What are the benefits of eligible pension splitting?

Question

Accepted Answer

Reduction of the taxpayers' marginal tax rate: By transferring income, you decrease your net income and increase the income of a spouse who has a lower income

Reduction or elimination of OAS clawback: If your clawback reaches the annual limit for the tax year, consider splitting pension income or sharing CPP to reduce your net income level

Creating a pension tax credit: Under the Pension Income Tax credit, taxpayers can deduct pension or annuity income of up to $2,000. Further savings are possible if both spouses can claim the $2,000