One thing you didn't mention is that CPP is fully taxable so this post retirement benefit is all taxable. But if you invested that same amount through a tfsa then 100% of the money you earned is tax free. So we need to take the taxation into account with these calculations. Thanks for the explanation of this benefit because it pertains to us.
As I near retirement I have come to see that not many people really understand the CPP and how it works. Many also think CPP and OAS are the same thing (which they're not). Your channel is an incredible resource as to how these two SEPARATE retirement programs work. Thank you.
The problem is that in many instances, it does not make sense to collect CPP while still working. Post-Retirement benefit is only available when collecting CPP.
Great video! One more thing to add to this is that even after the age of 65 you can only elect to stop contributing to CPP if you're receiving the CPP retirement benefit.
Again, great job. The problem is I’ll end up being a contractor and not an employee and not get the benefit of the employee matching my CPP benefit investment amount. Really good thinking. As well, I’m not sure why everyone doesn’t wait till 70 to collect CPP.
As mentioned in Adam's presentation, it's another matter for self-employed who pay twice the amount for the same CPP post-retirement benefit gain back.
Okay - so your cash flow would be higher, but what happens to the investments if you do it on your own ? The CPP is forfeited when you die but wouldn't your heirs inherit those investments you invested on your own ?
This is why I continue to watch every new video! Just when I think Im not learning anything new, a video like this pops up and it addresses an exact issue |I will be dealing with soon. While this may sound a little lecturey (it's a word I made up!) if you think you can DIY all of this, you're likely wrong. Adam's company knows their business and I found paying them for a plan was worth every dime. Thanks for this and all the other videos Adam.
I'm 66 and still working, hope to stop working in two years at 68, and collect CPP @ 70. I don’t have a choice but to pay CCP while working. My question is whether contributions after 65 would enhance my CPP at 70?
I paid into CPP for one year after I started collecting CPP at age 65. So I get a minimal Post Retirement Benefit. If I kept paying after that first year, I would have to live to age 84 to break even. In my large family none of my male siblings made it past age 80, so that was the deciding factor for me. I worked until age 70 at 20 hours per week but fortunatley had about 80,000 RRSP contribution room, so maxed out Spousal RRSP every year.
If you havent maxed out on CPP you can recieve (my CPP will only be 1000) but plan on working beyond 65 is it better to not collect CPP until you retire say at 68 or to coklect and get post retirement benefit? Ciuld you do a video analysing this option? Thanks!
Thanks for the video. But please also remind your viewers that the additional money may cause OAS clawback. 99% of articles/videos saying that it is better to postpone getting CPP, OAS, or getting PRB because one would get more money. But 99% of such advice doesn’t warn the readers/viewers that the additional money may cause OAS clawback. Thanks
Been waiting to see a Video on this a Big Thanks! After three phone calls asking where is my PRP Payment! Getting end of June with CPP. First week of June getting from Jan 2024 to Jun! Quick question? they worked it out on my 2023 CPP (never the Max amount) so that's sorted for 2024. So want happens, Jan 1st 2025 dose that amount stop!! until they worked out how much I'm getting for 2025? I hope not each penny counted so i can get a plan made but if the stop it until they sort out how much i get for 2025 Please can you anybody help Dave
Too Add i have 20% taken out for Tax's on my CPP! but they take 20% out of my PRP too which because so small would have like to stop that but keep on my CPP I can not see how i can without taking the 20% from my main CPP!
One thing you didn't mention is that CPP is fully taxable so this post retirement benefit is all taxable. But if you invested that same amount through a tfsa then 100% of the money you earned is tax free. So we need to take the taxation into account with these calculations. Thanks for the explanation of this benefit because it pertains to us.
As I near retirement I have come to see that not many people really understand the CPP and how it works. Many also think CPP and OAS are the same thing (which they're not). Your channel is an incredible resource as to how these two SEPARATE retirement programs work. Thank you.
The problem is that in many instances, it does not make sense to collect CPP while still working. Post-Retirement benefit is only available when collecting CPP.
I decided to take CPP at 62 while I am still working. I invest the CPP into a high interest TFSA & GIC. I will retire this year at 63. Done.
I love that you posted this! Thank you.
Great video! One more thing to add to this is that even after the age of 65 you can only elect to stop contributing to CPP if you're receiving the CPP retirement benefit.
Again, great job. The problem is I’ll end up being a contractor and not an employee and not get the benefit of the employee matching my CPP benefit investment amount. Really good thinking. As well, I’m not sure why everyone doesn’t wait till 70 to collect CPP.
As mentioned in Adam's presentation, it's another matter for self-employed who pay twice the amount for the same CPP post-retirement benefit gain back.
Okay - so your cash flow would be higher, but what happens to the investments if you do it on your own ? The CPP is forfeited when you die but wouldn't your heirs inherit those investments you invested on your own ?
Correct, something that needs to be considered as well.
This is why I continue to watch every new video! Just when I think Im not learning anything new, a video like this pops up and it addresses an exact issue |I will be dealing with soon.
While this may sound a little lecturey (it's a word I made up!) if you think you can DIY all of this, you're likely wrong. Adam's company knows their business and I found paying them for a plan was worth every dime.
Thanks for this and all the other videos Adam.
Thanks Bruce!
I'm 66 and still working, hope to stop working in two years at 68, and collect CPP @ 70. I don’t have a choice but to pay CCP while working. My question is whether contributions after 65 would enhance my CPP at 70?
Sharing this with a friend who is planning on retiring at 67
I paid into CPP for one year after I started collecting CPP at age 65. So I get a minimal Post Retirement Benefit. If I kept paying after that first year, I would have to live to age 84 to break even. In my large family none of my male siblings made it past age 80, so that was the deciding factor for me. I worked until age 70 at 20 hours per week but fortunatley had about 80,000 RRSP contribution room, so maxed out Spousal RRSP every year.
If you havent maxed out on CPP you can recieve (my CPP will only be 1000) but plan on working beyond 65 is it better to not collect CPP until you retire say at 68 or to coklect and get post retirement benefit?
Ciuld you do a video analysing this option? Thanks!
Better to negotiate turning it off with your employer and getting some of their saved contributions for doing them that favor?
I reversed my CPP after collecting for 8 months as i realized I needed to pull more out of my RRSPs
Thanks for the video. But please also remind your viewers that the additional money may cause OAS clawback. 99% of articles/videos saying that it is better to postpone getting CPP, OAS, or getting PRB because one would get more money. But 99% of such advice doesn’t warn the readers/viewers that the additional money may cause OAS clawback. Thanks
Also may affect the new CDCP (dental). This is just an example. Additional money may affect other benefits as well.
OAS clawback, higher taxes, less drawdown of other taxable accounts. Lots of moving parts that need to be considered.
Been waiting to see a Video on this a Big Thanks! After three phone calls asking where is my PRP Payment! Getting end of June with CPP. First week of June getting from Jan 2024 to Jun! Quick question? they worked it out on my 2023 CPP (never the Max amount) so that's sorted for 2024. So want happens, Jan 1st 2025 dose that amount stop!! until they worked out how much I'm getting for 2025? I hope not each penny counted so i can get a plan made but if the stop it until they sort out how much i get for 2025 Please can you anybody help Dave
Too Add i have 20% taken out for Tax's on my CPP! but they take 20% out of my PRP too which because so small would have like to stop that but keep on my CPP I can not see how i can without taking the 20% from my main CPP!
Will the pre 65 penalty be greater than the PRB benefit?
Is it worth still contributing to cpp if I postpone my cpp to 70 and not retiring until 69
You don’t have a choice but to pay CCP if you’re over 65 and still working but haven’t started collecting CCP
@@iana36show does it affect my benefits when I do retire and start collecting CPP? Is my benefit amount increasing in this scenario?
it just doesn't make sense if you're self employed, since you have to pay double contributions.
agreed
Thanks for that. I assumed it but you confirmed it.
.