establishing a retirement plan? (How many hours of effort does this represent). Thank you
The fee range varies depending on the complexity of your personal situation and the time and work involved to establish a plan (could be starting anywhere from $500-1,000 up to $10,000 for a plan). Many financial planners offer a complimentary consultation in which they can provide a quote for the fee. We created a Canadian Advice-Only Planner Directory that includes fee ranges for many planners across Canada which will be helpful: www.steadyhand.com/asset/2022/06/23/canadian%20advice%20only%20planners.pdf
Why can't gis not available for 60 yr old if cpp level entre is 60??
Because you need to be getting that OAS in order to qualify for GIS (at 65).
Thanks ahead if you can help. I have always travel quite bit, so technically I'm eligible to live abroad 6 months per year and still benefit GIS. My question is; how is that 6 months abroad counted like? 6 months in a yearly calendar from Jan 1st until Dec 30th? or not more than 6 consecutive months? For example could I leave Canada from sept 1st until juns 30th of next year. That would be 10 months in line but never more than 6 months in a calendar year.
Excellente question
.J'aimerais bien qu'on vous réponde!
If you leave on September 1st you need to get back by March 1st!In a calendar year you have to be 183 days in Canada and 181/182 days overseas!
You don't apply, they just give it to you after tax season......I got it on occasion before my pension was enacted. If you don't do your taxes, you won't get it.
Now who is going to pay for this?,and how?
Taxes taxes taxes taxes 😉
Tax payer who else pays for anything , the government pay out is our tax money government doesn't give any of it's money it's our money 😢
are you off your rocker ?
I think you have to be a little more specific in your questioning.
could I apply for this while collecting CPP-D
I too am on CPP-D and am wondering the same thing.
Unfortunately no, CPP-D is only pre-65 (it converts to regular CPP automatically at 65) and OAS/GIS is only available after 65 (with the exception of GIS Allowance for younger spouses between age 60-64)
My friend has never got a penny in pension. She is 90 years old has mental issues, although she applied has not been able to get one penny. The Canadian gov. Is a cheat by not giving people their pension when they reach 65. I understand they are many people like this
And pray tell me what that $14,000 pays for????? Not even your rent in today's market, after that there are your utilities, food prices going through the roof......... UNSUSTAINABLE!!!
Another example of Canada being a socialist country. You work hard and save in RRSP' s and maximize your CCP contributions and at the end the government claws back the GIS on those contributions. If you are lazy and on welfare and don't pay into the system and upon reaching retirement age you apply for OAS and the GIS suppliment and get both and are not paying taxes again on the GIS. Where is the incentive for people to work if at the end the lazy bum is again rewarded.
You can earn 5K in working income and have no GIS clawback...then reduced rates up to 15 K.
If you are doing well,
Please 🙏 leave the GIS for those with low income
I love all of your videos. I am currently collecting CPP ,OAS and GIS . Last month i was informed by a company i used to work with that i am going to receive about $20/000 as a pension benefit from them. If i invest this money into TFSA , how does it affect relating to my GIS earning ? if so, how much deduction ?
Any money invested into a TFSA is tax free (given that you have available contribution room) and therefore has no negative implications on your GIS benefits. However, the pension benefit may be a taxable benefit which could result in GIS clawback for the year in question. This can be potentially avoided if you have RRSP contribution room and are allowed to rollover the pension benefit directly into your RRSP (instead of a TFSA).
GIS is available at 60 (not 65) if you're already getting a survivors benefit. Became a widow at 44. Tripped over this info on TH-cam and applied.
Now govt signs people up for OAS the application for GIS must be done separately.
That is correct, the new process for OAS is to automatically start benefits at 65 unless you opt to defer. The GIS benefit is not quite as automated, so the best thing to do is manually apply for GIS and let Service Canada determine if you are eligible. This eligibility will be reevaluated every year based on prior year's income.
@@planeasy I'll be 65 next June and last month,Service Canada completed and filed electronically my application for CPP+OAS+ GIS.She told me that I will be eligible for less the 300 a month from GIS.Are you saying that this may change,since I'm not working,and earned only $ 4,200 all year!
GIS is not big amount really as most people have been working thru retirement, lot of boomers still working and even when they quit with a spouse or partner might only get and extra 200-300 each per month on GIS
An important consideration if you're working past age 65, there is a new exemption when calculating GIS benefits on the first $5,000/year of employment and a partial exemption on the next $10,000/year of employment income (going from $5,000 to $15,000). This can make part-time employment more attractive in retirement. Due to the GIS clawback being 50% to 75% it is less beneficial to earn over $15,000 per year in retirement if you're receive GIS.
@@planeasydoes the income waver only apply to 65 and over, or does age 63 spouse getting Allowance qualify to work a little also?
I thought GIS was calculated using line 23600 taxable income LESS OAS.
Yes that's correct, the GIS clawback calculation is "based on" line 23600 but there are certain adjustments. OAS is one adjustment. Employment income is another adjustment for the first $5,000 of employment income and another partial adjustment for the next $10,000 in employment income (going from $5,000 to $15,000). GIS also shows up in line 23600 but gets subtracted out so it is another adjustment.
The detailed calculation for GIS is more nuanced than what we could cover in the video itself.
thank you for your response, this is new and exciting info for me. @@planeasy
GIS IS automatic now.
Does GIS clawback income from a Rdsp?
It depends. RDSP income is a mixture of both taxable and non-taxable income. Each LDAP payment will be split and only the taxable portion will be included in the tax return for the year. The amount of taxable income within the LDAP payment depends on contributions, grants, growth, bonds etc that make up the RDSP balance.
A question : If I move with a friend 70 yrs. retire-single. I am71yrs.sngle too OAS GIS income . If I move together split rent, it is affect my GIS income?
No, living with another person does not affect your GIS income unless you are in a common law relationship. Expenses such as rent do not factor into GIS calculations, only a person’s taxable income does.
If you qualify for the GIS, you must live like a pauper. Enjoy.
No! Those who received gis are SMART... just like those billionaires who pays peanuts in personal taxes. They knew how to ccurcumvent paying taxes... the opposite is true for those who dont recieve gis...
Will sale of home affect my GIF?
GIs is automatic, as is the GIS allowance 4 your 60-64 yr old spouse.
ITS not automatic.
Great video. Thanks