Love your humour, Kent! Also love your Oilers shirt! You are too cool my friend 🙂 Thanks for a great video. I am getting closer to retiring, thus collecting CPP. Any updates or further info is really appreciated! Thank you for putting in your time, knowledge, and patience......to help us Canadians better understand pension plans.
Another great video. Thanks for posting. I'm 63 yrs old now so that chart was very accurate for me. I started working part time when I was 16 (1976) and full time when I graduated High School at 18 (1978). I was always wondering if I got ripped off. It turns out I got a deal. I'm NOT collecting any CPP yet. I haven't worked for the last 3 yrs because I just decided to retire because employers are paying me less money today than they paid me in 1982 based on an inflation rated calculator. I'm a certified millwright and employers should be paying $50+/hr based on that calculator. Nobody is paying that. In fact they are offering 50% to 100% less today. So I retired. Fix it yourself "Boss". I'm pulling 25G/yr out of my rrsp and I'm living on that. At the end of the year I get back about $600 tax refund. So basically the govt is funding my early retirement. I maxed out my RRSP's and got an rrsp refund earlier in life and banked it. Now as I pull my rrsp and not paying much tax back. I can hear people shouting "HOW CAN YOU LIVE ON THAT ?" Answer: I don't drink, I don't smoke, I'm not a dope fink, I don't travel, I own my home.
Thank you so much for this information. Very informative. BUT the music in the background is extremely distracting. Your voice alone is enough in my opinion.
Really enjoyed your informative video and your dry sense of humour. Honestly, I have a similar sense of humour which doesn't quite translate to professional success in a banking environment. Regardless, I have done well endearing myself to my clients and that is what truly matters. Keep on putting out these great videos as I'm sure it's a real eye-opener for many Canadians and can only help them make better and more-informed decisions.
Thanks for the video Ken. The comedic bits are an interesting experiment. Regarding the (approx) $60k lifetime contribution for your hypothetical subject, you should also estimate how much that money would have grown to if invested in some reasonable/average financial vehicle. And yes, most people would not have invested that money on their own, so a "forced" contribution program is a good thing overall (plus the CPP fund seems to do a pretty good job on their investments, judging by the historical growth/returns).
Great video Kent! Easy to follow with some great cynical humor and yes you are right, we didn't have to contribute that much in our baby boomer working years. BTW, go JETS!! Cheers!
Hi Kent great video as usual. I have a question. I understand that if a married person dies while collecting CPP, the CPP can be collected by the surviving spouse, subject to a few rules. The question is if the first spouse dies before starting to draw CPP, what happens? Can the surviving spouse draw anything?
I appreciate your humor. Here's another funny story. 57 year old divorced brother in law dies of brain cancer. During his last 6 months I researched what his CPP benefit would be and they advise that his estate will get the $2500 thing. I used to work at the pensions department at Air Canada and in a case like this the estate would get contributions with interest. Not so with the CPP people. I advise doomed brother in law to remarry his ex wife so she would get the benefit. I told the CPP this and they advised this is called a 'marriage of convenience' and she would not get the benefit. I asked the CPP people how this could possibly be fair and they advised that there are winners and losers with respect to CPP. Hilarious :)
That is hilarious. Haha, maybe not so funny. Thanks for sharing, that’s an interesting take. Thing is, that she should at least get what he had payed into it while they were together and that they don’t do that is absolute bs.
@@K4Financial The estate should get it in my opinion. I guarantee he made over the YMPE his entire working life so the pile after interest after working over 35 years would be sizable.
@@johnparsons3454 yeah, I understand the argument, but I know that it would drive up what we have to pay into it even more, and it’s already very high. I’d certainly be in favour of at least a higher death benefit that could be based on what you paid in. I’m sure there’s enough in the plan for that
@@K4Financial Love your channel by the way. The only solution is to give his estate what he put in with interest. If that impacts what we pay in I don't get that. If he'd have lived it wouldn't greatly affect what the rest of us would pay. This is like him putting a bunch of money into a GIC and then since he's dead the bank says we're not giving it back.
@@johnparsons3454 again, I agree as it seems like that would be sustainable, but the actuaries who run the numbers account for early death which makes it work. It’s a bit different than regular pension plans, which keeps the contributions a bit lower for those who use it, but every pension plan has built in savings based on early deaths in the plan. Generally an estate won’t get much of anything once payments have started, just the spouse.
Good video. Playing around with my own numbers (I'm 57), appears that age 73 is the approx "breakeven" point; that is, 13 years if starting CPP at 60, 8 if starting at 65, which I recall seeing in a video several years ago.
I took CPP at 60. I continued to work and pay into CPP. Every year I got a post retirement benefit amount which is added to the CPP. At age 65 my CPP was 23.5% higher than the first CPP payment.
Great Video! quick question if your getting CPP and still working hard! How do they work out want your get the next year and when? For the life of me i can not work it out at all worst still Never made Max CPP in he first place and still not brutal plus i get them to take 20% out to hold back for Tax's just hope its enough! lol
@Kent - the main thing I took away from this video is I have to get rid of my "roomba" - I couldn't figure out what was happening and now I know. Thank you for the video - another interesting and good presentation with exception of saying the $2500 windfall "is completely tax free". You have to share some of that windfall back with the government, just to be fair with them, so you might have to cut back a bit more on the makeup to fully cover the sandwich tray. 😂
The $2500 death benefit generates a tax slip for the deceased. It can take about 12 weeks to be processed and arrive in the mail to the executor. I wouldn’t rely on it for the funeral. It won’t cover the cost of a cremation.
I was required by my private health insurance company after my stroke in 2019 to apply for CPP Disability. When I turn 65 my CPP Disability will automatically switch to CPP
So does it matter when we set up our profile 🤔 I am not retiring anytime soon but it would be nice to get this done now than later since processing times are bureaucratically slow.
For many years I worked in Canada. Now I am in Europe. I am over 65 years old. I am trying to find my record of total number of my employment there. And Projected estimate of what I will get. Also the link about how sign on to My Service Canada pages. I have spend days to get record of my employment and what I am entitled to. Please help with clear instruction if you could.
Retiring after 32 years of teaching at 57 this June. Amen 🙏. DB pension is the key. CPP doesn't give much and I have to take it at 65. The bridge disappears.
@@johnnyboyvan this is not true. You can take your CPP anytime from age 60 - 70. For many, OAS will replace the bridge (and then some) and you can still defer to age 70 to get the higher CPP if you so choose.
The government doesn’t keep it, it just stays in the fund. It’s just the way every pension plan works, otherwise it would cost way more for us to fund.
Great video. If you're waiting the 5 years from 65 to 70, is the amount you are delaying also indexed to inflation? In other words will you just get 42% more of what you would have received at age 65 or is it also bumped in addition by inflation? Thank you.
I think Its a great Idea - Atleast you have some thing at the end to add to your pool of income. If you didnt contribute then I assume you would complain. Or go live in some other country that gives you Jack.S##T. Thanks for the great explanation..
I’m not sure if I understand the question. You can’t collect his CPP, only he can. retirehappy.ca/understanding-cpp-sharing/ That’s a link to a great blog from Retire Happy which has a good example and explanation
So if you worked the full 39 years and paid the max YMPE and retired at 58 would you still see the max in CPP if you waited until 65 to collect it? Or would it be reduced because you didn't contribute for 7 years?
You’d still get an increase on what you’d receive from CPP at 65. In that case, usually you should take OAS and get GIS and then take the delayed CPP. Hard to say that with certainty though
If the governments didn't send boat loads of cash to other countries we would have more then enough, less off our pay checks and bigger pay outs for the retired.
read that first year of earning at age 18 is pro rated. Oh and if you wanna move out of country? Yep there is a tax on that called the departure tax. think in the states the death benefit is in the 10's of thousands
the states are also running in the red from what i read, their SS is not funded for the future. 1.4trillion short..Departure tax is more complicated than just leaving and paying a tax. its related to Capital Gains.
Does CPP automatically start at 65 if you do not say anything to the government or do you need to tell them ahead of time to delay it? I personally do not want to take CPP until I'm at age 68.
Hands down, one of the best videos on CPP. Informative and entertaining 😄
Haha, thanks
Thankfully this is a Canadian channel where we actually can grasp the more subtle humour.
OMG, parts of this video made me spit my coffee on my desk!!!! This is awesome!! $2500 sandwich tray at my funeral.. my god lol
Haha, good to hear
And some blush AND rouge. Cracked me up.
Well done Kent! CPP 101 the best I have seen!
Thank you 😊
This video will go VIRAL! Well done Kent. Great explanation and only you can add in subtle humor to this dry topic.
Thanks buddy
Love your humour, Kent! Also love your Oilers shirt! You are too cool my friend 🙂 Thanks for a great video. I am getting closer to retiring, thus collecting CPP. Any updates or further info is really appreciated! Thank you for putting in your time, knowledge, and patience......to help us Canadians better understand pension plans.
You’re very welcome
Another great video. Thanks for posting.
I'm 63 yrs old now so that chart was very accurate for me. I started working part time when I was 16 (1976) and full time when I graduated High School at 18 (1978). I was always wondering if I got ripped off. It turns out I got a deal.
I'm NOT collecting any CPP yet.
I haven't worked for the last 3 yrs because I just decided to retire because employers are paying me less money today than they paid me in 1982 based on an inflation rated calculator. I'm a certified millwright and employers should be paying $50+/hr based on that calculator. Nobody is paying that. In fact they are offering 50% to 100% less today. So I retired. Fix it yourself "Boss".
I'm pulling 25G/yr out of my rrsp and I'm living on that. At the end of the year I get back about $600 tax refund.
So basically the govt is funding my early retirement. I maxed out my RRSP's and got an rrsp refund earlier in life and banked it.
Now as I pull my rrsp and not paying much tax back.
I can hear people shouting "HOW CAN YOU LIVE ON THAT ?"
Answer: I don't drink, I don't smoke, I'm not a dope fink, I don't travel, I own my home.
You’re dry humour is very funny 😂
Thanks 😊
We try
Thank you so much for this information. Very informative. BUT the music in the background is extremely distracting. Your voice alone is enough in my opinion.
The music was way too distracting!
I've been bumping up my RRSP's and my TFSA's when I hit the YMPE for a few years now. It's a nice little boost to retirement savings IMO.
So sick of people of a certain age ragging about CPP. Thanks for putting them back in their place. (Though they won’t stop ragging.)
Very practical information presented with some laugh out loud moments. Thank you, Kent!
I love your sense of humour. Very Canuck 😊👍
Thanks. It was a team effort.
This is Chris Rock funny. Have you tried standup?
Haha, I’m not sure if it’s Chris Rock funny.
Yeah, I’ve been a mediocre comedian for quite a while
You did not loose me. Good explanation.
lose not 'loose' loose = like a loose shoelace .. loose shirt etc .. sorry the grammar nazi in me can't resist :)
Really enjoyed your informative video and your dry sense of humour. Honestly, I have a similar sense of humour which doesn't quite translate to professional success in a banking environment. Regardless, I have done well endearing myself to my clients and that is what truly matters. Keep on putting out these great videos as I'm sure it's a real eye-opener for many Canadians and can only help them make better and more-informed decisions.
Super lol 😆
Great show 👏 👍🏻
Ty for the breakdown and CPP information.
Such and entertaining video on a serious topic…only you can do it and thats why i always wait for your new videos. 👍
Awesome to hear, thanks 😊
Thanks for the video Ken. The comedic bits are an interesting experiment. Regarding the (approx) $60k lifetime contribution for your hypothetical subject, you should also estimate how much that money would have grown to if invested in some reasonable/average financial vehicle. And yes, most people would not have invested that money on their own, so a "forced" contribution program is a good thing overall (plus the CPP fund seems to do a pretty good job on their investments, judging by the historical growth/returns).
This was a good video. Good mix of humor and information. Good production value.
The in the morning joke made me spray my drink a bit.
Great video Kent! Easy to follow with some great cynical humor and yes you are right, we didn't have to contribute that much in our baby boomer working years. BTW, go JETS!! Cheers!
Thanks Kent.
Liking the music in the background. Just lower it slightly. 👍
Hi Kent great video as usual. I have a question. I understand that if a married person dies while collecting CPP, the CPP can be collected by the surviving spouse, subject to a few rules. The question is if the first spouse dies before starting to draw CPP, what happens? Can the surviving spouse draw anything?
I’ll have to do another video on survivor’s benefits, but yes the surviving spouse will get something
I appreciate your humor. Here's another funny story. 57 year old divorced brother in law dies of brain cancer. During his last 6 months I researched what his CPP benefit would be and they advise that his estate will get the $2500 thing. I used to work at the pensions department at Air Canada and in a case like this the estate would get contributions with interest. Not so with the CPP people. I advise doomed brother in law to remarry his ex wife so she would get the benefit. I told the CPP this and they advised this is called a 'marriage of convenience' and she would not get the benefit. I asked the CPP people how this could possibly be fair and they advised that there are winners and losers with respect to CPP. Hilarious :)
That is hilarious. Haha, maybe not so funny.
Thanks for sharing, that’s an interesting take. Thing is, that she should at least get what he had payed into it while they were together and that they don’t do that is absolute bs.
@@K4Financial The estate should get it in my opinion. I guarantee he made over the YMPE his entire working life so the pile after interest after working over 35 years would be sizable.
@@johnparsons3454 yeah, I understand the argument, but I know that it would drive up what we have to pay into it even more, and it’s already very high. I’d certainly be in favour of at least a higher death benefit that could be based on what you paid in. I’m sure there’s enough in the plan for that
@@K4Financial Love your channel by the way. The only solution is to give his estate what he put in with interest. If that impacts what we pay in I don't get that. If he'd have lived it wouldn't greatly affect what the rest of us would pay. This is like him putting a bunch of money into a GIC and then since he's dead the bank says we're not giving it back.
@@johnparsons3454 again, I agree as it seems like that would be sustainable, but the actuaries who run the numbers account for early death which makes it work. It’s a bit different than regular pension plans, which keeps the contributions a bit lower for those who use it, but every pension plan has built in savings based on early deaths in the plan.
Generally an estate won’t get much of anything once payments have started, just the spouse.
1976, the good old days, 😂 great video👌
Thanks 😊
Good video. Playing around with my own numbers (I'm 57), appears that age 73 is the approx "breakeven" point; that is, 13 years if starting CPP at 60, 8 if starting at 65, which I recall seeing in a video several years ago.
I took CPP at 60. I continued to work and pay into CPP. Every year I got a post retirement benefit amount which is added to the CPP. At age 65 my CPP was 23.5% higher than the first CPP payment.
TOO funny, good one Kent.
Thanks Ron
Go Oilers
I almost had to watch this a second time as I was laughing so hard.
Haha, good to hear 😊
Hey Kent. Good video again. Not a big fan of the music playing in the background!
I’m not really a fan of it either. We’ll take it up with Ryan
Got to get off my wallet and do a $500 financial plan. Should buy my dad one as well.
You have an awesome sense of humour! Great vid
Thanks
True facts and UPDATES too!
Great Video! quick question if your getting CPP and still working hard! How do they work out want your get the next year and when? For the life of me i can not work it out at all worst still Never made Max CPP in he first place and still not brutal plus i get them to take 20% out to hold back for Tax's just hope its enough! lol
If income drops or you retire early the CPP amount at Service Canada won't be accurate and inflated
I'm not complaining eh!
@Kent - the main thing I took away from this video is I have to get rid of my "roomba" - I couldn't figure out what was happening and now I know. Thank you for the video - another interesting and good presentation with exception of saying the $2500 windfall "is completely tax free". You have to share some of that windfall back with the government, just to be fair with them, so you might have to cut back a bit more on the makeup to fully cover the sandwich tray. 😂
I didn't think I said it wasn't taxable. If I did, I certainly didn't mean to.
The $2500 death benefit generates a tax slip for the deceased. It can take about 12 weeks to be processed and arrive in the mail to the executor. I wouldn’t rely on it for the funeral. It won’t cover the cost of a cremation.
Well done! Are you friends with Adam?
Yeah, we met years ago when he was starting his channel
I was required by my private health insurance company after my stroke in 2019 to apply for CPP Disability. When I turn 65 my CPP Disability will automatically switch to CPP
So does it matter when we set up our profile 🤔 I am not retiring anytime soon but it would be nice to get this done now than later since processing times are bureaucratically slow.
I think everyone should do it, because it gives updated information on CPP, TFSA room, etc. No reason to wait in my opinion
Cpi compound annually? Cpi only once a yr..confused on how this works say it 6.5 2o23 is that inflation total alone with cost of living??
X1.50 is even better
For many years I worked in Canada. Now I am in Europe. I am over 65 years old. I am trying to find my record of total number of my employment there. And Projected estimate of what I will get. Also the link about how sign on to My Service Canada pages. I have spend days to get record of my employment and what I am entitled to. Please help with clear instruction if you could.
Put the speed at 1,25 faster he is less boring that way
Retiring after 32 years of teaching at 57 this June. Amen 🙏. DB pension is the key. CPP doesn't give much and I have to take it at 65. The bridge disappears.
@johnnyboyvan, Why do you have to take CPP @ 65? Could you not delay CPP to 70 for example?
@@mrbbqlvr4274 it has to be taken at 65 that is what I learned.
@@johnnyboyvan I'm in the same boat but considering rrsp meltdown after the bridge disappears kind of like a personal bridge to put off taking cpp.
@@DavincisGirl66 my sizeable TFSA and small RRSPs will assist.
@@johnnyboyvan this is not true. You can take your CPP anytime from age 60 - 70. For many, OAS will replace the bridge (and then some) and you can still defer to age 70 to get the higher CPP if you so choose.
How does ympe work if your on odsp..and cppd total roughly 1274per month!
It doesn’t matter. They take out those years from your calculation.
Why does the government get to keep your CPP when you pass and not go the estate, the money you put in and your employer in to CPP?
The government doesn’t keep it, it just stays in the fund. It’s just the way every pension plan works, otherwise it would cost way more for us to fund.
Great video. If you're waiting the 5 years from 65 to 70, is the amount you are delaying also indexed to inflation? In other words will you just get 42% more of what you would have received at age 65 or is it also bumped in addition by inflation? Thank you.
Just the 42%, but then that number is indexed to inflation, so it would start to add up
I think Its a great Idea - Atleast you have some thing at the end to add to your pool of income. If you didnt contribute then I assume you would complain. Or go live in some other country that gives you Jack.S##T.
Thanks for the great explanation..
Good man.👏👍💯
How old do you have to be to collect ympe isn't there also another ?
Can you collect your x'S cpp part after turning 60 if hes 65 if you done a pension split before hes 65?
I’m not sure if I understand the question. You can’t collect his CPP, only he can. retirehappy.ca/understanding-cpp-sharing/
That’s a link to a great blog from Retire Happy which has a good example and explanation
Thanks..great info on pension splits etc!
Set up link not good, error page
Sorry Frank, Ryan the editor here, will hop back on and fix in a bit
So if you worked the full 39 years and paid the max YMPE and retired at 58 would you still see the max in CPP if you waited until 65 to collect it? Or would it be reduced because you didn't contribute for 7 years?
You’d get full CPP, because those last years will be your drop out years
@@K4Financial Makes sense! Thanks for the quick reply and the dry humor. 😀
Would the amount be worse to delay taking cpp if you only worked a few years?
You’d still get an increase on what you’d receive from CPP at 65.
In that case, usually you should take OAS and get GIS and then take the delayed CPP. Hard to say that with certainty though
If the governments didn't send boat loads of cash to other countries we would have more then enough,
less off our pay checks and bigger pay outs for the retired.
read that first year of earning at age 18 is pro rated. Oh and if you wanna move out of country? Yep there is a tax on that called the departure tax. think in the states the death benefit is in the 10's of thousands
the states are also running in the red from what i read, their SS is not funded for the future. 1.4trillion short..Departure tax is more complicated than just leaving and paying a tax. its related to Capital Gains.
Technically, the dropout calculation uses months but for most salaried employees it’s simpler to think of it as years.
Does CPP automatically start at 65 if you do not say anything to the government or do you need to tell them ahead of time to delay it? I personally do not want to take CPP until I'm at age 68.
You need to apply for it
Do you have a twin in Vancouver BC?😂
Not that I’m aware of
Except your not including how much I had to pay into income tax and all the other taxes called benefits!
How would I know how much you paid in taxes?
Too long. Get to the point
No
No
👎
I think Kent was on the mark. I subscribe to others that talk too much but say little.
Kent, you have outdone yourself. This was fantastic.
Great stuff bud but the oilers cmon go flames.
I am certainly cheering for the Flames to miss the playoffs. Does that count as cheering for them?
Haha snap, yes we’re terrible.