You’ve quickly become my favourite financial UA-camr! Your videos are extremely informative and are presented in such a professional manner. I appreciate all the time and effort it must take for you to put them together. (I also like the font you chose - it’s aesthetically pleasing compared to regular fonts like arial 😊).
Alison! Thank you! You’re right, this one took an especially long time. Part of that was because I learned how to write directly on the videos so that took some extra elbow grease but maybe that’s the “font” you’re referring too?? If so, it was worth the effort 🤓.
Rhys Martell is another excellent Canadian content Retirement & Investing videographer. Speaking slowly and articulately is a huge plus compared to many other UA-camrs and having a voice that is pleasing to listen to makes this my go to channel for Canadian content. And how Canadian of you eh, to showcase and mention Doug Runchey, Brandon Beavis (& his Dad) & Adam at Parallel Wealth. Thanks Rhys you are knowledgeable & a stand up guy. Keep up the Great work.
@@wellbuiltwealth all true. You earned it. We need more excellent Canadian content. You have my vote. ( from a fellow BC chrome dome 😂 I've been shaving my head since I was 23, with no grey hair, I look 10 years younger than I am.)
Very informative video. It really helps explain OAS & CPP and only recently heard about the GIS so thanks for explaining that better. This is the first video I've watched on retirement benefits and I found it so well explained.
I was forced on cpp disability at age 50 due to an accident and now at 65+ receive approximately $400 per month less on cpp. Also the insurance company took the amount of 15 years of cpp disability off the settlement amount so penalized twice. We should be receiving a lot more, at $ 2,ooo a month
Thanks for increasing my knowledge in personal finance and investment, I recently subscribed to your channel. I want to give a big shout-out to all those working tirelessly to earn a living and build wealth during this recession. My husband and I are both retired and debt-free, and we're living smart and frugal with our money. Despite the recession, we're still earning passive income thanks to our savings and investments in the financial market. Investing lifestyle has enabled us to earn a steady monthly income through passive means, and we're grateful for it;"
Congratulations on your early retirement, Interesting indeed! Currently, I am in dire need of investment advice or tips. Earlier this year, I hesitated and failed to take any action until now. However, I am determined to try something new, as I am very receptive to various investment ideas. I want to be retired in my forties or fifties.
No problem at all! If you're seeking to earn substantial profits from your investment, I would suggest determining your investment horizon and implementing a long-term plan. I worked with Lewis James Godfrey to create a long-term investment strategy, and he assisted us in managing our investments while we focused on my jobs without any concerns.
Thank you for your advice. It's challenging to find a reliable investment advisor here, and I appreciate your input. Seeing the success you've achieved through investing, I would love to have access to your investment advisor's information if you wouldn't mind sharing it.
Glad to see this comment, Working with a skilled financial planner can be compared to having a mentor in the field of finance. I used to struggle to invest on my own and ended up losing money, but things changed once I started working with this same man, Lewis James Godfrey. He played a pivotal role in helping me improve my financial situation. Previously, I relied solely on my job and salary for income, but now I have found ways to generate additional income with ease, which has allowed me to leave traditional employment, thanks to Lewis. Nowadays, I believe that investing is not a choice, but a necessity for anyone who desires financial independence and a good quality of life.
I work with *LEWIS JAMES GODFREY,* who is based in the United States. If you would like more information about him, you can conduct a search online. He even got featured on CNN recently:)
Well considering the fact that I have been unemployed since mid 2002 due to health reasons, the fact that my CPP income is just a tad below average, is surprising. Apparently, 8 of those years of unemployment are disregarded when calculating the CPP. But despite being unemployed, I did get lucky and found a lovely good sized 1 bedroom apartment of which, thanks to the Rent-Geared-to-Income (RGI), has cost me only $140 per month for rent since 2004. Anyhow, these incomes all add up, meaning the CPP, the OAS, the GIS, the GST/HST, the OTB, the GAINS, and the CAI benefits. In my case of thus low income, I get max OAS and max GIS. Thank goodness for that.
@@bornfree1888 Yes it is an Ontario subsidized apartment, which is partially why the rent was even below the RGI's 30% of ones income limit. Why it got stuck at $140 for two decades, is a bit of a mystery to me. But surviving those decades with less than an annual ten thousand dollar income, was not fun. So you do what you have to. You use your indoor Air TV antenna and get up to 50 free TV channels, rather than paying. You figure out how to take advantage of PC Optimum Points to the max, and cut food costs in half. Spend $100, and get $50 or so back in Optimum points value. Most folk don't know how to do this at all. When poor, things happen. Your 2004 stainless steel microwave oven dies, so you fix it with parts from another trashed oven. Oven is still working today. Your 2010 Samsung TV dies, so you just have to replace one dead electrolytic capacitor for $1.95. TV is still working today. Your 2008 Lenonvo m58p ThinkCentre backup computer dies, but you replace the PSU electrolytic capacitors for $9.95. Still working this day and can still handle 4K videos. Change the battery and fix a bug in your 2001 Palm m505 PDA. I still use this PDA on a daily basis. Repair your 1999 SCHWINN 6700.1 treadmill. Still going strong and almost looking new.
@@kimgallagher1815 All I am allowed to say, is YES. I answered your question earlier on, with details included, and YT refused to allow the comment to be displayed ???
I was almost caught by the benefit clawback. I took CPP at age 64 but kept working (I needed the money). When I turned 65, OAS started. After a full year of receiving both and still working full time, I threw my estimated numbers into my tax software and was shocked to see the "social benefits repayment" amount. This was nearly the end of February, so I took out a $10K RRSP loan at 2% and increased my tax benefit return by about $2500. I always regarded benefit clawbacks as something that happens to rich people and earning enough to reach it never crossed my mind!
Knowing the majority of people will not earn the YMPE amount. Why do retirement planners make videos based on that amount? The average Canadian earns just under $60k. While the median is slightly above $40k. Myself and the majority of Canadians will receive 60% of our CPP if we work and wait until 65. Why doesn’t retirement planners focus on low income retirees? They’re the ones who REALLY needs the help.
The median income in Canada after taxes is $68,400 according to Statistics Canada. The average median income of families with two parents and children was $115,700, whereas a single-parent household had an average salary of $46,500.
Low income retires earn around 21k in retirement pensions between CPP and OAS. Depending on what age you took it. That is why you must apply for the gis guarantee income supplement. Which will provide you around 10k cash per year. That. Plus you qualify for an obscene amount of social benefits. Free dentist, free medication. They will also pay for your electricity. As well as provide all kinds of supplements. Plus there are also rebates and grants for your house offered by enbridge. When I've run the numbers. It works out better to earn below that 22k a year retirement income threshold. Because of all the benefits. So I'm not sure who your accountant is. But go get your taxes done by turbo tax. Every single benefit up to and including the guarantee income supplement will populate it. All you have to do is fill out the forms and mail them in. In Canada. The poor live better than the middle class.
@@freedomlife3623this is a falsehood. There are ways to maximize your benefits as a low income earner that are not at all obvious, so many will end up following the common wisdom approach and leaving desperately needed money on the table when a plan for fee could see them taking home thousands more a year. For the well off that’s basically table stakes, but for those in need it can make all the difference in the world.
If in the 80"s I had a homebased business, but I was not allowed to pay my CPP in my taxes each year, so, now I receive $336.30 each month, because I missed 10 whole years of CPP and I worked during this 10 year period, and did not retire till 2012, in June, while I was retired in 2010. The rules about CPP for entrepreneurs was very different then. I lost ten years of being eligible for receiving CPP during my retirement. Other people receive much mor CPP than I do now in my retirement.
Great vid and thanks!! Question in regards to GIS. When applying for gis they say to take total income line from your tax return. This amount includes your OAS. However OAS amount is not supposed to be included in determining how much you will be receiving in GIS. So how can they accurately determine your GIS if using the total income line on ur tax return? Many thanks if you can clear this issue for me :)
I am retired collecting CPP and OAS, but I have a couple of affiliate websites that are making miniscule amounts of money, if however they do make any money, I know I have to pay taxes and the CPP. Very informative video, thanks much.
Parallel Wealth GIS Video: • What Is Guaranteed Income Supplement,... very classic move by sharing a competitive link on your site, not many of us will do that, Rhys
Love your UA-cam videos very knowledgeable very professional. I'm 55 setting myself for retirement. Leaning more from you then my own financial advisor.
I just came across your channel because I’ll be turning 60 and curious about CPP,OAS and GIS. You gained my like and subscription because you explained the topic really well. Thank you ! Now, it is easier for me to figure out what I need to do in the next 5years before my retirement.
Not every one lives past the age of 70 and onwards. I have known 2 coworkers I didn't even get to retire. She had a heart attack and died. The other who was male Had cancer just before retiring, and died 2 months later. Both did not get to enjoy. Any money from the Government or otherwise. Working at the same place I retired at 61 and am now 66. Don't wait to collect Later. You May Not Be Here!!!
I took CPP at 60, my thinking being that I have a house that will likely become a part of a development in the near future and I'll make a lot of money, so take CPP now and use it to put towards the mortgage payments and as I'm self employed and in construction I'll take it a bit easier. When I got my statement from Service Canada I looked at my employment history that they have on file. Some of my employment is missing from when I was a young guy and employed. Also my 20 plus years of making self employed contributions seems to be missing. And also watching your video I see that also there's the child rearing provision and I'm the only parent of my now adult child and I did have reduced income due to child rearing in my child's younger years. I'll have to give them a call and see what's going on.
The calculation for GIS does not include oas or 5000. Per spouse of self employment income which is good. It is the pensions, and other income that count for GIS.
One thing I don’t think he touched on is if you delay taking your cpp and or your oas till 66-70 yrs of age than your income thresh hold will increase accordingly before claw back. I’m surprised how many accountants don’t know this.
Why the bank provided the form Т5008 with only the market cost of some shares, moved IN-Kind transaction, from my Non-registered account to my TFSA account? This market cost went to my income and I had an OAS clawback. The both boxes of that form had to be filled: with a market cost of those shares and the Base Cost (ABC), so the Proceeds supposed to be a difference of those two cost. It could be a Gain or a Loss, depends which cost: the market cost of the time of the In-Kind transaction and the ABC - is more. The previous year the bank had input in the firm the Base Cost amount, but not in the last year.
Very informative. Can you explain how these three amounts would end up in your hands. Meaning total amount as it seems if you get CPP then gis and oas are reduced. Can you give an example on that pls. Thank you for explaining this.
Thank you for providing such a good explanation of OAS . 14:42 Question : Just to confirm , if a person is collecting OAS , but then have a large capital gain in a taxation year , which puts their taxable income over the claw back amount ( $82,192 ) , please tell me that in the next taxation year , regular OAS payments will continue . .
Good presentation, it would even be better if you presented some example of OAS split between years of living in Canada and in a country that has a reciprocal social and tax agreement with Canada. Say Equal split 20 years in Canada and 20 years in the other country like Germany for example. 22:12
Question---if I get a 2000 monthly defined benefit pension, how is my CPP and defined benefit pension affected---and is there then any benefit to push back my CPP to age 70?
Thank you for this informtaive video. Question regarding OAS... I am 65 and have lived in Canada for 10 years. Will I get the full OAS benefit if I worked for more than 30 years from a country where Canada has an agreement with? Thank you.
I am looking to see if you can provide a quick response to my inquiry. When my wife and I go to collect OAS, can we avoid the clawback by splitting our work defined pension plan. I know the increase in the claw back amount is $90,997 in 2024. But between our CPP, OAS, RRSP, and our company defined pension plan, we are coming close to the clawback level. If we do not slip our company defined pension, we will definitely hit the clawback level. Can we actually split our CDPP to avoid the OAS clawback?
Thanks for the info. It's appreciated. I have a scenario that needs clarification. I have a sister that was told that she did not qualify for a survivor benefit. She received the death benefit but no actual pension from the death of her husband. Can you comment as to why she wouldn't be eligible?
I have one thing to say over Your video about this as I am on all 3. You did mention about the GIS that did give Me an answer as why Mine went down this Year. HOWEVER, It was a big shock when come to pay My monthly bills only to find out that there was $125.00 a month lower than last moths deposit & Yes, You get a notice about change, but after it's happened! It should be at least 1 Month before so that You know. This now has put Me in the hole & having to rob from Peter to Pay Paul, & Paul to pay Mary. Not happy about that. Another thing too. I have been on Disability since 1998 after My Doctor Signed the papers as I was on Welfare at the time & ended up with No say as when retirement age came as was automatically at 65. BUT, when come to the disability part, YEA, RIGHT! Only if You had very high expense's to put out & having the Doctor filling out the form. Proves on How God wants Us to be Successful but Stain doesn't. One more reason the "Homeless" rate is on the increase! Just like God has His Angels but Satin has His Demons & certainly applies to the Government. Sorry to say that, but it's the truth! Brings to Me another thing.."GREED OF MONEY!" The Bible is very clear about this matter & I have a saying for every Strike I hear. Quit the striking, quit the hiking" Only the Government wins with this.
Thanks. Sure wish my Wife and I had known this before applying for CPP @ 60. Our so called financial advisor said nothing when I told him my plan for taking it at 60. Unfortunately I am now 63 and my wife 62. So too late. He also mentioned nothing about GIS either. I had never heard of it. I would have been able to get it if I didn’t take CPP.
GIS eligibility cannot start until a person is 65 and eligible for OAS; then based on taxable income and marital status. If low-income and eligible for OAS at 65… definitely not too late for that.
@@brendag-gj3xd ha ha. Yes thanks. I knew that. I could only wish I wouldn’t be eligible for OAS. I would love that. Then that would mean I am making about 130 k a year in retirement. I wish!
I’m leaning so so much I so so new at this ….so my question is turn 65 in June 2023 July they send me my OAS also GIS I only income is $16,000.. Divorced so my GIS that I’m getting is $700.00 So my question is should I apply for my CPP …and if so the application is asking them to take tax should I do dollars or percentage dollars what would be $ amount be and if is percentage what will be the percentage…..thank thank you so much for your time ….
Awesome video. Wish I knew more about the CPP info before I retired as I was always told to take it as soon as you can. Question about the deferral of the OAS as I turn 65 next year... can you defer in 1 year increments & adjust that annually ie: defer for 1 year at time & assess your needs annually if you wish to keep defering OR is defering to 70 the only option...so 65 or 70 years old are the only options? Thanks so much.
@@wellbuiltwealth awesome & thanks for the quick reply (even though I turned 64 yesterday & have a bit of time to decide. Haha!). I just Subscribed to your Channel.
Thank you so much for this information. I will be turning 60 this year and didn't know any of this! And I think I might be a bit of a Nerd-migo because I really enjoyed this video :)
I do not receive any raises at all on the CPP. I only had one 1 small raise since I started collecting CPP at the of 6o and now at the age of 68. Plus I qualified for the GIS as my income was below 1,500 and at the age of 65 when I started collecting it. As of this month they cut me off because I made too much income so it has to be taxable because at this point my income was too high to get the GIS and now puts be back where I started from in the yr. of 2017 yup you got it going backwards.
What happens to CPP contributions made by foreign workers who end up going back to their countries? Do they have to apply for it when they are 60 - 65?
My wife and I retired early (couple years ago), I'm 42 and she's 33, we know we're not the normal demographic and have rental and dividend income to carry us fairly soundly. But always interested in seeing/learning new ways to build other passive income streams, options for passive income outside RE/Div, or tax planning that helps us keep more of our income.
If you think your OAS will be clawed back, it could be worth your while to start CPP early to lower your income later. If you take the early CPP at $640 a month, you don’t actually start losing money until 8.8 years after turning 65.
To point out , you can declare not to have tax deduced on you CPP payments . However , this of course means that you will have to pay this tax when filing you income tax return . But this means you get to hold this money all year , instead of the federal gov having it in their pocket . Also , suggest being aware of the withholding tax when you withdraw amounts from your RRSP account . If you reside outside of Quebec , the with holding tax is 10% for amounts up to $5,000 . If you have stock investments in an RRSP that are down right now , considering selling $4,980 of them and transferring this amount to your TFSA , and buying them back in your TFSA . .
Sum: CPP can be delayed, OAS kicks in at 65, need to advise if you want it delayed, if you forget, can have the payment stopped but need to payback. GIS is so confusing to me: GIS not taxable? What allowance?
By far the best explanation on retirement I have seen. Only one question; as a retire, Canadian citizen for 36 years does the OAS top-up to maximum as a citizen of 40 years?
I collect CPP now and get $670 a month after being taxed 30% right away for a total of $8,040 a year. I took CPP at 60 for health reasons. I'm still working and pay the max CPP contribution of $4000 for 2024. So I actually pocket a little over $4000 a year, I feel like I'm being ripped off. I would of preffered to invest my CPP contributions into my own plan all my working years I'm sure I would be better off.
If you delay OAS, will you get both the deferral increase and the residency increase? Example - you have 36 years residency at age 65. You start OAS at age 69. Will get the deferral increase based on 36 or 40 years residency? Will you get residency increase to 40 thereby the max OAS plus the deferral?
So if delayed start of OAS to age 70 is the age 75 10% increased based off your age 70 benefit amount or the normal age 65 max benefit amount? What number is grossed up by 10% at age 75? --- If I'm understanding the OAS website info estimating your monthly benefit it looks like the 10% increase is based off each person's specific benefit amount... so if you delay till 70 your age 75 benefit is actually (10% of (100 + 36%) delayed benefit amount or 13.6% total increase when compared against an age 65 benefit amount). This doesn't include any other 1/4ly inflation amounts received during that timeframe (age 65-70)
Very good question. And my understanding is the same as yours. I have not seen this question specifically answered anywhere on official websites but it certainly seems by the current wording that it is a 10% bump on whatever you are receiving. Since this is a new-ish feature of OAS, I wouldn't doubt we'll see more clarification on this down the road.
Hi I am desperately looking to get pension plan statement including OAS .I need to get it on my email so it can be printed out. Not great on a computer but need this info.
Very informative info Question I just became 60 and decided to applied for CPP but still working While I was filling out the form it asked how many tax to take but no option was given how do I know what tax to put?
You can make this any % you want. I suggest you ask them to make rate the same as your normal annual taxable income rate. I'd say at least 20% so you don't take a hit on your income tax refund or payment at tax time. I did 20 :{ ) Also I'm pretty sure you can change this percentage at any time.
The Max income that causes the OAS clawback does it include investment income from TFSA? let say if one get income of 86k from other sources but gets lets say 25k from TFSA investment does that count as 86K+25K raising the income total to 111K in which case it would cause OAS clawback ???
The cost of rent, Food, and Utilities does not leave much if all you have, is CPP, OAS, and GiS. Yes, in Canada, we are fortunate to have these pensions, however, it's still hard for many to live just on these.
@@jancyking582 Yes, I agree. Canada is a great country to live in. In Canada, Healthcare is a right ,instead of a priviledge, as it is south of the border. I am pleased Canada approved Bill C-22 that gives those with a disability, who can't work, and on low income. This monthly payment will benefit many in Canada.
If you live by yourself and own your home then maybe you can live off cpp/oas. Otherwise plan on continuing work and by some bitcoin/telsa stock or you will be f$&ked
@@nightrod2237 Maybe financial planning should have been taught in school. That would have been very helpful to many people in order to prepare themselves for retirement!
I thank you so much I reall need some advice in this cpp, old age and help supplements. Am a widow age 70 I did collet my cpp and oa when am 68. So am planning to retire this Dec. What shod I do next. Thank you
Please pay attention: no support cause retroactive, I don't have much than 18000.00, however retroactive payment put me at 40000. No longer qualified for Seniors Benefits
hello,ijust watch you tonight and i have a question regarding gis uf i have to leave canada more than 6 mos. can ihave still received the GIS allowance,thanks a lot and god bless.
You’ve quickly become my favourite financial UA-camr! Your videos are extremely informative and are presented in such a professional manner. I appreciate all the time and effort it must take for you to put them together. (I also like the font you chose - it’s aesthetically pleasing compared to regular fonts like arial 😊).
Alison! Thank you! You’re right, this one took an especially long time. Part of that was because I learned how to write directly on the videos so that took some extra elbow grease but maybe that’s the “font” you’re referring too?? If so, it was worth the effort 🤓.
Great information Reece. Thanks for the video. You make CPP easy to understand.
The only problem with this is. There bullshit.
I’ve watched many videos on the different federal retirement benefits….yours is by far the easiest to follow!! Thanks
So good to hear that! Thank you for the feedback :)
Thank you. The most informative info I have heard on the Canada 🇨🇦 pension plan. Very thorough explanation.👍👏
Glad you like! :)
Please do something about benefits for the Disabled. No one seems to address this.🤔
That'll be great
Yes great point. I’m considered disabled. I was badly injured in a workplace motor vehicle accident caused by another.
Finally someone explained it clearly and intelligibly - thank you!
Rhys Martell is another excellent Canadian content Retirement & Investing videographer. Speaking slowly and articulately is a huge plus compared to many other UA-camrs and having a voice that is pleasing to listen to makes this my go to channel for Canadian content. And how Canadian of you eh, to showcase and mention Doug Runchey, Brandon Beavis (& his Dad) & Adam at Parallel Wealth. Thanks Rhys you are knowledgeable & a stand up guy. Keep up the Great work.
Wow! Thank you for that bundle of kind words. That is motivation to keep on going. Totally appreciate it!!
@@wellbuiltwealth all true. You earned it. We need more excellent Canadian content. You have my vote. ( from a fellow BC chrome dome 😂 I've been shaving my head since I was 23, with no grey hair, I look 10 years younger than I am.)
Kent at K4 Financial is also a good one to watch.
Very informative video. It really helps explain OAS & CPP and only recently heard about the GIS so thanks for explaining that better. This is the first video I've watched on retirement benefits and I found it so well explained.
Glad it was helpful!
I was forced on cpp disability at age 50 due to an accident and now at 65+ receive approximately $400 per month less on cpp. Also the insurance company took the amount of 15 years of cpp disability off the settlement amount so penalized twice. We should be receiving a lot more, at $ 2,ooo a month
Hello, what happens to my CPP contributions if I decide to become a non-resident?
Well done, simple,direct and to the point
Thank you Gary!
Thanks for increasing my knowledge in personal finance and investment, I recently subscribed to your channel. I want to give a big shout-out to all those working tirelessly to earn a living and build wealth during this recession. My husband and I are both retired and debt-free, and we're living smart and frugal with our money. Despite the recession, we're still earning passive income thanks to our savings and investments in the financial market. Investing lifestyle has enabled us to earn a steady monthly income through passive means, and we're grateful for it;"
Congratulations on your early retirement, Interesting indeed! Currently, I am in dire need of investment advice or tips. Earlier this year, I hesitated and failed to take any action until now. However, I am determined to try something new, as I am very receptive to various investment ideas. I want to be retired in my forties or fifties.
No problem at all! If you're seeking to earn substantial profits from your investment, I would suggest determining your investment horizon and implementing a long-term plan. I worked with Lewis James Godfrey to create a long-term investment strategy, and he assisted us in managing our investments while we focused on my jobs without any concerns.
Thank you for your advice. It's challenging to find a reliable investment advisor here, and I appreciate your input. Seeing the success you've achieved through investing, I would love to have access to your investment advisor's information if you wouldn't mind sharing it.
Glad to see this comment, Working with a skilled financial planner can be compared to having a mentor in the field of finance. I used to struggle to invest on my own and ended up losing money, but things changed once I started working with this same man, Lewis James Godfrey. He played a pivotal role in helping me improve my financial situation. Previously, I relied solely on my job and salary for income, but now I have found ways to generate additional income with ease, which has allowed me to leave traditional employment, thanks to Lewis. Nowadays, I believe that investing is not a choice, but a necessity for anyone who desires financial independence and a good quality of life.
I work with *LEWIS JAMES GODFREY,* who is based in the United States. If you would like more information about him, you can conduct a search online. He even got featured on CNN recently:)
Well considering the fact that I have been unemployed since mid 2002 due to health reasons, the fact that my CPP income is just a tad below average, is surprising. Apparently, 8 of those years of unemployment are disregarded when calculating the CPP. But despite being unemployed, I did get lucky and found a lovely good sized 1 bedroom apartment of which, thanks to the Rent-Geared-to-Income (RGI), has cost me only $140 per month for rent since 2004. Anyhow, these incomes all add up, meaning the CPP, the OAS, the GIS, the GST/HST, the OTB, the GAINS, and the CAI benefits. In my case of thus low income, I get max OAS and max GIS. Thank goodness for that.
Is that a subsidized apartment? In what province?
@@bornfree1888 Yes it is an Ontario subsidized apartment, which is partially why the rent was even below the RGI's 30% of ones income limit. Why it got stuck at $140 for two decades, is a bit of a mystery to me. But surviving those decades with less than an annual ten thousand dollar income, was not fun. So you do what you have to. You use your indoor Air TV antenna and get up to 50 free TV channels, rather than paying. You figure out how to take advantage of PC Optimum Points to the max, and cut food costs in half. Spend $100, and get $50 or so back in Optimum points value. Most folk don't know how to do this at all. When poor, things happen. Your 2004 stainless steel microwave oven dies, so you fix it with parts from another trashed oven. Oven is still working today. Your 2010 Samsung TV dies, so you just have to replace one dead electrolytic capacitor for $1.95. TV is still working today. Your 2008 Lenonvo m58p ThinkCentre backup computer dies, but you replace the PSU electrolytic capacitors for $9.95. Still working this day and can still handle 4K videos. Change the battery and fix a bug in your 2001 Palm m505 PDA. I still use this PDA on a daily basis. Repair your 1999 SCHWINN 6700.1 treadmill. Still going strong and almost looking new.
do the subsidized apt ask for your income with all those benefits doesnt rent go up?
@@kimgallagher1815 All I am allowed to say, is YES. I answered your question earlier on, with details included, and YT refused to allow the comment to be displayed ???
Excellent review .. the best I've seen on the subject. Thanks a lot!
Wow, thanks!
I was almost caught by the benefit clawback. I took CPP at age 64 but kept working (I needed the money). When I turned 65, OAS started. After a full year of receiving both and still working full time, I threw my estimated numbers into my tax software and was shocked to see the "social benefits repayment" amount. This was nearly the end of February, so I took out a $10K RRSP loan at 2% and increased my tax benefit return by about $2500. I always regarded benefit clawbacks as something that happens to rich people and earning enough to reach it never crossed my mind!
Nice catch :)
you are the best of all other Financial Advisors on you tube.🌹🌹🌹
Knowing the majority of people will not earn the YMPE amount. Why do retirement planners make videos based on that amount? The average Canadian earns just under $60k. While the median is slightly above $40k. Myself and the majority of Canadians will receive 60% of our CPP if we work and wait until 65. Why doesn’t retirement planners focus on low income retirees? They’re the ones who REALLY needs the help.
Well, most people who use their services are going to be higher income earners. Not much to plan with if you are low income.
The median income in Canada after taxes is $68,400 according to Statistics Canada. The average median income of families with two parents and children was $115,700, whereas a single-parent household had an average salary of $46,500.
Low income retires earn around 21k in retirement pensions between CPP and OAS. Depending on what age you took it.
That is why you must apply for the gis guarantee income supplement. Which will provide you around 10k cash per year.
That. Plus you qualify for an obscene amount of social benefits. Free dentist, free medication. They will also pay for your electricity. As well as provide all kinds of supplements.
Plus there are also rebates and grants for your house offered by enbridge.
When I've run the numbers. It works out better to earn below that 22k a year retirement income threshold. Because of all the benefits.
So I'm not sure who your accountant is.
But go get your taxes done by turbo tax. Every single benefit up to and including the guarantee income supplement will populate it.
All you have to do is fill out the forms and mail them in.
In Canada. The poor live better than the middle class.
Because for low income earners, they will be better off when retired receiving all the government benefits. No need for extra planning & help.
@@freedomlife3623this is a falsehood. There are ways to maximize your benefits as a low income earner that are not at all obvious, so many will end up following the common wisdom approach and leaving desperately needed money on the table when a plan for fee could see them taking home thousands more a year. For the well off that’s basically table stakes, but for those in need it can make all the difference in the world.
If in the 80"s I had a homebased business, but I was not allowed to pay my CPP in my taxes each year, so, now I receive $336.30 each month, because I missed 10 whole years of CPP and I worked during this 10 year period, and did not retire till 2012, in June, while I was retired in 2010. The rules about CPP for entrepreneurs was very different then. I lost ten years of being eligible for receiving CPP during my retirement. Other people receive much mor CPP than I do now in my retirement.
Hope you have invested the CPP contribution in Stock Market, you will be able to draw from your investment account.
Great vid and thanks!! Question in regards to GIS. When applying for gis they say to take total income line from your tax return. This amount includes your OAS. However OAS amount is not supposed to be included in determining how much you will be receiving in GIS. So how can they accurately determine your GIS if using the total income line on ur tax return?
Many thanks if you can clear this issue for me :)
I am retired collecting CPP and OAS, but I have a couple of affiliate websites that are making miniscule amounts of money, if however they do make any money, I know I have to pay taxes and the CPP. Very informative video, thanks much.
Parallel Wealth GIS Video: • What Is Guaranteed Income Supplement,... very classic move by sharing a competitive link on your site, not many of us will do that, Rhys
Well, thanks :)
Parallel Wealth is a great shop and Adam is a friend of mine.
Best explanation on CPP & OAS .Thank you.
Thanks I don’t plan on retiring until my house 🏡 is paid off so if I need to defer my OAS a year or two I can organize that in advance.
Im just 10 yrs living here and Canada and I'm so thankful for this information that you share cause it helps us what to do, thank you
I am 80 and retired at 59 due to a toxic work situation. I wish I had this knowledge at that time.
Could you do a video on other pension plans, such as Saskatchewan pension plan. Are there any other pension plans that anybody can join?
Love your UA-cam videos very knowledgeable very professional. I'm 55 setting myself for retirement. Leaning more from you then my own financial advisor.
Helen, that’s a huge compliment. Gives me the juice to want to keep on making these. Bless you :)
I just came across your channel because I’ll be turning 60 and curious about CPP,OAS and GIS. You gained my like and subscription because you explained the topic really well. Thank you ! Now, it is easier for me to figure out what I need to do in the next 5years before my retirement.
Not every one lives past the age of 70 and onwards. I have known 2 coworkers I didn't even get to retire. She had a heart attack and died. The other who was male
Had cancer just before retiring, and died 2 months later. Both did not get to enjoy. Any money from the
Government or otherwise. Working at the same place
I retired at 61 and am now 66. Don't wait to collect
Later. You May Not Be Here!!!
if you pass away and you're "not here" you don't need any money.
I took CPP at 60, my thinking being that I have a house that will likely become a part of a development in the near future and I'll make a lot of money, so take CPP now and use it to put towards the mortgage payments and as I'm self employed and in construction I'll take it a bit easier.
When I got my statement from Service Canada I looked at my employment history that they have on file. Some of my employment is missing from when I was a young guy and employed. Also my 20 plus years of making self employed contributions seems to be missing.
And also watching your video I see that also there's the child rearing provision and I'm the only parent of my now adult child and I did have reduced income due to child rearing in my child's younger years.
I'll have to give them a call and see what's going on.
Absolutely, Dave. Give ‘em a call.
Rev Can can go back in microfiche to get those numbers for you.
@@dianetownsend9813 😂
Yes this person is doing a very good job explaining everything for sure.
Please Explain about withdrawal of RRSP While getting the Pension. Thank You !
Very helpful. This answered all the questions that I had about retirement benefits. Thank you so much! ❤😊
The OAS is not automatic !!! You have to apply ! I spoke to them and their answer was: "until you apply, you will not get OAS.
Regarding CCP, waiting till 70 is stupid if all your retirement income is what you get from CPP, OAS and GIS.
Amazing explanation! Thank You for your efforts😊
The calculation for GIS does not include oas or 5000. Per spouse of self employment income which is good. It is the pensions, and other income that count for GIS.
Thank you!!! You answered one of the questions I still had after watching this excellent video. I wondered what was included as income for the GIS!
One thing I don’t think he touched on is if you delay taking your cpp and or your oas till 66-70 yrs of age than your income thresh hold will increase accordingly before claw back. I’m surprised how many accountants don’t know this.
Ditto below. Except the fonts quibble. Words are the only things that hold meaning for me.
Application CPP retirement is not only CPP part , why service cansda allowing only CPP on the spplication CPP retirement?
Why the bank provided the form Т5008 with only the market cost of some shares, moved IN-Kind transaction, from my Non-registered account to my TFSA account? This market cost went to my income and I had an OAS clawback. The both boxes of that form had to be filled: with a market cost of those shares and the Base Cost (ABC), so the Proceeds supposed to be a difference of those two cost. It could be a Gain or a Loss, depends which cost: the market cost of the time of the In-Kind transaction and the ABC - is more. The previous year the bank had input in the firm the Base Cost amount, but not in the last year.
Very informative. Can you explain how these three amounts would end up in your hands. Meaning total amount as it seems if you get CPP then gis and oas are reduced. Can you give an example on that pls. Thank you for explaining this.
Thank you for providing such a good explanation of OAS .
14:42 Question : Just to confirm , if a person is collecting OAS , but then have a large capital gain in a taxation year ,
which puts their taxable income over the claw back amount ( $82,192 ) ,
please tell me that in the next taxation year , regular OAS payments will continue .
.
Thanks! Clawback is not permanent. If that’s what you’re asking. It’s year by year depending on income :)
thank you so much, I am very happy that i have found you ! You made a difference in my day , maybe in my life :)
Well, thank you for saying so :)
Good presentation, it would even be better if you presented some example of OAS split between years of living in Canada and in a country that has a reciprocal social and tax agreement with Canada. Say Equal split 20 years in Canada and 20 years in the other country like Germany for example. 22:12
That’s pretty much the topic of the most recent video I released: ua-cam.com/video/8_6y8Lf6Oy4/v-deo.htmlsi=s2uJWVqE284OWEjA
Excellent excellent videos. You are doing such great work. Thank you!!
Thank you!!
Question---if I get a 2000 monthly defined benefit pension, how is my CPP and defined benefit pension affected---and is there then any benefit to push back my CPP to age 70?
Thank you for this informtaive video. Question regarding OAS... I am 65 and have lived in Canada for 10 years. Will I get the full OAS benefit if I worked for more than 30 years from a country where Canada has an agreement with? Thank you.
Oct or Nov to max out CPP....for as long as I can remember I maxed out CPP and EI by mid to late July.
Pls do a segment on what would happen if Alberta leaves with their portion. Of the CPP
Please can you give video about Quebec pension plan
I am looking to see if you can provide a quick response to my inquiry. When my wife and I go to collect OAS, can we avoid the clawback by splitting our work defined pension plan.
I know the increase in the claw back amount is $90,997 in 2024. But between our CPP, OAS, RRSP, and our company defined pension plan, we are coming close to the clawback level. If we do not slip our company defined pension, we will definitely hit the clawback level.
Can we actually split our CDPP to avoid the OAS clawback?
Thank you SO much for your info very helpful when planning retirement!
I wished I new that information twenty years ago. Thanks for your descriptiveness.
UA-camwas not popular at that time ! Sorry😅😅
Thanks for the info. It's appreciated. I have a scenario that needs clarification. I have a sister that was told that she did not qualify for a survivor benefit. She received the death benefit but no actual pension from the death of her husband. Can you comment as to why she wouldn't be eligible?
I have one thing to say over Your video about this as I am on all 3. You did mention about the GIS that did give Me an answer as why Mine went down this Year. HOWEVER, It was a big shock when come to pay My monthly bills only to find out that there was $125.00 a month lower than last moths deposit & Yes, You get a notice about change, but after it's happened! It should be at least 1 Month before so that You know. This now has put Me in the hole & having to rob from Peter to Pay Paul, & Paul to pay Mary. Not happy about that. Another thing too. I have been on Disability since 1998 after My Doctor Signed the papers as I was on Welfare at the time & ended up with No say as when retirement age came as was automatically at 65. BUT, when come to the disability part, YEA, RIGHT! Only if You had very high expense's to put out & having the Doctor filling out the form. Proves on How God wants Us to be Successful but Stain doesn't. One more reason the "Homeless" rate is on the increase! Just like God has His Angels but Satin has His Demons & certainly applies to the Government. Sorry to say that, but it's the truth! Brings to Me another thing.."GREED OF MONEY!" The Bible is very clear about this matter & I have a saying for every Strike I hear. Quit the striking, quit the hiking" Only the Government wins with this.
Nice explanation of all the retirement programs. Thanks
Thanks. Sure wish my Wife and I had known this before applying for CPP @ 60. Our so called financial advisor said nothing when I told him my plan for taking it at 60. Unfortunately I am now 63 and my wife 62. So too late. He also mentioned nothing about GIS either. I had never heard of it. I would have been able to get it if I didn’t take CPP.
Sorry to hear this Kris. You’re not alone in these frustrations…
GIS eligibility cannot start until a person is 65 and eligible for OAS; then based on taxable income and marital status. If low-income and eligible for OAS at 65… definitely not too late for that.
@@brendag-gj3xd ha ha. Yes thanks. I knew that. I could only wish I wouldn’t be eligible for OAS. I would love that. Then that would mean I am making about 130 k a year in retirement. I wish!
I’m leaning so so much I so so new at this ….so my question is turn 65 in June 2023 July they send me my OAS also GIS I only income is $16,000.. Divorced so my GIS that I’m getting is $700.00 So my question is should I apply for my CPP …and if so the application is asking them to take tax should I do dollars or percentage dollars what would be $ amount be and if is percentage what will be the percentage…..thank thank you so much for your time ….
That was amazing! Thanks very much for putting this excellent information together!
Glad you enjoyed it!
Please, I need a video for public service pension!
Extremely clear and informative. Thank you
Awesome video. Wish I knew more about the CPP info before I retired as I was always told to take it as soon as you can. Question about the deferral of the OAS as I turn 65 next year... can you defer in 1 year increments & adjust that annually ie: defer for 1 year at time & assess your needs annually if you wish to keep defering OR is defering to 70 the only option...so 65 or 70 years old are the only options? Thanks so much.
Good question. You can actually defer month by month. You just let them know that you want to defer and then let them know when you want to take it.
@@wellbuiltwealth awesome & thanks for the quick reply (even though I turned 64 yesterday & have a bit of time to decide. Haha!). I just Subscribed to your Channel.
Excellent info, well laid out
Thanks
Excellent information! I just subscribed.
You didnt mention the type of income that GIS is calculated on. Like for ie OAS is not considered income in the calculation of the GIS benefit.
Thank you so much for this information. I will be turning 60 this year and didn't know any of this! And I think I might be a bit of a Nerd-migo because I really enjoyed this video :)
Ha! “Nerd-migo.” Love it :)
Thank you so much for the clear explanations.
Thank you for all your information 🙏
What happens to OAS when a spouse has passed away? Is there a survivor benefit?
Delaying beyond 65, hurts, here in Canada, upon tax assessment because of retroactive income is beyond 40000, no longer supported by Seniors supports
I do not receive any raises at all on the CPP. I only had one 1 small raise since I started collecting CPP at the of 6o and now at the age of 68. Plus I qualified for the GIS as my income was below 1,500 and at the age of 65 when I started collecting it. As of this month they cut me off because I made too much income so it has to be taxable because at this point my income was too high to get the GIS and now puts be back where I started from in the yr. of 2017 yup you got it going backwards.
What happens to CPP contributions made by foreign workers who end up going back to their countries? Do they have to apply for it when they are 60 - 65?
Thumbs up - Liked and Subscribed ! Thanks and best wishes on growing your channel and your actual business.
Well, thank you :)
My wife and I retired early (couple years ago), I'm 42 and she's 33, we know we're not the normal demographic and have rental and dividend income to carry us fairly soundly. But always interested in seeing/learning new ways to build other passive income streams, options for passive income outside RE/Div, or tax planning that helps us keep more of our income.
Well done!!
@@wellbuiltwealthbull shit!
If you think your OAS will be clawed back, it could be worth your while to start CPP early to lower your income later. If you take the early CPP at $640 a month, you don’t actually start losing money until 8.8 years after turning 65.
To point out , you can declare not to have tax deduced on you CPP payments .
However , this of course means that you will have to pay this tax when filing you income tax return .
But this means you get to hold this money all year , instead of the federal gov having it in their pocket .
Also , suggest being aware of the withholding tax when you withdraw amounts from your RRSP account .
If you reside outside of Quebec , the with holding tax is 10% for amounts up to $5,000 .
If you have stock investments in an RRSP that are down right now , considering selling $4,980 of them and
transferring this amount to your TFSA , and buying them back in your TFSA .
.
Yup. Yup. And yup :)
Sum: CPP can be delayed, OAS kicks in at 65, need to advise if you want it delayed, if you forget, can have the payment stopped but need to payback.
GIS is so confusing to me: GIS not taxable? What allowance?
Can you get the survivors benefit and the allowance for the survivor at the same time?
By far the best explanation on retirement I have seen. Only one question; as a retire, Canadian citizen for 36 years does the OAS top-up to maximum as a citizen of 40 years?
I collect CPP now and get $670 a month after being taxed 30% right away for a total of $8,040 a year. I took CPP at 60 for health reasons. I'm still working and pay the max CPP contribution of $4000 for 2024. So I actually pocket a little over $4000 a year, I feel like I'm being ripped off.
I would of preffered to invest my CPP contributions into my own plan all my working years I'm sure I would be better off.
You bet you are! If you don't talk to somebody you won't get anything more!
@mariapace4564 I'm not sure who to talk to, any suggestions would be appreciated.
Beautifully done. Thank you.
If you delay OAS, will you get both the deferral increase and the residency increase? Example - you have 36 years residency at age 65. You start OAS at age 69. Will get the deferral increase based on 36 or 40 years residency? Will you get residency increase to 40 thereby the max OAS plus the deferral?
What about cppd? Is that part of cpp... I Was put on cppd so how does this work? I'm 59 with health problem?
Only if you get max benefits or it's amount are very Operated for most of us
Can i collect CPP disability AND CPP at the same time? Probably not. Im on ODSP now, but not for long
So do you know what happened to the price raise for CPP in June it was suppose to go up to $1600. It never happened !!!
So if delayed start of OAS to age 70 is the age 75 10% increased based off your age 70 benefit amount or the normal age 65 max benefit amount? What number is grossed up by 10% at age 75?
--- If I'm understanding the OAS website info estimating your monthly benefit it looks like the 10% increase is based off each person's specific benefit amount... so if you delay till 70 your age 75 benefit is actually (10% of (100 + 36%) delayed benefit amount or 13.6% total increase when compared against an age 65 benefit amount). This doesn't include any other 1/4ly inflation amounts received during that timeframe (age 65-70)
Very good question. And my understanding is the same as yours. I have not seen this question specifically answered anywhere on official websites but it certainly seems by the current wording that it is a 10% bump on whatever you are receiving. Since this is a new-ish feature of OAS, I wouldn't doubt we'll see more clarification on this down the road.
Hi I am desperately looking to get pension plan statement including OAS .I need to get it on my email so it can be printed out. Not great on a computer but need this info.
Very informative info
Question I just became 60 and decided to applied for CPP but still working
While I was filling out the form it asked how many tax to take but no option was given
how do I know what tax to put?
You can make this any % you want. I suggest you ask them to make rate the same as your normal annual taxable income rate. I'd say at least 20% so you don't take a hit on your income tax refund or payment at tax time. I did 20 :{ ) Also I'm pretty sure you can change this percentage at any time.
I receive cpp and oas. Can I also receive gis if unemployed and retired over 65? Thank you
Wish this were true!!!! i'm 86 and need the money! Where do I sign, or what do have to do
The best explanation! Thanks for sharing it.
The Max income that causes the OAS clawback does it include investment income from TFSA? let say if one get income of 86k from other sources but gets lets say 25k from TFSA investment does that count as 86K+25K raising the income total to 111K in which case it would cause OAS clawback ???
The cost of rent, Food, and Utilities does not leave much if all you have, is CPP, OAS, and GiS.
Yes, in Canada, we are fortunate to have these pensions, however, it's still hard for many to live just on these.
Grateful I live in Canada!
@@jancyking582
Yes, I agree. Canada is a great country to live in.
In Canada, Healthcare is a right ,instead of a priviledge, as it is south of the border.
I am pleased Canada approved Bill C-22 that gives those with a disability, who can't work, and on low income. This monthly payment will benefit many in Canada.
If you live by yourself and own your home then maybe you can live off cpp/oas. Otherwise plan on continuing work and by some bitcoin/telsa stock or you will be f$&ked
Maybe you should have invested in yourselves throughout the years . No one should have to take care of those who failed to plan ahead .
@@nightrod2237
Maybe financial planning should have been taught in school. That would have been very helpful to many people in order to prepare themselves for retirement!
Thank you. This is a very informative video. Much appreciated.
Just subscribed. Love your content and presentation style
Awesome, thank you!
I thank you so much I reall need some advice in this cpp, old age and help supplements. Am a widow age 70 I did collet my cpp and oa when am 68. So am planning to retire this Dec. What shod I do next. Thank you
Thanks for the info. great presentation for an otherwise boring topic
Please pay attention: no support cause retroactive, I don't have much than 18000.00, however retroactive payment put me at 40000. No longer qualified for Seniors Benefits
I never received my Fathers survivor benefit. What can I do
hello,ijust watch you tonight and i have a question regarding gis uf i have to leave canada more than 6 mos. can ihave still received the GIS allowance,thanks a lot and god bless.