How can I avoid OAS clawback and maximize benefits in retirement?

The Old Age Security (OAS) clawback reduces benefits if your annual income exceeds $93,454 for the 2025 tax year. To minimize this: Use TFSA withdrawals (tax-free and excluded from income calculations). Split pension income with your spouse to lower individual taxable income. Delay RRSP/RRIF withdrawals or CPP until after age 65 to manage income thresholds.

How can I avoid OAS clawback and maximize benefits in retirement?

The Old Age Security (OAS) clawback reduces benefits if your annual income exceeds $93,454 for the 2025 tax year. To minimize this: Use TFSA withdrawals (tax-free and excluded from income calculations). Split pension income with your spouse to lower individual taxable income. Delay RRSP/RRIF withdrawals or CPP until after age 65 to manage income thresholds.

Retirement Investment Strategies

Wealth That's
Built to Last

If you’re close to retirement or have already retired, you’ll know just how important it is to plan for a different approach to your finances.

You’ve spent a lifetime building your wealth, now it’s time to make it work for you. We help turn your success into lasting stability, meaningful security, and a legacy that endures for generations.

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Portfolio Adjustments

Shifting Gears & Retirement Savings

Retirement is a period of substantial change—professionally, personally, financially—and your investment strategy is no different. After years of establishing your career and growing your portfolio, now’s the time to ensure everything you’ve accomplished translates to enduring wealth.

A traditional bond ladder used to be a reliable way to generate steady, consistent, low-risk income and see you through retirement, but that may not be the case anymore—as always, our innovative solutions are designed to replace uncertainty with confidence.

Investing before retirement

With a reliable salary and years to recover from market fluctuations, pre-retirement investing often takes on more risk and prioritizes long-term growth in equity markets.

Investing during retirement

Without a regular paycheque and less time to recover from potential losses, investing during retirement can assume a lower risk profile but must also weigh inflation and a long period of retirement funding.

Adapting To Change

Retirement is more than just a goal—it’s an entire phase of life to prepare for. Over time, circumstances can change, whether it’s inflationary pressures, portfolio returns, or market dynamics. Learning how they can put your plans at risk—and how to account for them—can make all the difference.

Inflation erodes your purchasing power as prices climb and the dollar becomes less valuable in relative terms. Retirees often rely on their investments to make up the difference, but if your returns can’t outpace inflation—which, on average, has risen 2% annually for the last few decades in Canada—your savings might not go as far as you planned for.

A well-managed portfolio and personalized financial plan work together to account for these shortfalls. Income-generating securities, along with a structured withdrawal strategy, can fund your lifestyle without compromising your portfolio’s long-term growth.

Inflation can be counterbalanced through higher returns, but fixed-income securities have largely disappointed investors in recent years. They clearly still have value when it comes to funding your retirement lifestyle, although you may want to consider other assets as well.

Companies with a history of strong dividend growth can help you keep pace with inflation, and alternative investments might do an even better job. Private credit, along with global real estate & infrastructure, often has inflation protection clauses built into contractual agreements—if inflation climbs, so do your returns.

Bonds, GICs, and treasury bills have long been considered an effective hedge against equity market volatility, but it might no longer be enough. The idea behind the 60/40 balanced portfolio was that bonds and equities often perform in opposite ways, which is known as negative correlation. Over time, that trend has become less reliable, and emerging challenges require novel solutions.

Investors seeking all-weather performance require greater diversification. Private securities that go beyond public markets have become more popular for this reason—through us, our clients can access them.

Income Investments

All-Weather Performance

Getting ahead in today’s climate requires a forward-thinking, innovative approach for your portfolio. To help our clients beat inflation today and for years to come, we’ve created integrated investment solutions across all major asset classes to help generate higher income without introducing unnecessary risk.

Our strategies understand the importance of tax bracket management and the need for guaranteed income—two key features that your standard mutual fund won’t typically account for. Stocks and bonds can grow your savings over time, but a truly customized strategy ensures that they’re built to last for years of retirement while still meeting your goals.

Typically known for growth, certain companies may choose to divert excess cashflows to shareholders.

Dividend-paying stocks, especially those that grow their distributions over time, signal a mature, established company willing to reward investors with income.

Fixed-income securities are designed to generate a predictable revenue stream, enhance portfolio diversification, and offer greater capital preservation than many other asset classes.

Where they may lack in growth, they make up for in stability by providing a buffer against volatility in public equity markets.

Cash and cash equivalents—such as money market funds—are low-risk, interest-bearing investments popular among retirees and highly conservative investors.

High inflation, however, can undermine their real returns and viability as long-term retirement solutions.

Ranging from private infrastructure to direct lending, alternative investments are typically reserved for institutional investors with steep barriers to entry.

Those that can access them—such as our clients—can enjoy lower volatility and greater capital preservation.

Portfolio Construction

Tailored Solutions

Our clients expect more than traditional asset management; we craft truly personalized income strategies that align with your unique retirement vision, lifestyle needs, and values. From there, our team actively reviews and adjusts your portfolio to ensure your wealth, evolving needs, and risk tolerance are all in balance with market conditions.

This personalized investment strategy is a core part of your overall financial plan with us, designed to provide not just income, but the confidence to live for today knowing that tomorrow is taken care of.

Prudent Growth

A smoother ride to the top for peace of mind.

Reliable  Income

Stable, regular cash for you to fund your lifestyle.

True Diversification

Reducing volatility to protect your wealth.

Let’s talk about how we can help

Retirement Income Sources

Funding Your Lifestyle

Employment Income

Partial retirement is becoming more popular as a way for people to stay active, social, and on a regular payroll.

Real Estate & Business Income

Downsizing during retirement is a common method of generating income, and many that step down from leadership maintain an interest in the business.

Workplace Pension Plan Income

Defined benefit plans are becoming increasingly rare, but defined contribution plans are still a common way to support retirement.

CPP & OAS Income

Most Canadians are eligible for both, but the amount received depends on several factors—proper planning can avoid OAS clawbacks.

Investment Income

Through compound investing, sound portfolio management, and tailored financial planning, your portfolio can be your largest and most reliable source of retirement income.

Retirement & Taxes

Keep More of What You Earn

For all the benefits behind registered retirement savings plans, the “location” of your savings can make a substantial difference here in Canada. Understanding the nuances of RRSPs, TFSAs, RRIFs, and non-registered accounts and how different types of income—from capital gains and dividends to interest, and even global investments—are taxed can be confusing. This complexity is precisely why tax efficiency is a cornerstone of Bellwether’s standards when it comes to holistic planning.

This includes carefully considering where each asset type is held and, crucially, developing and executing a personalized investment withdrawal strategy as part of your overall plan. By reducing your tax burden throughout retirement, you’ll be better positioned when you may need it most. With Bellwether, these critical tax considerations are expertly managed on your behalf.

Can I afford to retire?

Common Retirement Investing Mistakes

What to Avoid

Impulsive Reactions

Your long-term goals shouldn’t be overshadowed by short-term volatility—stick to your plan and avoid emotional investment decisions.

Concentration Risk

Relying on one asset class, sector, or region is risky—by diversifying your holdings and opportunities, you can equalize risk distribution.

Downplaying Income

Income can be reinvested for compounding growth—it can also make sure you’re “paid to wait” for your overall portfolio to grow in value.

Hindsight Bias

The past should inform, but not dictate, how you invest—relying on previous events and assuming they’ll repeat themselves might obscure emerging or current opportunities.

Idle Investing

If your circumstances change, your strategy should be ready to do the same—rebalance regularly to optimize your portfolio for different personal or market conditions.

DIY Approach

Your portfolio should complement, and not complicate, your lifestyle—our team can help you focus on what matters by managing your portfolio with expertise and attention to detail.

Income Investing FAQs

Answering Investor Questions

The Old Age Security (OAS) clawback reduces benefits if your annual income exceeds $93,454 for the 2025 tax year. To minimize this:

Use TFSA withdrawals (tax-free and excluded from income calculations).
Split pension income with your spouse to lower individual taxable income.
Delay RRSP/RRIF withdrawals or CPP until after age 65 to manage income thresholds.

Shift to conservative investments like bonds, GICs, or dividend stocks as you near retirement. Follow a “glide path” strategy (e.g., target-date funds). Diversify across asset classes and consider annuities or a RRIF for steady income. Rebalance annually and prioritize capital preservation. First and foremost, though, is to have a conversation with your Family Wealth Advisor.

They both serve their own purpose, but for your retirement plan:

RRSP: Ideal for those earning a higher income now and expecting a lower one in retirement so they can take advantage of tax deferral.

TFSA: For those in search of tax-free growth and withdrawals—which won’t impact income-tested benefits like OAS.

It’s recommended to use both, as the RRSPs suit long-term growth, whereas TFSAs offer flexibility in case of emergencies.

There’s no exact number, and it’s different for everyone. That being said, a common rule is to aim for 60-80% of your pre-retirement income. Using the 4% rule, a $1,000,000 portfolio could provide $40,000 a year (plus CPP and OAS). Adjust for inflation, healthcare, and lifestyle. Our retirement calculator may be a more convenient way to find out, however.

The earlier you start, the better. Thanks to compound interest, even small contributions in your 20s or 30s can grow significantly. Canadian investors benefit from tax-advantaged accounts like RRSPs (for tax-deferred growth) and TFSAs (for tax-free withdrawals). Starting by age 25 is ideal, but it’s never too late—focus on consistent contributions.