Q&A: Pension splitting

Question: Have you heard whether the government is considering relaxing the pension income splitting rules to include RRIF income? I feel it is a little unjust to include only registered pensions. A number of years ago I bought out my company pension and placed the money into LIRAs/RRSPs. Now that I’m retired and converted them to RRIFs, I cannot split the income until 65, I believe. I’m 58 currently. – Wayne S., Winnipeg

Gordon Pape answers: We just had a new budget in March and as you know there was no such initiative announced. I have not heard any serious discussion of this matter but of course I am not privy to what happens within the Department of Finance. Restricting RRIF income splitting to people 65 and older may indeed be unfair but there doesn’t seem to be any groundswell of public opinion that might persuade the government to reconsider. Write a letter to your MP if you feel strongly about this.

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