A Complete Guide To CPP And OAS When You Retire
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- Опубліковано 18 тра 2024
- ➡️Fee For Service Planning: www.parallelwealth.com/planning
In this video we'll discuss the Canada Pension Plan (CPP) and Old Age Security (OAS), and everything you need to know about these two benefits as you head into retirement.
➡️GIS: • What Is Guaranteed Inc...
➡️OAS Clawback: • What Is OAS Clawback &...
➡️CPP Calculator: cppcalculator.com/
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OUTLINE
0:00 - Intro
0:13 - Eligibility
1:25 - Application process
4:57- How much?
11:26 - Taxable?
11:59 - When should you start?
This presentation is intended for information purposes only and does not constitute an offer to buy or sell our products or services nor is it intended as investment and/or financial advice on any subject matter. Every effort has been made to ensure the accuracy of its contents. Certain of the statements made may contain forward-looking statements, which involve known and unknown risk, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Returns are not guaranteed and past performance may not be repeated.
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DISCLAIMER: The videos and opinions on this channel are for informational and educational purposes only and do not constitute investment advice. Adam Bornn is not registered to provide investment advice and as such does not provide recommendations - those looking for investment advice should seek out a registered professional. Adam is not responsible for investment actions taken by viewers and his content should not be used as a basis for investment trades.
OK......so....Adam.....now my mind and head are going to Explode with a comprehensive, all in a nutshell, front end loaded, full on blast from A to Z of CPP and OAS!!!! Whoosh! This vid is a keeper to bookmark to refer to now and again. Appreciate explaining the "paper work application" tips and tricks on this one as well. Congrats on reaching over 88,000+ subscribers! What a moment it will be, EPIC, when you get to 100,000! Lets go Canada.....bring on those subscribers! Also, the email newsletter was a brilliant idea....game changer to help spread the word of your work and the legacy of your grandfather through you. Meg, chiming in...."from away person" 🙃on Prince Edward Island.
Thanks Adam. Very informative as usual.
Glad you enjoyed it
Great information here, Adam.
Cheers
Glad you enjoyed it
This is absolutely outstanding Adam! Thanks a million! ❤🎉
You're so welcome!
Thanks this clearly outlines the shafting we get after 60 years of contributing....😅😅😅
Family health history as well as one's personal health also needs to be a MAJOR factor in deciding whether to start or delay payments. In my family, my father passed at age 56, my brother at 56 and another brother at 60. I've seen numerous situations where payments were delayed to age 65 only to be quickly terminated due to an unexpected passing. I'm 68 so delaying CPP and OAS to age 70 would have been a huge risk I was not willing to take.
I totally agree! My partner's family health history is poor, and his health isn't the greatest so he retires at 60 and started his CPP right away. My family tends to make it to 75 or 77 at most, I plan to retire at 63, however I started my CPP just before I turned 62. I work in an ICU, I've seen way to many people die before 60.
Can't disagree. Many factors need to be considered and sounds like you looked at everything. Hope you are enjoying retirement, and staying healthy!
You can never tell. A friend of mine's grandfather retired at 56 because his father died at 56 and his grandfather also died at 56, he wasn't taking any chances. He sold the farm he had worked since he inherited it from his father, his house, everything, and moved in with his son (my friend's father). Once he gave everything up he sat in that house waiting to die -- for the next 40 years, he lived into his 90s! I have heard that genetics accounts for about 25% of your personal longevity, the other 75% is related to other things like lifestyle, advancement in medical treatment, and just plain luck. Family health history is one thing but you never know.
Thanks for the video
This was good,thank you.
You're welcome!
Thank you
I think if oas is larger then cpp delaying oas is an option that could result in more money plus survivor benefits of cpp would be availible.
For a more accurate CPP estimate, call CRA and ask them to do a “retirement simulation”. They will ask you for your last date of work and when you might want to start payment. I did this for ages 60, 65 and 70.
They will factor in the drop out years and child rearing provision if it applies and you tell them.
You can get an estimate on line with your Service Canada account.
@@murraytown4 online assumes you continue working until then. Retirement simulation does not as they ask for your last day of work. Also cannot add child rearing provision on line. Retirement simulation asks for children info.
Sign up for my services Canada acct.
Thank you so much
You're most welcome
Thanks for the info! Great Video. Two question's, On OAS can you tell them when you get money each month. Because Both OAS and CPP is on the same date!! Love to get OAS, say second week of each month, Plus i get 20% taken out of CPP for my the Tax's can you do the same with OAS? Not sure, that's a video on it own lol! Get tax's taken out and placed in a High Interest account, ready for the Tax Man or get it taken out each Money! Hard one too, thanks for your time Dave From Labrador Canada.
I want to retire overseas so I thought I needed to live in Canada to get it...thanks for clarifying
Great videos! Very informative! Question - suppose i want to work seasonally after age 65 and collect EI on the off seasons, how would that work? Would EI claw back benefits if I was collecting CPP? OAS? cashing rrsp's and TFSA's? Working seasonally might give me some health insurance and perhaps discounts on hobby items, but isxit worth it from an EI perspective?
Will there be an increase in both of these about now? Regarding OAS, I called a rep who told me that because I had been a regular tax filer I would have received OAS automatically.
This is a very good video and I agree with your approach. However, how would my Cpp non-contributory years affect the decision on when to start. I have read and done my homework, so I know it will impact any decision I might make. I understand that if you have 8+ years of non-contributory years, I should consider taking Cpp earlier even if I do not need it. I also have a defined pension plan with bridging that will be dropped at age 65. I also have sufficient RRSP to cover the drop in bridging for an additional 5 years. But as I said, that would push my cpp non contributory years from 8+ to 13+, which starts working against me with regards to the 17% dropout rule that would come into play. Therefore would it beneficial to take Cpp at 65 or delay it to 70 despite getting an additional 42% at age 70 as opposed to 36% at 65? Adjusting for my diminished bridging by implementing a RRSP meltdown?
What's your opinion? No one covers how the non contributory years affects our CPP or OAS?
Hi Adam, great videos. If my wife lived in Canada for 33 years at age 65, and we delay OAS until 70 does she know qualify 38/40th of the full payment (33 + 5 years =38)? Also will the payment continue to increase until she has reached a full 40 years in Canada at age 72?
I received the letter last year and I went on line and told them I did not want to take my OAS. My 65 th birthday was in November. December I got my first oas check. After I told them I did not want it to start. Now I have a dilemma.
You should be able to call service Canada and get them to stop your OAS payments. I understand that they will require you to pay back any payments received.
Call them, it's reversible. How much advance notice did you give?
OMG. at first glance i thought you wrote Now I have dementia..... very different
People die early mostly due to unhealthy lifestyle habits. Carefully study those habits and choose the healthy opposite and you will hopefully live longer....but I think good luck accounts for most of longevity!
Don't forget apply oas min 160 days, in Canada since 2002, my cpp $192.50 a month
I had a 7 year gap in employment in my late 30s-early 40s. If I work to age 70 and keep maxing my cpp will I roll off some of the zero years? 20 to 30 I was very underemployed and never maxed my cpp.
I’ve always wondered, what would the average CPP be if everyone took it at 65. The “average”, I assume is skewed by people who took it early, and people who took it later. Would the average be higher? By how much? I wonder how many people who would get the max at 65 but find out they’ll get the average at 60 and think “ seems good enough” ?
Hi Adam
You mentioned anyone who worked after 2019 would benefit from the enhanced CPP. What if you worked & where also collecting CPP after 2019 would you benefit in a higher CPP benefit. Thanks for the info 😊
As long as you paid into CPP still
What do you do if you still have a mortgage when you retire? Is it better to pay it off with your savings? I’m confused about taxes with retirement how much is deducted.
Hi Adam ,can you do a video on Defind Pension ,along with CCP, OAS, + RRSP.. Should you use up your RRSP first (after 65, as the Bridge Benefit runs out.Thanks for the help..
Yes I can
..Thank you@@ParallelWealth
What about the GIS?
Super video Adam... I believed you mentioned that you're welcome to take your OAS even if you are retiring in a different country, just as long as you have lived in Canada for the required amount of time. Are you able to receive your CPP if you have retired in another country?
Yes you can.
If I retire early at 57 and of course stop contributing to CPP at that age will I still receive more money waiting until 65 rather than taking it at 60?
Adam do you still keep your medical benefits if you live abroad
Hi Adam, great channel , I recently took over power of attorney over my Dads financial affairs . He’s 90. When looking into his affairs i found out that 2 years ago his CPP was canceled because he didn’t respond to some correspondence from CPP. CPP has now ( As or Jan 5 2024 ) back paid him $ 16500. This however will put him into a claw back situation for his OAS. Can I refile his 2021 and 2022 taxes to avoid this.Thanks Gord T.
You would need to talk to a tax accountant on this. I would assume you could, but also assume he would have received more GIS the past 2 years, which some would need to be paid back. Would have to see where then net benefit is and what options you have. Does bring in the cost of an accountant unfortunately
You're going to need an updated show when Alberta leaves the CPP.
I suspect this is mostly bluster and will never happen.
i am a retired permanent resident for almost 18 yrs , already receiving a reduced oas pension. Since i have not resided in canada for 20 yrs, i won't get the OAS if i retire outside Canada. My question : will i get it if i extend my stay in canada until i gathered at least 20 yrs residency?
Hello Adam, I am 67, planning to collect OAS later at 70. However, I didn't let CRA know that I would like to delay my OAS and I didn't start receiving any payments at 65 either. What should I do? Does that mean that I lost my OAS? Thank you. Great video.
No it should be fine, you would have received a tax slip by now had they started a d you have clawback. I would reach out to a Service Canada center though and inquire
Never heard of this and it is rather sneaky for them to start it automatically.
I have a plan, but there’s one piece I’m missing..,
I’m 60, planning to work to 70 and hold off on collecting both CPP and OAS until then. As of 65, I’ll have 20 years of max contributions. If I keep paying into CPP another 5 years max contribution, will it make that much difference?
If I can stop contributing to CPP at 65 (even if I’m not collecting to 70) I can contribute that to my FHSA and RRSP so which would make more sense?
I retired the first time at 54.
Post 65 CPP payments tend to work out ok based on the math.
Can I receive CPP at 60 when I receive my pension from my company at 60? Any disadvantages if I received both
I heard this with OAS mutliple times. You are not eligible if your 'net World Income' is over $81,761. Nowheres do they define Net World Income. Is that the income you receive when you retire, or is this the income you have made before you retire at 65???? Example, I will have made $125K prior to retirement, and when I retire, my pension sill pay out $72K a year. Would I be eligible for OAS retiring at age 65 with a $72K pension?
I think it is important to add in this video especially for immigrants who have less than 20 or 40 years of residence (after age 18), that they may still be eligible for partial OAS payments as long as they have lived in one of the countries Canada has established a social security agreement OR contributed to the social security system of one of the countries with which Canada has established a social security agreement. Has this changed from last year's different Scenarios list??
Snippet from OAS website: Partial Old Age Security pension for less than 40 years of residence (after age 18).
"To receive a partial Old Age Security pension, you must have lived in Canada for at least 10 years (after age 18). The amount of the partial Old Age Security pension you receive depends on the number of years you have lived in Canada. Your partial payment amount is based on the number of years in Canada divided by 40."
I assume this would apply in reverse if someone left Canada before they reached 20 years.
I searched but I couldn't find a list, do you have a link ?
Happy new year and another great video Adam. Two questions/points:
Seeing as qpp’s calculator is better than cpps, why doesn’t cpp leverage that one to enhance theirs?
Politics aside, it seemed like oas was in dire straits (great band btw) 10+yrs ago and had to be pushed to 67 before being pulled back to 65 by trudeau; how can canada afford the 10% bump for persons over 75? Are we just digging ourselves deeper and/or a vote buying trick by trudeau to keep his grip on power while driving the country further into the abyss?!?! Why do I see this bonus nugget vanishing as a way to shore up the country’s balance sheet.
Why CPP doesn't provide an in depth calculator is beyond me. As for the OAS - I think you may be accurate on your assumption. More allocation of assets to this program.
I am turning 65 in June of 2023. I initially received notification that OAS would start automatically, I then received a second letter saying that it would not start automatically. So it does not start automatically.
Well I’ll be 65 in 2024 and I went to Service Canada and filled in a form to receive for both CCP and OAS starting June 1 2024 include how much tax to withhold. My accountant recommended withholding 30% rate for taxes. My brother did something similar last year and ever worked out great. Service Canada people are the best. I and my wife renewed our passports last year for 10 again. Service Canada was simply awesome to deal with filling in forms, paying and when to expect to receive them. Which we did almost to the day we expected them.
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 age 65 (36/40 years of residency) or age 69 (40/40 years = max)?
the count stops at 65.
thanks @@rb239rtr
Thanks for your video,it is very informative, This year I will be 65 yrs old I am planning to retire 2026/2027 can I apply for my pension now/ ahead of time ... please let me know...Thanks
Yes, you can fill out the forms and list a future date to start
Having lived both in the US and Canada (now), I know CPP integrates with SS. There is an issue with the "windfall" element from SS in the US. Do you know of any sources or calculators that can estimate this? Thanks for a great site. Always watching for new videos.
Yes I’d like to know also. I only worked maybe 8 yrs in 🇨🇦 and worked almost 26 yrs in 🇺🇸. What documentation do I need to show Services Canada?
If you choose to delay either your CPP or OAS payment, do you have to give a firm irrevocable date you want to start collecting, or can you leave the date open.
CPP is open until 75 and OAS is automatic at 65 unless you apply for a deferral. You don't have to give them a firm date on the deferral but it will kick in at 75.
@@roofpizza1250 Thanks for the info.
Open date - but don't wait til 75 for CPP as noted in the comments as there is no benefit to wait past 70
Can you also just go to service canada and apply for GIS there.
Yes
Hi there is this site on UA-cam his been posting about increased on OAS $700 .
His report seems very sketchy since he post daily and each time has different figures and i don't see you reporting anything about it.
I did not see on the TV news about it either .
What is the percentage that is deducted for each year you did not live in Canada. Say if you’ve been here 20 years how much of the oas is withheld?
It will be however many years your were in Canada divided by 40
My husband has passed away. I am collecting a portion of his CPP. Can I collect his CPP and my CPP at the same time.
You will receive a survivor benefit, and you can collect yours at the same time. There is a maximum amount you can received combined.
Collecting cpp and osp and collecting supplement is it worth working? I heard I would lose 500.00 a month?
I know someone who continued working but reduced her hours to avoid a clawback. Of course you may need help with the calculations. If you are single, you would only get the GIS if your income (which includes CPP payments) is below $21,624.00 and payments are on a scale depending on what you earn.
Oas should keep with inflation
It will.
I was wondering does your Rrsp amount cause a claw back or just what you use from it for income .So if I have 150 thousand in RRSP .But my income from pension and Riff is 40 thousand for year .Is there a claw back because I have that much money in RRSP
If you have RRSP's that you are not cashing in, it does not count as income for clawback purposes.
@@plantbasedsenior4240 thanks for reply
Is it going to be tax deduction on that 758 dollars average payment or oas payment????
You can request tax not be deducted on both CPP and OAS. My spouse and I have done that.
Of course if you have other sources of income (pension, cashed in RRSP) you will probably owe something at tax time.
@@plantbasedsenior4240thank you very much
As a married couple , your income is already combined.
My husband is currently 66, he never receive any letter about CPP, nor OAS.
Contact Service Canada
I only have 15 years working in Canada after age 18, is there anyway to make up the years without moving back ?
I don't believe so
in my case Chris Ryan Stewart has assisted me in doing that effectively, I'm not an expert so I lack experience in investment strategies, I work and my consultant handles the rest.
No, OAS is funded by general taxation. While it’s not “contributory” like CPP, the prorated 40 year calculation is, in part, meant to reflect how much a taxpayer funded it.
@@James_48 was trying to find away to get 15/40 years to count without moving back to Canada. There appears to be a lot of countries with agreements with Canada so I could get 15/40. Nice little extra spending money in retirement.
@@jasonmedhurst4725 yes, definitely you should be entitled to your OAS because you have the minimum 10 years.
So a person that's smart and has invested and makes over 100 K after 60,..gets penalized after paying these pension plans all their life ?
What about GIS?
JGI - just google it
If the gov't thinks you may be entitled, they send a letter to apply (only after you are of course receiving OAS). If you were entitled for previous years, they will send a lump sum payment.
Is the government changing the required OAS age to 67?
No
I can't imagine all the people that reach their 60's and have no retirement plan from their workplace and rely on CPP and OAS.
It's sadly a very large number
please discuss a senior couple combining income for taxes - how does it impact how each individual's pension and OAS are affected by this. Both born and raised in Canada.
When I go on my service canada account and it tells me if I started cpp next month I could get xxx. Does this calculation include child rearing years, 8 low earning years and cpp disability years?
I would recommend contacting service Canada support around that. My guess would be no it doesnt include that but I could be wrong.
I'd say it's imperfect but does include those years. Next year you could make tonnes or zero so how can they calculate that?
The government gets a copy of your T4 every year. If you are not earning income and no T4 is issued those years are factored in to your total contributions. You should your contributions from tge CPP government page
The CPP number online will NOT include child rearing, but does the 8 year drop out.
Good question
Is there a site or calculator where you can enter in your retirement income, to determine how much tax you should have taken off? ie: rrsp is X, cpp is Y, oas is Z and estimated tax amount is T?
ernst and young has a tax calculator... i can't put link here
I use the "tax tips" online tax calculator. Great source of information on all taxation topics.
Many out there. Some mentioned in comments or Google. Wealthsimple has a decent one too
20 Years in Canada 🇨🇦 online he is not a government oine takes 18 months Service Canada is free
Is CPP getting to be a BS plan? Looks like $7500/yr between employee/employer to get $1300/month (indexed). Still, invest that for 35 years and you could generate $3000/month? Plus if you get hit by a bus on your 66th birthday, CPP is gone, but your investments would still be there. Should the government be offering an "opt out" along with an enhancement?
If they did offer an opt out how would Guaranteed Income, CPP etc. be funded?
@@joyousjohnson7358 just CPP, which is supposed to be funded by contributions. Self-employed can opt out of it now.
I dare say if it were optional far too many people would opt out and not save that money either. These type of DB of pension plans only work if (almost) everyone is in. Guaranteed for life indexed DB pension plans are very hard to come by and difficult to duplicate with personal savings.
I look at the indexed guaranteed CPP & OAS benefits as long life insurance. It's sort of like paying for fire insurance on your house, I really don't worry that my house might not burn down and I won't collect on all the premiums I paid.
Also consider if you get hit by that bus you are dead and when you are dead will how much you got from CPP really matter to you?
I think the better way to look at this is determine today, how much did a 65 year old put in since age 18? - what is their total contribution? Then compare that figure to $1365 per month, indexed for life.
Deplorable how CPP actually works & laws cannot live on cpp -
😂
IF ?? That is the case W H Y are immigrants new to the country in Canada receiving pension payments when they never contributed into it ???
Are they? Do you have proof?
They are not. They are eligible to receive pension payments from the county they came from. My father received his Great Britain pension once he retired (after leaving the UK in 1953 at 23 years old).
Immigrants who are 60 and over cannot receive CPP if they did not pay into it. If they have lived in Canada for at least 10 years, they are entitled to OAS (but not necessarily the maximum). Canadians who never worked get OAS as well but not CPP, the same as immigrants. Please do not spread falsehoods.
The CPP payment per month is a complete joke. Even EI is a joke paying 2k/month.
The amount of CPP is based on what each individual person has contributed. Did you mean OAS?
Service Canada is a joke I can’t even gain access online.
The service Canada web site is a joke. Not even accurate!!
It's not great
Shame for Chinada w/this pension plan. These pensions are miserables to live in Chinada raported w/government pension plan. We are arnaques au max. in Chinada. My pension plan is miserable in Chinada because I didn't work to government. I worked to private company w/o pension plan. I payed all the taxes to Chinada for a miserable pension plan. Shime Chinada and her government.
Ridiculous that Canadians allowed the state to dictate your retirement plans without any consultation or input. So much for being free and calling your own shots. How many of you retired folks actually collect funds without some sort of headache or roadblock hindering you all?