Year-End Financial Moves Canadians Should Make Before December 31

Posted on Dec 01, 2025

December tends to disappear faster than we expect. Between social plans, work deadlines, and family commitments, it’s easy to reach the end of the month and realize a few financial tasks slipped through the cracks.

A quick checklist now helps make sure the important boxes are checked before the year closes and gives you a clearer start to the new year.

When you understand where you stand financially, decisions become simpler and the year ahead feels a lot more manageable. Here are some of the key year-end moves we walk through with our clients this time of year.

1. Top Up Your RRSP if You Can

Your RRSP reduces your taxable income and supports long-term growth. A few reminders as the year wraps up:

  • You have until March 1, 2026, to contribute for the 2025 tax year.
  • Contributing earlier gives your money more time to grow.
  • If your income changed this year, your contribution strategy may need adjusting.

If you turned 71 this year, December 31 is the final day you can contribute to your RRSP. After this date, your RRSP must be converted to a RRIF or used to buy an annuity. If you still have unused contribution room, this is an important deadline to review with an advisor.

2. Review Your TFSA Room and Plan Withdrawals

Your TFSA is one of the most flexible, tax-efficient accounts available. Before December 31, take a moment to:

  • Check your available contribution room and add what you can.
  • Review whether your investments still match your goals or timeline.

If you plan to withdraw funds and want that contribution room back on January 1, 2026, make sure the withdrawal is made before year-end.

3. Look at Capital Gains and Losses

If you have investments outside of your RRSP or TFSA, take a quick look at how they performed this year. If some have gone up in value, you may owe tax on those gains. If others have dropped, selling them before year-end could help offset the tax on your gains.

Just remember that trades need to be completed and settled by December 31 for them to count for the 2025 tax year, so it is better to review this a little earlier rather than leaving it to the final few days of December.

4. Make Charitable Donations Before the Deadline

Charitable donations made before December 31 qualify for a 2025 tax credit. Whether you give annually or want to support a cause that matters to you this year, now is the time to make sure those contributions are in.

5. Contribute to an RESP or Open an FHSA

If you are saving for a child’s education, December 31 is the final day to contribute to an RESP and receive the Canada Education Savings Grant for the 2025 tax year.

If you opened a First Home Savings Account this year or plan to, remember that:

  • Contributions must be made before December 31 to count toward the 2025 tax deduction.
  • FHSA contributions made in the first 60 days of 2026 cannot be claimed for the 2025 tax year.

6. Review Beneficiaries and Insurance Needs

A lot can change in a year. If you experienced a major shift such as a marriage, a new child, the end of a relationship, a move, or an inheritance, it is important to check your beneficiaries.

A lot can change in a year. If you experienced a major shift such as a marriage, a new child, the end of a relationship, a move, or an inheritance, it is important to check your beneficiaries.

Review the designations on:

  • RRSPs
  • TFSAs
  • Pension plans
  • Life insurance policies
  • RESPs

7. Add to Your Emergency Fund

Your emergency savings act as a cushion during unpredictable times. Even a small top-up at year-end can help you enter the new year with more peace of mind.

8. Review Shareholder Loans (For Business Owners)

If you borrowed from your corporation and it has a December 31 year-end, this is the last day to repay outstanding shareholder loans to avoid potential tax consequences. This step is easy to overlook but important to review with your advisor.

9. Take a Moment to Reflect Before the New Year Starts

Your finances move with your life. Before January arrives, ask yourself:

  • Did anything major change this year?
  • Do my goals still make sense?
  • Do I feel confident about where I am heading financially?

If you want support reviewing your year-end options or realigning your financial plan for the year ahead, contact us to get started. Our team is here to help you move into 2026 with clarity and confidence.

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