Please advise. I am 70 (turned in May). Still working. Came to Canada just in 2000. Should i continue to contribute to CPP. Goverment started to send my CPP, still waiting for my OAD though Thank you kindly
So, PRB is only calculated after 24 months of working while collecting CPP and paying CPP premiums, or, in other words, the year after the year of initial contributions while working and still paying into CPP. I’m 66, started my CPP over 12 months ago, and Service Canada hasn’t given me a definitive answer concerning PRB. In all my research it suggests that it’s a good return on the investment and each year between 65 and 70 it’s compounded. What says Kent? Enjoy all your hard work. Keep it up.
Without calculating it straight for you, my guess says that you’re better to not continue with it after 65. Instead, ask your boss if you can get a $2,000 bonus and he or she will save that same amount.
Kent, I’m a contract worker so bonuses are out of the question. After not getting any reasonable response concerning my PRB I got my MP to look into it. Only then did they take it seriously and apologized for an error in my CPP calculation. I was being shortchanged for a year and 4 months. After 16 months of CPP payments I got my first PRB which amounts to just over 7% return on my premiums, but today that’s the inflation figure. Age 80 would be my break even year in recouping CPP premiums. I look at it as something extra going into retirement that I wouldn’t have otherwise.
@@K4Financial ok TKS I'll watch it again. Trying to determine how much rrsp investment I need to make in order to get gis while still working. Do you have any calculation sites?
@@dianetownsend9813 I honestly can’t imagine that’s worth it to try and get GIS while working. You’d be wasting your money by putting it into an RRSP to get less free money.
@@K4Financial you can utilize rrsp contribution room to lower income so you become eligible for GIS which is over 900.00/ month non taxable income. You can only contribute to RRSP til 71. Limited time to utilize opportunity. I'll run the numbers
@@Metoo1111 so is the money in your RRSP. Does that mean we should cash it in now because we might die before we use it? There are cases where taking it early can essentially ruin a retirement, just because it’s your money and you want it doesn’t mean it’s always the best thing to do. Everyone is different and not everyone should take it as soon as they can, which is why I don’t like that messaging.
Thanks Kent....great segment. I'm planning on working until 70 and deferring CPP/OAS to get the higher amounts at age 70... My earned income past 64 yrs old is going to be greatly reduced (100+ K/Yr down to only 30K/Yr) What I'm trying to understand is- will continuing to earn after 65 at a very reduced earned income and contributing to CPP between 65-70 actually pull down my CPP/OAS amount when I reach 70? If it does pull down the future amount -can a person just opt out of paying CPP past 65? Any thoughts? Thanks.
Yeah, you can opt out as it won’t benefit you or your company. I meant to add it in the video, but I think there’s room to negotiate with your company after 65 by saying you will opt out, which will save them money and maybe they’ll pass some savings to you.
@@K4Financial Thanks Kent. The work past 64 will be with another firm not the one where I made the big bucks...LOL! What I'm trying to understand is by working from 65-70 at a reduced income is that actually pulling down my future CPP/OAS amounts that I'll receive at 70?
The 'dep dive' needed to include that each of the first five years would also have been earning 3%. Did you say 'inflation stays at 99% or whatever it is right now"?
@@geometricsphereuniversalin7043 it depends how you pay yourself. If you choose to just pay yourself dividends, then you’ll never contribute and you won’t get any CPP. It’s a big decision that most self employed people don’t really consider
This is absolutely the best explanation I've seen of this issue with actual sise by side comparisons.
Finally! The clearest explanation yet. Thanks!
We try to keep it simple. You’re welcome
Thank you for your video.
I suppose it screws gis too.
Please advise.
I am 70 (turned in May). Still working.
Came to Canada just in 2000.
Should i continue to contribute to CPP.
Goverment started to send my CPP, still waiting for my OAD though
Thank you kindly
So, PRB is only calculated after 24 months of working while collecting CPP and paying CPP premiums, or, in other words, the year after the year of initial contributions while working and still paying into CPP. I’m 66, started my CPP over 12 months ago, and Service Canada hasn’t given me a definitive answer concerning PRB. In all my research it suggests that it’s a good return on the investment and each year between 65 and 70 it’s compounded. What says Kent? Enjoy all your hard work. Keep it up.
Without calculating it straight for you, my guess says that you’re better to not continue with it after 65. Instead, ask your boss if you can get a $2,000 bonus and he or she will save that same amount.
Kent, I’m a contract worker so bonuses are out of the question. After not getting any reasonable response concerning my PRB I got my MP to look into it. Only then did they take it seriously and apologized for an error in my CPP calculation. I was being shortchanged for a year and 4 months. After 16 months of CPP payments I got my first PRB which amounts to just over 7% return on my premiums, but today that’s the inflation figure. Age 80 would be my break even year in recouping CPP premiums. I look at it as something extra going into retirement that I wouldn’t have otherwise.
I'm not sure the 30.5 % reduction is applied to the post retirement amount. Is it?
No, it’s not. In the example, the 30.5% reduction is the tax rate.
@@K4Financial ok TKS I'll watch it again. Trying to determine how much rrsp investment I need to make in order to get gis while still working. Do you have any calculation sites?
Self employed so will stop contributing to CPP once 65 as we pay both portions.
@@dianetownsend9813 I honestly can’t imagine that’s worth it to try and get GIS while working. You’d be wasting your money by putting it into an RRSP to get less free money.
@@K4Financial you can utilize rrsp contribution room to lower income so you become eligible for GIS which is over 900.00/ month non taxable income. You can only contribute to RRSP til 71. Limited time to utilize opportunity. I'll run the numbers
Hi, I am turning 60, I want to take the CPP, but I am going to continue working,. Is ir an está form , I have to fill out,,?
You have to apply for CPP to start.
www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-benefit/apply.html
I'm 61, still working.. makes more sense to wait as long as possible before collecting CPP.
Makes a lot of sense in most cases
You might now be alive when it comes time. It’s your money..take it. IMHO
@@Metoo1111 so is the money in your RRSP. Does that mean we should cash it in now because we might die before we use it? There are cases where taking it early can essentially ruin a retirement, just because it’s your money and you want it doesn’t mean it’s always the best thing to do.
Everyone is different and not everyone should take it as soon as they can, which is why I don’t like that messaging.
@@Metoo1111 But you are losing 7.2% a year and it is indexed. In my case and I'll say for many others, best to wait.
Thanks Kent....great segment.
I'm planning on working until 70 and deferring CPP/OAS to get the higher amounts at age 70...
My earned income past 64 yrs old is going to be greatly reduced (100+ K/Yr down to only 30K/Yr)
What I'm trying to understand is- will continuing to earn after 65 at a very reduced earned income and contributing to CPP between 65-70 actually pull down my CPP/OAS amount when I reach 70? If it does pull down the future amount -can a person just opt out of paying CPP past 65?
Any thoughts? Thanks.
Yeah, you can opt out as it won’t benefit you or your company. I meant to add it in the video, but I think there’s room to negotiate with your company after 65 by saying you will opt out, which will save them money and maybe they’ll pass some savings to you.
@@K4Financial Thanks Kent. The work past 64 will be with another firm not the one where I made the big bucks...LOL! What I'm trying to understand is by working from 65-70 at a reduced income is that actually pulling down my future CPP/OAS amounts that I'll receive at 70?
@@kcirdorb9591 no, it wont
@@K4Financial Thanks Kent...appreciate your thoughts...Hope your Oilers can get it going a bit more!
@@kcirdorb9591 my god, me too 😅
The 'dep dive' needed to include that each of the first five years would also have been earning 3%.
Did you say 'inflation stays at 99% or whatever it is right now"?
Good video. Even though it is a fringe situation, I appreciate the deep dive.
How are we contributing to CPP?
Basically 5% of your salary up to a maximum and your employer matches it
@@K4Financial What if we are gig workers
Is there a minimum we can receive at 65
@@geometricsphereuniversalin7043 it depends how you pay yourself. If you choose to just pay yourself dividends, then you’ll never contribute and you won’t get any CPP. It’s a big decision that most self employed people don’t really consider
I decided to take my CPP at 61. I could die any day.
Definitely a major factor to consider