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Navigating Personal Finance in 2025: Key Changes to Capital Gains and Tax Brackets

As we step into 2025, several significant changes are set to impact personal finance, particularly in the areas of capital gains and tax brackets. These adjustments are designed to adapt to economic conditions and provide better financial planning opportunities for individuals. Capital Gains Tax Adjustments One of the most notable changes is the adjustment to capital gains tax. Starting in 2025, a higher tax rate will be applied to capital gains exceeding $250,000. This means that individuals selling assets with substantial gains may need to reconsider their timing and strategy to minimize tax liabilities. For example, spreading the sale of assets over multiple years could be a more tax-efficient approach. Changes to Tax Brackets Inflation adjustments are also on the horizon for tax brackets. To prevent inflation from pushing taxpayers into higher brackets, the income thresholds for each tax bracket will increase by 2.7%. For instance, the federal tax rate for earnings up to $57,375 wi...

How Canadian banks are reshaping their workforce


The Canadian banking sector is facing a wave of layoffs as the industry tries to cope with the challenges of the pandemic, digital transformation and increased competition. According to a recent report by Bloomberg, the six largest banks in Canada have cut more than 11,000 jobs in the past year, a 4.4% reduction in their workforce. The report also predicts that more staff cuts are likely to come in the near future, as banks look to streamline their operations and reduce costs.

The main drivers of the layoffs are the changing consumer preferences and behaviors, which have accelerated due to the COVID-19 crisis. More customers are opting for online and mobile banking services, reducing the need for physical branches and tellers. The banks are also investing heavily in technology and innovation, such as artificial intelligence, cloud computing and cybersecurity, which require different skill sets and competencies than the traditional banking roles.

Another factor that is putting pressure on the banks is the increased competition from fintech startups and non-bank financial institutions, such as credit unions, insurance companies and payment platforms. These new entrants are offering more convenient, personalized and cheaper services to customers, especially in areas such as lending, wealth management and payments. The banks are losing market share and revenue to these disruptors, which are also attracting talent from the banking sector.

The report suggests that the banks will continue to cut jobs in areas such as retail banking, commercial banking and wealth management, while hiring more staff in areas such as technology, data analytics and risk management. The report also expects that the banks will outsource some of their functions to third-party providers or offshore locations, which could further reduce their domestic headcount.

The staff cuts are not only affecting the employees, but also the customers and the communities. Some customers may face reduced access to banking services, especially in rural and remote areas where branches may close or reduce their hours. Some communities may lose an important source of employment and economic activity, as well as social capital and civic engagement. The banks may also face reputational risks and regulatory scrutiny for their layoff decisions.

The Canadian banking sector is undergoing a major transformation that will have significant implications for its workforce, customers and society. The banks will have to balance their need for efficiency and innovation with their responsibility to their stakeholders and their role in the economy. The staff cuts may be inevitable, but they should not be done without careful consideration and communication.

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