I took it at 60, because it allowed me to afford to work 4 days (32 hours) per week instead of 5 days(40 hours), right up until I retired at 64 due to COVID layoffs. Constant 3-day weekends makes for a much better work/life balance.
@@smorgdonkey ... and beyond. Retirement improved my quality of life much more. Note: I took CPP at 60, but because I was still working and paying into it, my CPP income was steadily increasing during those 4 years.
I plan on retiring next year at 50 years old. But not in Canada because our cost of living is ridiculous. I will live in Asia at a cost of 1500 CAD a month 3x less than Canada.
Good, you can go back to China and retire there. Don't come back to Canada that will make the air quality in Canada better with less 2 people breathing here 😄
Thank you for this video. I waffle between taking it when I turn 60 and putting it off until 65. I appreciate your perspective and knowledge on this issue.
My 2cents is stop working as soon as you can , don’t work anymore then you have to and Take what ever you can as soon as you can . I seen so many people die within a couple years of retirement after staying late because their going to live forever and there’s never enough money. Or your going to end up in some home that’s taking 75% of your pension while you share a room with someone who never worked a day in his life. Enjoy your retirement as soon as you can .
I once read about taking early CPP and it was put this way: They took an example of twins. Both earned pretty much the same throughout their lives and both had about equal net worth. One took early pension and the other did not. The one who did not take it early took 13 years to receive the amount the other did. Take it early since we don't know how long we've got.
The example I posted above shows the growth of the roughly 40 K at 3, 4 and 5 percent. which is left to grow and added to the running sum of money collected after 65. You can see the 3 percent rate breaks even at 76, the 4 percent breaks even at almost 79 and 5 percent always exceeds. Add to that any possibility of growth if that money is in the market or ETF and its easy to see that investing the 60-65 money will outperform... Now I'm using some rough and probably incorrect assumptions about the 60 and 65 year old pension rates... Use your own values to confirm.
I think the decision is case by case .. life expectancy is one piece .. retirement timing .. need for the money (semi-retirement) .. taxes (if there’s enough RRSP contribution room) .. RRSP performance (if I contribute all CPP that I receive before retirement, how much more / month will I be able to take out after retirement) .. etc
I don’t have much of a pension so I’m using rsp’s from 61 - 65 , taking as much out as possible to keep me in the lowest tax bracket. From age 65 - 69 I’m going to collect my small pension, oas and gis, using a little from my tfsa to supplement (tfsa is not considered income so it won’t affect my gis amount), then at 70 I will shift to the highest payout of all with my cpp. Cpp increases 8% per year by not taking it, great return on your money.
Another bigger factor is COL. I had 2 live in a high renyt area 2 retauin employment BUT when I retired 2 Elliot Lake ON, I reduced my COL by 400%, hence, a huge "raise"! Plus, lower stress, finasncial/economic/stress. PLUS, I just happened 2 retire 2 "God's country" a yr b4 covid hit!
David . in my opinion , taking CPP at 60 does not incur a reduction ( of 36% ) on the total amount showing at the end of the graph . in fact , the word “reduction” here is misleading , simply because you do not talk about the PRESENT VALUE of money . Please look at your graph at minute 5:27 and see what happens between age 60 and 73 , and all the money cashed in during those 13 crucial years . Crucial because money has a lot more value in that timeline than in the future . Also , the person who started getting money at age 60 did just that : started getting money !! and 5 or 10 years more than their counterparts . That is a lot of money compared to no money at all till age 65 or 70 . Not to forget , with age , quality of life also deteriorates , there is no way around that .. much like the purchasing power of money .. Who cares about the total amount received by the end of the graph which depicts the end of one’s lifetime , providing the individual actually lives that long and does not get hit by a bus , besides all the other probability and statistical challenges or negative odds that the individual is facing . I say live your life now . It would be interesting to see a graph that shows how misleading statistical graphs can be . This is my opinion . I am not an accountant or a professional financial planner , but I believe it is important to clearly explain to your audience the present value of money , the ever diluting purchasing power of currency , the trailing lagging index that our government portrays as the ultimate solution to inflation ( CPP GIS OAS ) . At this rate , many Canadian pensioners will never be able to make ends meet because the real purchasing power of money needed for say food , accommodation , energy is much much lower than any graph based on statistics and theory presents . just saying Thank you for your attention
Another think that is never discussed is the survivor benefit with CPP. I was 60 and my wife was 59. She had breast cancer and would probably die. I phoned SC and discussed my options knowing my wife was going to die in the next few months. In simple numbers if I took CPP at 60, 65, & 70 I'd get $600/$1000/$1400 per month assuming my wife would also get her max CPP since she was fully paid up. Since it was pretty sure my wife was going to pass and I would get a survivor benefit which would be about 40% of her CPP. So I figured at 65 I'd get $1400 per month. But the agent told me at 65 there is a max benefit payout of $1100 (round numbers) so the this all I'd get and the govt would keep the rest. So taking CPP at 60 made more sense because I'd get my $600 plus the 40% death benefit and even then, they would still claw back $25 per month. So if either of you and your spouse is terminal take the pension early. I asked why that max payout number isn't published but didn't get an answer - because they didn't really want people to know about the claw back.
My husband passed at 52. I didn't know anything about CPP but got the survivor benefit. I work full-time as well. He worked from 18 years old, and I get approximately $680/mth. This $680 actually costs me more in tax than I get, but when I asked about stopping it for now, I was told if I stop it, I lose it. I cannot restart it later if I cancel it now that I've already started taking it.
Another reason (and the one which I took early CPP for) is that I knew I will definitely be a GIS recipient at age 65 due to lower income over my years of work. Right now I have a situation that allows me to live 'ok' on this lower CPP amount and I know that at 65, both the full OAS and a certain amount of tax free GIS will apply. The lower my CPP plus OAS is at 65, the greater the amount of tax free GIS I will receive. (I knew this from others in similar situations and searched and searched until I found this on a financial website to be true....so decided to go this way. So far, so good! Am 61)
Saw too many people during covid that got the virus, got complications from it beit stress or health and passed before the age of 60 didn't even have opportunity to apply. Take it early if you can.
One problem with taking benefits early is…..if your have an accident or a debilitating disease, before 65 you cannot apply for a disability pension. This happened to a guy I worked with. He started taking his CCP at 60, but developed a severe blood disorder at 61. He applied for a disability pension but was denied……because he was already receiving his CCP.
@@sharona7428 I think the disability pension was a little more, but by taking his CCP early it was less than it would have been had he been able to draw the DP and let his CCP mature.
I was working and then suffered a stroke in 2019 at age 58. My private insurance plan provided Long Term disability required that after a year I had to apply for CCP Disability. I So I currently receive private health insurance benefit and CCP Disability monthly am not back at work due to disability from stroke . Very important for income tax reasons to get your doctor to verify your disability to Revenue Canada Agency.
I was working and then suffered a stroke in 2019 at age 58. My private insurance plan provided Long Term disability required that after a year I had to apply for CCP Disability. I So I currently receive private health insurance benefit and CCP Disability monthly am not back at work due to disability from stroke . Very important for income tax reasons to get your doctor to verify your disability to Revenue Canada Agency.
The break even age (assuming I have the contribution room in my RRSP and earn 7.5% return before and after retirement) is age 93 .. if I live an average life (age 86) the fund I created ($152,470) will pay me out at about $200 a month more between 70 and 86 than the max CPP payment .. food for thought
Nice video, but I would ask that you explore the growth of pension benefits accumulated between early and late start.. and factor in the compounded interest over the interim years. Notably, if you can afford to delay the pension start date, then you can afford to save 100 percent of what you would collect if you start early. By my math, this is a win win for an early start as the pensioner is the winner over both a long life or early death. At least the pensioner would have had a chance to collect something if he dies early and not risk collecting nothing if he waited. If they live longer than the cross over, then start drawing down the difference from the growth balance from collecting early. If you were to collect $40k over a 5 year period then invest in a simple GIC at 5 percent, it will be around $100K by the cross over date, which moves the cross over date out significantly. If I put all my pension collected from 60-65 while still working, into a tax free savings account, and the same amount into an RSP, the tax is deferred on the boosted income while still working. But the best part is the growth of the money in a TFSA is tax free forever.
@@cornstar1253 Show me your math... to your point about inflation... I would rather get the more valuable dollars today than the deflated dollars later. Govt lies about actual inflation and lag behind in actual buying power when adjusting for future inflation.
Show your actual math turning 40k into a 100k please. The dates you collect the 40K by and each year getting 5% in this simple gic you speak of.. Considering currently they aren’t at 5% so please start with that, the name of the bank that you think will be giving 5% in the year that it takes for you to collect this 40k that you think you’ll have.
Am I wrong about thinking that the numbers are incorrect? For each year you delay, the amount goes up 8.4%, but isn't the amount adjusted for inflation too? Let's assume inflation adjustment is 2% and at 65, the CPP benefit is $1000. So if you delay 1 year, isn't the benefit now $1020? And the 8.4% increase is now on $1020?
one consideration that i havent seen discussed yet ( as im new to this ) is the opportunity cost with respect to investing the $$ should you decide to take CPP early. For example, if you took CPP at 60, but invested the $$ because you dont actually need it, youd have that $$ to invest in RRSP's to reduce your taxable income and hopefully make you some profit as well. your thoughts ?
The idea sounds good although it really depends on what your tax rate is now? Do you have a financial plan or advisor helping you keep your tax rate low in retirement. Many retirees are in a low tax bracket already.
As CPP is fully indexed to inflation and also increases by 7 to 8 percent each year you delay taking benefits between 60 and 70, I don't think opportunity costs are big factor here.
Thanks for the response. One consideration I’m looking at is the fact that having too much in my riff and liff will result in a potential clawback when it comes time to collect OAS. The other issue is that I will be required to withdraw a certain amount when I reach 72. Also, there’s no guarantee on the performance of my investments whereas the CPP is a guaranteed income and is adjusted to inflation as you said. So this appears to point in the direction of taking larger Riff and Liff withdrawals now and waiting on CPP. Makes sense ?
None of these retirement benefits videos address taking the benefits at 60 but still working and paying into them until your ready to fully retire? What would be the advantages and disadvantages of doing that?
Hi Vincent, receiving and contributing to CPP will enhance your benefit. It’s not a significant adjustment although the cumulative amount is, given you live to an old age. The disadvantage is the increased taxation. You have employment income plus government benefits! A financial plan may provide withdrawals strategies that may result in a better outcome.
Take it early as you are not accounting for cost of living raises I took mine at 50 it was 1k it has climbed to almost 1300 now at 55 so your friggen doesn't add up ,u loose very little if you plan and die then you get zero .best early
Thank you for this video and the information. I'll be 59 this Aug. and currently on med. leave from my employer. Despite having 3 doctors submitting documentation to our SunLife work insurance as to my medical situation I've been declined STD (short-term disability). We've already been in consultation with lawyers and that's going forward. However, I'm now considering the age 60 CPP option just down the road as it's doubtful at this point whether I'll be able to return to work. Fortunately I'm able to draw on E.I. med benefit payments - but that's only good for 26 wks...and then I go into the twilight zone. I've worked all my life and now find myself unsure of the future due to health reasons.
Thank you for your comment and valuable insights. Your situation is more common than you think. In fact about 55% of people retire earlier than expected due to medical reasons and about 25% retire earlier to care for a spouse. Hope everything works out in your favour.
@@AaronWealthManagement I'll be 60 in May. I had to stop working in 2012 due to various chronic health issues. Thankfully I got Persons With Disabilities in British Columbia. What happens to the $1410 from them I get every month if I start CPP at 60? Times are tough and I'm alone. Thank-you very much.
@@ChristMySolidRock1963 It is very tough for everyone that lives alone. I am still working but cannot save anything, rents, food, gas, everything is too expensive…. One day, if I survive to get retired (now 56), I cannot live in Canada with these disgraceful amounts they give to people as “pensions”.
@@Kathy007s - GOSPEL (The Good News of Salvation) - Acts 16:30b-31: Sirs, what must I do to be saved? And they said, BELIEVE on THE LORD JESUS CHRIST, and THOU SHALT BE SAVED, and thy house. I Corinthians 15:3-4: For I delivered unto you first of all that which I also received, how that CHRIST DIED FOR OUR SINS according to the scriptures; And that HE WAS BURIED, and that HE ROSE AGAIN THE THIRD DAY according to the scriptures: - ETERNAL SECURITY - John's Gospel 5:24 - Verily, verily, I say unto you, he that heareth my word, and BELIEVETH ON HIM THAT SENT ME, HATH EVERLASTING LIFE, and SHALL NOT COME INTO CONDEMNATION; but IS PASSED FROM DEATH UNTO LIFE. 1 John 5:13 - These things have I written unto you that BELIEVE ON THE NAME OF THE SON OF GOD; that YE MAY KNOW THAT YE HAVE ETERNAL LIFE, and that ye may BELIEVE ON THE NAME OF THE SON OF GOD (God who is my Saviour). 5 Minute Gospel presentation: Be Ye Reconciled To God: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-I-caULtuPlQ.html
I was told that if take CPP at 60 it remain that way for ever, and there will be no increase. But What if you still working part time and still contributing.
Hi Romeo, working while receiving CPP doesn't reduce your CPP benefit. In fact, possibly increase it. www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-post-retirement/eligibility.html
So, i have worked so far 38 years. My 30 and out is end of this year. I'll be 60 this nov. Laid off now till April. Last 3 bad years,lay-offs, GM. Auto worker. I maxed out my payment for 27 years. 6 really low years, and 2022 to 2004 off no work. ? If I decided to delay my cpp for a few years and live off Rrsp and pension. Will I gain more or lose more in cpp payments because i won't be paying into cpp in 2025. I going to retire. CRA says 800 now at 60. Thanks. Vince
If you worked at least 10 years legally and contributed to c.p.p in Canada you can collect your c.p.p beginning at age 60. It does not matter if you are living in Canada or India.
So if one is single, decided not to take it until 70, wife has passed, I die 2 days before I turn 70, what happens to all the money I contributed for 54 years.
Thank you for sharing. I would like to know should I consult with the bank financial advisors or accountant for my CPP information? For example, I have company pension if I take earlier retirement but will my CPP deduction because I have company pension. Thank you for your response.
I applied last year and I have been overseas so I didn’t see the letter of acceptance, calling them from here is a nightmare, I paid cpp through the years but I was a self employed musician, what could get you rejected for your pension at 60. I believe when I played the Olympics in Calgary for the opening ceremonies with Ian Tyson I paid CPP, there were other jobs too through the years, my question is did I pay enough to even expect the minimum?
Take it while its there folks. Any big sum of money is NOT safe from the gubberment PERIOD. I basicly considered it another tax at my job. I am too young to ever see it. It is a house of cards. I would be taking the lump sum every time.
Hi Jim, thanks for your comment and for watching the video. If you work while receiving your CPP retirement pension and are under age 70, you can still make CPP contributions. Each year you contribute to the CPP will result in a post-retirement benefit and increase your retirement income. Here's the link to CRA: www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-post-retirement/eligibility.html
I am getting pwd check for last 3yrs. I have not worked and don’t plant to again I’m 59. I want to get my CPP at age 60 but will it come off my pwd check? Is CPP like an income where i can make 15 k a yr with out my pwd check being touched? Appreciate your help
Re CPP - I am 61 and divorced, I have already accumulated enough credits to receive the maximum monthly benefit at 65 (approx. $1,250 at 65) minus the credits I will need to give to my ex wife which may bring me down to say $900 \month. If I continue to work and pay CPP can I accumulate additional credits so I could possibly get the $1,250/mth even after giving my ex some of the credits?
Maybe I missed it, but the cummulative 60 line is the minimum, and the cumulative 70 line is the maximum with 65 not quite the middle. So the plot would be better represented with colored areas showing where your CPP could be if you deferred to say 62 and 6 months or 66 and 3 months, because your circumstances required it. There is also no discussion about those with indexed pensions and bridge amounts vs savings only retirees, where pulling CPP leaves their capital intact a few more years, etc.
Great question. I'd need more detail about your situation, timeline, risk tolerance & goals. Here's a link to my calendar. calendly.com/aaronwealthmanagement/discovery
Yeah this was a good video I still need to formulate some more questions on 56 and a very poor saver but my taxes are up-to-date and I’ve paid everything to the max but I’m looking to want to retire out of the country I have a wife in Indonesia and like I said I’m 56 right now I’m in limbo because I’m taking care of my 90-year-old mother I’m just waiting for her to do her thing and then I figure I haveFour years to crush it and get out of Dodge
I do think that people worry far too much about OAS clawback. If you have over $129,000 a year in retirement income (almost $11,000 a month, double that for a couple) and your OAS is entirely clawed back then I would say you have little to worry about financially in your retirement. It seems like the OAS tail wagging the retirement dog to me. Of course planning your retirement finances is never a bad idea and if you can reduce the amount of OAS claw back why not but realistically, if you are in clawback territory, is some portion of the $600/month that OAS pays really going to affect your finances appreciably?
Ok, Where do I start...first thanks for your comment. As a planner, I have to respect every dollar that my client is eligible to receive. My responsibility is to uncover opportunities and reveal potential problems. It's up to my client to choose if they want to take action on my advice. It's easy to think, why would someone with a large investment account care about being ineligible to receive $7421 annually (OAS)? But they do. That also might explain why they have done so well. A good question to consider is, if your advisor didn't see a clawback coming, what else have they overlooked? There are literally dozens of ways people can save, stretch, earn and avoid on their way to financial success. Great question and again thanks for commenting. Let me know of any video requests you might have.
@@AaronWealthManagement I agree that people do worry about OAS clawback when perhaps it's immaterial to their standard of living in retirement (which was kind of my point). I do know that when you've spent years and years of watching every penny "saving for the future" it's a hard habit to break when that future actually arrives. I guess I see some people that focus on avoiding OAS clawback to the detriment of enjoying their retirement, keeping their retirement income lower than it needs to be just to avoid it. Avoiding OAS clawback is kind of like trying to figure out how to dodge probate fees. Sure minimize it if you can but there's no need to go overboard, in the overall scheme of things it's not worth losing sleep over. Heck, I have a 7 figure investment account myself achieved through decades of scrimping, saving, and investing for the long term and between my wife and myself we don't come close to OAS clawback territory in retirement. We would have to have over $13,000/month of retirement income between us to lose even a single dollar to OAS clawback. It seems to me that if you are fortunate enough to be subject to OAS clawback you should count your blessings and move on. By the way... We've delayed CPP & OAS to age 70 for the longer term derisking of our retirement income stream. Who knows if that will pay off but at the end of the day I figure it's about peace of mind--it's not always all about the money.
I collect a survivor pension also like you. I took CPP at 60, both pensions combined get me $900 monthly I continued to work and I invest the $900 each month into my RRSP and TFSA. The main reason is that being single my pension will die with me and my estate will get a $2500 death benefit So by taking it early every dollar of CPP has been invested, accumulated growth and increased the value of my estate.
Great question and thanks for watching the video. The answer is found by answering a few questions. Do you need the extra income? What is your family history around longevity? That’s how I would begin approaching answering your question. Then the next step is how does the extra income affect your tax rate.
Hi Ray, if you really want to increase your estate value have you looked into life insurance? It multiplies the value of your money higher than any other asset class.
Hi Glen, thanks for watching the video and your comment. Here are a few questions for you. Is your pension reduced when receiving CPP? If not, do you need the additional income? Do you expect a longer life expectancy? Will your income be high enough to cause a clawback? Hope that helps. Let me know if I there is anything I can help with.
@@AaronWealthManagement Thanks Aaron... my defined pension is not effected by outside income. I will lose my bridge benefit with my OAS at 65. No clawback - But I hope to be at that income margin someday LoL!!! I do not need the CPP at 60,. But would like to use it for investment purposes medium risk=inflation beater
Yes take it at 60. At 60 CPP considers best 35 years , at 65 its your best 39 years . So if you retired at 56 you would be adding a bunch of zeros between 60 and 65. You may qualify for the maximum at 60 ( minus penalty) and be far from maximum at 65. Im in the exact same situation
As each person's circumstances are different, I would say having a written financial plan is the first step. The plan details at what age to start receiving CPP, which retirement accounts to drawdown on and when. Taking CPP early is usually a decision based on needing income. Occasionally retirees will take CPP early to mitigate clawbacks although in my experience its been the need for income or a low family mortality history.
@@bl9531 See @Practical Tactical response in this thread... he makes very good points that I totally agree with --- here's a snippet of his thread "...explore the growth of pension benefits accumulated between early and late start.. and factor in the compounded interest over the interim years. Notably, if you can afford to delay the pension start date, then you can afford to save 100 percent of what you would collect if you start early. By my math, this is a win win for an early start as the pensioner is the winner over both a long life or early death. At least the pensioner would have had a chance to collect something if he dies early and not risk collecting nothing if he waited..."
When I run the financial plan, sometimes the client is better off financially taking it early. Everyone's situation is different. Another consideration is a history of early death rates in a family.
Hi David, thanks for the very informative video. Taking CPP at the age of 60 in this video is assuming one works until the age of 60, correct? It would be interesting to know, for someone leaving the work force after 20 years, at the age of 55, would there be any benefit from delaying CPP until the age of 65? Thank you.
Hi Bob, this is a common question. Have a look at my video on CPP Breakeven timestamp of 22:25 where I do a live walk-through of CRA's website to calculate an estimated income. On the 2nd tab of the CRA website is the Canada Pension calculation. You can manually enter your income data showing you having zero income at 55. Let me know if that helps. I can always work on a financial plan for you. Great question and thanks for commenting.
I'm in Canada for 8 years now, I've been hearing that I have to be in Canada and contributed with the CPP. I'm now 66 y/o, Is it okay to claim CPP now how will it affect for I have contributed only for 8 years. Please advise and thanks.
Financial/economic collapse, bank bail-in"s, inflation, increased taxes? The way things are going, there won't be anything to spend your money on anyway. Jobless people don't buy stuff or manufacture stuff or pay rent. The pension ponzi scheme and debt economy is not sustainable. Eventually the debt ridden unemployed population won't be buying new vehicles, houses or TV's. Then the manufacturing get curtailed, laying of more people who can't afford to support manufactured products. It spirals down to a system of government support, with conditions. Do you see where this is going?
The world is definitely changing and scary. Look at what things are happening in the back and manufacturing/food etc. I am about to turn 60 and may just take it, even if I get a job. I remember when we were younger how people used to talk about not having enough pension for the Baby Boomers. We are on the cusp. I think I may just take it.
Going to the Philippines as soon as I sell everything. Much cheaper cost of living and great weather all year round.😊 Canada is not a good place to retire.
hi David,I am 59 yrs,and considering taking Cpp at 60, I have been over the past year laid-off ,short term on multiple occations,and it may be that way for the next 2 years,How does Cpp affect my EI claim?and is it wise to collect at 60,or should I wait.
'I've worked in Healthcare for the past 19yrs, seen a lot of people die before or soon after 60 and this, plus my family history/longevity I decided to rake CPP at 62 and retire completely at 63. Life, indeed is short.
Hi I'm thinking about taking my CPP early as well and will continue to work til I'm 63 at the same job which I have been working in for 36 years and paying max amount for most of those years - I had children and had an industrial accident so my contributions were less those years. I was told my CPP now would be around $850 pm. Since I had my work place accident and collect WCB for 1 day a week, my earnings at my job are less and they increased the yearly earnings for max amount I no longer pay max amount into CPP. I missed it by $400. last year and $1200. in 2021. I still collect over the minimum amount to pay max with my WCB and my job but WCB doesnt pay into CPP. Yup I got screwed. So my question to you is how much did it affect your CPP between age 60 and 63 when you retired? Did you continue to pay max amount and how much of a difference did those 3 years make when they calculated the 3 extra years into your CPP when you retired at 63? Sorry to be so long winded.
I am retiring at 58yo and my wife will retire at 62yo. We both have Derived Benefit Pensions. Women in her family live to 95-100yo, there is no history on my side of the family. In my retirement at 58yo till 60yo I will get $4200/month while My wife will be making $92,000/year over those 2 years while still working. Wondering if I should take my CPP at 60yo since I have no family history of longevity? By my calculation if I take CPP at 60yo I will make $4200/mo Pension, $770/mo CPP and about $600/mo OAS for $5500/month or $67,000/year. My wife in retirement will get $3,000/mo Pension, $770/mo CPP and about $600 OAS for $4370/month or $52440/year. Total income will be $120,000/year. We will both be under the OAS clawback amount. We will also still both be under the OAS clawback amount if we took CPP at 65yo. Is having an uncertain family longevity on my side of the family a good enough reason to take CPP at 60yo? or should I wait till 65yo so if I die after that my will will get more money? We will have our home paid for and our vehicles when we retire.
Great detail, thanks. Doesn't sound like taking early or late is based on needing it. You could calculate the total income vs total tax to see which way is better for you. A financial plan does that easily for you.
I'm 70 years old took my pension @ 60 and retired do you think at 86 you are going to do a lot of traveling you have only so many good years left, money at your later years how much do you need.
I took my CPP @ 62. Reason: I am still working and am forced to pay CPP premiums until 65...with no increase my future CPP benefit! If I don't collect, I send about ~$20K in premiums out the window by age 65. Collecting ($10,245 in 2022) gives me needed income now, and allows me to start building the post-retirement benefit (PRB) which generated an additional $710 annually in 2022 and maybe up to $1500 annually by age 65 which offsets a good chunk of the original penalty. The overall penalty averages out to about ~$1500/yr if I live to 80 and my wife collects the survivor benefit for 5 more years. Worth it.
PLEASE - if you are in you late 40’s - go to a good advisor. It could be to your advantage to take you benefits early - but I doubt it. There are 50 scenarios! Think about just this one: it is pretty standard knowledge that ya if you are 30 or so, medical science will give you excellent chance to live to 100. If you retire and take benefits at age 60 - your CPP would be about $600/mo. But you would live another 40 years. From age 60 to age 90 (for example) with inflation @ 3% - your $600 would be worth just about $300! If you are living to 100, keep paying into CPP. At age 70, your CPP will be over $1400/mo. @age 90, it will still be worth about $1100! Like I said - see an advisor!
Assuming you can retire at 60, the most critical factor is how much more "useful" the money is from 60-70 versus 70-80. I had an acquaintance tell me that his 60th birthday was awesome since he still felt really fit and ready to really enjoy retirement, he also said his 70th birthday was _completely_ different, with age really starting to become "noticeable". He was still very able-bodied at 72, but he said there is absolutely no comparison to 62! Past 60, age-related effects are an *exponential* curve, so don't kid yourself into thinking that 40-60 is _at all_ the same as 60-80.
I agree with that. There’s life span and health span to consider in retirement. Average retirement life span is about 28 years. How many of those are active years?
My philosophy is take CPP early if you really need the money to make ends meet,, or take it early if you DON'T need the money and you want to invest it or play with it. If you're not sure, wait and take it later.
Excellent advice, I started collecting at 61.5 , at age 64 I sold my company money in the bank two months later Cancer ,chemo ,radiation , surgery ,today I am 68 o. ..k I am not going to make it to 85 plus at 85 one don’t need as much as in his sixties on top most people are afraid to spend the worry about their grand children . I have seen interviews on Tv when people are getting extra help from government and they are passing it to their grand children who are running around with a thousand dollar cell phones . I am not giving advice but I also don’t want to listen to complaints about pensions.
With this title I thought you were going to do an analysis because of inflation... the real inflation which is I guess at least double the government 6% fake number. Doesn't this have an effect on what age we take the CCP ?
High inflation certainly cuts into a tight budget. During these times it's a good strategy to have 1-2 years of cash on-hand in laddered GICs while the economy is resetting and inflation slowly returning to a reasonable number.
@Aaron Wealth Management : They interviewed a bunch of people on their deathbed. They were all old but their number one regret was working too hard. Only a fool would work past 60 or a broke ass. In some rare cases, they are workaholics and just cannot retire.
I some questions: I am widowed. Am receiving widowers pension. And i decided to get my early CPP at 61 yrs old. And am still working permanent full-time still contributing CPP as a compulsory deduction from my work. My question is if i retire at the age of 65. Is my monthly CPP will increase at my to top rates since am still contributing my CPP at work
I am a dual citizen with an American military pension working on a provincial pension. By the time I'm in my early 60s I will have two more pensions from two countries with a total of 4. The tax accountant stuff isn't so fun though 🤣
What if you retire with pension that provides a bridging benefit until 65? Then at 65 you can start collecting full CPP benefit of approx $ 1200 and your pension is only reduced by no longer getting the bridging benefit.
Love the videos and expert, technical advice! I have a question that I’m not sure was addressed in the videos or comments. ( if it was I apologize for not picking up on it..). I have a Canadian Armed Forces pension that I’ve been drawing since 2017. I’m indexed. I’m also in a second mini career but retiring completely in 2025. My Army pension has a Bridge benefit that gets clawed back when I hit 65 earlier if I opt to take CPP at 60. I’m currently considering waiting to 70 but perhaps 65 is the better option. I think if I take CPP at 65 the Bridge benefit loss is almost cancelled out or equalized by the CPP benefit I’ll get. But waiting the 5 years might be better if I can eat the drop in my pension for the 5 years. Do you have general advice for those of us with a bridge benefit? Thank you Aaron!
For many years I worked in Canada. Now I am in Europe. I am over 65 years old. I am trying to find my record of total number of my employment there. And Projected estimate of what I will get. Also the link about how sign on to My Service Canada pages. I have spend days to get record of my employment and what I am entitled to. Please help with clear instruction if you could.
Just call service Canada and provide personal information such as your social security number and they will look up your account and provide you information about your cpp and O.A.S entitlement.
