OAS Clawback - Wednesday May 4

Old age security and the Age Amount are 2 government administered benefits which can contribute greatly to your retirement income and cash flow. Changes have been made to theses programs in recent years to adapt to the expected increase of futuire benefit paymenst which will have to be made as Baby Boomers move through retirement. You may no loner get the full benefits if your incopme crosses certain thresholds. For example some retirees get OAS clawed back. Based on 2011 figures, the threshold for OAS clawback is $67,668. Any income above this amount is clawed back at the rate of 15% of the incremental amount over the threshold. By employing income splitting strategies and controlling Net Income with tax-effective investment income, you can minimize the loss of these benefits.