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Wow, if all our health care provider think/ take the action like you, wish you and your family will need care during COVID. Our society becomes so selfish……….
Great presentation. I can add two more advantages to delaying to 70. If you have a lot of RRSPs you can delay cpp to optimize income tax burden. At 71 you'll be forced into RIFs which will force perhaps more income than you need. This will force you into a higher tax bracket and may trigger claw back. Instead, retire at 65. Draw down more RRSP than you even need and gauge that on a target tax rate of say 14%. Then when forced into RIF withdrawal streams you'll have converted more RRSP into TSFA & after tax savings. Reason #2 is CCP is indexed to inflation. Your cpp is 46% higher and will go up with inflation. your RRSP may barely keep up.
One reason to delay to age 70 is that you are de-risking your income stream. By using your own savings first and maximizing the guaranteed and indexed public pensions you are moving risk from your own money (your riskiest investments) to the government. By deferring, if you can afford to do so, you are securing your income stream for as long as you live and addressing longevity risk should you happen to live a long time--unlike your own savings you won't "outlive" CPP & OAS. When you get down to it CPP & OAS are the solid gold, indexed, guaranteed for life, DB pensions that we wish we had from our employers and that seems like something to maximize to me. Is this the way to get the most money out of CPP? You'll only know the answer to that when you know the date you'll die but I figure if I die before I "break even" then how much I got from CPP really isn't my biggest problem.
My brother decided to apply for both CPP and OAP 'so he could top up his employment pension, and his monthly income wouldn't change." I am waiting until 70, because I expect to live to 90 -105, and last year, most of my pensions would have been taxed to death. I have no immediate need for more money, as the bank account is flush, so adding more will not help much. After I am 70, I have absolutely no idea how my finances will be as I do not have a company pension, just investment income, OAS and CPP. Perhaps I won't need the money, but at least if the Government is supporting the program, I will have an inflation-eaten pension.
Would be good to have a baseline example showing earnings, years of contribution and what the CPP benefit is based on such a scenario. For example 25 years paying in with average annual earnings of $80k
The Government of Canada needs to vastly improve survivor benefits for CPP. They love it when we drop dead and get to keep the money you earned and paid into.
Great video but can’t help but feel a little sad. So many people don’t get to see past 60. I recently lost my Dad at 60 years old. My best friend lost her Dad at 61. It is very discouraging to think about the aspect of life expectancy and savings for retirement. People work so hard their entire life, contribute to retirement plans and save. So many of these hard working people don’t even get to collect their benefits. Only having a very short time, if any, to relax and enjoy before they pass. 😢
Pardon my ignorance in this matter. I am fairly new to Canada. Assuming one contributes to CPP throughout their working years and dies early without claiming anything back from the govt. Is that amt gone forever? Can the children or next of kin of that person get that money?
@@viveksoty No! The Communist government loves money too much to part with it because they only pretend to care about it's citizens and not actually care.
Yes unfortunately some do die without seeing the benefit. However a great many live long enough to receive many, many tines more than they ever contributed.
Thanks for the video! Would love to know more. I find knowing when to take CPP still confusing. I retired from teaching at 57, but have come back working part time as a tutor. Now my salary is much much lower. I called Canada Revenue to ask how this impacts my delaying CPP until 70 vs taking it now at 60, and they couldn't even give me a proper answer.
Hi Karen, I am 54 and also planning on retiring at 57 and what worries me is exactly this factor - HOW will not working until 60 or 65 impact my CPP? I understand that 'x' amount of low income years get excluded the CPP calculation is done but my salaried has varied from $20k to $150k, so not sure if it is worth it for me to keep working until I am at least 60.
Please do continue doing this series, it's something that interests me, planning for my own eventual retirement but also for my parents who are reaching those years. Also can you explain how EI affects the contribution years, is time spent on EI considered as non-contributory? Like for example these last two years where many people ended on some form of government assistance, do they only count revenue from employment or is EI added onto the income calculated? Thanks for always bringing us great topics like this one, much appreciated!
I’m a trade person. Always on EI last 10 years ez. But I max out 18% for rrsp (tax shelter) and now I’m trying to max out my tfsa account s I belive since inception max is 81,500$ I Belive but do not go over you limit’s or you get penalized not sure the rate thinking it’s 1.5% pea xxxamount of $. Chad
Good presentation Mark. Important to remember 'Child Rearing Provision'.....I have 5 children, we kept a parent at home. It is a significant concession albeit not impacting the age in which we will take CPP as discussed in this video.
My mom had 5 kids also. Didn't even start working until she was 40 or so and retired at 63. Due to drop out years for 3 kids (the first 2 were born before you could count them for that), and the 8 dropout years that everybody gets, my mom's CPP was very close to the maximum amount. Once my dad died her CPP only went up about $70/month since it was close to maxed anyways. Luckily they both had work pensions also (dad's much larger than hers), and now she gets 1/2 of my dad's work pension (which is still a lot of money) plus her own pensions.
I turn 65 next year. I've been a superintendent of two apartment buildings for 16 years. With the stress level your darn right I'm retiring at 65. Hopefully I'll make another year and a half.
I retired at age 65. At the time, it seemed like the natural time to do so, and I couldn't have afforded to retire any earlier. My first ten years, I had great health and travelled a lot. I am so glad that I retired when I did, since I was able at the time to do what I wished (less so now).
I turned 65 in November and before I received my first cheque I was diagnosed with stage 4 gastroesophageal junction adenocarcinoma and without treat I had a 1-2 month prognosis. Really wished I had retired earlier and enjoyed that time.
I wish you the best,what I can tell you. I have had 2 different kind of cancer and I really understand you. My brother retired at age 62 and 2 months later passed away with pancreatic cancer.
Hi Sophie. I do plan to continue to create more content related to retirement benefits. Thanks for supporting the channel and for taking the time to leave your comment. - Marc
Thank you so much for this video Marc. The work you put into your videos is evident and we appreciate that! Thank you for sharing your knowledge, in a clear, easy to understand manner. I would appreciate more videos like this one and definitely interested in hearing more about the analysis of taking it early etc.
Like everything else in life, it is a bit of a gamble. Look at your family's longevity, and your own personal habits. If you have been a lifelong chain smoker, etc. The best you can do is try to guesstimate based on your genes and what you have done to yourself.
@@debbielockhart7762 Thanks for your input. My parents genetics aren’t good but I learned from that and am still healthy with the same blood pressure as had in my 20’s fingers crossed lol. I’ll be 66 and still working and haven’t decided whether to take OAS at this point
Same for my mom. I'm the youngest of 5 kids, although I think the dropout didn't start until after her 3rd was born. She didn't even really start working until she was about 40 or so, and she retired at 63 (I don't think she collected her CPP until 65 though). She got so many drop out years that her CPP was very close to maximum. When my dad died many years later, the only amount available to top up her CPP to the maximum was only about $70/month. However, she still gets her work pension and my dad's work pension. She's doing well.
There is also a formula they use when you stayed at home with your kids. A child care number of years they remove from formula which can give you more money.
If you are going to get $10,000 per year (round number for calculations) from CPP and you defer it for 5 years, from age 65 to 70, that’s $50,000 that you don’t get. Your CPP will now be at $14,025 per year and it will take you over 12 years of that increased payment to be monetarily even ($50,000 divided by the extra $4,025 per year), you will be 82 or 83 years old at that point, that’s the average life span in Canada. That’s the no- go phase Brandon and Adam keep talking about where your spending drops considerably. I keep making the same comment on every video they make on this topic wondering if i’ve got something wrong, but nothing. As well, if you’re in your eighties and have spent down your savings and suddenly need $20 or $30,000, for a new roof for example, what do you do, get a loan, put it on a credit card? CPP doesn’t advance you any money. What do leave your kids if that’s what you’d like to do, your money has been vastly reduced and government pensions stop the day you die. I’d really like Adam or Brandon to discuss this side of the equation. One size fits all scenarios don’t work for everyone.
Hi thanks for taking the time to give the advice .it's a great thing . I think more detail it's great I'm planing to take it at 60 . Not sure if it's the best decision . Since no one can ensure you live beyond 65 and I don't have mortgage payments . I think will work for me.
Hi Marc, great info. Can you do a video on collecting CPP at 60 if the person has retired at age 53 with a pension. Do they take CPP early and invest the $ or defer until age 65 or 70?
Good info...I'm my case I took it at 60...cost me 42% less than at 65. However, since I get GIS it only costs me 21% since GIS makes up the other 21%. However, I get 60 months of reduced CPP before I collect OAS...
Sounds like that worked well for you. Another strategy is to delay CPP until 70 while collecting full GIS and OAS at 65. This usually makes about the same payment you would get with reduced CPP and GIS I think. Then at 70 you can claim your increased CPP. Of course, this is assuming you have other means to make it from 60-65 (still working at least part time, or Savings to draw from).
Great videos I love to watch and learn I may have missed this but I'm thinking if you're taking your CPP at 60 you're having a reduction in the amount but you're actually getting that $802 for another 60 months what's that equal in the end is it pretty close to taking it when you're 65?
Another reason to consider taking cpp at 60 is old age security (OAS). If your taxable income from other sources (employer pension the big one) is high enough, the income tested OAS will be clawed back. Correct me if I'm wrong, but in certain scenarios a good strategy is to lock in the lower cpp amount early so as to minimize/avoid this clawback
You are right, but way people working nowadays under stress, what are chances they will pass 70 ? I work 60 hours a week, I don't think so I will live that long.
It boils down to what your income needs are. But the bottom line is whatever your CPP is at age 65 it’s 42% higher at age 70. It’s a massive derisking opportunity to wait.
I don't think you need RRSP with good military pension (and it could actually bite you in the ass with the taxes since you make such a good pension you won't be in a low tax bracket). My ex retired with 28 years in the navy and then double dipped with a govt. job. Collecting over $50k annually in pension plus making the same salary he was making before retirement. Just remember the taxman comes every spring. We had him contributing to my spousal RRSP to take some of the tax burden away. I would say with a decent military pension, you don't need to worry much about outside savings and could easily delay CPP if you'd like. Even once the bridge benefit stops at 65 you will still be far better off than most of the population
Thank you Marc, great videos. This one hit home, as I am turning 65 in May. Still working full time, as self employed and would like to push it out to 70. My first question: should I also apply for OAS at 70 - will that make much difference? 2. I worked 11 years in Hungary, will they consider that, how does it work? Thank you.
OAS will increase 0.6% per month after turning 65 if deferred, but because of OAS clawback potential it doesn’t always make sense, as the extra income from deferral can lead to clawback.
Not a financial advisor and it would depend on monthly expenses. But I believe an option could be to continue to hold off on cpp. Take your oas and get gis. If your married your spouse could get an allowance. Might just be a way to hold off on cpp but allow you to retire earlier then 70
Thanks. I did highlight the maximum at age 65, but the number is different for everyone, depending on your work record. I did another video a few months back... here's the link: th-cam.com/video/BU8EcXYIn2o/w-d-xo.html Thanks for watching. - Marc
Great insights Marc, thanks for the information. I will like to ask what's your take on Insured Retirement Plan? What are the risks and benefits of an IRP? Thanks
Outstanding video as always. My question is: If you take your CPP at age 60, does the $3,166.45 (or whatever the max contribution is at the time) that you are now not paying into CPP enter into equation used to decide the best time to start CCP? I joined the military shortly after high school so I expect to have contributed the YMPE for most of the years between age 18 and 60, so paying into CPP after I have contributed the max amount would be something I would like to avoid. I love your channel, it does a great job of making financial planning simple and approachable.
Another reason for taking CPP early at age 60 if both you and your spouse have high CPP benefits because when 1 of you passed away, your CPP + survivor CPP can only be equal or less than the maximum amout of that year! Ex: your CPP is $800 and your spouse is $850, when 1 passed away in 2022, the other can only receive max $1253.59!
I’m not convinced this is a good reason unless there is a very high expectation that one spouse might pass. If there is no family history or pre-existing health scare like cancer then I would avoid this justification for taking early CPP.
@@James_48 agree. it is just one of the reasons. With this reason, it is depending on each couple situation. Our case is woth consideration as both of us have high Define Benefit Pension+ RSP/RIF to withdraw+ some investment income , also my spouse is 12 yrs older (71 and 59)
@@thamc5783 For sure. It’s very rare for couples to each have a defined benefit pension plan. In such a fortunate circumstance the likelihood of OAS clawback is quite high and therefore a higher CPP can be less beneficial.
Great videos as always. Can you look into SPP let me know what you think Saskatchewan Pension Plan available to call Canada 🇨🇦 paid 11% in there balenced fund. Thanks again you guys are soild!! Keep these videos comming.
Awesome Video, My first of yours....because I want to go out at 64.... I've had enough of work! so, are pensions, Earned Income? I do have a Stock portfolio, will be making me 1,200 / month so I can't sell sell sell...... so CPP at 64, I take a 6% reduction on 1275 approx right so 1275 - 6% would be....( 76.50 ) so 1199 - 7% taxes as at that age and NO earned income, would that not be not 33% 22% but I am hoping 7? .... WHY can they TAX, non earned income?
👍, yes please Marc. I have to also ask, it appears that if someone is on a disability CPP, it will automatically change to CPP at 65. How 0can this person on disability CPP request to NOT have the regular CPP benefits at 65? The disabled person would prefer to defer it to 70. Calling the CRA was the usual horrific experience. We tried googling for something written from CRA but could not find in writing how to deter the automatic process starting at 65. Thanks.
I was able to find this scenario on the Canada.ca site and at that time there was no option to defer. Govt policy does change over time but there was a significant drop in disability to CPP payment and no option to appeal or ask for special consideration.
@@tonyoostendorp7754 Hey there. Well, you are quite the detective! Good for you for finding the scenario. I have taken a break from searching but will resume at another time. Yes, i heard that disability to CPP payment will drop, not sure if significantly but if so then that would be...ironically, really nice for the specifics of this financial situation. Trying to not get in a higher tax margin so the plan would be to defer both OAS and CPP until 70. Anyway, at least the OAS can be deferred to 70👍 I hope to find the scenario on the Canada.ca website when I resume researching again. Thank you for your input.💯🇨🇦
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great video. I would love a deep dive into the report. Also: is there any plan to do a video on Bonds? I recall you mentioning it a while ago and with the high interest rate looming in, I think it would be great to have some comparisons of bond types and options.
Hey Agnes! Thanks for your comment and question. Yes... I know I did say I would work up a bond-related video.. and I still plan to, I promise! There are so many videos I'd like to create but wow... I just haven't been able to find the time to do more than I am now! I'll work on becoming more proficient with my work flow and see what I can do. 🙂 Hope you're well. - Marc
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@@beaviswealth thank you but no need to be "more proficient" on my behalf, lol. You two are amazing and I will forever be grateful to your team for providing me with a financial education. I'll watch that video whenever it happens to come out, be it 6 months, a year, more...thanks again for everything you do.
Please do a few examples regarding delaying CPP. Transferring risk to the government is a good idea. During the pandemic, CPP did not cut any payments. Many stocks did. I retire in 7 months at 64. LIF income starts for me, I will be cashing out RRSPs, deferring CPP until 70, OAS deferred for a couple of years. I end up with better annual cash flow this way than keeping the RRSPs and RRIFing them at 70
@@paultaylor907 Paul, I took a bit of time to figure out my taxes if I die at January 1 at 71 years old. I have a decent amount of RRSPs and LIRA. Plan B- taking OAS and CPP at 65 1: Plan B, my RRIF will be 50% larger at 71. If I die, my estate pays 47% tax. My net worth is 87% of my stated plan. 2. Between 65 and 70, I have less money than my plan A. In my plan A, I am adding to TFSA savings during this period 3. After 70, I start getting into serious OAS clawbacks with Plan B 4. I am assuming that my RRIF in both cases earn 5%, if it performs worse than that due to the vagaries of the market, I would be in greater danger of running out of money with Plan B. The risk I care about is running out of money, not leaving money on the Government table. Putting longevity risk on the government side does make my retirement safer. One really has to run the numbers to see what is best. I really believe that delaying CPP to 70 is best for most people, even people that die at 71.
Would you be able to do a video on the CPP enhancement program and how this will look like in 20-25 years. It took me maybe website and reading about it to understand it. I just want to hear your point of view
I am working full time still so o figured if I took the CPP @60 I would pay more tax and it just would put me into a higher tax bracket!??……… is this somewhat true!?? I figured 67 would be the “ Sweetspot”…….👀😎👍🤘🍻 #suggestions???
I agree sorry it seems only the investment guys want you to wait so your nest egg stays in there hands. I have lost 3 friends none of them made it to 65. Take it now nobody has a crystal ball and your spouse gets next to nothing no matter what you did.
Could you do a video on if both couples on disability age 68 & 58 and the spouse who is 68 passed away just recently and I just would like some idea of this situation . Do have some RRSP, TFSA investments under 20,000 and have applied for spousal benefit through Canada revenue one more year to 60
Info regarding Canadian tire corp ticker symbol Ctc.a. And what the difference between ctc ticker beside the price as I’m just a baby owl 🦉 and not as wise as you yet😁✌️ beside Ctc.a has a higher divided
Se especula que la edad promedio subirá a los 100 años, a los 70 todavía te queda mucho por vivir, ojalá con buena salud y finanzas. "It's speculated that the average age will rise to 100 years, at 70 you still have a lot to live for, hopefully with good health and finances."
Thank you for the great video! One thing I was wondering is if it's possible to start CPP at any age but still continue to work and therefore still contribute to CPP. I figure that if I am still contributing to the CPP then wouldn't my CPP also rise after each year that goes by while still contributing (working)?
Question about the max cpp you can collect. My wife is older and in poor health. Collecting almost max cpp. I'm 60 and my amount now would be about 50% of max. My intention was to work until 66 and the extra bump of the year would put me at max. But it seems a waste if I'm going to get to the max anyway because of the transfer of hers.
@@rps1689 almost about $10k annual for her from other pensions. Looking at it closer I think no matter what the longer I work the base rate will be higher, even if I'm not at max she will push me to the max at that time. Does delaying past 65 increase the "max" of is it still the base amount that would get increased by the survivor portion?
I'd love to see a calculator that figures out the effect of that 60-65 or 60-70 gap of not paying into CPP. If I can find one, I'll share. I intend to retire at 60 (now) and want to know how much 5-10 more dropout years will affect my benefits.
And what happens if you delay at age 60 and then die at 63 or 64? You get nothing. I'm leaning towards working as long as I can then start collecting my CPP, I just hope I don't die before I can collect my CPP.
With the cost of living/inflation at 6%, Cdn's have no choice but to take cpp at age 70. Hopefully you can obtain the gis , if you move your investments overseas. Great video !
If you move your investments overseas? Sounds shady. GIS is supposed to be for those who need it, not for those looking to be dodgy. But, you do you I guess.
@@debbielockhart7762 Educated wealthy people always set up , foreign holding companies via lawyers in others countries. Totally legal , what don't you understand ?
@@debbielockhart7762 Keep in mind eligibility for GIS has nothing to do with what assets or savings you have in Canada or abroad; only income from interest on those assets. There are no lack of retirees that have hundreds of thousands in saving that can collect GIS even millionaires.
Unfortunately due to mental health issues I had to stop working at 53. After 27 years of working in my career I will not make it to the full 30 years. Will I be able to start collecting CPP early? Or do you think I should wait till a certain age? Thank you
@@rps1689 Not necessarily, did you watch the video. He talked about if you take it at 65 you MAY get less because of those previous years after 60 taking down your payments.
Sorry to hear of your struggles with mental Health..... I do HOPE for you that you are getting some sort of treatment...and seeing the Silver Lining through the clouds....for 3 years I did not recognize my wife or HOW HARD it is on People....but Learned and understood.... what was happening... A chemical imbalance in the BRAIN.... her saving grace was a drug called.... Pristiq,,,,, and unfortunately,, it's my turn at struggles with that DEMON.... Stress, Anxiety and depression..... I do hope you feel better with each day.... Do you like to colour? there are terrific SWEARING colouring books.... today I was talking to an ex-employee of the company that I am still employed but have not worked since Dec 10th.... we had a real 4 letter conversation..... it was better than therapy.... "swearapy"
@@MiCoopRS I really appreciate your help, after 27 years of teaching grade 7 and eight and burnt out. I am doing my best and the doctors want to medicate me and I refuse. I’m trying to exhaust other things before I get into medication. Really hope your wife is getting better also! I Never expected I’d be in that situation
OAS deferral can be lucrative with a 0.6% bonus each month of deferral after age 65. However, for those with a work pension, high RSP savings or other sources of taxable income, the higher OAS payment is often clawed back anyway. Some financial planning can really help to determine the best course of action.
Hi Marc. Does it make sense to delay taking CPP if I will be getting OMERS defined pension when I retire at age 65 (in 13 years, getting approximately $50k per year) and have RRSP (currently $240k)? My current CPP estimate through Service Canada is approximately $750 per month. I also have a child so will include the child rearing years that may increase my CPP monthly payments at age 65.
Keep in mind your OMERS pension likely includes a bridge benefit that ends at age 65. Sometimes it makes sense to use/start OAS to make up for the lost bridge payment and still delay CPP to age 70. However, I think it really depends if you have other assets like an RSP to use between ages 65-70. Getting that increased, inflation protected CPP bonus can make a huge difference, but if you can’t make up the whole bridge benefit, or otherwise need the CPP income then taking it at 65 might be the right choice.
You should engage a financial planner to give you some options- It looks to me that you are well set up and will have more money in retirement than in the working world.
If you wait until you are 70 are you not missing out on 5 years of payments that would equal close to 75k? That means I think that you wouldn't break even until your almost 78 years old.
Could you confirm with me that my options are not only 60, 65 and 70 but anytime between 60 and 70 cuz I’m planning to start it at age 62 or 63... thank you for your great videos
You can take it anytime after 60. Example 60, 61, 62 and on and on. You must take it at 70 if you delay. I waited 8 months after my 65th birthday. I am healthy and expect to live longer.
I am very happy I delayed my CPP until 8 months after my 65th birthday. Every penny helps. Especially now since gas and food has gone up. But the thing that helps the most is having a “every dollar has a specific job” or as Dave Ramsey says is give every single dollar a job. And sinking funds is something I wished had learned about prior to being 66 when I first learned of them. Sinking funds are a life saver.
How would we go about figuring out which years will drag us down for the CPP payments? I have a sort of spottier work history so I already have a number of low years. The 5 years between 60 and 65 if I retire at 60 would drag it down even more I suppose. Is there a way to mathematically figure this all out for our specific circumstances?
Based on the 47 years from age 18 upto age 65, it actually doesn't include 65 because if it did that would be 48 years. Of those 47 years, like mentioned in the video, 17% or 8 years is automatically removed for lower/no contributions to CPP. If you are a woman who had children, I believe you can also deduct years from that, but it wasn't mentioned here and is important for those child bearing years as applicable. So get you CPP contributions from service canada, you should be able to login to the site or request it, and they will provide your contributions in each year since age 18, then you can go from there. Basically at the end of the day, if you contributed the max CPP contributions for 39 of the 47 years, you should qualify for max CPP payments at age 65.
The actuarial tables strongly suggest otherwise and with the constant advances in medical science it is more likely that longevity will only increase, thus suggesting that taking advantage of a higher, inflation protected CPP may be the wiser choice.
If that’s the only way one can afford to get the match, then that’s an okay choice, but it’s unlikely a group RSP can generate the same guaranteed 0.7% return per month, plus inflation protection, so I would seek out opportunities to avoid taking CPP early for this reason.
If I will take CPP In age 70 how much really I will get on my hand taking inflation on 2022 ,this thing You should take on the consideration, because federal government need tax payer money to pay his expenses. Have nice day.
No, you can elect to stop contributions after age 65, but you might be missing out on replacing lower contributory months from ages 18-early 20’s with higher months age 65+. It really depends on what your income was / will be relative to the YMPE.
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Do they have app? And this is AI assistant trade s???
How much should you allow the government to deduct from your CPP at the age 60 if you decide to take your CPP at the age of 60 🤔
How much should you allow the government to deduct from your CPP at the age 60 if you decide to take your CPP at the age of 60 🤔
Best decision I made was taking it 8 months after my 65th birthday on December 31, 2019. And I avoided working at the hospital during the pandemic.
Wow, if all our health care provider think/ take the action like you, wish you and your family will need care during COVID. Our society becomes so selfish……….
Great presentation. I can add two more advantages to delaying to 70.
If you have a lot of RRSPs you can delay cpp to optimize income tax burden. At 71 you'll be forced into RIFs which will force perhaps more income than you need. This will force you into a higher tax bracket and may trigger claw back. Instead, retire at 65. Draw down more RRSP than you even need and gauge that on a target tax rate of say 14%. Then when forced into RIF withdrawal streams you'll have converted more RRSP into TSFA & after tax savings.
Reason #2 is CCP is indexed to inflation. Your cpp is 46% higher and will go up with inflation. your RRSP may barely keep up.
Great comment and thanks for the additional suggestions. - Marc
These retirement videos are so helpful, Marc. Bless you for educating Canadians on details I don't think most people know commonly.
Yes, please do the deeper analyses of the delaying the C.C.P.
Thanks
how much deeper do you need? you get .7% each month you delay past age 65. Do the math.
One reason to delay to age 70 is that you are de-risking your income stream. By using your own savings first and maximizing the guaranteed and indexed public pensions you are moving risk from your own money (your riskiest investments) to the government. By deferring, if you can afford to do so, you are securing your income stream for as long as you live and addressing longevity risk should you happen to live a long time--unlike your own savings you won't "outlive" CPP & OAS.
When you get down to it CPP & OAS are the solid gold, indexed, guaranteed for life, DB pensions that we wish we had from our employers and that seems like something to maximize to me. Is this the way to get the most money out of CPP? You'll only know the answer to that when you know the date you'll die but I figure if I die before I "break even" then how much I got from CPP really isn't my biggest problem.
Spot-On!
My brother decided to apply for both CPP and OAP 'so he could top up his employment pension, and his monthly income wouldn't change." I am waiting until 70, because I expect to live to 90 -105, and last year, most of my pensions would have been taxed to death. I have no immediate need for more money, as the bank account is flush, so adding more will not help much. After I am 70, I have absolutely no idea how my finances will be as I do not have a company pension, just investment income, OAS and CPP. Perhaps I won't need the money, but at least if the Government is supporting the program, I will have an inflation-eaten pension.
Hi, thanks for the video. I'd enjoy hearing more about this if you are able to make a video on it :)
Best decision I made was taking it at age 60
Glad it worked out for you, Dave. - Marc
Would be good to have a baseline example showing earnings, years of contribution and what the CPP benefit is based on such a scenario. For example 25 years paying in with average annual earnings of $80k
The Government of Canada needs to vastly improve survivor benefits for CPP. They love it when we drop dead and get to keep the money you earned and paid into.
I agree. The survivor benefit can hardly even be considered a benefit. - Marc
Great video but can’t help but feel a little sad. So many people don’t get to see past 60. I recently lost my Dad at 60 years old. My best friend lost her Dad at 61. It is very discouraging to think about the aspect of life expectancy and savings for retirement. People work so hard their entire life, contribute to retirement plans and save. So many of these hard working people don’t even get to collect their benefits. Only having a very short time, if any, to relax and enjoy before they pass. 😢
Pardon my ignorance in this matter. I am fairly new to Canada. Assuming one contributes to CPP throughout their working years and dies early without claiming anything back from the govt. Is that amt gone forever? Can the children or next of kin of that person get that money?
@@viveksoty unfortunately no if the person was married they would get a partial benefit
@@viveksoty No!
The Communist government loves money too much to part with it because they only pretend to care about it's citizens and not actually care.
My brother worked for 45 years in Canada and waited till 65 to collect cpp. Same year he died.
Yes unfortunately some do die without seeing the benefit. However a great many live long enough to receive many, many tines more than they ever contributed.
Great video on a very important subject that sadly many Canadians are not educated on thank you for helping change this
Thanks for the video! Would love to know more. I find knowing when to take CPP still confusing. I retired from teaching at 57, but have come back working part time as a tutor. Now my salary is much much lower. I called Canada Revenue to ask how this impacts my delaying CPP until 70 vs taking it now at 60, and they couldn't even give me a proper answer.
Hi Karen, I am 54 and also planning on retiring at 57 and what worries me is exactly this factor - HOW will not working until 60 or 65 impact my CPP? I understand that 'x' amount of low income years get excluded the CPP calculation is done but my salaried has varied from $20k to $150k, so not sure if it is worth it for me to keep working until I am at least 60.
Please do continue doing this series, it's something that interests me, planning for my own eventual retirement but also for my parents who are reaching those years. Also can you explain how EI affects the contribution years, is time spent on EI considered as non-contributory? Like for example these last two years where many people ended on some form of government assistance, do they only count revenue from employment or is EI added onto the income calculated? Thanks for always bringing us great topics like this one, much appreciated!
I’m a trade person. Always on EI last 10 years ez. But I max out 18% for rrsp (tax shelter) and now I’m trying to max out my tfsa account s I belive since inception max is 81,500$ I Belive but do not go over you limit’s or you get penalized not sure the rate thinking it’s 1.5% pea xxxamount of $.
Chad
Months on EI would count as non-contributory.
Good presentation Mark. Important to remember 'Child Rearing Provision'.....I have 5 children, we kept a parent at home. It is a significant concession albeit not impacting the age in which we will take CPP as discussed in this video.
And important to note you must apply for this adjustment at the time of asking for your CPP benefit. It can make a significant difference.
My mom had 5 kids also. Didn't even start working until she was 40 or so and retired at 63. Due to drop out years for 3 kids (the first 2 were born before you could count them for that), and the 8 dropout years that everybody gets, my mom's CPP was very close to the maximum amount. Once my dad died her CPP only went up about $70/month since it was close to maxed anyways. Luckily they both had work pensions also (dad's much larger than hers), and now she gets 1/2 of my dad's work pension (which is still a lot of money) plus her own pensions.
I turn 65 next year. I've been a superintendent of two apartment buildings for 16 years. With the stress level your darn right I'm retiring at 65. Hopefully I'll make another year and a half.
Fingers crossed... make the most of the last year and a half, and then enjoy the next phase. - Marc
I retired at age 65. At the time, it seemed like the natural time to do so, and I couldn't have afforded to retire any earlier. My first ten years, I had great health and travelled a lot. I am so glad that I retired when I did, since I was able at the time to do what I wished (less so now).
I turned 65 in November and before I received my first cheque I was diagnosed with stage 4 gastroesophageal junction adenocarcinoma and without treat I had a 1-2 month prognosis. Really wished I had retired earlier and enjoyed that time.
Very sorry to hear your story, but thanks for sharing. - Marc
I wish you the best,what I can tell you.
I have had 2 different kind of cancer and I really understand you.
My brother retired at age 62 and 2 months later passed away with pancreatic cancer.
I took a sure thing at 60 - sure enough - health issues started to prop up at 66yrs / no regrets
I would love to see a video on maximizing the CPP benefit base on different situations and income. Thank you so much
Hi Sophie. I do plan to continue to create more content related to retirement benefits. Thanks for supporting the channel and for taking the time to leave your comment. - Marc
Yes. I am very interested in knowing more about this subject.
Yes please! Have been waiting to find this information! So more info for soon to be seniors!
Thanks, Joanne. - Marc
Thank you so much for this video Marc. The work you put into your videos is evident and we appreciate that! Thank you for sharing your knowledge, in a clear, easy to understand manner. I would appreciate more videos like this one and definitely interested in hearing more about the analysis of taking it early etc.
Thank you for translating the actuarial report into something I could understand.
If a person waits till 70, lets hope they live that long 🤔 Thanks for explaining the pros and cons
Like everything else in life, it is a bit of a gamble. Look at your family's longevity, and your own personal habits. If you have been a lifelong chain smoker, etc. The best you can do is try to guesstimate based on your genes and what you have done to yourself.
@@debbielockhart7762
Thanks for your input. My parents genetics aren’t good but I learned from that and am still healthy with the same blood pressure as had in my 20’s fingers crossed lol. I’ll be 66 and still working and haven’t decided whether to take OAS at this point
I was very surprised taking my CPP at 65 with the child care factor included was much more than expected
Same for my mom. I'm the youngest of 5 kids, although I think the dropout didn't start until after her 3rd was born. She didn't even really start working until she was about 40 or so, and she retired at 63 (I don't think she collected her CPP until 65 though). She got so many drop out years that her CPP was very close to maximum. When my dad died many years later, the only amount available to top up her CPP to the maximum was only about $70/month. However, she still gets her work pension and my dad's work pension. She's doing well.
There is also a formula they use when you stayed at home with your kids. A child care number of years they remove from formula which can give you more money.
If you are going to get $10,000 per year (round number for calculations) from CPP and you defer it for 5 years, from age 65 to 70, that’s $50,000 that you don’t get. Your CPP will now be at $14,025 per year and it will take you over 12 years of that increased payment to be monetarily even ($50,000 divided by the extra $4,025 per year), you will be 82 or 83 years old at that point, that’s the average life span in Canada. That’s the no- go phase Brandon and Adam keep talking about where your spending drops considerably. I keep making the same comment on every video they make on this topic wondering if i’ve got something wrong, but nothing. As well, if you’re in your eighties and have spent down your savings and suddenly need $20 or $30,000, for a new roof for example, what do you do, get a loan, put it on a credit card? CPP doesn’t advance you any money. What do leave your kids if that’s what you’d like to do, your money has been vastly reduced and government pensions stop the day you die.
I’d really like Adam or Brandon to discuss this side of the equation. One size fits all scenarios don’t work for everyone.
Hi thanks for taking the time to give the advice .it's a great thing . I think more detail it's great I'm planing to take it at 60 . Not sure if it's the best decision . Since no one can ensure you live beyond 65 and I don't have mortgage payments . I think will work for me.
great video marc. im not thinking about my CPP right now, but its good knowledge to have. thank you
I’m 48. But what happened to feeedom 55 liberals 😂
I am in for the mind churning CPP breakdown
Hi Marc, great info. Can you do a video on collecting CPP at 60 if the person has retired at age 53 with a pension. Do they take CPP early and invest the $ or defer until age 65 or 70?
Hi Joni. I am planning to create more retirement related videos, so I will add your suggestion to the list. Thanks for watching. - Marc
Good info...I'm my case I took it at 60...cost me 42% less than at 65. However, since I get GIS it only costs me 21% since GIS makes up the other 21%. However, I get 60 months of reduced CPP before I collect OAS...
Sounds like that worked well for you. Another strategy is to delay CPP until 70 while collecting full GIS and OAS at 65. This usually makes about the same payment you would get with reduced CPP and GIS I think. Then at 70 you can claim your increased CPP. Of course, this is assuming you have other means to make it from 60-65 (still working at least part time, or Savings to draw from).
@@debbielockhart7762 thats a good plan too but then I must add risk of death into that...Cheers
Excellent info for myself as i have recently retired and this is very simple to understand and helpful to me :))
Awesome, Michael. Congrats on your retirement! Enjoy. - Marc
yes. please do the video
I'm planning to take it at 60. I don't know if I'm alive at age 70.
Yes, and if you have a solid TFSA and savings or benefit from work then you are all set financially for the peace of mind.
Watched and liked, thanks Marc! Yes, would love to see the deep analysis.
Great videos I love to watch and learn I may have missed this but I'm thinking if you're taking your CPP at 60 you're having a reduction in the amount but you're actually getting that $802 for another 60 months what's that equal in the end is it pretty close to taking it when you're 65?
So true you receive 5 years of payments.
Another reason to consider taking cpp at 60 is old age security (OAS). If your taxable income from other sources (employer pension the big one) is high enough, the income tested OAS will be clawed back. Correct me if I'm wrong, but in certain scenarios a good strategy is to lock in the lower cpp amount early so as to minimize/avoid this clawback
Should have listened to the end before commenting 😂🤦
Thanks for watching... and for continuing to the end of the video! 🙂- Marc
You are right, but way people working nowadays under stress, what are chances they will pass 70 ?
I work 60 hours a week, I don't think so I will live that long.
Great video, will pass this information on to few friends.
Love the Channel..
Awesome, thank you Buck. - Marc
Thanks Marc. Great content. I would love to know more.
This is very informative. Thanks so much for sharing.
Mark-thank you for these wonderful videos, very informative and please do more videos. :)
Great video!
Would love to see a Military pension, RRSP, and CPP combo: to see if 70 is best.. and if you really even need RRSP?
It boils down to what your income needs are. But the bottom line is whatever your CPP is at age 65 it’s 42% higher at age 70. It’s a massive derisking opportunity to wait.
I don't think you need RRSP with good military pension (and it could actually bite you in the ass with the taxes since you make such a good pension you won't be in a low tax bracket). My ex retired with 28 years in the navy and then double dipped with a govt. job. Collecting over $50k annually in pension plus making the same salary he was making before retirement. Just remember the taxman comes every spring. We had him contributing to my spousal RRSP to take some of the tax burden away. I would say with a decent military pension, you don't need to worry much about outside savings and could easily delay CPP if you'd like. Even once the bridge benefit stops at 65 you will still be far better off than most of the population
A every dollar budget and sinking funds are a life saver for a senior.
Thank you Marc, great videos. This one hit home, as I am turning 65 in May. Still working full time, as self employed and would like to push it out to 70.
My first question: should I also apply for OAS at 70 - will that make much difference?
2. I worked 11 years in Hungary, will they consider that, how does it work? Thank you.
OAS will increase 0.6% per month after turning 65 if deferred, but because of OAS clawback potential it doesn’t always make sense, as the extra income from deferral can lead to clawback.
Not a financial advisor and it would depend on monthly expenses. But I believe an option could be to continue to hold off on cpp. Take your oas and get gis. If your married your spouse could get an allowance. Might just be a way to hold off on cpp but allow you to retire earlier then 70
Would like to see more on this subject. Thanks
Excellent video, tha k you. Unless I missed it I didn't see the amount at 65.
Thanks. I did highlight the maximum at age 65, but the number is different for everyone, depending on your work record. I did another video a few months back... here's the link: th-cam.com/video/BU8EcXYIn2o/w-d-xo.html
Thanks for watching. - Marc
You missed it several times.
Great insights Marc, thanks for the information.
I will like to ask what's your take on Insured Retirement Plan? What are the risks and benefits of an IRP?
Thanks
I'd be very excited to watch that video.
Great video . Valuable life info. Life changing.
Yes please offer a greater detailed video.
Outstanding video as always.
My question is: If you take your CPP at age 60, does the $3,166.45 (or whatever the max contribution is at the time) that you are now not paying into CPP enter into equation used to decide the best time to start CCP?
I joined the military shortly after high school so I expect to have contributed the YMPE for most of the years between age 18 and 60, so paying into CPP after I have contributed the max amount would be something I would like to avoid.
I love your channel, it does a great job of making financial planning simple and approachable.
I would be intereted in hearing more please.
Another reason for taking CPP early at age 60 if both you and your spouse have high CPP benefits because when 1 of you passed away, your CPP + survivor CPP can only be equal or less than the maximum amout of that year! Ex: your CPP is $800 and your spouse is $850, when 1 passed away in 2022, the other can only receive max $1253.59!
Good point
I’m not convinced this is a good reason unless there is a very high expectation that one spouse might pass. If there is no family history or pre-existing health scare like cancer then I would avoid this justification for taking early CPP.
@@James_48 agree. it is just one of the reasons. With this reason, it is depending on each couple situation. Our case is woth consideration as both of us have high Define Benefit Pension+ RSP/RIF to withdraw+ some investment income , also my spouse is 12 yrs older (71 and 59)
@@thamc5783 For sure. It’s very rare for couples to each have a defined benefit pension plan. In such a fortunate circumstance the likelihood of OAS clawback is quite high and therefore a higher CPP can be less beneficial.
Yes would like more info about CPP and early/late take up
Hi Al. I am planning a follow up video, hopefully before too long. Thanks for watching. - Marc
Great videos as always. Can you look into SPP let me know what you think Saskatchewan Pension Plan available to call Canada 🇨🇦 paid 11% in there balenced fund.
Thanks again you guys are soild!! Keep these videos comming.
i would love to see the in depth subsequent video.
Hi Peter. Thanks for your comment... I do plan to create that video before too long. Stay tuned. - Marc
Max amount for social security in US is $3600/mo. We're so ripped off in this country.
Awesome Video, My first of yours....because I want to go out at 64.... I've had enough of work! so, are pensions, Earned Income? I do have a Stock portfolio, will be making me 1,200 / month so I can't sell sell sell...... so CPP at 64, I take a 6% reduction on 1275 approx right so 1275 - 6% would be....( 76.50 ) so 1199 - 7% taxes as at that age and NO earned income, would that not be not 33% 22% but I am hoping 7? .... WHY can they TAX, non earned income?
👍, yes please Marc. I have to also ask, it appears that if someone is on a disability CPP, it will automatically change to CPP at 65. How 0can this person on disability CPP request to NOT have the regular CPP benefits at 65? The disabled person would prefer to defer it to 70. Calling the CRA was the usual horrific experience. We tried googling for something written from CRA but could not find in writing how to deter the automatic process starting at 65. Thanks.
I was able to find this scenario on the Canada.ca site and at that time there was no option to defer. Govt policy does change over time but there was a significant drop in disability to CPP payment and no option to appeal or ask for special consideration.
@@tonyoostendorp7754 Hey there. Well, you are quite the detective! Good for you for finding the scenario. I have taken a break from searching but will resume at another time. Yes, i heard that disability to CPP payment will drop, not sure if significantly but if so then that would be...ironically, really nice for the specifics of this financial situation. Trying to not get in a higher tax margin so the plan would be to defer both OAS and CPP until 70. Anyway, at least the OAS can be deferred to 70👍 I hope to find the scenario on the Canada.ca website when I resume researching again. Thank you for your input.💯🇨🇦
great video. I would love a deep dive into the report. Also: is there any plan to do a video on Bonds? I recall you mentioning it a while ago and with the high interest rate looming in, I think it would be great to have some comparisons of bond types and options.
Hey Agnes! Thanks for your comment and question. Yes... I know I did say I would work up a bond-related video.. and I still plan to, I promise! There are so many videos I'd like to create but wow... I just haven't been able to find the time to do more than I am now! I'll work on becoming more proficient with my work flow and see what I can do. 🙂 Hope you're well. - Marc
@@beaviswealth thank you but no need to be "more proficient" on my behalf, lol. You two are amazing and I will forever be grateful to your team for providing me with a financial education. I'll watch that video whenever it happens to come out, be it 6 months, a year, more...thanks again for everything you do.
Please do a few examples regarding delaying CPP. Transferring risk to the government is a good idea. During the pandemic, CPP did not cut any payments. Many stocks did.
I retire in 7 months at 64. LIF income starts for me, I will be cashing out RRSPs, deferring CPP until 70, OAS deferred for a couple of years. I end up with better annual cash flow this way than keeping the RRSPs and RRIFing them at 70
Nice! What happen if you drop dead at 71? Genius!
@@paultaylor907 then you don't need the money
@@paultaylor907 Paul, I took a bit of time to figure out my taxes if I die at January 1 at 71 years old. I have a decent amount of RRSPs and LIRA. Plan B- taking OAS and CPP at 65
1: Plan B, my RRIF will be 50% larger at 71. If I die, my estate pays 47% tax. My net worth is 87% of my stated plan.
2. Between 65 and 70, I have less money than my plan A. In my plan A, I am adding to TFSA savings during this period
3. After 70, I start getting into serious OAS clawbacks with Plan B
4. I am assuming that my RRIF in both cases earn 5%, if it performs worse than that due to the vagaries of the market, I would be in greater danger of running out of money with Plan B.
The risk I care about is running out of money, not leaving money on the Government table. Putting longevity risk on the government side does make my retirement safer. One really has to run the numbers to see what is best. I really believe that delaying CPP to 70 is best for most people, even people that die at 71.
Yes please
Yes more details
Would you be able to do a video on the CPP enhancement program and how this will look like in 20-25 years. It took me maybe website and reading about it to understand it. I just want to hear your point of view
Thanks for your suggestion, Dave. I'll make a note of it and try to work this into a future video. - Marc
I am working full time still so o figured if I took the CPP @60 I would pay more tax and it just would put me into a higher tax bracket!??……… is this somewhat true!?? I figured 67 would be the “ Sweetspot”…….👀😎👍🤘🍻
#suggestions???
I agree sorry it seems only the investment guys want you to wait so your nest egg stays in there hands. I have lost 3 friends none of them made it to 65. Take it now nobody has a crystal ball and your spouse gets next to nothing no matter what you did.
I'm for as much CPP information you can send our way!
Could you do a video on if both couples on disability age 68 & 58 and the spouse who is 68 passed away just recently and I just would like some idea of this situation . Do have some RRSP, TFSA investments under 20,000 and have applied for spousal benefit through Canada revenue one more year to 60
Info regarding Canadian tire corp ticker symbol Ctc.a. And what the difference between ctc ticker beside the price as I’m just a baby owl 🦉 and not as wise as you yet😁✌️ beside Ctc.a has a higher divided
Would like to see a deep dive on that report.
Thanks, John. Based on feedback I'll make that video. - Marc
Se especula que la edad promedio subirá a los 100 años, a los 70 todavía te queda mucho por vivir, ojalá con buena salud y finanzas.
"It's speculated that the average age will rise to 100 years, at 70 you still have a lot to live for, hopefully with good health and finances."
Thank you for the great video! One thing I was wondering is if it's possible to start CPP at any age but still continue to work and therefore still contribute to CPP. I figure that if I am still contributing to the CPP then wouldn't my CPP also rise after each year that goes by while still contributing (working)?
Yes, there is post-retirement benefit for those that continue to work and contribute between 65-70.
Amazing video
Thank you Yashpreet. We appreciate you watching. - Marc
Question about the max cpp you can collect. My wife is older and in poor health. Collecting almost max cpp. I'm 60 and my amount now would be about 50% of max. My intention was to work until 66 and the extra bump of the year would put me at max. But it seems a waste if I'm going to get to the max anyway because of the transfer of hers.
@@rps1689 almost about $10k annual for her from other pensions. Looking at it closer I think no matter what the longer I work the base rate will be higher, even if I'm not at max she will push me to the max at that time. Does delaying past 65 increase the "max" of is it still the base amount that would get increased by the survivor portion?
Can I take my CPP at 66 yrs of age?What would be the increase in %?
I'd love to see a calculator that figures out the effect of that 60-65 or 60-70 gap of not paying into CPP. If I can find one, I'll share. I intend to retire at 60 (now) and want to know how much 5-10 more dropout years will affect my benefits.
And what happens if you delay at age 60 and then die at 63 or 64? You get nothing. I'm leaning towards working as long as I can then start collecting my CPP, I just hope I don't die before I can collect my CPP.
That's one of the harshest parts of the plan... the very low death benefit of only $2,500. Hope that changes at some point. - Marc
With the cost of living/inflation at 6%, Cdn's have no choice but to take cpp at age 70. Hopefully you can obtain the gis , if you move your investments overseas. Great video !
If you move your investments overseas? Sounds shady. GIS is supposed to be for those who need it, not for those looking to be dodgy. But, you do you I guess.
@@debbielockhart7762 Educated wealthy people always set up , foreign holding companies via lawyers in others countries. Totally legal , what don't you understand ?
@@jt8280 What I don't "understand" as you so condescendingly put it, is why educated "wealthy" people should be receiving GIS. Totally amoral.
@@debbielockhart7762 Are you ok ?
@@debbielockhart7762 Keep in mind eligibility for GIS has nothing to do with what assets or savings you have in Canada or abroad; only income from interest on those assets. There are no lack of retirees that have hundreds of thousands in saving that can collect GIS even millionaires.
Unfortunately due to mental health issues I had to stop working at 53. After 27 years of working in my career I will not make it to the full 30 years. Will I be able to start collecting CPP early? Or do you think I should wait till a certain age? Thank you
@@rps1689 Not necessarily, did you watch the video. He talked about if you take it at 65 you MAY get less because of those previous years after 60 taking down your payments.
Sorry to hear of your struggles with mental Health..... I do HOPE for you that you are getting some sort of treatment...and seeing the Silver Lining through the clouds....for 3 years I did not recognize my wife or HOW HARD it is on People....but Learned and understood.... what was happening... A chemical imbalance in the BRAIN.... her saving grace was a drug called.... Pristiq,,,,, and unfortunately,, it's my turn at struggles with that DEMON.... Stress, Anxiety and depression..... I do hope you feel better with each day.... Do you like to colour? there are terrific SWEARING colouring books.... today I was talking to an ex-employee of the company that I am still employed but have not worked since Dec 10th.... we had a real 4 letter conversation..... it was better than therapy.... "swearapy"
@@MiCoopRS I really appreciate your help, after 27 years of teaching grade 7 and eight and burnt out. I am doing my best and the doctors want to medicate me and I refuse. I’m trying to exhaust other things before I get into medication. Really hope your wife is getting better also! I Never expected I’d be in that situation
Would you talk about when to take OAS? Thanks!
OAS deferral can be lucrative with a 0.6% bonus each month of deferral after age 65. However, for those with a work pension, high RSP savings or other sources of taxable income, the higher OAS payment is often clawed back anyway. Some financial planning can really help to determine the best course of action.
@@James_48 Thanks a lot!
Hi Marc. Does it make sense to delay taking CPP if I will be getting OMERS defined pension when I retire at age 65 (in 13 years, getting approximately $50k per year) and have RRSP (currently $240k)? My current CPP estimate through Service Canada is approximately $750 per month. I also have a child so will include the child rearing years that may increase my CPP monthly payments at age 65.
Keep in mind your OMERS pension likely includes a bridge benefit that ends at age 65. Sometimes it makes sense to use/start OAS to make up for the lost bridge payment and still delay CPP to age 70. However, I think it really depends if you have other assets like an RSP to use between ages 65-70. Getting that increased, inflation protected CPP bonus can make a huge difference, but if you can’t make up the whole bridge benefit, or otherwise need the CPP income then taking it at 65 might be the right choice.
You should engage a financial planner to give you some options- It looks to me that you are well set up and will have more money in retirement than in the working world.
Nice
How can your payments not go up? Real inflation at the moment is about 15% in 5 years at that rate your CCP payments are worth only 50% in 5 years!
Hi Ken. The CPP benefits do go up, and they are adjusted using the CPI All-Items index. Thanks for watching. - Marc
Iam going to retire next year 2023. I like to no how much I will get back I think I need to talk to financial advisor
Lets say I take cpp at age 60 but continue to work... Do I still have to pay cpp on my wages or on my personal income tax at the end of the year??
Yes you continue to pay, but you do get additioal post retirement benefit
Yes, as Richard said, but you can elect to stop contributions if you work beyond 65.
If you wait until you are 70 are you not missing out on 5 years of payments that would equal close to 75k? That means I think that you wouldn't break even until your almost 78 years old.
Sorry I mean almost 83 years old.
Sorry I mean almost 83 years old.
Could you confirm with me that my options are not only 60, 65 and 70 but anytime between 60 and 70 cuz I’m planning to start it at age 62 or 63... thank you for your great videos
You can take it anytime after 60. Example 60, 61, 62 and on and on. You must take it at 70 if you delay. I waited 8 months after my 65th birthday. I am healthy and expect to live longer.
I am very happy I delayed my CPP until 8 months after my 65th birthday. Every penny helps. Especially now since gas and food has gone up. But the thing that helps the most is having a “every dollar has a specific job” or as Dave Ramsey says is give every single dollar a job. And sinking funds is something I wished had learned about prior to being 66 when I first learned of them. Sinking funds are a life saver.
Every month either way makes a difference. Each month before 65 is a 0.6% reduction and every month after 65 is a 0.7% increase.
How would we go about figuring out which years will drag us down for the CPP payments? I have a sort of spottier work history so I already have a number of low years. The 5 years between 60 and 65 if I retire at 60 would drag it down even more I suppose. Is there a way to mathematically figure this all out for our specific circumstances?
Based on the 47 years from age 18 upto age 65, it actually doesn't include 65 because if it did that would be 48 years. Of those 47 years, like mentioned in the video, 17% or 8 years is automatically removed for lower/no contributions to CPP. If you are a woman who had children, I believe you can also deduct years from that, but it wasn't mentioned here and is important for those child bearing years as applicable. So get you CPP contributions from service canada, you should be able to login to the site or request it, and they will provide your contributions in each year since age 18, then you can go from there. Basically at the end of the day, if you contributed the max CPP contributions for 39 of the 47 years, you should qualify for max CPP payments at age 65.
Take it at 60
Really nowadays, most people don’t make it to age 70
The actuarial tables strongly suggest otherwise and with the constant advances in medical science it is more likely that longevity will only increase, thus suggesting that taking advantage of a higher, inflation protected CPP may be the wiser choice.
Average life expectancy is around 84 for a female in Canada
Took mine early and put the money into my work group RRSP I get $75 match for every $100 of my contribution
If that’s the only way one can afford to get the match, then that’s an okay choice, but it’s unlikely a group RSP can generate the same guaranteed 0.7% return per month, plus inflation protection, so I would seek out opportunities to avoid taking CPP early for this reason.
If I will take CPP In age 70 how much really I will get on my hand taking inflation on 2022 ,this thing You should take on the consideration, because federal government need tax payer money to pay his expenses. Have nice day.
If you are working past 65 are you required to continue to contribute to the CPP?
No, you can elect to stop contributions after age 65, but you might be missing out on replacing lower contributory months from ages 18-early 20’s with higher months age 65+. It really depends on what your income was / will be relative to the YMPE.
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The years are reduced with the child car provision
CPP applicants must be sure to request this adjustment when applying. I suspect many forget or don’t know about it.
IF you don't die while you're waiting...
Pasive