New subscriber here. I'm taking it a t 60, I'm 59 in September. All things being equal, I will be in better health between now and 65 than 65 going forward. I hear many saying, "What if you live to 90". Well frankly, I don't want to live to 90. Getting older is one indignity after another. I work in health care and see it; the 60 CPP for me is a no brainer. I have a modest provincial govt pension, RRSP, TFSA. I plan on withdrawing a small amount from my RRSP, at the 30% withholding rate and my pension will be taxed at source. So the extra withholding tax of the RRSP should cover the CPP tax. I went to MyCra and my payout for CPP will be $800 a month. I have no mortgage, not married nor have children. So my living expenses are very low. I plan on using the CPP to max out my TFSA every year. I'm a passive income investor so I'm building my cash war chest now (all non DRIP RRSP) and since TFSA is not drip by default. I have cash building up there. I've created a comprehensive spreadsheet with all the scenarios. Fantastic video.
Reason 6: I started taking it at 60. Setup a self directed TFSA. My CPP goes right into there. I am now 64 with a 70,000 next egg I can draw on at anytime.
I retired at 54. I opted to wait until 65 to collect my CPP. My rationale was to withdraw a larger amount from my RRSPs while my income was lower and then at 65 when I start to pull my CPP and OAS, I reduce my RRSP withdrawals to the minimum RIF. The difference between my CPP at age 60 is $630/mo and age 65 $1082 is more than $400 a month. If I live to be 85 that extra $400 a month is going to go a long way because you know my bills are going to be much higher 20 years from now. I know it’s a gamble, but I’m going with the fact that both of my parents made it to86 and 84.
Divorced brother in law passed away from cancer at age 57. His estate got the 2500 funeral expense payment and that was it. I talked to our member of parliament prior to him passing and asked why his estate wouldn't get contributions (what he put in) with interest at least. They said that's their policy. Oh frick. So I told my brother in law to remarry divorced spouse and then direct some of the CPP widow benefit to her or to his 2 kids. I got a registered letter from the government saying him getting married was a 'marriage of convenience' and they would not allow CPP benefits to be paid to his spouse. Another friend passed away 18 months after age 65 after starting to receive at age 65. Take it as soon as you can as you never know how long you're going to live. Be delaying the payment and getting the larger amount it doesn't matter. Spend it in your Go Go Years as opposed to upcoming Slow Go years and then the dreaded No Go years
John - sorry to hear about your brother in law. The survivor benefit of $2500 is a joke...and not having a spouse or common law partner at death is crippling. There should be a minimum 10-15 year pay out, much like a traditional DB pension plan. The CPP platform needs a bit of work in this area IMO.
Yep its suck if you die before its taken (CPP) thats a wrap, several of my friends hadn't even taken it yet and thought they beat the grim reaper. They didn't
We are taking early retirement at 60 because that's 5 years you are not working for someone else. You are enjoying some of the best years you have left making memories, having fun without answering to anyone. You basically buy your well deserved freedom earlier!
Exactly Daniel . I worked at GM for 30 years , retired at 49 . I was told I lost 30% of my CCP as I didn't contribute for 10 years . My GM pension didn't rise a cent since 2009 . Since my income does not increase , I receive extra from the government , like GST rebates and the Trillium Fund . I have enjoyed the last 30 years work FREE and never regretted retiring for a moment . Cheers !
I've just watched my mother pass away over a period of many years, leaving the final act until age 99. "Great" some might say to live that long. Ummmm .... no. Her quality of life was horrible from about her seventies onwards. And what happened to her seems to be the rule from what I have seen. Bed ridden in a nursing home. She could have been a heiress to a huge empire. It wouldn't have changed her level of care or happiness. What small joys she had cost nothing. "Read a good book", she always told me and that's the best she could do. Loved me bringing in her grand daughter for visits. The only investment in those so-called "Golden years" , I think, one needs to make, is to sort out what hearing aids and dentures are most comfortable. She never spent a penny on herself in the last couple of decades of her life. "What am I going to spend it on ?" or "What do I need ?" was always her sharp rebuttal when it was suggested she treat herself to something. My sisters looted her estate. I'm glad she wasn't around to see it and would rather have seen her burn her savings. Spend your money now, enjoy your life, or some vermin will surely relieve you of it later and you'll be too slow or defenseless to stop them.
Is realizing if you keep working at your current job after 60, you'll either have a heart attack or less have a nervous breakdown, a good reason to take it at 60?
@@danielpenner8302 At my last job, there were about 30-40 employees and every year at least one was out on stress leave. When I left, there were 3 out on stress leave or about 10% of employees. Not a good look for an employer. I have a heart condition so I didn't want to take the chance of having a heart attack.
This was a good video. One other reason I'll mention which I think a lot of us fall into since divorce rates are so high is spousal support pretty much killing us. Before age 60 I had to work every bit of overtime I could get just to pay my debts. CPP relieved me from most of that and what I did was just work till I hit 67 instead of 65. Every year I worked my CPP amount still went up and by the time I retired my CPP wasn't that much lower than if I had waited to 65 to take it.
I'm 57 and currently working part-time at 25hrs/wk due to medical restrictions. And unfortunately my doctor is now recommending further restrictions that my company won't accomodate - so I'm on somewhat shaky ground with how much longer I'll be employed. I still have 2.5 years before 60 - but I'm now starting to look at the options. I've worked all my life since 14 and only just the past few years began having to deal with medical limitations. So I fall into that category of someone who just wants to start getting a return on my CPP investment while I'm still (somewhat) able to enjoy it. I see the finish line...but it's still a long crawl, lol.
I did have a friend who turned 60, he took his CPP his health took a turn for the worse and he would have qualified for Disability CPP which is a higher rate till 65 but at that point did not qualify as had already taken CPP at a lower rate. He could have gotten Disability CPP and then at 65 he would have received a higher CPP payout. I hope your health conditions are not that serious but an open door may be available.
Depending on your income it might be better to put the "un-needed" CPP payments in an RRSP until age 71, and invest the tax refund in the TFSA. I retired at 55 and will collect CPP at age 60. However, I have a part time job two days a week that pushes me into a higher marginal rate, even while splitting my pension income with my wife. As long as I continue to hold the job and can afford to, I'm better off putting the CPP in the RRSP rather than the TFSA, while investing the tax refund in the latter. I will also be losing my pension "bridge" at 65, so I'm hoping the CPP-RRSP money that I've saved will replace it until age 70, when I plan to collect a deferred OAS payment. If there's not enough saved in the RRSP, then I'll collect OAS earlier.
@comment sense 50 is way too young. As a trades person, you should have been planning for your own future/wear and tear on the body. I'm 51, and 50 is far too young. The CPP payments from pur paycheques would have to be a lot more if payments started so ridiculously young.
I started on CPP at age 60, because I worked overseas for 8 years I only started at $500.00 per month. I have continued to work and make the maximum contribution and my CPP payment is now at $700.00 after 4 years.
About the only reason to take at age 60 would be if there was poor health. Otherwise delaying for a larger CPP while also taking down your RSPs - certainly from a RIF at 65-70 for the pension tax credit is in line with practically every actuarial review now.
Was told years ago to "Get as much as you can, as early as you can" Everyone has different reasons The way Govt's mismanage the countries, just hope that there's something left for you, by the time you are able to collect it
For #2 (not working from 55 to 60) you really need to do the math. Your contribution period is shorter but if you've been near the max for most of it, the penalty you take for early CPP greatly outweighs the difference in the calculation. Even retiring at 50 the math suggests waiting until 67 gives you the biggest bang for the buck even if you only live to 83 (and the average is 85).
And to add to that, as I agree with you, regardless of the math it's best to delay to 70 if you can afford it. Losing to the government by dying young isn't a problem for you if you are dead. Dead people don't have financial problems. The only risk we have in making the decision is living long enough that we run out of assets and can't support ourselves later, that is risk that creates a real world financial problem for you to experience. People are too caught up in beating the government, what matters is protecting yourself from risk of outliving assets. The government is giving you a great deal if you can afford to delay, definitely delay all the way to 70 if you can.
@@prufrok Lol, yeah they're even worse when you run out of money. To each their own, if a person is intentionally running out of money by 80, it's a strategy we would not endorse, but people can do what they want.
I know of a man who started drawing his CCP at 60 and he thought everything was fine. Then at 61 he developed a serious rare blood disease and could not continue working. He applied for a disability pension and was “denied”. He was told that he was no longer eligible to qualify for disability pension because he was already drawing his CCP. Which was definitely bad, since the disability pension would have been much better that his “reduced” CCP.
Thats bad but no one can tell the future Thats why best to take out cpp earlier. Some people wait till 65 but some of them don’t get to passed age 65. Im pretty sure there are other benefits for him.
@@mauriciodeleon2529 ……my point is…….how many people, including yourself, didn’t know that drawing your CCP early disqualifies you from from other benefits you may have been entitled to.
I took it at 60 and like my job. i will likely work until 67-68. I am also in good health. I continue to contribute to CPP and my rate continues to rise. I will receive far more when i fully retaire than the initial amount at 60. I have 25% taxes taken off at present which breaks me even at the end of the year when it is added to my salary. When I retire , I will pay no taxes(or close to zero) and be far ahead of starting CPP at 65 or67.. I calculate I won't be in a lose scenario until close to 80 and by then wont need as much...Enjoy CPP while you are of an AGE to do so. !!
We found out some are complaining about Canada we found out we’re behind schedule we wished we started working from younger ages because we learned how is important at least we have everything some are they don’t that opportunity unless sheeting there governments people they don’t know enough we are very lucky enough because even your working or out of work still you have a income up it really appreciate thank you for everyone for sharing some important information we wished we learned long ago but never ever too late
Even if you get less money when your 60 when you start collecting OAS you would/could receive the supplement that would help make up the lost from collecting CPP early.
Donna, if you are in a position to be able to collect the GIS if you take CPP at 60, then the numbers might make sense for you to do that. Only a small number of Canadians qualify for GIS, but that's why we recommend to work with a Financial Planner - to create these scenarios for your situation, as everyone's answer on when to take it is different. Thanks for watching and leaving a comment.
I started at 60 yo with the intentions of not working a regular full time job. I work at a place that closed its doors so instead of looking for something full time I took CCP and dipped into my RRSP's a little and collected a little money at various places when my assistance was needed.One of the things I had to keep in mind was how I was getting small amounts from several areas which taxes were been taken out on the small amounts so I had to boost one tax a small amount as not to owe come tax season.
Exactly! Its a very important point and I think Adam forgot to include this point in his 5-points! In my view one may consider to retire at 60 only if s/he is has a weak health, unable to cope with the work stress and has a shorter life expectancy. But in most other cases one should wait till s/he is 65.
Take it at 60..... Take it, use it as needed, reinvest it, throw it in an RRSP and make money. At some point YOU HAVE TO PAY THE TAX REGARLESS...Almost every "financial advisor" will tell you to wait unless in distress. I don't like leaving MONEY on the Table, NO GUARANTEES, your LIFE can change in a minute. When you hit the break-even point what the heck are you going to do with it anyways... You DIE once...Live EVERDAY 2023 Motto.
Being widowed I opted to take my CPP at 60 because when I die my pension dies and my estate would receive $2500 one time government death benefit. By taking it at 60 I’m able to invest it and contribute the funds to an RRSP because I’m still working and contributing to CPP which has caused my monthly to go up by $60 per month in the last 2 years.
I retired last year at 54 and my husband will be retiring in August of this year at 56. We are fortunate to each have Defined Benefit Pensions with our companies that allow us to live on one pension income. We both plan to take our CPP at 60 and invest it.
Just little advice. Don't sit around on your rocking chair all day long with Coca-Cola and chips in your hand. Do something, move around, stay healthy. Otherwise You may not enjoy it for long. Good luck. I'm 57 and still enjoying my brick laying every day 👍🍻
My opinion and rule of thumb is that there are two reasons to take CPP early...If you really NEED the money (making ends meet) or if you really DON'T NEED the money (maybe to invest). Otherwise if you are doing ok wait until 65 or later.
@Insignificant Speck Of Dust Terrible advice, not to be rude, but that's very bad advice for majority of people. Way too caught up in beating the government and not focused on doing the best thing for yourself. Dying young and losing the bet to government is not a problem, you're dead, you don't have financial problems. The problem would be outliving your assets and having a very real financial problem late in life. Focus on protecting your long term risk, not on winning a bet that you would never know you'd lost and have no consequences for losing. Delaying is making a bet that you can't actually lose, but can only win. If you can afford to delay until 70, delay until 70. Don't worry about not having a financial problem after dying, the concern is what happens if you live a long time.
@Insignificant Speck Of Dust Also they are not paying you back with your own money - CPP has an investment board, they're paying you back with very solid interest. The longer you delay the better the deal. It's a very good deal if you can afford to wait.
@@PracticalTacticalAccuracy I won't disagree in theory, but in reality some people need the money and other people with defined benefit pensions will lose their bridge benefit at 65, (CCP and OAS will compensate for that), each individual has to evaluate their situation and act accordingly. CCP and OAS benefits are also indexed.
You’re forgetting that most people make CPP part of their overall plan. You want to make sure that a persons spouse or significant other will benefit from having collecting early or they get nothing if you were to pass away before applying for CPP. You know that already.
@@ParallelWealth Remember that no one has a crystal ball in life. Software makes everything looks great on a computer screen. I worked in the hospital system for 36 years and saw and learned plenty. Knowing you can die at anytime or end up in a hospital bed for the rest of your life will change your perspective on life. I saw and talked to many people from all walks of life. To each their own but in my view take your money and enjoy. You are as young and old as you will ever be. Waiting for more and more money is a fools game!
Please make videos for people who are self-employed, are proprietors of small businesses, are artists, actors, performers, or who may have never worked - some people are still housewives/husbands. The RRSP did not serve us, and the TFSA came too late for L's, Boomers and X's to really do much with.
Many people with fluctuating incomes can avoid the higher tax brackets. High income year, put more into the RRSP to get to the lower tax bracket. Low income years, redeem some RRSP (in the low tax bracket) and put it into the TFSA.
I started taking my CPP at age 60 and continued working till 65 so because I didn’t need the money at the time I put it in my RRSP and my TFSA with the help of my financial advisor. The main reason I did this was because I knew my financial advisor would make it grow way better than the Canadian government would.
Your cpp grows 7.2% per year for 5 years and you continue to get paid that amount each year for the rest of your life - so you must have a wizard of a financial advisor to get better returns. Also, taxes on cpp while working, wow!!
Awesome Vid, and TH-cam and the web are full of advice.. Some good, some not so. My suggestion is for people going to, or planning to retire that want to know their options on CPP, OAS, DB, & DC Plans, RRSP's, Investments, stocks bonds etc. how it all blends together as income and the tax brackets. Get advice from qualified knowledgeable and trusted experts in the field of finance even if it costs you a $100.... It may be the best money and investment in your retirement future you can make.
It's always a good thing to collect money while your alive, everyone assumes they will live into their late 80's and 90's but that is rarely the case, also everyone and I mean everyone can use the money NOW seeing as there up to their eyeballs in debt. Also your point that the CPP will never change or go away and is funded for the next 75 yrs is based on the current situation now, but things always change and nobody can predict the future, 40 or 50 yrs ago nobody could ever predict the crazy world we now live in and the way our money is being thrown around and wasted, people are way in debt, nobody (vast majority) can retire anymore, nobody has a savings account anymore , everyone is paying interest like crazy so things change and not for the better, I worked with a guy who would never collect until it was the absolute max and he lost out since he died at 65, I'm taking mine now at 60 while I'm alive and while the CPP still exists. The Govt wants and encourages everyone to wait, wait, wait so that you die first and a much lesser amount goes to your beneficiary. Your video is the first I have seen which even suggests to take it at 60, good advice.
the govt will increase the retirement age at 67 yrs old for this yr... So i dont know when this will be official. I hope not. So scary . Maybe by 50 yrs. in the future ... the retirement age will be 70 yrs old. They want to kill people with just working and paying taxes and get nothing in return. So sad! Also the bank is the biggest robbery. You have money but they don’t give so much interest. Inflation rates keeps rising every yr. the money you save now will be worth less in the future But if you use their credit card ; its 20% interest rates if u fail to pay it on the due date.
@@noexcuses5524 Exactly, that was another prediction I have been privy to for some time that the retirement age will rise based on statistics. Think about it, how would the govt gain the most, by you retiring early and taking that pension or being productive and contributing both work wise and monetary by working till you die? We have been contributing for so long and taking a huge hit on our paychecks with deductions so it's time we collected...while we're alive. And I have been saying for years don't put your money in the bank, pay off some debts instead so you can avoid the ridiculous interest rates. Govt's are purposely encouraging people to go into debt and never retire and pay interest and contribute forever, this was never the case 50 yrs ago when you couldn't just borrow borrow borrow, you had to be responsible so people were and people had their priorities straight, now people are living like kings with money they borrow and subsequently choose to never retire, but hey they now have granite countertops! stainless steel appliances! vacations all the time! a flatscreen tv on every wall! updating and replacing furniture all the time, New (never old used) cars, paying through the nose for landscaping, renovations etc. That was all unheard of decades ago, instead people paid their bills and debts, didn't have a lot of money, but had very little if any debt except their mortgage.
You don't know how long you'll live and it's your money so I decided to start taking it as soon as I was eligible. Nice to receive money from the government for a change after of a lifetime of paying them. Also, you're better off owing the government at tax time than getting a refund cheque. You should try to keep YOUR MONEY as long as you can before giving it to the government, who will mostly just waste it.
The bottom line is that if you need it sooner, take it sooner, but if you are financially comfortable enough that you can wait, wait for the larger monthly payments. I know in my case, the additional monthly income later will be of much more use than the reduced amount now.
Retired Military fella here. Military lost all sorts of lawsuits regarding CPP and claw back. Most Mil pers I have spoken too take the CPP at 60 as the Govt claws back at 65. Your thoughts. Thank you. Enjoy your video.
Well, my friend here at the Hospital told me that you will get penalized by 30% by the government if you retire at the age of 60 . You have to wait and retire at 64 to not get penalized. I guess it all depends of what type of jobs you do also. We have an extremely Low number of personnel working (A shortage) and nobody could replace us if we retire to soon.
That's one way of looking at things. By retiring at 60 you sure get penalized from a purely financial standpoint. On the other hand you get 5 years of enjoying life without having to wake up at 7AM, commute, work, stress, commute back... That's a very personal choice.
Your friend is wrong. 65 on age and perhaps 35% on age 60. you may also loose some by being short on years. Smokers , drunks, junkys take it early. Time is short for your kind
I think you didn't mention the most important reason. You will lose lots of money from GIS if you will be collecting CPP late. So it doesn't make sense to delay CPP at all
This also would depend on working or not working and your personal tax situation. If you are still working and have a decent income, higher tax bracket will really impact the ultimate benefit in your pocket. If you’re not working and not paying tax, go get it.
Just started watching your videos and really appreciate the topics so far, especially around understanding the government retirement benefits. Wondering if you would consider a video regarding the implications on CPP/OAS for someone who wants to retire abroad, either permanently or splitting time between two homes, one in Canada and one abroad. Many variations of that I’m trying to consider, such as maybe living abroad full time for the “go go” phase first 5-10 years, then coming back to settle down in Canada, or if I find a permanent new home that I love and stay and never return full time to Canada.
Geoff, we will likely be building a comprehensive course on this in the near future. It's pretty complex for a YT video and needs more time and detail to get across properly. Look for this in Fall.
I am 59! I am wanting to take CCP! At 60 and continue working at list till 65! The income would help alot to get a new vehicle to get to work! Plus do some renovation to the house!
Every situation is different so my choice not for everyone. I was fortunate to save a lot and amassed a substantial RRSP. So delaying CPP made great sense. Retired at 65 and pulled down as much RRSP as possible to create an income that put me into my target tax bracket. That reduces the tax burden at 71 when RIFs will push me into a higher income/tax bracket than I need or want. Now at 68 I'll start OAS/CPP both at 1.35*max. This is indexed to inflation, so no worries in the future and I've managed to reduce the RRSP pool that will be forced into RIFs.
I had no choice but to take it at 60 but what i didnt know at the time, is that pension only goes back 6 years that u worked and pay u that amount, which for me is a whole 60 bucks a month, wish i knew that before i took it
I work full time, but wsnted to retire in five years at age 55. Sounds like i have no choice but to work till 60 though if I want to be able to collect a decent amount of CPP. Darn!
They changed the basis, they used to use first 15 years of work I rec a service canada letter 30 years ago. Saying i would rec $485 at 60 now they take the 5years before retirement, now i rec $200 a month
I have another reason for taking it early.......if you can collect the maximum amount early! My spouse had previously lost his spouse and was collecting a large amount when his and hers were added together (survivors amount). When he died I got my amount plus his survivors amount...very close to the maximum so I didn't wait to collect. I'm sure this doesnt happen a lot but thought I would mention.....
I’ve watched the whole CPP series (I may have said this here already I’m sorry if it’s a duplicate) .. my situation is that I am 60, I have a lot of RRSP contribution room accumulated, and won’t have the resources to contribute fully between now and 67 .. I’m took the CPP at 60, bcz at 7% and tax free, I will make enough between 60 and 67 to more than make up for the loss from 67 through 90 - I’m about $100 a month ahead
I agree you should collect coins at 60. So many don’t see 65 and everything they paid into gets lost. If your healthy enough to make 65, congratulations look forward to 70 and beyond.
Regarding the OAS clawback... It seems to that if you have over $129,000 a year in retirement income (almost $11,000 a month!) and your OAS is entirely clawed back then I would say you have little to worry about financially in your retirement. It sounds like the OAS tail wagging the retirement dog to me.
Yes if your income is at 11k per month in retirement you likely aren't too upset about OAS clawback. That said, if you can plan ahead and avoid some or all of the clawback then it's worth it. Even if you don't need the money - it means more for charity, kids, grandkids etc. Depending on where the income comes from, there is usually some planning that can help accomplish this. Thanks for watching.
If your income is that high, you should be delaying OAS to age 70. By delaying OAS to 70, you can increase the clawback calculation for OAS from $129,000 to about $150,000.
I'm taking mine but I'm only getting $494. Dollars a month like how do they expect anyone to survive on that... I've got the doctor filling out forms for disabled pension as well waiting for that hopefully it will help a bit more...
If you have contributed for 39 years and you dont take CPP, you are contributing and not getting any associated budget. If you take CPP, you start to develop PRB.
Here is a breakdown. See step #2 and specifically YMPE. It's a very complicated formula and best to reach out to your local My Service Canada office if you might fall into this bucket. retirehappy.ca/how-to-calculate-your-cpp-retirement-pension/
It still would only be a good idea to take CPP at 60 if you had financial need to. If you can afford to delay, it's best to delay. Regardless of working between ages 55 and 60. Those years are going to decrease your benefit amount anyway, might as well increase it by delaying all the way to 70 if you can afford to. Cash flow requirements mean that delaying isn't always possible, but if you can - delay.
@@Another-Address Absolutely. Not arguing that you should do anything that isn't best for you either. It's saying what is logically the best financial decision if you can afford it.
....i wish we were a nation like France. they see the value of early retirement whereas here in North America our motto is work work work until you drop or end up in a nursing home...oh, but you'll have an extra few hundred dollars each month that the gov will take to pay for said nursing home! freedom and good physical/mental health is priceless
What he means is you plan to contribute to your RRSP to reduce your taxes but are you sure your RRSP can earn at least 7.2% compared to what the government CCP
I have no doubt that CPP funding will be there for a long time...its the eligibility requirements I am concerned may change. Lets face it, its scary how many conspiracy theories are coming true!
I just discovered your series of videos (seen a couple) and I think they are great: Canadian centric and concise. Could the following be a reason to start getting your CPP sooner rather than later?: Spousal Survivor pension. What if I am age 60 and I did not begin my CPP at all, and then die unexpectedly. Can my spouse benefit from any aspect of my CPP, even though I did not apply for it? Conversely, had I started getting my CPP benefits and then died, would my spouse's net financial benefit be greater than the previous scenario? I believe there is a "cap" on what my spouse can realize on my CPP, but is it identical in both scenarios? Bottom line: should I start getting my CPP sooner rather than later to better protect my spouse financially in the event of a premature, unexpected death? Thanks for any feedback as I am unfamiliar with all the CPP rules.
It could play into it - more so if your spouse passed away before 65 and you are collecting survivor benefit. There is a total max, so waiting longer in some scenarios may not give you more.
None of those 5 reasons to take cpp at 60 apply to me yet my financial adviser advised me to take it at 60.Maybe its because i will empty my rrsp before 65 and then get gis at 65
Thank you for your all videos . You provide us very useful information. I have a question regarding CPP . If person has contributed cpp for 10 years and then he renounce canadian citizenship. What will happen with cpp benefit? Will he get cpp benefit as a lump sump.? I request you , Please make a video regarding this . It would be very helpful for the viewers . Thank you so much
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New subscriber here. I'm taking it a t 60, I'm 59 in September. All things being equal, I will be in better health between now and 65 than 65 going forward. I hear many saying, "What if you live to 90". Well frankly, I don't want to live to 90. Getting older is one indignity after another. I work in health care and see it; the 60 CPP for me is a no brainer. I have a modest provincial govt pension, RRSP, TFSA. I plan on withdrawing a small amount from my RRSP, at the 30% withholding rate and my pension will be taxed at source. So the extra withholding tax of the RRSP should cover the CPP tax. I went to MyCra and my payout for CPP will be $800 a month. I have no mortgage, not married nor have children. So my living expenses are very low. I plan on using the CPP to max out my TFSA every year. I'm a passive income investor so I'm building my cash war chest now (all non DRIP RRSP) and since TFSA is not drip by default. I have cash building up there. I've created a comprehensive spreadsheet with all the scenarios. Fantastic video.
I’ve run the numbers for CPP at different ages. I’ve definitely decided to take CPP at 60 and accept the reduction. Same reasons.
Ludicrous to say I don't want to live to 90. Give your head a shake.
When I turn 60 !! I will take my cpp 🙏 because I will need it.
Reason 6: I started taking it at 60. Setup a self directed TFSA. My CPP goes right into there. I am now 64 with a 70,000 next egg I can draw on at anytime.
I retired at 54. I opted to wait until 65 to collect my CPP. My rationale was to withdraw a larger amount from my RRSPs while my income was lower and then at 65 when I start to pull my CPP and OAS, I reduce my RRSP withdrawals to the minimum RIF. The difference between my CPP at age 60 is $630/mo and age 65 $1082 is more than $400 a month. If I live to be 85 that extra $400 a month is going to go a long way because you know my bills are going to be much higher 20 years from now. I know it’s a gamble, but I’m going with the fact that both of my parents made it to86 and 84.
They call that bridging...you are bridged the amount from 54-65.
IF you live that long. I took it at 60, is one third off, but I have to live till 77 to break even. So then GIS will take over so zero loss for me.
@@tomthumb5445 74 is break even.
@@ronmexico9631 Well I was close, it we were playing horse shoes I would have a win!
😮
Divorced brother in law passed away from cancer at age 57. His estate got the 2500 funeral expense payment and that was it. I talked to our member of parliament prior to him passing and asked why his estate wouldn't get contributions (what he put in) with interest at least. They said that's their policy. Oh frick. So I told my brother in law to remarry divorced spouse and then direct some of the CPP widow benefit to her or to his 2 kids. I got a registered letter from the government saying him getting married was a 'marriage of convenience' and they would not allow CPP benefits to be paid to his spouse.
Another friend passed away 18 months after age 65 after starting to receive at age 65.
Take it as soon as you can as you never know how long you're going to live. Be delaying the payment and getting the larger amount it doesn't matter. Spend it in your Go Go Years as opposed to upcoming Slow Go years and then the dreaded No Go years
John - sorry to hear about your brother in law. The survivor benefit of $2500 is a joke...and not having a spouse or common law partner at death is crippling. There should be a minimum 10-15 year pay out, much like a traditional DB pension plan. The CPP platform needs a bit of work in this area IMO.
Yes 60 is much better it's your money don't forget folks
Yep its suck if you die before its taken (CPP) thats a wrap, several of my friends hadn't even taken it yet and thought they beat the grim reaper. They didn't
We are taking early retirement at 60 because that's 5 years you are not working for someone else. You are enjoying some of the best years you have left making memories, having fun without answering to anyone. You basically buy your well deserved freedom earlier!
Exactly Daniel . I worked at GM for 30 years , retired at 49 . I was told I lost 30% of my CCP as I didn't contribute for 10 years . My GM pension didn't rise a cent since 2009 . Since my income does not increase , I receive extra from the government , like GST rebates and the Trillium Fund . I have enjoyed the last 30 years work FREE and never regretted retiring for a moment . Cheers !
That's my plan to 60 so I can enjoy life before I cant
Government never reveals how many hard working Canadians who have contributed all their working lives and unfortunately don’t live to collect a penny.
I've just watched my mother pass away over a period of many years, leaving the final act until age 99. "Great" some might say to live that long. Ummmm .... no. Her quality of life was horrible from about her seventies onwards. And what happened to her seems to be the rule from what I have seen. Bed ridden in a nursing home. She could have been a heiress to a huge empire. It wouldn't have changed her level of care or happiness. What small joys she had cost nothing. "Read a good book", she always told me and that's the best she could do. Loved me bringing in her grand daughter for visits. The only investment in those so-called "Golden years" , I think, one needs to make, is to sort out what hearing aids and dentures are most comfortable. She never spent a penny on herself in the last couple of decades of her life. "What am I going to spend it on ?" or "What do I need ?" was always her sharp rebuttal when it was suggested she treat herself to something. My sisters looted her estate. I'm glad she wasn't around to see it and would rather have seen her burn her savings. Spend your money now, enjoy your life, or some vermin will surely relieve you of it later and you'll be too slow or defenseless to stop them.
so sad...but true...
Is realizing if you keep working at your current job after 60, you'll either have a heart attack or less have a nervous breakdown, a good reason to take it at 60?
Why would working at 60 kill you is your body on the verge of shutting down at 60
@@danielpenner8302 At my last job, there were about 30-40 employees and every year at least one was out on stress leave. When I left, there were 3 out on stress leave or about 10% of employees. Not a good look for an employer.
I have a heart condition so I didn't want to take the chance of having a heart attack.
I am a 59 year old living in Philippines. You have given me so so much info I thank you so very much.
This was a good video. One other reason I'll mention which I think a lot of us fall into since divorce rates are so high is spousal support pretty much killing us. Before age 60 I had to work every bit of overtime I could get just to pay my debts. CPP relieved me from most of that and what I did was just work till I hit 67 instead of 65. Every year I worked my CPP amount still went up and by the time I retired my CPP wasn't that much lower than if I had waited to 65 to take it.
That’s what I did- got it ASAP, haven’t looked back.
Mom died at 68, Dad died at 85, I’m not expecting to make it past 85, 80 if I’m lucky. I’m taking it when I hit 60
I hope you'll find a good financial planner who will help you go over your own numbers to make your retirement as good as it can be.
I turn 60 in December and really appreciate the clarification here.. Thanks Adam!
Glad we could help! Thanks for watching.
I'm 57 and currently working part-time at 25hrs/wk due to medical restrictions. And unfortunately my doctor is now recommending further restrictions that my company won't accomodate - so I'm on somewhat shaky ground with how much longer I'll be employed. I still have 2.5 years before 60 - but I'm now starting to look at the options. I've worked all my life since 14 and only just the past few years began having to deal with medical limitations. So I fall into that category of someone who just wants to start getting a return on my CPP investment while I'm still (somewhat) able to enjoy it. I see the finish line...but it's still a long crawl, lol.
I did have a friend who turned 60, he took his CPP his health took a turn for the worse and he would have qualified for Disability CPP which is a higher rate till 65 but at that point did not qualify as had already taken CPP at a lower rate. He could have gotten Disability CPP and then at 65 he would have received a higher CPP payout. I hope your health conditions are not that serious but an open door may be available.
Go for cpp disability, no penalty.
Y Yu grew 😢 Ty you y
Good reasons. Another reason is to build up a TFSA for legacy purposes if CPP is not needed in retirement
Can you explain this further, or point to a good source of info.
Depending on your income it might be better to put the "un-needed" CPP payments in an RRSP until age 71, and invest the tax refund in the TFSA. I retired at 55 and will collect CPP at age 60. However, I have a part time job two days a week that pushes me into a higher marginal rate, even while splitting my pension income with my wife. As long as I continue to hold the job and can afford to, I'm better off putting the CPP in the RRSP rather than the TFSA, while investing the tax refund in the latter. I will also be losing my pension "bridge" at 65, so I'm hoping the CPP-RRSP money that I've saved will replace it until age 70, when I plan to collect a deferred OAS payment. If there's not enough saved in the RRSP, then I'll collect OAS earlier.
@comment sense 50 is way too young. As a trades person, you should have been planning for your own future/wear and tear on the body. I'm 51, and 50 is far too young. The CPP payments from pur paycheques would have to be a lot more if payments started so ridiculously young.
Look at this. We talked 2 days ago and you were at 750 subscribers, now you’re at 1,000.
Congrats!!
Thanks buddy. Ya it happened quick. And the feedback is amazing...people are getting help. One video at a time we will help Canadians retire better!
@@ParallelWealth slowly but surely. Especially in my case. Congrats on monetization. Time to rake in the scraps that YT pays us.
I started on CPP at age 60, because I worked overseas for 8 years I only started at $500.00 per month. I have continued to work and make the maximum contribution and my CPP payment is now at $700.00 after 4 years.
I’m confused, so one can continue to contribute to CPP whilst drawing on it if they are still work ?
@@beezimo yes you can, mine went up every year. You can continue to contribute until you 70 I believe
About the only reason to take at age 60 would be if there was poor health. Otherwise delaying for a larger CPP while also taking down your RSPs - certainly from a RIF at 65-70 for the pension tax credit is in line with practically every actuarial review now.
Was told years ago to "Get as much as you can, as early as you can"
Everyone has different reasons
The way Govt's mismanage the countries, just hope that there's something left for you, by the time you are able to collect it
CPP is guarantes oas not so much because it is taxpayer based they can cut oas quicker than cpp
For #2 (not working from 55 to 60) you really need to do the math. Your contribution period is shorter but if you've been near the max for most of it, the penalty you take for early CPP greatly outweighs the difference in the calculation. Even retiring at 50 the math suggests waiting until 67 gives you the biggest bang for the buck even if you only live to 83 (and the average is 85).
And to add to that, as I agree with you, regardless of the math it's best to delay to 70 if you can afford it.
Losing to the government by dying young isn't a problem for you if you are dead. Dead people don't have financial problems. The only risk we have in making the decision is living long enough that we run out of assets and can't support ourselves later, that is risk that creates a real world financial problem for you to experience.
People are too caught up in beating the government, what matters is protecting yourself from risk of outliving assets.
The government is giving you a great deal if you can afford to delay, definitely delay all the way to 70 if you can.
@@Sidious6460 no...... I don't care about when I'm 80, those are the worst years.
@@prufrok Lol, yeah they're even worse when you run out of money.
To each their own, if a person is intentionally running out of money by 80, it's a strategy we would not endorse, but people can do what they want.
I know of a man who started drawing his CCP at 60 and he thought everything was fine. Then at 61 he developed a serious rare blood disease and could not continue working. He applied for a disability pension and was “denied”. He was told that he was no longer eligible to qualify for disability pension because he was already drawing his CCP. Which was definitely bad, since the disability pension would have been much better that his “reduced” CCP.
Thats bad but no one can tell the future
Thats why best to take out cpp earlier. Some people wait till 65 but some of them don’t get to passed age 65. Im pretty sure there are other benefits for him.
So what is your point? That that he should have delayed collecting his CPP because his horoscope told him that at 61 he would have a rare desease?
I know of a man that retired at 45 and live happily ever after, of course no CPP or OAS.
He won the lottery.
@@mauriciodeleon2529 ……my point is…….how many people, including yourself, didn’t know that drawing your CCP early disqualifies you from from other benefits you may have been entitled to.
I think disability payments end at 65 anyway.
I took it at 60 and like my job. i will likely work until 67-68. I am also in good health. I continue to contribute to CPP and my rate continues to rise. I will receive far more when i fully retaire than the initial amount at 60. I have 25% taxes taken off at present which breaks me even at the end of the year when it is added to my salary. When I retire , I will pay no taxes(or close to zero) and be far ahead of starting CPP at 65 or67.. I calculate I won't be in a lose scenario until close to 80 and by then wont need as much...Enjoy CPP while you are of an AGE to do so. !!
We found out some are complaining about Canada we found out we’re behind schedule we wished we started working from younger ages because we learned how is important at least we have everything some are they don’t that opportunity unless sheeting there governments people they don’t know enough we are very lucky enough because even your working or out of work still you have a income up it really appreciate thank you for everyone for sharing some important information we wished we learned long ago but never ever too late
Even if you get less money when your 60 when you start collecting OAS you would/could receive the supplement that would help make up the lost from collecting CPP early.
Donna, if you are in a position to be able to collect the GIS if you take CPP at 60, then the numbers might make sense for you to do that. Only a small number of Canadians qualify for GIS, but that's why we recommend to work with a Financial Planner - to create these scenarios for your situation, as everyone's answer on when to take it is different. Thanks for watching and leaving a comment.
I started at 60 yo with the intentions of not working a regular full time job. I work at a place that closed its doors so instead of looking for something full time I took CCP and dipped into my RRSP's a little and collected a little money at various places when my assistance was needed.One of the things I had to keep in mind was how I was getting small amounts from several areas which taxes were been taken out on the small amounts so I had to boost one tax a small amount as not to owe come tax season.
People need to know that OAS (If you are low-income) and seniors' medical benefits are not available until 65.
Exactly! Its a very important point and I think Adam forgot to include this point in his 5-points! In my view one may consider to retire at 60 only if s/he is has a weak health, unable to cope with the work stress and has a shorter life expectancy. But in most other cases one should wait till s/he is 65.
Take it at 60..... Take it, use it as needed, reinvest it, throw it in an RRSP and make money. At some point YOU HAVE TO PAY THE TAX REGARLESS...Almost every "financial advisor" will tell you to wait unless in distress. I don't like leaving MONEY on the Table, NO GUARANTEES, your LIFE can change in a minute. When you hit the break-even point what the heck are you going to do with it anyways... You DIE once...Live EVERDAY 2023 Motto.
Being widowed I opted to take my CPP at 60 because when I die my pension dies and my estate would receive $2500 one time government death benefit.
By taking it at 60 I’m able to invest it and contribute the funds to an RRSP because I’m still working and contributing to CPP which has caused my monthly to go up by $60 per month in the last 2 years.
I retired last year at 54 and my husband will be retiring in August of this year at 56. We are fortunate to each have Defined Benefit Pensions with our companies that allow us to live on one pension income. We both plan to take our CPP at 60 and invest it.
Very lucky! Happy retirement!
Just little advice. Don't sit around on your rocking chair all day long with Coca-Cola and chips in your hand. Do something, move around, stay healthy. Otherwise You may not enjoy it for long. Good luck. I'm 57 and still enjoying my brick laying every day 👍🍻
@@jozefciszewski2074 wanker's assume the worst.
My opinion and rule of thumb is that there are two reasons to take CPP early...If you really NEED the money (making ends meet) or if you really DON'T NEED the money (maybe to invest). Otherwise if you are doing ok wait until 65 or later.
I agree!, if your still going to work till 65 you may
As well wait……. And get the full amount……….. but everyone’s situation is different…..👀😎👍✌️
@Insignificant Speck Of Dust Terrible advice, not to be rude, but that's very bad advice for majority of people.
Way too caught up in beating the government and not focused on doing the best thing for yourself.
Dying young and losing the bet to government is not a problem, you're dead, you don't have financial problems.
The problem would be outliving your assets and having a very real financial problem late in life.
Focus on protecting your long term risk, not on winning a bet that you would never know you'd lost and have no consequences for losing.
Delaying is making a bet that you can't actually lose, but can only win.
If you can afford to delay until 70, delay until 70. Don't worry about not having a financial problem after dying, the concern is what happens if you live a long time.
@Insignificant Speck Of Dust Also they are not paying you back with your own money - CPP has an investment board, they're paying you back with very solid interest. The longer you delay the better the deal. It's a very good deal if you can afford to wait.
@@Sidious6460 … 👍❤️
@@PracticalTacticalAccuracy I won't disagree in theory, but in reality some people need the money and other people with defined benefit pensions will lose their bridge benefit at 65, (CCP and OAS will compensate for that), each individual has to evaluate their situation and act accordingly. CCP and OAS benefits are also indexed.
You’re forgetting that most people make CPP part of their overall plan. You want to make sure that a persons spouse or significant other will benefit from having collecting early or they get nothing if you were to pass away before applying for CPP. You know that already.
Tony, ALL people need to include CPP in their plan. Early death needs to be considered as a stress test, but don't let it drive the decision.
@@ParallelWealth Remember that no one has a crystal ball in life. Software makes everything looks great on a computer screen. I worked in the hospital system for 36 years and saw and learned plenty. Knowing you can die at anytime or end up in a hospital bed for the rest of your life will change your perspective on life. I saw and talked to many people from all walks of life. To each their own but in my view take your money and enjoy. You are as young and old as you will ever be. Waiting for more and more money is a fools game!
Please make videos for people who are self-employed, are proprietors of small businesses, are artists, actors, performers, or who may have never worked - some people are still housewives/husbands. The RRSP did not serve us, and the TFSA came too late for L's, Boomers and X's to really do much with.
Many people with fluctuating incomes can avoid the higher tax brackets. High income year, put more into the RRSP to get to the lower tax bracket. Low income years, redeem some RRSP (in the low tax bracket) and put it into the TFSA.
I started taking my CPP at age 60 and continued working till 65 so because I didn’t need the money at the time I put it in my RRSP and my TFSA with the help of my financial advisor. The main reason I did this was because I knew my financial advisor would make it grow way better than the Canadian government would.
T.F.S.A. dos do not grow that fast interest and on R.R.S.Ps you have to pay the tax. I rather take at 65 $ 500 than $ 300 at 60years old.
Your cpp grows 7.2% per year for 5 years and you continue to get paid that amount each year for the rest of your life - so you must have a wizard of a financial advisor to get better returns.
Also, taxes on cpp while working, wow!!
I would never have put it in a RRSP so u can be taxed. I’d of stuck it in a sock drawer
Awesome Vid, and TH-cam and the web are full of advice.. Some good, some not so. My suggestion is for people going to, or planning to retire that want to know their options on CPP, OAS, DB, & DC Plans, RRSP's, Investments, stocks bonds etc. how it all blends together as income and the tax brackets. Get advice from qualified knowledgeable and trusted experts in the field of finance even if it costs you a $100.... It may be the best money and investment in your retirement future you can make.
It's always a good thing to collect money while your alive, everyone assumes they will live into their late 80's and 90's but that is rarely the case, also everyone and I mean everyone can use the money NOW seeing as there up to their eyeballs in debt. Also your point that the CPP will never change or go away and is funded for the next 75 yrs is based on the current situation now, but things always change and nobody can predict the future, 40 or 50 yrs ago nobody could ever predict the crazy world we now live in and the way our money is being thrown around and wasted, people are way in debt, nobody (vast majority) can retire anymore, nobody has a savings account anymore , everyone is paying interest like crazy so things change and not for the better, I worked with a guy who would never collect until it was the absolute max and he lost out since he died at 65, I'm taking mine now at 60 while I'm alive and while the CPP still exists. The Govt wants and encourages everyone to wait, wait, wait so that you die first and a much lesser amount goes to your beneficiary. Your video is the first I have seen which even suggests to take it at 60, good advice.
There are reasons to take it at 60. But I don't think many should.
the govt will increase the retirement age at 67 yrs old for this yr... So i dont know when this will be official. I hope not. So scary . Maybe by 50 yrs. in the future ... the retirement age will be 70 yrs old. They want to kill people with just working and paying taxes and get nothing in return. So sad!
Also the bank is the biggest robbery. You have money but they don’t give so much interest. Inflation rates keeps rising every yr. the money you save now will be worth less in the future But if you use their credit card ; its 20% interest rates if u fail to pay it on the due date.
@@noexcuses5524 Exactly, that was another prediction I have been privy to for some time that the retirement age will rise based on statistics. Think about it, how would the govt gain the most, by you retiring early and taking that pension or being productive and contributing both work wise and monetary by working till you die? We have been contributing for so long and taking a huge hit on our paychecks with deductions so it's time we collected...while we're alive. And I have been saying for years don't put your money in the bank, pay off some debts instead so you can avoid the ridiculous interest rates. Govt's are purposely encouraging people to go into debt and never retire and pay interest and contribute forever, this was never the case 50 yrs ago when you couldn't just borrow borrow borrow, you had to be responsible so people were and people had their priorities straight, now people are living like kings with money they borrow and subsequently choose to never retire, but hey they now have granite countertops! stainless steel appliances! vacations all the time! a flatscreen tv on every wall! updating and replacing furniture all the time, New (never old used) cars, paying through the nose for landscaping, renovations etc. That was all unheard of decades ago, instead people paid their bills and debts, didn't have a lot of money, but had very little if any debt except their mortgage.
@@robertzemko6590right. Pay off debts. Thank you for that.
You don't know how long you'll live and it's your money so I decided to start taking it as soon as I was eligible.
Nice to receive money from the government for a change after of a lifetime of paying them.
Also, you're better off owing the government at tax time than getting a refund cheque. You should try to keep YOUR MONEY as long as you can before giving it to the government, who will mostly just waste it.
The bottom line is that if you need it sooner, take it sooner, but if you are financially comfortable enough that you can wait, wait for the larger monthly payments. I know in my case, the additional monthly income later will be of much more use than the reduced amount now.
Five years with inflation at 5% is 28% reduction in what you can buy.
40 yoa but trying to get ahead of the game. Great content, thank you for this channel.
Retired Military fella here. Military lost all sorts of lawsuits regarding CPP and claw back. Most Mil pers I have spoken too take the CPP at 60 as the Govt claws back at 65. Your thoughts. Thank you. Enjoy your video.
Glad I found your channel, great information!!!
Thanks so much
Well, my friend here at the Hospital told me that you will get penalized by 30% by the government if you retire at the age of 60 . You have to wait and retire at 64 to not get penalized. I guess it all depends of what type of jobs you do also. We have an extremely Low number of personnel working (A shortage) and nobody could replace us if we retire to soon.
That's one way of looking at things. By retiring at 60 you sure get penalized from a purely financial standpoint. On the other hand you get 5 years of enjoying life without having to wake up at 7AM, commute, work, stress, commute back... That's a very personal choice.
Your friend is wrong. 65 on age and perhaps 35% on age 60. you may also loose some by being short on years. Smokers , drunks, junkys take it early. Time is short for your kind
Don't forget that if you take your pension earlier it's money you can invest and have it grow if you don't need it right now.
But the government gives you a 7.2% return - hard to find that elsewhere guaranteed!
I think you didn't mention the most important reason. You will lose lots of money from GIS if you will be collecting CPP late. So it doesn't make sense to delay CPP at all
I am grateful I was suggested your Channel - thanks for all the great Content!!
Too kind!! Thanks for tuning in.
This also would depend on working or not working and your personal tax situation. If you are still working and have a decent income, higher tax bracket will really impact the ultimate benefit in your pocket. If you’re not working and not paying tax, go get it.
I liked your clear explanation and example.
Thanks. Appreciate the kind words
Just started watching your videos and really appreciate the topics so far, especially around understanding the government retirement benefits. Wondering if you would consider a video regarding the implications on CPP/OAS for someone who wants to retire abroad, either permanently or splitting time between two homes, one in Canada and one abroad. Many variations of that I’m trying to consider, such as maybe living abroad full time for the “go go” phase first 5-10 years, then coming back to settle down in Canada, or if I find a permanent new home that I love and stay and never return full time to Canada.
Geoff, we will likely be building a comprehensive course on this in the near future. It's pretty complex for a YT video and needs more time and detail to get across properly. Look for this in Fall.
I took it at 62 and still work and dollar cost average into bitcoin in tfsa and rrsp...
I am 59! I am wanting to take CCP! At 60 and continue working at list till 65! The income would help alot to get a new vehicle to get to work! Plus do some renovation to the house!
Those reduction figures may apply now but not when I began taking my Cpp 10 years ago.
Every situation is different so my choice not for everyone.
I was fortunate to save a lot and amassed a substantial RRSP. So delaying CPP made great sense. Retired at 65 and pulled down as much RRSP as possible to create an income that put me into my target tax bracket. That reduces the tax burden at 71 when RIFs will push me into a higher income/tax bracket than I need or want. Now at 68 I'll start OAS/CPP both at 1.35*max. This is indexed to inflation, so no worries in the future and I've managed to reduce the RRSP pool that will be forced into RIFs.
Smart plan!
Thanks for this informative vlog. Looking forward to the mext topic.
Excellent points! Thank you.
Thanks for watching Gino.
Thank you for sharing I learned a lot from your video.
I had no choice but to take it at 60 but what i didnt know at the time, is that pension only goes back 6 years that u worked and pay u that amount, which for me is a whole 60 bucks a month, wish i knew that before i took it
I work full time, but wsnted to retire in five years at age 55. Sounds like i have no choice but to work till 60 though if I want to be able to collect a decent amount of CPP. Darn!
very few people even at 65 get the maximum most average 750 plus or minus, you also Get GIS for top up
I wish I could talk with a person that knows as much about it as you do near me
I hate it when people ask for likes and subscribes before we see the content.
They changed the basis, they used to use first 15 years of work I rec a service canada letter 30 years ago. Saying i would rec $485 at 60 now they take the 5years before retirement, now i rec $200 a month
Thank you for very good advice 👍
Do you know how long you are going to live? No. Take it at 60.
How long your parents and family members lived is a good indication.
@@MHdollrevievs sometimes.
@@MHdollrevievs i hope I don't live that long lol
I have another reason for taking it early.......if you can collect the maximum amount early! My spouse had previously lost his spouse and was collecting a large amount when his and hers were added together (survivors amount). When he died I got my amount plus his survivors amount...very close to the maximum so I didn't wait to collect. I'm sure this doesnt happen a lot but thought I would mention.....
Took it at 62 two years ago and never looked back.
I just applied for my CPP 2 days ago I was disappointed to how much. I actually laughed. 60 in March.
Did you work full time for a long time? You have to remember you have to contribute for almost 30-40 years to get half decent $$$.
New subscriber....great content!
I’ve watched the whole CPP series (I may have said this here already I’m sorry if it’s a duplicate) .. my situation is that I am 60, I have a lot of RRSP contribution room accumulated, and won’t have the resources to contribute fully between now and 67 .. I’m took the CPP at 60, bcz at 7% and tax free, I will make enough between 60 and 67 to more than make up for the loss from 67 through 90 - I’m about $100 a month ahead
If you are widowed male or female you should take CPP because when you pass no one gets your CPP unless you remarry or common in law ??
New subscriber in here
Thanks for all the info
Pls keep on posting
I agree you should collect coins at 60. So many don’t see 65 and everything they paid into gets lost. If your healthy enough to make 65, congratulations look forward to 70 and beyond.
Regarding the OAS clawback... It seems to that if you have over $129,000 a year in retirement income (almost $11,000 a month!) and your OAS is entirely clawed back then I would say you have little to worry about financially in your retirement. It sounds like the OAS tail wagging the retirement dog to me.
Yes if your income is at 11k per month in retirement you likely aren't too upset about OAS clawback. That said, if you can plan ahead and avoid some or all of the clawback then it's worth it. Even if you don't need the money - it means more for charity, kids, grandkids etc. Depending on where the income comes from, there is usually some planning that can help accomplish this. Thanks for watching.
If your income is that high, you should be delaying OAS to age 70. By delaying OAS to 70, you can increase the clawback calculation for OAS from $129,000 to about $150,000.
@@BCCLLQP Either way I don't think they have anything to cry about.
I'm taking mine but I'm only getting $494. Dollars a month like how do they expect anyone to survive on that...
I've got the doctor filling out forms for disabled pension as well waiting for that hopefully it will help a bit more...
If you get ODSP, they will minus your pension amount if you collect early pension. So it does not make sense.
Was never designed to live on.
wayyyy ahead of you....😎
Just found your channel. Great information, I will probably retire this year so this was perfect to watch. Thank you and new SUB!!!!
You forgot about GIS clawbacks at 65 . Taxable versus tax free income!
Thank you. Very helpful
If you have contributed for 39 years and you dont take CPP, you are contributing and not getting any associated budget. If you take CPP, you start to develop PRB.
Reason 4 is excellent.
Great video. Could you please elaborate on reason number two? How would not working between age 55-60 affect taking out cpp at 60? Thanks
Here is a breakdown. See step #2 and specifically YMPE. It's a very complicated formula and best to reach out to your local My Service Canada office if you might fall into this bucket.
retirehappy.ca/how-to-calculate-your-cpp-retirement-pension/
It still would only be a good idea to take CPP at 60 if you had financial need to.
If you can afford to delay, it's best to delay. Regardless of working between ages 55 and 60. Those years are going to decrease your benefit amount anyway, might as well increase it by delaying all the way to 70 if you can afford to.
Cash flow requirements mean that delaying isn't always possible, but if you can - delay.
@@Another-Address Absolutely. Not arguing that you should do anything that isn't best for you either.
It's saying what is logically the best financial decision if you can afford it.
Absolutely terrific videos. Very informative.
So helpful! Thankyou.
Thank you Very good information
THANKS FOR THE VIDEO
....i wish we were a nation like France. they see the value of early retirement whereas here in North America our motto is work work work until you drop or end up in a nursing home...oh, but you'll have an extra few hundred dollars each month that the gov will take to pay for said nursing home! freedom and good physical/mental health is priceless
I applied for mine at 63 and I still work full time I’m planning to put most of it onto an rrsp so I don’t pay too much tax.
Mike, but you have to get 7.2% just to break even.
@@ParallelWealth I don't understand your comment ?
What he means is you plan to contribute to your RRSP to reduce your taxes but are you sure your RRSP can earn at least 7.2% compared to what the government CCP
That was cool, now I am looking for an OAS clawback video. Lets see if you have one.
Your GIS situation plays a role too.
I didn't want to collect it untill 65 but I got sick enough to not work. The provincial gov forced to collect it.
thanks for the information.
Great video!
I have no doubt that CPP funding will be there for a long time...its the eligibility requirements I am concerned may change. Lets face it, its scary how many conspiracy theories are coming true!
Thank you for this video.
Reason number 6...inflation. 100$ in 5, 10, 20 years is worth less over the years. Take it and reinvest it.
Thank you!
Thanks for the info
I just discovered your series of videos (seen a couple) and I think they are great: Canadian centric and concise. Could the following be a reason to start getting your CPP sooner rather than later?: Spousal Survivor pension. What if I am age 60 and I did not begin my CPP at all, and then die unexpectedly. Can my spouse benefit from any aspect of my CPP, even though I did not apply for it? Conversely, had I started getting my CPP benefits and then died, would my spouse's net financial benefit be greater than the previous scenario? I believe there is a "cap" on what my spouse can realize on my CPP, but is it identical in both scenarios? Bottom line: should I start getting my CPP sooner rather than later to better protect my spouse financially in the event of a premature, unexpected death? Thanks for any feedback as I am unfamiliar with all the CPP rules.
It could play into it - more so if your spouse passed away before 65 and you are collecting survivor benefit. There is a total max, so waiting longer in some scenarios may not give you more.
Good video, thanks : )
None of those 5 reasons to take cpp at 60 apply to me yet my financial adviser advised me to take it at 60.Maybe its because i will empty my rrsp before 65 and then get gis at 65
Awesome article
Thank you for your all videos . You provide us very useful information.
I have a question regarding CPP .
If person has contributed cpp for 10 years and then he renounce canadian citizenship. What will happen with cpp benefit? Will he get cpp benefit as a lump sump.?
I request you , Please make a video regarding this . It would be very helpful for the viewers .
Thank you so much