Pension income splitting allows eligible pensioners who are married or in a common-law relationship to allocate up to 50% of their eligible pension income to their spouse or common-law partner. The rules vary by age. If you are 65 or older, most registered pension income qualifies, including annuity payments from RRSPs, RRIFs, and registered pension plans. Both spouses agree on the split amount and each files CRA Form T1032 (Joint Election to Split Pension Income). The transferring spouse deducts the allocated amount. The receiving spouse can claim the pension income amount credit on the allocated pension income they report. Splitting pension income does not always result in tax savings. It depends on each spouse's income and tax rate.