TFSA or RRSP for seniors close to retirement?
Dad is still working at 68 and aiming to retire at 71. He makes around $50,000. His oas and cpp combined for $600/month. Mom is looking to retire later this year at 60 after an unexpected illness. She makes around $30,000.
With RRSP, we know that they would have more contribution room and it should benefit them since they expect a much lower tax bracket during retirement. However, RRSP will be converted to RRIF by age 71.
TFSA, on the other hand, they have plenty of carried over room, and the investments won't affect OAS and is tax-sheltered.
Any other factors they should consider when deciding whether to invest their money in TFSA or RRSP account? Thanks in advance!