Bellwether Family Wealth’s Guide to Minimizing OAS Clawback Impact in 2024


The OAS clawback can significantly reduce retirement income for those with higher earnings. Bellwether Family Wealth offers a comprehensive guide to minimizing the impact of the OAS clawback in 2024, helping retirees retain more of their benefits and optimize their financial situation.

Understanding the OAS Clawback

  1. Thresholds and Rates: For 2024, the OAS clawback threshold will likely be adjusted for inflation. Understanding the specific threshold and clawback rate is crucial for effective planning.
  2. Taxable Income Definition: Recognize what constitutes taxable income, including pensions, interest, dividends, capital gains, and withdrawals from registered accounts.

Strategies to Minimize OAS Clawback

  1. Income Splitting
    • Pension Splitting: Split eligible pension income with a spouse to lower taxable income.
    • Spousal RRSPs: Contribute to a spousal RRSP to allocate income to the lower-income spouse, reducing the higher-income spouse’s taxable income.
  2. Tax-Efficient Investments
    • Dividend Income: Focus on investments that generate eligible dividends, which are taxed at a lower rate.
    • Capital Gains: Prioritize investments that produce capital gains, which are only taxed when realized and at a lower rate than interest income.
  3. Utilize Registered Accounts
    • TFSA Withdrawals: Maximize contributions to TFSAs and utilize withdrawals, as they do not count as taxable income.
    • RRSP and RRIF Planning: Carefully plan RRSP contributions and withdrawals. Converting RRSPs to RRIFs at the appropriate time can help manage income levels.
  4. Strategic Timing of Income
    • Delay CPP and OAS: Delaying the start of CPP and OAS benefits can result in higher payments and can be timed to avoid high-income years.
    • Deferring Other Income: Deferring income from employment, business, or other sources to future years can help manage taxable income.
  5. Utilize Tax Credits and Deductions
    • Medical Expenses: Claim eligible medical expenses to reduce taxable income.
    • Charitable Donations: Donations to registered charities provide tax credits that can reduce taxable income.
  6. Professional Guidance
    • Personalized Financial Plans: Bellwether Family Wealth offers personalized financial plans to help clients navigate the complexities of the OAS clawback.
    • Ongoing Monitoring: Regular reviews and adjustments to the financial plan ensure clients remain on track to meet their financial goals while minimizing the impact of the OAS clawback.

Case Study: Strategic Planning with Bellwether Family Wealth

Consider a case study of a retiree couple with an annual combined income of $120,000. They wish to minimize the impact of the OAS clawback on their retirement income.

  1. Income Splitting: The couple splits eligible pension income, reducing individual taxable income to stay below the clawback threshold.
  2. TFSA Contributions: They maximize contributions to their TFSAs and utilize withdrawals to supplement their income without increasing taxable income.
  3. Investment Strategy: Their investment portfolio focuses on dividend-paying stocks and capital gains, generating tax-efficient income.
  4. Deferring CPP and OAS: They delay the start of CPP and OAS benefits until their income levels are lower, optimizing their benefits.
  5. Professional Guidance: With the help of Bellwether Family Wealth, they develop a personalized financial plan that includes regular reviews to ensure they remain on track.


Minimizing the impact of the OAS clawback in 2024 requires strategic planning and informed decision-making. Bellwether Family Wealth offers comprehensive guidance to help retirees optimize their financial situation and retain more of their OAS benefits. By utilizing income splitting, tax-efficient investments, registered accounts, and professional financial planning, retirees can effectively manage their income and minimize the OAS clawback impact.

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