Transitioning to a partial retirement can come with tax benefits: expert

There can be some potential tax advantages for seniors transitioning to a partial retirement, according to one personal finance expert.

Tim Cestnick, the co-founder and chief executive officer of Family Office Inc., said in an interview with BNN Bloomberg Monday that people transitioning to a partial retirement can delay relying on their registered retirement savings plan (RRSP). 

“So there's a deferral there of tax, if you don't pull money out of your registered plan [RRSP] until you have to… In fact, some people can continue putting more into their plans over the next few years if they continue to work,” Cestnick said.

He added that other benefits can come to those who defer collecting from the Canada Pension Plan if they have other income to rely on.