In this episode of the Ask TMFG Podcast, Carlo Cansino and John Iaconetti expose the often-overlooked reality of RRSP withdrawals in retirement and why they can create major tax surprises for Canadians. They explain that many retirees who diligently saved for decades are shocked to learn that every RRSP and RRIF withdrawal is fully taxable as income, often leaving them in higher tax brackets than expected.

Using a Canadian-specific lens, they walk through the biggest RRSP withdrawal traps, including Old Age Security clawbacks, mandatory RRIF withdrawals at age 71, and limited income-splitting options between spouses. These rules can quietly erode retirement income, force unnecessary withdrawals, and increase lifetime taxes, even for disciplined savers.

The discussion then shifts to solutions, outlining how early, strategic RRSP withdrawals, careful timing during lower-income years, and gradual TFSA conversions can significantly reduce taxes and protect government benefits. The key takeaway is clear: retirement success isn’t determined by how much you saved in your RRSP, but by how intelligently you withdraw it. Proper planning can mean the difference between losing thousands to taxes and keeping more of your retirement income working for you.

👉 Watch the full video episode on YouTube to understand the hidden RRSP traps and learn how to build a tax-efficient retirement withdrawal strategy:

https://www.youtube.com/watch?v=Dva6raI850I 

Question for our listeners:

If you’d like help stress-testing your withdrawal strategy and identifying hidden tax risks, we’re offering a free portfolio analysis 👉 https://tmfg.ca/portfolio-analysis/

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