Both my husband and I began our CPP at 60, and we were both still working full time. We placed the monthly amounts into our TFSA accounts without using the payments. Our decision was based on loosing a close friend quickly to cancer and he had not retired nor received his OAS or CPP, he signed his work pension however, passed before he received his first payment. Life is short and we both wanted even if not full amount, what we could get just in case we did not live out the time to reach the full payments amounts.
There are other advantages taking it early that many do not mention and that is should you need the money for whatever, you have it and don't be surprised if the gov changes the rules and extends the retirement date or something along those lines. A decision like that would not affect you.
I did the same . I collect CPP at 60 . I save in a TSFA . You can you use the amount to supplement and or purchase a new or used vehicle in the future . It’s a win 🥇 win situation .
I took CPP at 60 with no regrets. 60 to 65 are your best travel years so the money is more valuable than at 80 if you are trying to enjoy retirement. One factor some forget is once you draw CPP there is a cost of living increase each year so you will get 5 increases before 65. So compare the 65 pension number to the 60 pension number plus 5 cost of living increases. It worked for me, having the money when young enough to enjoy it is a consideration.
I've lost friends every decade of my life. I take nothing for granted. I turn sixty this year and don't necessarily need it now but i will be taking it. The best years of your life are usually the ones right in front of you. You may not enjoy it as much at 70 depending on how your life pans out. Jmo.
This thought haunts me as well. I too, turn sixty this year. I've had friends die early and I've seen people lose their health and have decreased quality of life. I don't know if I'll die before 70 or make it to 90. I'll either run out of money or I run out of life... or health and vitality. I keep thinking my next decade will be great. I'm retired now and I'm still healthy. The next decade will be OK but will see a decline. The decade after that? Deterioration, aging, health issues and decrepitude. I lost my healthy father at 82, and my stepfather just passed at 85 from horrendous debilitating dementia. I won't go out that way. Thinking I should supplement my income, allow myself to spread my RRSP withdrawals over a longer period of time at a lower rate so that in the end my total lost to taxation is lower. At this stage of my life I'm especially sensitive to not paying any more tax. Everyone's situation is different but we face the same inevitable issues.
I retired at 59 took cpp early and w/d RSP to top up Income. I was concerned that the 5 years of not working would effect the non working years. I have a very meager budget and will be better off once OAS kicks in at 65 and I plan to get GIS too. I expect to live until 80/85. My home will pay for my retirement home if it comes to that, but hope to age in place. Basically I'm house poor, but glad I have a roof over my head.
Always interesting to hear your take on things. I think the first rule is: If you need it at 60, take it at 60. I'm all for compromise between 60 & 70...I took it at 65. Best of both worlds to my thinking.
Great words of advice ....however "a smaller balloon is better than no balloon" ... Nobody knows how many days we have left here in this journey… as Steve Miller said.." Take the money and run!!"""
my two brother both dies at 61 & 62 and never took their CPP like I told them. I took mine at 60 and am now 70 and spending every nickel they give me to help the economy. lol
I was in a car accident and suffered an injury that affects me daily. I had to retire from my job at 54 I need the money to live. My pension is ok but have you bought groceries lately?
I retired at 44 and started collecting at 60, I’m 61. I’d rather have it now and use than waiting until I’m too old to travel or do things I enjoy. I won’t need the same amount of money in 10-15 years. If I’m still around.
Really? You won’t need it because you have enough money now to carry you through the ever increasing inflation? You figure to curl up and die at 71-76 yrs?
I retired at 60 and did a quick calculation. How much money am I leaving in the pool for 5 years if I wait until I’m 65, and how long will it take me to earn back that money after 65. It was an easy decision that allowed me to retire from full-time employment at 60 and work part time as a freelancer doing what I love. Happiness also has a value. But I agree that one size doesn’t fit all, so I’m happy to hear another POV on the subject. If only I had a nickel for every time someone told me not to do this!
I did the same thing and it would take me to 83 to break even hahahahaha. I took it right away - chances of making it to 83 are not that great for anyone - and by the way. you wait get more and into a home you go and they take it all thank you very much for going without,,, hahahaha. none of these advice u tube bla bla ever think of that! they all say the same stuff, wait get more. hahah. the house always wins
Adam! Goodness! Reading the comments indeed there are die hard opinions. (pun there :)]. It was so important that you produce a video like this. You are listening to your audience and their concerns. Thank you. Clarifying your position that you are educating Canadians and the like to the financial landscape of taking cpp early, middle or later. It is up to the individual, you are not there to take away their decision, you are there to support with awareness. Your hard work is noted. Closing in on 100.000 subscribers. Well deserved! As with CPP and waiting, Subscriber 100K is worth the wait! 👍💯 Chiming in, Atlantic Canada always a fan and supporter.
Retired at 54. Im taking mine at 63. $1000/ month. My non contribution years kick in ( worked part-time after 54). Not doing an RRSP meltdown either because i have DB pension with a bridge until 65. Meltdown would increase my income to close to what I was making when i was working and all that would do is hit me hard in taxes..and just give my retirement savings to the government. It would also kick me into significant OAS clawback. I could wait to collect CPP, but why? More income means more taxes. No mortgage, no car payments, zero debt. Debt is the killer in retirement.
How will you get your money out of your RRSP before you die if you aren't going to melt it down? You'll probably lose 50% of it when you die. I would think taking the money out of the RRSP first and then taking CPP later would cost less in tax while getting the same amount of money. He has a bunch of videos on it that make sense of how to do it.
Simple strategy… 55 now. Working part time. My indexed DP pension puts me in the 28.2 bracket. I will meltdown RRSP from 60-68 years old to the 28.2 limit. Once RRSP’s run out take my CPP. I will take OAS at 65
I am in similar situation retired age 55 with DB and $200/mth bridge to 65 (my spouse retired same year age 65 with DB,CPP $900, OAS and both have $200k-300k RRSP each). I've been melting down my RRSP/RRIF big way age 56 to 59. Now age 60, I start taking my CPP $830 (36% decducted) and continue melting down RRSP/RRIF with adjustable amount (until age 70) trying to maintain most appropriate (avoid OAS claw back, tax bracket...) flat line of income each year for best tax benefits, until end of life. However when time come we still get higher tax hit with survivor benefits (DB and CPP)... My RRSP withdrawa give to my children for maxing their TFSAl (it'll be their inherent anyway, why not give them now😊). That is why I take my CPP age 60. It is better tax benefits. I understand each family has their own situation and own thoughts to decisions, but for us, rather give my children the money than let the tax man and government agents keeping our money!
Retired at 57, DB with bridge to 65 in play, working part time now. No RRSP. 60 is coming up in a year, was thinking a good choice would be to draw at 60 and pay down debt (relatively small mortgage) a little early. But CPP on top of a bridge would mean more taxes for the 5 years. I think I might need a planner to crunch a few options.
Listen to how he's telling you why you should take it at 60, but at the same time trying to deter you from taking it based on the money you could have. I plan to take mine at 60 and live somewhere with a lower cost of living. The world's a big place and there are many places you can live where that little bit of money can make a big difference, you're not stuck where you are unless you want to be stuck.
I started collecting CPP at 60 based on 2 reasons. My husband retired at 62. Less than a year later had a stroke and with more tests has brain tumour. 2nd reason I would have lost 5years of benefits even at reduced amount. I also retired at 61. That last year of working FT and collecting CPP all went to taxes.(big error there). Ten years retired now and I don’t regret my decision. I guess I’m fortunate because I also have a company pension that I opted to collect early at reduced amount. I get OAS because my overall income qualifies.
I'm receiving CPPD. Looking into what happens at 65 and the information is confusing. It turns into CPP retirement pension, but I'm also seeing that Disability payment can continue after 65. Would be a great topic for another video
I was in CPPD also and just turned 65. The CPPD discontinues but you do get CPPA but it’s lowered. What I don’t get is that it says in their website you get $1394+ but I am not getting that. I’m getting way less.
I gambled and threw the dice on taking my CPP at age sixty-five because my pension will be reduced by almost 60%. The phone company's pension plan isn't the what it's built up to be. That said, because of the huge reduction, I need to maximize my CPP payment along with my OAS to bring me almost back to where I am currently. My wife on the hand took hers at sixty. Thanks for sharing.
As a type 2 diabetic with other health issues it never made any sense to me to delay CPP hoping I would live long enough to recoup the five years of non-payment.
Thanks for this info. Definitely waiting till I’m 65 if I can. I’m 62, single, renting, have a good job but no assets. So CPP, work pension and OAS will be my only sources of income when I can no longer work. Having to move into a retirement residence in late 70s or 80s will be very expensive and that’s a big stress for me currently. If I pass away before I collect that’s ok. I’d much rather be able to afford living in a decent retirement residence and not live below poverty if I make it to 80. If I’m healthy and still enjoy working at 65, then I may hold off on CPP and work part-time instead and collect OAS, I believe that in a previous video you mentioned that OAS increases less than CPP if we hold off on collecting.
I'm and thinking the same in two years . Could you tell me the total what a guy collects per month ? I've worked since 14 so I've paid enough 😂 Thanks !
@@gp7910you actually haven't. It doesn't matter how long you have worked leading up to pension eligibility. For every year after you become eligible though, the monthly amount goes up.
If you start collecting it too soon, you're not doing yourself a favour. You'll get more if you wait longer. Relying on pension is a very different lifestyle than working is. You can't rely solely on a pension to cover your basic expenses.
If I could just add, qualifying for GIS also plays a big part of this decision process for those who do not have a high income and may be better off taking CPP early.
@@ddavidson5 GIS amount sharply decreases with any income you show (equivalent to 50% tax). CPP is considered income, unlike OAS. The smaller CPP amount taken at 60 will increase your GIS.
@@ew6392 Indeed, and to a point, if you lower your income you'll increase your GIS. I suppose the question is are you trying to maximize your income or maximize what you get from GIS? If you increase your income by $2 but you lose $1 of GIS it seems to me you are still up $1.
@@ew6392Indeed. To a point if you lower your income you will increase the amount of GIS you receive but is your goal maximizing your income or maximizing your GIS? If you increase your income by $2 and lose $1 of GIS it seems to me you are still up by $1.
Martel, sorry to hear about your friend and you are completely correct to take Cpp whenever you choose. Despite being a financial decision it's also a very emotional and personal reason as well. I am sure everyone has a reason why they took their Cpp at a differing time.
I was reading on the Service Canada website that if I take CPP at 60, and still working after that, I can still contribute to CPP and it will be added and adjusted as I go along.
My bills come due monthly, therefore maximizing monthly income after retiring from work when I no longer have employment income is the priority. Taking CPP early (while still employed) is counter to that need as it will reduce the monthly income in my retirement years when there is no longer employment income.
The other side of that is if you pass away one or two years after taking it at 60 you at least get some of your hard earned money back. However if you didn’t start at 60 and let’s say passed away at 62/63 that money goes to no one 🤷🏼♀️ . If you have a high income, then yes it won’t benefit you to take it, however millions of people do need it, so take it. My mother always said you will find a way too survive. Will everyone of us be around at 65 🤷🏼♀️.. Tomorrow is promised to NO One! So enjoy today!
One interesting thing to mention. May be a bit off topic but my mom had a nest egg that she got from an inheritance. Some got used but there was always a fear to save it so you don’t run out. Eventually she went to a nursing home due to health issues but not until around 80 (she did to private retirement home after a stroke around 75). But now to my point, in an Ontario nursing home she paid much more for her room and services those someone with low income. And my moms income wasn’t high but just higher than the threshold for retirement home costs. Interesting experience to see. I’m glad it exists as those low income seniors should get care but if you are in that middle area, enjoy your money and life while you can.
Break even point is at 77 yrs of age when taking it at 60 vs 65. Just remember whenever you take it, it is that amount for the rest of your life plus mediocre COLA increases. I will enjoy the 7.2% guaranteed increase from 60 while continuing to work at a job I enjoy and then maybe a few years past 65 with over 8% guaranteed increases. For every year past 65 I wait, my combined pensions (CPP, OAS, company) increase $300 a month. Many, different opinions on this topic, but if healthy, enjoying working and earning a decent wage, no panic to collect early.
My CPP calculator tells me that if I start at 60 or 65 my breakeven will occur when I'm 76, assuming 2.5% inflation and a 6% after tax return if fully invested, or age 73 if only a 3% return. This means that if I don't need it or use it other than for invest then need to reach at least to 73 befor i can enjoy the benefits of waiting. My personal math logic tells me there is minimal value of waiting unless you know for certain how long you will live and that the payments will retain their value.
I have no clue what to do. Last year they found a 4cm brain tumour in me that I had to have removed during a surgery. They couldn't get it all out and shot what was left of it with radiation. They don't expect it to grow back but who knows? Also to make sure there were no additional tumours they did more tests and inadvertently found I have a mild fatty liver. I think I want to take it at 60 if I make it long.
As a retired military member my pension included a bridge portion to tie us retirees over until age 65 (CPP benifit and OAS). Once we start collecting CPP we loose our bridge pension portion.
I’m getting 843 per month. My investments make another 1500, I do odd jobs. Son pays rm and board. No payments , no loans. Live on 3000 per month. Get debt free. Hopefully own your own home , Enjoy semi retirement. Work when I feel like. Love it. Not waiting to 65!!
@@gp7910 Just log into your Service Canada account. It tells you what your CPP estimate will be at age 60, 65 and 70 based on the contributions you've made so far.
Having watched videos like this and reading retirement books, I've come to the philosophy that age 60 is the baseline, and minimum benefit you would receive. The benefit goes up 0.6% each month till 65, and then 0.7% each month till 70. So deferrning as long as you increases your CPP amount.
My mother was looking forward to retiring at age 65 and doing all the things that she wasn't able to do during her working years raising 4 kids on her own. BOOM...she turned 65 and was diagnosed with a terminal illness. Life is short and planning for the future is precarious.
This is a great video and this is always a hot topic and a lot of people are unfortunately confused between taxes and cpp thinking the higher the income the more taxes they pay the more pension they will be entitled to not factoring the YMPE in additional to the impact on OAS clawback and GIS for low income seniors 65+ these things should be thought early on but as the saying goes if you thing the government will help you fix your life than you have 2 problems 😢. Good luck to you all know your numbers live within you means budget invest have Financials goals and discipline it will all work out at the end👍🏽
It's interesting how few financial planners ever mention the effect of CPP on GIS, even though 1/3 of retirees collect GIS. I guess there is an assumption that only rich people watch these videos, or that only rich people are of benefit to financial planners.
I'm still working and I'm 64. My plan is to work until 68. I love my job and its a mere 4 minute drive from home. I'm only working till 68 because my wife is over 4 years younger and won't retire till 64. For me, no sense retiring to be home alone. My current decision is, do I start taking it at 65 or wait till I retire at 68. Between my wife and I we make excellent money. My company pension uses most of my RSP contribution. I contribute whats left in a personal rsp. I could take my CPP and OAS at 65 and put it in to TFSA. I would have no rsp space to shelter it and since there is no tax shelter benefits to a TFSA I'd likely be paying a lot of it out in income tax. I am working with a financial planner to get this sorted out.
If you defer CPP until 70 but you work b/t 65-70.....your income b/t 65-70 is greatly reduced to say 24K a year....Questions: 1.Does the smaller amounts you'll pay into CPP from 65-70 drag down the amount you'll get at 70? 2. Can you opt out of paying further into CPP past age 65? Would it make any difference?
im thinking of taking it at 60. my thoughts is if i pass away that my family can get that money but if i wait till 65 to get money family will get nothing. my health is not the best.
I don't really have a choice. My workplace defined benefit pension plan allows for 30 and out and provides a top up to make up for CPP until the age of 65. I have to take it then as that is when that top up goes away. I will qualify at age 62 and retire then. My concern is around when to start drawing from my RRSP's and the tax implications of that income along with my pension income.
Enjoy your lunch money from the government at sixty because life is short after working like me for 40 years underground in the mine many friends never got to see a dime of it due to death
If you have no other pensions besides cpp and old age i believe you should not take cpp untill you retire at 65, you will need the max amount of cpp at your retirement.
Adam, - While the CPP grows while in "the pool", if I die my partner gets NOTHING!? - Isn't it better to own the money? "one bird in the hand is better than two promised'? - My current TFSA investment returns average 9-11%/yr. - How hard can it be to make 7%? (what CPP gives you). - My RRSP & TFSA are not maxed-out so putting my CPP into those means "I" own the money. No? - Say I do not need the money now (say 500$/mth) and leave it with CPP, two years later I have a big expense (medical, etc), CPP is not going to give me 12k$ to cover that. Even if my CPP by then would give me 14% more per year. I do not see the advantage. - I am going to be 63 this year. My partner 61. We have about 200K$ saved. - We are going to have to hit the trigger on these decisions shortly. - Do YOU personally work with and do financial planning for clients or just the six planners who works at Parallel do? Great video, great channel. (I follow with different accounts due to recent YT restrictions and policies). Thank you for your answers.
Given your circumstances, taking it earlier might be the best choice. Just to add a couple of things: 1) CPP grows by 7.2% from 60-65, then by 8.4% a year from 65-70. It also grows by wage inflation during this time, so 10 or 11% overall might be more realistic after age 65. After you take it, it grows by the federal government’s CPI instead of wage inflation. 2) Adam also does plans. He did mine. He is a Certified Financial Planner. You can check out his profile on the Canadian CFP professionals’ website.
4:35 Adam you mention the case of someone already hitting 39 maxes by 60. Afaik, you only need 35 maxes to be "full" by age 60, since the dropout provision is based on the years from 18 until you start cpp ?
What bothers me is if I use my rrsps to fund my living from 60 to 65 and delay cpp until 65, then I or my spouse dies, the cpp drops dramatically, oas stops and I've taken a large chunk of rrsp that could have still been working for me and providing dividend income.
@@GordCheswick Yes, I realize that, but if my spouse and Ive been dipping into our rrsps to delay taking cpp and then if one of us dies, the spousal cpp drops dramatically the spousal oas is gone and we've used rrsp funds that we can never get back. It only works if both spouses live long after retirement.
@@GordCheswickmost couples use net income. The loss of the spouse’s income directly harms the survivor. For this reason we got 400k life insurance years ago and take reduced company pensions so on death we’d lose oas only.
Technically true, but if your household is based on that higher figure loss of a good chunk of it is often the difference between living in your home and being forced to live in a studio senior's apartment. @@GordCheswick
I am almost 66 years old in June.. I have 0 income, who can help me to fill out my applications for OAS AND CPP. In a way more efficient. Any cost to pay to any financial advisor. Any advise?
So as near as I can figure, the break even point between taking CPP at 60 or 65 would be at age 72 ish. Beyond 72 you will earn more if you took CPP at 65 because once you take the reduction at 60, you never get it back
Considering the reported returns of CPP, contributions @ 5% returns per year (which seems conservative) the pool of pension available vs the payback seem to be out of sync. Can you do an analysis with regards to this. The proponets of the APP are using this as a talking point.
If you take it at 60, but you're still working (salary or freelance),do you still have to contribute until 65? Or does taking it stop the obligation to contribute ?
I encourage you to look a little longer term than this. By taking it early statistically you are helping them more, as they will pay you less to life expectancy.
For financial reasons I had to take my CPP at 60. I can barely survive on the meagre amount they pay out. From what I can tell there no other sources of government benefits that I am eligible for until I turn 65. I was just wondering if you knew of any other government benefits for people like me.
I remember in an older video there was mention of your company/team developing a CPP calculator. Did that happen/will happen/get abandoned? I ask because it would be great to be able to calculate CPP based on retiring at 60, so 5 years of not contributing plus potentially other years on lower or no contributions, to see the true numbers at 60 - 70
@@ParallelWealth Didn't you say qpp has one that calculates more effectively. Has ability to drop disability and child rearing years, if you stop working/stop contributing to cpp, etc Couldn't you leverage that one for the scripts, etc???
How can you find out how much $ you will get if you take your CPP at 60 or 65? Is there a Government website that you can go to that will provide you with this information so you have an idea of the money you will be able to take at 60 vs waiting until 65?
Great info and advise. Here is a retirement plan question no one seems to be able to answer. If I retire at 60 and stop paying into CPP but don't start withdrawing till 65, will the monthly payment continue to grow for those 5 years. Lets say my 60 year CPP would be $870 and the forecast for 65 was $1350? How is the value arrived based on waiting the 5 years and stopping contributions. The CPP board can't seem to tell me. It's vital info for a retirement plan. We have funds to supplement but not if it costs too much at 65. thanks
It will depend how many non-contributory years you have prior to age 60. If not many, then these 5 years could be unaffected. You essentially get 7 years of non-contributory years to CPP. So if you have 7 (or more than 2) prior to age 60, then your $1350 will be reduced slightly. But your annual amount from waiting increases as you are penalized for taking prior to age 65. I have never seen a situation where taking it earlier gives you more...hope that helps.
Thanks for this information! May I ask… if you go on CPP Disability before age 60 do you automatically start getting regular CPP at 60? Do you have the option to wait until 65?
I turn 60 soon. I've been reading some of you guy's comments as to why you're going to be collecting CPP early. I don't think you were paying attention. For those of you who have already received your CPP information package from the government, and you've read to see how much you actually going to lose if you take it at 60 in stead of waiting till 65, why would you ?
Took mine at 60, if I waited until 65 it would be $300-$400 more per month, but from 60-65 I will amass close to $50,000 . It would take me until I am 72 to make that $50 k back @ $300-$400 per month
My dad took it at 60 and he always makes the best decisions and I will do the same eventually. Hopefully though I wont live in Canada by then (this country is screwed). I don't count on it to survive because the money that you'll get is a joke. I've been working away building my own retirement pension which will grow far more every year than I could possibly want to spend. I am already working on making sure my kids not only have a pension but that they'll actually never need to even go get a "job". Their only job will be to learn investing which can be done anywhere in the world. Much better than working for some company and making that boss rich. Make yourself wealthy instead, stay at home and watch your kids grow up, vacations, etc !!
I'm taking mine at 65 because a) I'm in perfect health (knock on wood), and B) the amount I'll receive far exceeds the amount I would've received at 60.
I’m on CPP Disability and am 59 years old, can anyone tell me what happens at age 65? Can I receive OAS at 60 or will my CPP Disability be reduced if I do that ? I really have no idea how all this works once I hit 60 and 65 . Thanks in advance if anyone can relay what I might expect.
I'm 60...no plans to take it any time soon. grandparents lived into their 80's. parents 65 and 75s but there was a lot of smoking going on there, with the typical results. need to retire while I can still do stuff, though.
I wouldn't mind working until I'm 70 or 75 but depends on the job. Most jobs lately are pretty intense and high stress. At my last company about 10% of the employees were on stress leave from unmanageable workloads and they were still laying people off
@Parallelwealth Adam, thank you for your videos they are always well organized and well explained. I also took your advice from another video and read Frederick Vittese's "Retirement Income for Life" over the summer, as I'm thinking of retiring in the next 1 to 2 years. I have to be honest I'm still very confused about CPP. Specific to this video, you mentioned one of the reasons why you would take it out might be to invest it yourself from age 60 to 65 (or 70) and a reason you gave to perhaps reconsider is that you aren't likely to match the 7.2% interest you are gaining by leaving it in. However, to me you aren't really gaining anything as you aren't actually getting that money, but rather a higher percentage but starting much later down the road. I'm wondering what the break even point is on a typical person who has stopped working (and thus stopped paying in as well) taking it at 60 at a lower percentage, versus starting later at a higher percentage. Again, like I said it's all kind of confusing and it would be amazing if there were a convenient tool for Canadians to put in some "what if" scenarios to run the actual numbers with all the myriad other rules laid down by the CPP. To quote Vettese in his book, "fewer than a dozen people in Canada" can fully explain all the rules to CPP...and that's just not copacetic in my opinion. It's a fairly big decision that shouldn't be this nebulous.
My initial plan was to take it later and burn down my own savings until I’m 70. My financial advisor point me another reason for a middle way. He advice to keep some money in case you need a fix amount. A bigger amount every month is nice, but doesn’t help when you need a 10k-20k more.
I have opted for CPP after 65 years. But I am still working and contributing CPP. I will be eligible for OAS and GIS after 5 years as I came to Canada only five years ago. Should I continue to opt for CPP or stop.
I will start collecting CPP this year in June at age 65 after paying the max for 42 years. I retired at 62. I figure I would receive the max but was surprise that it was slightly reduce. Not sure why? Should I inquire regarding their calculations?
I applied the month before my birthday and set my start date the following month of my birthday. You can pick when. My husband and I both did the same. At 60 We both got letters in the mail months before our 60th birthdays.
The CPP will be around BUT, inflation will be much higher so if you can take your CPP payment and invest in physical assets that are denominated in USD's....or at least have their value derived from USD's....So, take your CPP as soon as you can get it....and invest in those physical assets every month. Do not have the tax deducted, but instead, pay the tax the following year with inflation reduced money.....
If someone who turned 60 ten years ago took cpp at that time to reduce how much they withdrew from their rrsp, which was invested in an s&p500 etf, today they would be ahead by a substantial margin. I realize there’s more risk in doing it this way, but it’s not like buying an individual stock. You’re either betting on the Canadian government or the American economy. Either seems just as safe a bet to me but the American economy would have delivered you a far better outcome and over a ten+ year time horizon that’s unlikely to change.
Hi Adam. Can you please clarify something about delaying CPP payments to age 70. For this exercise, let me make the following assumptions. I am currently age 65. I am eligible to receive the maximum amount of CPP of $1364.60 per month ($ 16,375.20 annually). The rate of inflation for the next five years will be 3%, which means a corresponding annual 3% increase in CPP payments. Therefore at my age 70, the maximum CPP payment will be $ 18,983.34 annually. My question is: Is the 42% maximum increase (by waiting to my age 70) applied to the CPP benefit that I was entitled to at age 65 ($16,375.20 for a new value of $23,252.78) or to the current maximum payment value at age 70 ($18,983.20 for a new value of $26,956.14)? Thanks Adam
CPP is indexed to inflation. If the maximum is X currently and the CPI is 2% then the following year its X plus 2%, plus 7.2% of the increase for delaying for 1 year. If you wait the five years until 70 it's the yearly increase ( Cpi) X 5 years of those rates plus the increase of 7.2% / year for a total of 42%.
@garth217 Good reasoning, imo. But, cpp increases 8.4 % percent for every year you delay it (.7%/mo). It is OAS that increases 7.2 % each year you delay it (.6%/mo). Maybe you just got them mixed up. in any case, given the factors you indicated, it seems that CPP would increase by at least 10 percent for each year you delay it for the amount you would have received at age 65 if you did not delay it.
EXACTLY.. Take your Quebec pension @60.. too many hold out longer bc they will get more at a higher age.. Ya ok.. What if you don't make it ey !🙄 Just take the damn thing as early as possible 😜👍🏻 and enjoy
quick question, i have maxed out my cpp contributions. I plan to retire @ 60 and only take my cpp @65. Will i get a clawback because I did not contribute for 5 years?
We both started collecting at 60, I worked till 62 and while collecting I bought silver each month and my husband turned his into cash we live on one income paid off debit and retired @ 62 & 65 with no regrets or worries. We are now in our 9th year and we are doing well except we would do better if this government'S (NDP) would get rid of the carbon tax that is effecting us big time now.
QA , taking CPP early you lock yourself at less income and decide to continue to work , you still have to contribute to the CPP even though you’re locked in at the $ amount you choose to start it until age 65?
i had a bridge in my dbp so i waited till i was 65 to take cpp, i have been hired full time by another firm. should i continue to contribute to cpp? I enjoy what i do and plan to work for a bit yet.
Adam I never hear about self employed people about taking ccp early. You must factor in tat a self employed persons pays both employee and employerortion of the capital premium to cra. As soon as you start taking cpp this is reduced to 0. I took cpp at 60 and happy that I did as a self employed person.
![Lp. Сердце Вселенной #60 РОЖДЕНИЕ ЛОЛОЛОШКИ [Финал] • Майнкрафт](http://i.ytimg.com/vi/YoR0pAV9FVQ/mqdefault.jpg)
Both my husband and I began our CPP at 60, and we were both still working full time. We placed the monthly amounts into our TFSA accounts without using the payments. Our decision was based on loosing a close friend quickly to cancer and he had not retired nor received his OAS or CPP, he signed his work pension however, passed before he received his first payment. Life is short and we both wanted even if not full amount, what we could get just in case we did not live out the time to reach the full payments amounts.
And life can be long. Imagine running out of money in your 80s.
There are other advantages taking it early that many do not mention and that is should you need the money for whatever, you have it and don't be surprised if the gov changes the rules and extends the retirement date or something along those lines. A decision like that would not affect you.
I did the same . I collect CPP at 60 . I save in a TSFA . You can you use the amount to supplement and or purchase a new or used vehicle in the future . It’s a win 🥇 win situation .
@@EverybodyLovesMoe Exactly. The government can change the rules.
I’m 59. My wife and I earn about 250k. I’m thinking that your idea is right but not sure of tax implications
I took CPP at 60 with no regrets. 60 to 65 are your best travel years so the money is more valuable than at 80 if you are trying to enjoy retirement. One factor some forget is once you draw CPP there is a cost of living increase each year so you will get 5 increases before 65. So compare the 65 pension number to the 60 pension number plus 5 cost of living increases. It worked for me, having the money when young enough to enjoy it is a consideration.
Agree, enjoy your 60' s and 70's while you can. I'll probably just be collecting dust in my 80's.
I've lost friends every decade of my life. I take nothing for granted. I turn sixty this year and don't necessarily need it now but i will be taking it. The best years of your life are usually the ones right in front of you. You may not enjoy it as much at 70 depending on how your life pans out. Jmo.
agree here take it while you can to enjoy
This thought haunts me as well. I too, turn sixty this year. I've had friends die early and I've seen people lose their health and have decreased quality of life. I don't know if I'll die before 70 or make it to 90. I'll either run out of money or I run out of life... or health and vitality. I keep thinking my next decade will be great. I'm retired now and I'm still healthy. The next decade will be OK but will see a decline. The decade after that? Deterioration, aging, health issues and decrepitude. I lost my healthy father at 82, and my stepfather just passed at 85 from horrendous debilitating dementia. I won't go out that way. Thinking I should supplement my income, allow myself to spread my RRSP withdrawals over a longer period of time at a lower rate so that in the end my total lost to taxation is lower. At this stage of my life I'm especially sensitive to not paying any more tax. Everyone's situation is different but we face the same inevitable issues.
I retired at 59 took cpp early and w/d RSP to top up Income. I was concerned that the 5 years of not working would effect the non working years. I have a very meager budget and will be better off once OAS kicks in at 65 and I plan to get GIS too. I expect to live until 80/85. My home will pay for my retirement home if it comes to that, but hope to age in place. Basically I'm house poor, but glad I have a roof over my head.
Always interesting to hear your take on things. I think the first rule is: If you need it at 60, take it at 60. I'm all for compromise between 60 & 70...I took it at 65. Best of both worlds to my thinking.
Great words of advice ....however "a smaller balloon is better than no balloon" ... Nobody knows how many days we have left here in this journey… as Steve Miller said.." Take the money and run!!"""
Take it at 60forget about savingnit investing it. Spend it have fun u have saved all your life. Enjoy it now
my two brother both dies at 61 & 62 and never took their CPP like I told them.
I took mine at 60 and am now 70 and spending every nickel they give me to help the economy. lol
I was in a car accident and suffered an injury that affects me daily. I had to retire from my job at 54 I need the money to live. My pension is ok but have you bought groceries lately?
My marriages ended and that means less money in. I hadn’t wanted to take CPP but I need to live.
I retired at 44 and started collecting at 60, I’m 61. I’d rather have it now and use than waiting until I’m too old to travel or do things I enjoy. I won’t need the same amount of money in 10-15 years. If I’m still around.
Really?
You won’t need it because you have enough money now to carry you through the ever increasing inflation?
You figure to curl up and die at 71-76 yrs?
I retired at 60 and did a quick calculation. How much money am I leaving in the pool for 5 years if I wait until I’m 65, and how long will it take me to earn back that money after 65. It was an easy decision that allowed me to retire from full-time employment at 60 and work part time as a freelancer doing what I love. Happiness also has a value. But I agree that one size doesn’t fit all, so I’m happy to hear another POV on the subject. If only I had a nickel for every time someone told me not to do this!
I did the same thing and it would take me to 83 to break even hahahahaha. I took it right away - chances of making it to 83 are not that great for anyone - and by the way. you wait get more and into a home you go and they take it all thank you very much for going without,,, hahahaha. none of these advice u tube bla bla ever think of that! they all say the same stuff, wait get more. hahah. the house always wins
I don't need the money. I'm in good health and working hard. I will take it at 65.
I am 59 , I have had 3 cardiac events in the last 11 years . I am taking it at 60 !
That’s good god bless you ❤
Get a glucose ketone meter and keep your glucose to ketone ratio 2.0 or less... and walk 2 hours per day.. For further info contact me.
Adam! Goodness! Reading the comments indeed there are die hard opinions. (pun there :)]. It was so important that you produce a video like this. You are listening to your audience and their concerns. Thank you. Clarifying your position that you are educating Canadians and the like to the financial landscape of taking cpp early, middle or later. It is up to the individual, you are not there to take away their decision, you are there to support with awareness. Your hard work is noted. Closing in on 100.000 subscribers. Well deserved! As with CPP and waiting, Subscriber 100K is worth the wait! 👍💯 Chiming in, Atlantic Canada always a fan and supporter.
Retired at 54. Im taking mine at 63. $1000/ month. My non contribution years kick in ( worked part-time after 54). Not doing an RRSP meltdown either because i have DB pension with a bridge until 65. Meltdown would increase my income to close to what I was making when i was working and all that would do is hit me hard in taxes..and just give my retirement savings to the government. It would also kick me into significant OAS clawback. I could wait to collect CPP, but why? More income means more taxes. No mortgage, no car payments, zero debt. Debt is the killer in retirement.
How will you get your money out of your RRSP before you die if you aren't going to melt it down? You'll probably lose 50% of it when you die. I would think taking the money out of the RRSP first and then taking CPP later would cost less in tax while getting the same amount of money. He has a bunch of videos on it that make sense of how to do it.
Simple strategy… 55 now. Working part time. My indexed DP pension puts me in the 28.2 bracket. I will meltdown RRSP from 60-68 years old to the 28.2 limit. Once RRSP’s run out take my CPP. I will take OAS at 65
I am in similar situation retired age 55 with DB and $200/mth bridge to 65 (my spouse retired same year age 65 with DB,CPP $900, OAS and both have $200k-300k RRSP each). I've been melting down my RRSP/RRIF big way age 56 to 59. Now age 60, I start taking my CPP $830 (36% decducted) and continue melting down RRSP/RRIF with adjustable amount (until age 70) trying to maintain most appropriate (avoid OAS claw back, tax bracket...) flat line of income each year for best tax benefits, until end of life. However when time come we still get higher tax hit with survivor benefits (DB and CPP)... My RRSP withdrawa give to my children for maxing their TFSAl (it'll be their inherent anyway, why not give them now😊). That is why I take my CPP age 60. It is better tax benefits. I understand each family has their own situation and own thoughts to decisions, but for us, rather give my children the money than let the tax man and government agents keeping our money!
@@thamc5862That's very smart. Meltdown and give to children. CPP and DB and investment dividends pay for life enjoyment
Retired at 57, DB with bridge to 65 in play, working part time now. No RRSP. 60 is coming up in a year, was thinking a good choice would be to draw at 60 and pay down debt (relatively small mortgage) a little early. But CPP on top of a bridge would mean more taxes for the 5 years. I think I might need a planner to crunch a few options.
Listen to how he's telling you why you should take it at 60, but at the same time trying to deter you from taking it based on the money you could have. I plan to take mine at 60 and live somewhere with a lower cost of living. The world's a big place and there are many places you can live where that little bit of money can make a big difference, you're not stuck where you are unless you want to be stuck.
I started collecting CPP at 60 based on 2 reasons. My husband retired at 62. Less than a year later had a stroke and with more tests has brain tumour. 2nd reason I would have lost 5years of benefits even at reduced amount. I also retired at 61. That last year of working FT and collecting CPP all went to taxes.(big error there). Ten years retired now and I don’t regret my decision. I guess I’m fortunate because I also have a company pension that I opted to collect early at reduced amount. I get OAS because my overall income qualifies.
I'm receiving CPPD. Looking into what happens at 65 and the information is confusing. It turns into CPP retirement pension, but I'm also seeing that Disability payment can continue after 65.
Would be a great topic for another video
I was in CPPD also and just turned 65. The CPPD discontinues but you do get CPPA but it’s lowered. What I don’t get is that it says in their website you get $1394+ but I am not getting that. I’m getting way less.
I’m 59 right now and on CPP disability, what happens at 65 with my pension? Can I collect Old Age Security at 60? I’m not sure how any of this works.
Just discovered your videos this morning. Very good advise for folks.
Glad you like them!
I gambled and threw the dice on taking my CPP at age sixty-five because my pension will be reduced by almost 60%. The phone company's pension plan isn't the what it's built up to be. That said, because of the huge reduction, I need to maximize my CPP payment along with my OAS to bring me almost back to where I am currently.
My wife on the hand took hers at sixty. Thanks for sharing.
As a type 2 diabetic with other health issues it never made any sense to me to delay CPP hoping I would live long enough to recoup the five years of non-payment.
Thanks for this info. Definitely waiting till I’m 65 if I can. I’m 62, single, renting, have a good job but no assets. So CPP, work pension and OAS will be my only sources of income when I can no longer work. Having to move into a retirement residence in late 70s or 80s will be very expensive and that’s a big stress for me currently. If I pass away before I collect that’s ok. I’d much rather be able to afford living in a decent retirement residence and not live below poverty if I make it to 80. If I’m healthy and still enjoy working at 65, then I may hold off on CPP and work part-time instead and collect OAS, I believe that in a previous video you mentioned that OAS increases less than CPP if we hold off on collecting.
I turn 60 this year. I’m already the working poverty so absolutely I’m going to collect asap! I don’t trust it will even be available for me at 65
I'm and thinking the same in two years . Could you tell me the total what a guy collects per month ?
I've worked since 14 so I've paid enough 😂
Thanks !
Don’t trust it? It’s fully funded and ain’t going anywhere.
@@gp7910you actually haven't. It doesn't matter how long you have worked leading up to pension eligibility. For every year after you become eligible though, the monthly amount goes up.
If you start collecting it too soon, you're not doing yourself a favour. You'll get more if you wait longer. Relying on pension is a very different lifestyle than working is. You can't rely solely on a pension to cover your basic expenses.
WHAT IF YOU DIE AT 61 THEN THAT MONEY IS GONE
@@Liberal_From_Prairies689
I would also say if the markets are low, it may be better to take an early CPP instead of drawing off of investments that are temporarily low.
Super cool. Mostly Canadian workers working until 75
Will I collect the full cpp pension if I am collecting a pension from my union? If it does effect the amount what would be the % I would get?
If I could just add, qualifying for GIS also plays a big part of this decision process for those who do not have a high income and may be better off taking CPP early.
GIS depends on receiving OAS not CPP. That said, if you qualify for GIS you probably need your CPP income just to get by on.
@@ddavidson5 GIS amount sharply decreases with any income you show (equivalent to 50% tax). CPP is considered income, unlike OAS. The smaller CPP amount taken at 60 will increase your GIS.
@@ew6392 Indeed, and to a point, if you lower your income you'll increase your GIS. I suppose the question is are you trying to maximize your income or maximize what you get from GIS? If you increase your income by $2 but you lose $1 of GIS it seems to me you are still up $1.
@@ew6392Indeed. To a point if you lower your income you will increase the amount of GIS you receive but is your goal maximizing your income or maximizing your GIS? If you increase your income by $2 and lose $1 of GIS it seems to me you are still up by $1.
@@ew6392Thanks, that was exactly my point.
Martel, sorry to hear about your friend and you are completely correct to take Cpp whenever you choose. Despite being a financial decision it's also a very emotional and personal reason as well. I am sure everyone has a reason why they took their Cpp at a differing time.
Everyone needs to do the math and let the numbers speak. ❤
100%. Emotions take over for most.
Because of taxes, my advisor said I should wait until I'm 70 to take CPP and OAS and to draw down my RRSP's.
I was reading on the Service Canada website that if I take CPP at 60, and still working after that, I can still contribute to CPP and it will be added and adjusted as I go along.
Correct.
My bills come due monthly, therefore maximizing monthly income after retiring from work when I no longer have employment income is the priority. Taking CPP early (while still employed) is counter to that need as it will reduce the monthly income in my retirement years when there is no longer employment income.
The other side of that is if you pass away one or two years after taking it at 60 you at least get some of your hard earned money back. However if you didn’t start at 60 and let’s say passed away at 62/63 that money goes to no one 🤷🏼♀️ .
If you have a high income, then yes it won’t benefit you to take it, however millions of people do need it, so take it. My mother always said you will find a way too survive. Will everyone of us be around at 65 🤷🏼♀️.. Tomorrow is promised to NO One! So enjoy today!
My brother waited to collect cpp at 65. After six months of collecting it he died.
@@RavinderSingh-hy7iz my brother-in-law passed away 3 days after turning 63, and I’m not sure if he took his CPP at 60 🤷🏼♀️
One interesting thing to mention. May be a bit off topic but my mom had a nest egg that she got from an inheritance. Some got used but there was always a fear to save it so you don’t run out. Eventually she went to a nursing home due to health issues but not until around 80 (she did to private retirement home after a stroke around 75).
But now to my point, in an Ontario nursing home she paid much more for her room and services those someone with low income. And my moms income wasn’t high but just higher than the threshold for retirement home costs. Interesting experience to see. I’m glad it exists as those low income seniors should get care but if you are in that middle area, enjoy your money and life while you can.
@@DR17dede absolutely! My brother always said you can’t take it with you so enjoy it while you can 🤷🏼♀️.
Break even point is at 77 yrs of age when taking it at 60 vs 65. Just remember whenever you take it, it is that amount for the rest of your life plus mediocre COLA increases.
I will enjoy the 7.2% guaranteed increase from 60 while continuing to work at a job I enjoy and then maybe a few years past 65 with over 8% guaranteed increases.
For every year past 65 I wait, my combined pensions (CPP, OAS, company) increase $300 a month. Many, different opinions on this topic, but if healthy, enjoying working and earning a decent wage, no panic to collect early.
If you re-invest it (while still working) at 60 to 65 years, it provides a nice buffer. Your break even age will rise nicely.
My CPP calculator tells me that if I start at 60 or 65 my breakeven will occur when I'm 76, assuming 2.5% inflation and a 6% after tax return if fully invested, or age 73 if only a 3% return. This means that if I don't need it or use it other than for invest then need to reach at least to 73 befor i can enjoy the benefits of waiting. My personal math logic tells me there is minimal value of waiting unless you know for certain how long you will live and that the payments will retain their value.
I have no clue what to do. Last year they found a 4cm brain tumour in me that I had to have removed during a surgery. They couldn't get it all out and shot what was left of it with radiation. They don't expect it to grow back but who knows? Also to make sure there were no additional tumours they did more tests and inadvertently found I have a mild fatty liver. I think I want to take it at 60 if I make it long.
As a retired military member my pension included a bridge portion to tie us retirees over until age 65 (CPP benifit and OAS). Once we start collecting CPP we loose our bridge pension portion.
Are you sure of this ? On the website, it says you continue to receive your bridge pension portion with your CPP until you turn 65.
great advice. Thanks Adam.😃👍
Took mine at 60. No regrets.
Could you tell me the total a guy can get at 60? I'll have paid into it 46 years at 60 😂
I’m getting 843 per month. My investments make another 1500, I do odd jobs. Son pays rm and board. No payments , no loans. Live on 3000 per month. Get debt free. Hopefully own your own home , Enjoy semi retirement. Work when I feel like. Love it. Not waiting to 65!!
@@ebaensey2983 thanks ! Good job
Always take any money owed to you immediately, air miles, points, government money you never know your last day
@@gp7910 Just log into your Service Canada account. It tells you what your CPP estimate will be at age 60, 65 and 70 based on the contributions you've made so far.
This video was recommended by UA-cam when learning about cpp programming language
Having watched videos like this and reading retirement books, I've come to the philosophy that age 60 is the baseline, and minimum benefit you would receive. The benefit goes up 0.6% each month till 65, and then 0.7% each month till 70. So deferrning as long as you increases your CPP amount.
My mother was looking forward to retiring at age 65 and doing all the things that she wasn't able to do during her working years raising 4 kids on her own. BOOM...she turned 65 and was diagnosed with a terminal illness. Life is short and planning for the future is precarious.
This is a great video and this is always a hot topic and a lot of people are unfortunately confused between taxes and cpp thinking the higher the income the more taxes they pay the more pension they will be entitled to not factoring the YMPE in additional to the impact on OAS clawback and GIS for low income seniors 65+ these things should be thought early on but as the saying goes if you thing the government will help you fix your life than you have 2 problems 😢. Good luck to you all know your numbers live within you means budget invest have Financials goals and discipline it will all work out at the end👍🏽
The higher the income the MORE YOU WILL PAY!
My company matches CPP if i retire between 60 and 65. Some people also take CPP because they're tired of being wage slaves and want freedom.
That's me, fed up...
So they want to try to enslave other people.
All companies within Canada are required to pay into their employees CPP, not only yours.
@@maryjeanjones7569 i dont think you understood
It's interesting how few financial planners ever mention the effect of CPP on GIS, even though 1/3 of retirees collect GIS. I guess there is an assumption that only rich people watch these videos, or that only rich people are of benefit to financial planners.
It's another argument for taking CPP at 70 - which we highly recommend.
I would say both 60 and 70 are two unfavourable extremes.
Agreed. No way will I wait until 70. I also.won't take it at 60 (I'm 53.npw).
I'm still working and I'm 64. My plan is to work until 68. I love my job and its a mere 4 minute drive from home. I'm only working till 68 because my wife is over 4 years younger and won't retire till 64. For me, no sense retiring to be home alone. My current decision is, do I start taking it at 65 or wait till I retire at 68. Between my wife and I we make excellent money. My company pension uses most of my RSP contribution. I contribute whats left in a personal rsp. I could take my CPP and OAS at 65 and put it in to TFSA. I would have no rsp space to shelter it and since there is no tax shelter benefits to a TFSA I'd likely be paying a lot of it out in income tax. I am working with a financial planner to get this sorted out.
If you defer CPP until 70 but you work b/t 65-70.....your income b/t 65-70 is greatly reduced to say 24K a year....Questions: 1.Does the smaller amounts you'll pay into CPP from 65-70 drag down the amount you'll get at 70? 2. Can you opt out of paying further into CPP past age 65? Would it make any difference?
You DO NOT have to pay into CPP after age 65
I started taking CCP at 60 years young. I am 74 now.
im thinking of taking it at 60. my thoughts is if i pass away that my family can get that money but if i wait till 65 to get money family will get nothing. my health is not the best.
I don't really have a choice. My workplace defined benefit pension plan allows for 30 and out and provides a top up to make up for CPP until the age of 65. I have to take it then as that is when that top up goes away. I will qualify at age 62 and retire then. My concern is around when to start drawing from my RRSP's and the tax implications of that income along with my pension income.
I spend mine as fast as get it. Snowmobiles sxs and whiskey.
The rest you just blow foolishly.
Enjoy your lunch money from the government at sixty because life is short after working like me for 40 years underground in the mine many friends never got to see a dime of it due to death
If you have no other pensions besides cpp and old age i believe you should not take cpp untill you retire at 65, you will need the max amount of cpp at your retirement.
Adam,
- While the CPP grows while in "the pool", if I die my partner gets NOTHING!?
- Isn't it better to own the money? "one bird in the hand is better than two promised'?
- My current TFSA investment returns average 9-11%/yr.
- How hard can it be to make 7%? (what CPP gives you).
- My RRSP & TFSA are not maxed-out so putting my CPP into those means "I" own the money. No?
- Say I do not need the money now (say 500$/mth) and leave it with CPP, two years later I have a big expense (medical, etc),
CPP is not going to give me 12k$ to cover that. Even if my CPP by then would give me 14% more per year. I do not see the advantage.
- I am going to be 63 this year. My partner 61. We have about 200K$ saved.
- We are going to have to hit the trigger on these decisions shortly.
- Do YOU personally work with and do financial planning for clients or just the six planners who works at Parallel do?
Great video, great channel. (I follow with different accounts due to recent YT restrictions and policies).
Thank you for your answers.
Given your circumstances, taking it earlier might be the best choice. Just to add a couple of things:
1) CPP grows by 7.2% from 60-65, then by 8.4% a year from 65-70. It also grows by wage inflation during this time, so 10 or 11% overall might be more realistic after age 65. After you take it, it grows by the federal government’s CPI instead of wage inflation.
2) Adam also does plans. He did mine. He is a Certified Financial Planner. You can check out his profile on the Canadian CFP professionals’ website.
If you don't need to spend it, and you don't pay tax on it, and you have room to invest it all in a self directed TFSA, then take CPP at 60
4:35 Adam you mention the case of someone already hitting 39 maxes by 60. Afaik, you only need 35 maxes to be "full" by age 60, since the dropout provision is based on the years from 18 until you start cpp ?
What bothers me is if I use my rrsps to fund my living from 60 to 65 and delay cpp until 65, then I or my spouse dies, the cpp drops dramatically, oas stops and I've taken a large chunk of rrsp that could have still been working for me and providing dividend income.
You spouses CPP/OAS stops - not yours!
@@GordCheswick Yes, I realize that, but if my spouse and Ive been dipping into our rrsps to delay taking cpp and then if one of us dies, the spousal cpp drops dramatically the spousal oas is gone and we've used rrsp funds that we can never get back. It only works if both spouses live long after retirement.
@@GordCheswickmost couples use net income. The loss of the spouse’s income directly harms the survivor. For this reason we got 400k life insurance years ago and take reduced company pensions so on death we’d lose oas only.
Technically true, but if your household is based on that higher figure loss of a good chunk of it is often the difference between living in your home and being forced to live in a studio senior's apartment. @@GordCheswick
I am almost 66 years old in June..
I have 0 income, who can help me to fill out my applications for OAS AND CPP. In a way more efficient.
Any cost to pay to any financial advisor.
Any advise?
This is so funny. I'm 62. Two and a half years from pulling the plug and I read the comments and feel like home. LOL
So as near as I can figure, the break even point between taking CPP at 60 or 65 would be at age 72 ish. Beyond 72 you will earn more if you took CPP at 65 because once you take the reduction at 60, you never get it back
Considering the reported returns of CPP, contributions @ 5% returns per year (which seems conservative) the pool of pension available vs the payback seem to be out of sync. Can you do an analysis with regards to this. The proponets of the APP are using this as a talking point.
If you take it at 60, but you're still working (salary or freelance),do you still have to contribute until 65? Or does taking it stop the obligation to contribute ?
Thank you for the advice
I have applied to take at age 60. I still work but does not trust CRA. Yes it will be taxed as income instead of going to Ukraine.
I encourage you to look a little longer term than this. By taking it early statistically you are helping them more, as they will pay you less to life expectancy.
Retired at 58, RIF income payments, 63rd birthday is the CPP plan.. Don't forget, OAP at 65 as well adds to your income.
Btw, taking extra and maximize your TFSA. I am doing this as well.
For financial reasons I had to take my CPP at 60. I can barely survive on the meagre amount they pay out. From what I can tell there no other sources of government benefits that I am eligible for until I turn 65. I was just wondering if you knew of any other government benefits for people like me.
I remember in an older video there was mention of your company/team developing a CPP calculator. Did that happen/will happen/get abandoned? I ask because it would be great to be able to calculate CPP based on retiring at 60, so 5 years of not contributing plus potentially other years on lower or no contributions, to see the true numbers at 60 - 70
I would like to know this as well Adam. :)
Get Doug Runchey to run your numbers. We'll worth it. My actual $$$ was only $15 bucks different from the CPP government website estimate
It's in the works. But taking much longer than we could have thought - in the pipeline for 2024 though.
@@ParallelWealth Thanks for the update Adam. Coming from a development background I totally get it. Can't wait to see it. Cheers
@@ParallelWealth Didn't you say qpp has one that calculates more effectively. Has ability to drop disability and child rearing years, if you stop working/stop contributing to cpp, etc
Couldn't you leverage that one for the scripts, etc???
How can you find out how much $ you will get if you take your CPP at 60 or 65? Is there a Government website that you can go to that will provide you with this information so you have an idea of the money you will be able to take at 60 vs waiting until 65?
Cost of living getting too expensived in canada ! Extra cash needed why wait at 65 ?
Great info and advise. Here is a retirement plan question no one seems to be able to answer. If I retire at 60 and stop paying into CPP but don't start withdrawing till 65, will the monthly payment continue to grow for those 5 years. Lets say my 60 year CPP would be $870 and the forecast for 65 was $1350? How is the value arrived based on waiting the 5 years and stopping contributions. The CPP board can't seem to tell me. It's vital info for a retirement plan. We have funds to supplement but not if it costs too much at 65. thanks
It will depend how many non-contributory years you have prior to age 60. If not many, then these 5 years could be unaffected. You essentially get 7 years of non-contributory years to CPP. So if you have 7 (or more than 2) prior to age 60, then your $1350 will be reduced slightly. But your annual amount from waiting increases as you are penalized for taking prior to age 65. I have never seen a situation where taking it earlier gives you more...hope that helps.
Make a service canada account it wiki show u everything
My CPP is only worth about $300 a month, so it doesn't matter when I take it. I will be working 'till I die.
MOVE TO AFRICA .. YOU WILL BE FINE
Great atttitude
Remember, there's also OAS at 65, and if you have low income, GIS as well at that time.
I wanted to retire last year at 55, but covid sucked the value of savings.
Thanks for this information! May I ask… if you go on CPP Disability before age 60 do you automatically start getting regular CPP at 60? Do you have the option to wait until 65?
CPPDI stops at 65. You can delay reg CPP to 70
@@ParallelWealth thank you!
I am 62 can i start taking my CPP now any advice............ Thanks
Hi Adam ! Do you know if Doug Runchey still around? I need his service in regards with my cpp calculations
Yes, but on a limited basis
Thank you
I turn 60 soon. I've been reading some of you guy's comments as to why you're going to be collecting CPP early. I don't think you were paying attention. For those of you who have already received your CPP information package from the government, and you've read to see how much you actually going to lose if you take it at 60 in stead of waiting till 65, why would you ?
I didn’t realize there was a lifetime maximum on how much you could get. I may have got the maximum already. Not sure how to find out.
Took mine at 60, if I waited until 65 it would be $300-$400 more per month, but from 60-65 I will amass close to $50,000 . It would take me until I am 72 to make that $50 k back @ $300-$400 per month
My dad took it at 60 and he always makes the best decisions and I will do the same eventually. Hopefully though I wont live in Canada by then (this country is screwed). I don't count on it to survive because the money that you'll get is a joke. I've been working away building my own retirement pension which will grow far more every year than I could possibly want to spend. I am already working on making sure my kids not only have a pension but that they'll actually never need to even go get a "job". Their only job will be to learn investing which can be done anywhere in the world. Much better than working for some company and making that boss rich. Make yourself wealthy instead, stay at home and watch your kids grow up, vacations, etc !!
I'm taking mine at 65 because a) I'm in perfect health (knock on wood), and B) the amount I'll receive far exceeds the amount I would've received at 60.
I’m on CPP Disability and am 59 years old, can anyone tell me what happens at age 65? Can I receive OAS at 60 or will my CPP Disability be reduced if I do that ? I really have no idea how all this works once I hit 60 and 65 . Thanks in advance if anyone can relay what I might expect.
How does prb work
Self-employed pay 2 times the CPP premiums. Take it early
I'm 60...no plans to take it any time soon. grandparents lived into their 80's. parents 65 and 75s but there was a lot of smoking going on there, with the typical results. need to retire while I can still do stuff, though.
I wouldn't mind working until I'm 70 or 75 but depends on the job. Most jobs lately are pretty intense and high stress. At my last company about 10% of the employees were on stress leave from unmanageable workloads and they were still laying people off
Take the money early
@Parallelwealth Adam, thank you for your videos they are always well organized and well explained. I also took your advice from another video and read Frederick Vittese's "Retirement Income for Life" over the summer, as I'm thinking of retiring in the next 1 to 2 years. I have to be honest I'm still very confused about CPP. Specific to this video, you mentioned one of the reasons why you would take it out might be to invest it yourself from age 60 to 65 (or 70) and a reason you gave to perhaps reconsider is that you aren't likely to match the 7.2% interest you are gaining by leaving it in. However, to me you aren't really gaining anything as you aren't actually getting that money, but rather a higher percentage but starting much later down the road. I'm wondering what the break even point is on a typical person who has stopped working (and thus stopped paying in as well) taking it at 60 at a lower percentage, versus starting later at a higher percentage. Again, like I said it's all kind of confusing and it would be amazing if there were a convenient tool for Canadians to put in some "what if" scenarios to run the actual numbers with all the myriad other rules laid down by the CPP. To quote Vettese in his book, "fewer than a dozen people in Canada" can fully explain all the rules to CPP...and that's just not copacetic in my opinion. It's a fairly big decision that shouldn't be this nebulous.
My initial plan was to take it later and burn down my own savings until I’m 70. My financial advisor point me another reason for a middle way. He advice to keep some money in case you need a fix amount. A bigger amount every month is nice, but doesn’t help when you need a 10k-20k more.
My guess is your advisor gets paid for managing your assets?!
Hi @parallelwealth, I understand CIPF protects your assets up to $1,000,000 but is there any way to get protection if you have more than that?
Yes the coverage is per financial institution so just spread those big bags of cash across multiple banks and you're covered.
I have opted for CPP after 65 years.
But I am still working and contributing CPP.
I will be eligible for OAS and GIS after 5 years as I came to Canada only five years ago.
Should I continue to opt for CPP or stop.
Check on the OAS assumption. You need to be in Canada for 40 years to get the maximum amount. 10 years here will get you 25% of OAS or about $182/mo
I will start collecting CPP this year in June at age 65 after paying the max for 42 years. I retired at 62. I figure I would receive the max but was surprise that it was slightly reduce. Not sure why? Should I inquire regarding their calculations?
Definitely challenge them, but don't expect logic or math.
I turn 63 in April does it matter now or should I wait till the day after my birthday?
Start the application. It takes months and if I'm correct you can set your start date.
I applied the month before my birthday and set my start date the following month of my birthday. You can pick when. My husband and I both did the same. At 60
We both got letters in the mail months before our 60th birthdays.
The CPP will be around BUT, inflation will be much higher so if you can take your CPP payment and invest in physical assets that are denominated in USD's....or at least have their value derived from USD's....So, take your CPP as soon as you can get it....and invest in those physical assets every month. Do not have the tax deducted, but instead, pay the tax the following year with inflation reduced money.....
If someone who turned 60 ten years ago took cpp at that time to reduce how much they withdrew from their rrsp, which was invested in an s&p500 etf, today they would be ahead by a substantial margin. I realize there’s more risk in doing it this way, but it’s not like buying an individual stock. You’re either betting on the Canadian government or the American economy. Either seems just as safe a bet to me but the American economy would have delivered you a far better outcome and over a ten+ year time horizon that’s unlikely to change.
My RRSPs have been down since Covid. So 4 years of a down turn. Knowing the markets is like Knowing when you're going to die. Neither are certain
Hi Adam.
Can you please clarify something about delaying CPP payments to age 70. For this exercise, let me make the following assumptions. I am currently age 65. I am eligible to receive the maximum amount of CPP of $1364.60 per month ($ 16,375.20 annually). The rate of inflation for the next five years will be 3%, which means a corresponding annual 3% increase in CPP payments. Therefore at my age 70, the maximum CPP payment will be $ 18,983.34 annually.
My question is: Is the 42% maximum increase (by waiting to my age 70) applied to the CPP benefit that I was entitled to at age 65 ($16,375.20 for a new value of $23,252.78) or to the current maximum payment value at age 70 ($18,983.20 for a new value of $26,956.14)?
Thanks Adam
CPP is indexed to inflation. If the maximum is X currently and the CPI is 2% then the following year its X plus 2%, plus 7.2% of the increase for delaying for 1 year. If you wait the five years until 70 it's the yearly increase ( Cpi) X 5 years of those rates plus the increase of 7.2% / year for a total of 42%.
@garth217 Good reasoning, imo. But, cpp increases 8.4 % percent for every year you delay it (.7%/mo). It is OAS that increases 7.2 % each year you delay it (.6%/mo). Maybe you just got them mixed up.
in any case, given the factors you indicated, it seems that CPP would increase by at least 10 percent for each year you delay it for the amount you would have received at age 65 if you did not delay it.
EXACTLY.. Take your Quebec pension @60.. too many hold out longer bc they will get more at a higher age.. Ya ok.. What if you don't make it ey !🙄
Just take the damn thing as early as possible 😜👍🏻 and enjoy
I need a global account. Is that something your firm can help me with?
quick question, i have maxed out my cpp contributions. I plan to retire @ 60 and only take my cpp @65. Will i get a clawback because I did not contribute for 5 years?
CPP does not have a clawback
We both started collecting at 60, I worked till 62 and while collecting I bought silver each month and my husband turned his into cash we live on one income paid off debit and retired @ 62 & 65 with no regrets or worries. We are now in our 9th year and we are doing well except we would do better if this government'S (NDP) would get rid of the carbon tax that is effecting us big time now.
QA , taking CPP early you lock yourself at less income and decide to continue to work , you still have to contribute to the CPP even though you’re locked in at the $ amount you choose to start it until age 65?
i had a bridge in my dbp so i waited till i was 65 to take cpp, i have been hired full time by another firm. should i continue to contribute to cpp? I enjoy what i do and plan to work for a bit yet.
No.
Adam
I never hear about self employed people about taking ccp early. You must factor in tat a self employed persons pays both employee and employerortion of the capital premium to cra. As soon as you start taking cpp this is reduced to 0. I took cpp at 60 and happy that I did as a self employed person.
As an owner paying 12% into cpp, take at 60,or wait till?