Retired in 2014 & failed to max out RRSP contributions. Have a large balance owing . How to recover $ lost from this going forward given that future income will be lower?

I retired in 2014. I had high employment income in 2014. Going forward, I won't have any employment income, just investment income (a much lower level of income). Unfortunately, I failed to max out my RRSP contributions for 2014 and I have a large balance owing for 2014. Is there any way that I can recover the money I have lost from this error going forward?

Answer

You cannot "recover" deduction limit Amount A in any sense of cash, because it it a "notional" figure determined solely by CRA as a deduction allowance. It has no cash value.
But the good news is that you do not lose the deduction limit until you have to fold your RRSP into a RIF. You can still make contributions and deduct them in order to forestall taxes.

I am in the same position as you. I have a moderate amount of deduction limit and use up some every year. I do not pay much tax during the year but then reconcile on filing using a combination of pension splitting, RRSP contributions and a payment of the rump amount.
My wife has a smaller amount of deduction limit avIlable which I also draw upon tactically.
The strategy is to avoid OAS clawback and push as much taxable income as possible into the lowest tax bracket. Medical expense and charitable donations also act in this game plan.
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