Year-End Financial Moves Canadians Should Review Before January

As the year comes to a close, many Canadians assume their financial decisions are finished for the year. In reality, the final weeks of December are one of the last chances to make changes that can permanently improve long-term financial outcomes. Some opportunities disappear once the calendar turns to January.

Year-end planning is not just about this year’s tax return. It is about preserving valuable contribution room, reducing lifetime taxes, and avoiding decisions that cannot be undone later.

RRSP and TFSA Contributions Deserve a Second Look

RRSPs and TFSAs are often treated as routine annual contributions. But for Canadians over 40, the balance between these accounts matters more than ever.

RRSP contributions reduce taxable income today, but withdrawals are fully taxable in the future. TFSAs offer no deduction now, but withdrawals are tax-free. The right mix depends on your income today, expected income in retirement, and how government benefits fit into your plan.

Max Out FHSA Contributions Before You Lose the Room

The First Home Savings Account (FHSA) is one of the most powerful new registered accounts available, but it comes with an important rule many people miss.

If you are eligible to open an FHSA and do not contribute, you permanently lose that year’s contribution room. Unused FHSA room does not carry forward unless the account is opened.

Even if buying a home feels uncertain, opening and contributing helps preserve valuable tax-advantaged space that cannot be recovered later.

Review Tax Credits and Deductions

Many Canadians overlook tax credits and deductions they are entitled to. Items such as union fees, child care expenses, or the Disability Tax Credit can materially change your tax picture.

Reviewing these before year-end ensures they are properly accounted for and reflected in longer-term planning, not just your next tax return.

Make Sure Your Accounts Are Up to Date

Accurate planning starts with accurate data. Reviewing registered, non-registered, pension, and corporate accounts before year-end helps ensure decisions are based on reality, not outdated assumptions.

This is especially important when running scenarios or making decisions about retirement timing, withdrawals, and long-term outcomes.

Year-end reviews may not feel urgent, but small actions taken now can have an outsized impact over the decades ahead.