Quote:
Originally Posted by Slava
OAS is already income tested....
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But not asset tested. A couple who are 65 years old with $2M RRSP could still collect full OAS and GIS if they don't draw from their RRSP (they only need to draw from the RRSP from the age of 71).
Two full OAS and GIS would give this couple about $24K to live with. If that's not enough, they can draw from TFSA. They can also borrow from the banks to fund any remaining cash deficits. As long as the interest is less than the $24K OAS and GIS amount, this couple with $2M RRSP would come out ahead until they turn 71.
Making OAS and GIS asset tested benefits would help eliminate this.