Budget 2015: Tax credits and retirement savings

Changes in the 2015 federal budget, released April 21, impact how you save for retirement, donate to charity, plan major purchases and more.

The government nearly doubled the amount you can save in a tax-free savings account, raising the contribution limit from $5,500 to $10,000 starting this year.

It also changed retirement rules so that seniors can save for longer. Under old rules, when someone turned 71 she had to withdraw 7.38% of her savings from her RRIF. That amount increased until withdrawals reached 20% at age 94. Now, the first withdrawal is 5.28%, and the 20% withdrawal is at age 95. The government estimates that the new rules will allow seniors to keep 50% more capital in your retirement account at age 90. MoneySense explains the changes here.

There are also new tax credits and charity rules that could help you save.

Understand more about what these changes mean for you with MoneySense’s budget coverage.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.