Having just recently retired at the age of 61 I can't thank you enough for this information you're sharing. I've been searching and searching for resources on how retirement would impact the survivors benefit I'm currently receiving and I'm so thankful that I didn't apply for my CPP yet! I've now made the decision to defer until 65 or later thanks to you 😊
Great information Adam. I receive a CPP survivor benefit and was very confused about what happens to the benefit once I start taking my own CPP. I reached out to Doug and the info he provided cleared up the confusion. Doug was very quick and his fee was very reasonable.
ya great video Adam. ive been collecting survival benefits for about 9 yrs and im 64 and decided to delay my cpp until 70 if i can afford to hold off cause i did notice that i affected the amount cause it maxes out if you start taking cpp with survival benefits..
Hey Adam, my brother tells me that his QPP site offers a projections calculator for those wanting to retire early to figure out their amounts. Time for CPP to offer the same.
Can you please do a video on CPPD to CPP.. with survivors allowance to survivors pension. I’ve been on CPPD since 2013 due to traumatic death of spouse.
This year I found the government of canada CPP calculators and was able to calculate estimates for my wife to draw CPP at 63, 65 and 70 I don’t remember where I found it but I think I was logged in to her Service Canada account. On a foot note, the government of canada is a massive institution dealing with both new information and legacy information, all 36 million Canadians are different in as far as how long we worked, what income etc. etc. that said the government is unable to tell you how much contribution room we have in our TFSA! Makes your head spin a bit.
As a single retired at 55 I will be taking my CPP at 60 and drawing down my RRSP beginning then for tax planning. I will also be deferring my OAS at 65 to 70 as it pays slightly better for deferment than CPP and allows the ability to add cash flow at any point with 11 months retroactive payments. Thoughts on this plan? Never seen you discuss delaying OAS in place of delaying CPP
Can you please provide your source(s) that suggest that a person receiving Survivor's benefit + CPP started at 60 would have a reduction of the combined benefits once they reach 65. What would be the logic to allow them to receive a higher combined amount from 60-65 but then reduce their combined benefits afterwards?
Doug covers this topic at his retirehappy website in an article written earlier this year called ‘Understanding the CPP survivor’s pension’. Many of the intricacies of the calculation are covered including this nuance.
zero - CPP is a COLA adjusted pension so purchasing power is adjusted in your benefit as you move forward but would stay relative across all scenarios, for comparison purposes all scenarios use dollars of the day (IE 2023 if doing today).
None required. This is partly why the break evens are so easy to calculate. It’s also why the absolute guarantee of 7.4% plus inflation protection is virtually impossible to outmatch by taking CPP sooner and investing it. (Plus finding anyone who takes it when they take it and 100% invests it is also virtually impossible).
Hi@@James_48 - only thing I have a harder time agreeing to in your comment is the "Plus finding anyone who takes it when they take it and 100% invests it is also virtually impossible" comment. Let me try to explain - I don't think the comment is really applicable because if you can afford to delay taking CPP to age 70 you are relying on other sources of income. If total income from age 60 - 70 stays the same whether you are drawing CPP or not, then when drawing CPP earlier than 70 you would reduce the amount of withdrawals from savings (keeping total income the same) which in my opinion is equivalent to investing the CPP funds as your invested funds withdrawals is lower by the CPP amount received.
@@DoneByD Well, I disagree. Mostly because when you defer CPP you are deferring a guaranteed, 42% higher income source. Yes, I completely agree with you that it puts a bigger onus on the retiree to fill the gap from 60 (or earlier) to 70 with non-CPP sources of income. I'm fine with that. Once I get to 70 I will no longer have to rely on a portfolio of varying returns to satisfy my post-70 income needs. It's often said that the biggest risk in retirement is the the sequence of returns risk - or, the possibility that you may run into several consecutive years of low, or negative growth. Deferring CPP to 70 eliminates all of that risk. There is zero possibility of sequence of returns risk with my CPP pension. In fact, it is so risk free it will automatically increase and keep pace with inflation. No other investment can make that guarantee - except perhaps a defined benefit pension plan. It's true that I will have to navigate the path up to age 70, and I might encounter a sequence of returns risk during that phase, but a 10 year risk is a lot less than a 20 - 30 year risk. I will add that today my plan is to also defer OAS for the 36% bonus, but it's also part of my plan to consider taking it earlier if the need arises, but again, melting down my RSP will probably lead to OAS prior to age 70 being clawed back. In deferring my OAS to post-RRSP meltdown at age 70 I will receive a guaranteed, indexed, higher payment with a reduced prospect of having any of it clawed back.
Is paid for retired person ,, now Plus 81 collecting max, no spousal Benifits ?? , partener passed @ 38, 9/12 I’m collecting max started 2007 , will I get spousal Benifits
Are these calculations factoring in that the person is no longer working at ages 60, 65 and 70, or is it considered that he is continuing to work and still paying into CPP until those ages? So, if someone retires at 60 and waits until 70 to start collecting his pension, would that ten years of not contributing make a difference?
Right, a lot of this is dependent on having sufficient resources to make it to age 70 before taking CPP/OAS/GIS. I literally was talking to someone yesterday who has already taken both CPP and OAS (and gets GIS) because it wasn't possible to survive without doing so. I guess I'd be interested in knowing what the percentage of people is, in Canada, who have over $100k in retirement plans vs the number who aren't saving at all for retirement, and whether that percentage changes when you look at different segments of the demographic (for example, male vs. female, or by age).
For sure, an individual or a couple, with minimal savings will most likely need to start receiving their pensions sooner (or choose to work longer). Having sufficient savings does provide a significant opportunity to maximize these benefits, especially if the savings come from a TFSA where those withdrawals will not affect GIS eligibility. Perhaps, with the knowledge shared here, future retirees will understand the flexibility that comes with even modest retirement savings.
I think Canada doesn't want people to actually understand the calculation for planning purposes otherwise we'd all know how to get the most money out for our benefit which is definitely not what they want
problem being is you can do all sort of calculations to get the most money (even now) but one big variable (death date) is beyond our control which kind of makes all the previously calculated numbers a best guestimate anyhow. You may never find out if you made a good or the correct decision unless you live past the age of 86, because in all the other scenarios you'll be dead.
Am I wrong, thought the max CPP for a person was 100% of the CPP amount, so If I collect the $18xx at age 70 and spouse dies then my survivor benefit is zero because I am at the max of the $12xx or so (100 % of age 65 CPP). Put another way if I am collecting the $18xx because i waited is age 70 and my spouse is also edible for 100% CPP at age 65, then her survivor from me is also zero because she is at 100% CPP amount.
So then how is math in the chart at age 65, person gets $201.34 while at the max CPP amount, they exceed the $12xx indicated to get $13xx in the chart.
Having just recently retired at the age of 61 I can't thank you enough for this information you're sharing. I've been searching and searching for resources on how retirement would impact the survivors benefit I'm currently receiving and I'm so thankful that I didn't apply for my CPP yet! I've now made the decision to defer until 65 or later thanks to you 😊
I had Doug do a calculation for me approximately 7 years ago. Best of the best !
Got it done last year
Great information Adam. I receive a CPP survivor benefit and was very confused about what happens to the benefit once I start taking my own CPP. I reached out to Doug and the info he provided cleared up the confusion. Doug was very quick and his fee was very reasonable.
He does a great job. Glad he was able to help
Great details on how the survivor’s benefit gets integrated with delaying CPP past age 65!
ya great video Adam. ive been collecting survival benefits for about 9 yrs and im 64 and decided to delay my cpp until 70 if i can afford to hold off cause i did notice that i affected the amount cause it maxes out if you start taking cpp with survival benefits..
Hey Adam, my brother tells me that his QPP site offers a projections calculator for those wanting to retire early to figure out their amounts. Time for CPP to offer the same.
Just mentioned to someone earlier that the QPP site is much better. That said, cppcalculator.com is a great resource.
Indeed QPP has much better tools available
Can you please do a video on CPPD to CPP.. with survivors allowance to survivors pension. I’ve been on CPPD since 2013 due to traumatic death of spouse.
This year I found the government of canada CPP calculators and was able to calculate estimates for my wife to draw CPP at 63, 65 and 70 I don’t remember where I found it but I think I was logged in to her Service Canada account. On a foot note, the government of canada is a massive institution dealing with both new information and legacy information, all 36 million Canadians are different in as far as how long we worked, what income etc. etc. that said the government is unable to tell you how much contribution room we have in our TFSA! Makes your head spin a bit.
As a single retired at 55 I will be taking my CPP at 60 and drawing down my RRSP beginning then for tax planning. I will also be deferring my OAS at 65 to 70 as it pays slightly better for deferment than CPP and allows the ability to add cash flow at any point with 11 months retroactive payments. Thoughts on this plan? Never seen you discuss delaying OAS in place of delaying CPP
i have thought like you!! deferring oas sound like option!
doesn't CPP and OAS increase the same for deferment ?
Why did the example 60 retirement benefit jump up from 808 to 904 ?
Can you please provide your source(s) that suggest that a person receiving Survivor's benefit + CPP started at 60 would have a reduction of the combined benefits once they reach 65. What would be the logic to allow them to receive a higher combined amount from 60-65 but then reduce their combined benefits afterwards?
Doug covers this topic at his retirehappy website in an article written earlier this year called ‘Understanding the CPP survivor’s pension’. Many of the intricacies of the calculation are covered including this nuance.
@@James_48 Thanks
What interest rate was used to calculate these "break even" ages?
zero - CPP is a COLA adjusted pension so purchasing power is adjusted in your benefit as you move forward but would stay relative across all scenarios, for comparison purposes all scenarios use dollars of the day (IE 2023 if doing today).
None required. This is partly why the break evens are so easy to calculate. It’s also why the absolute guarantee of 7.4% plus inflation protection is virtually impossible to outmatch by taking CPP sooner and investing it. (Plus finding anyone who takes it when they take it and 100% invests it is also virtually impossible).
Hi@@James_48 - only thing I have a harder time agreeing to in your comment is the "Plus finding anyone who takes it when they take it and 100% invests it is also virtually impossible" comment.
Let me try to explain - I don't think the comment is really applicable because if you can afford to delay taking CPP to age 70 you are relying on other sources of income. If total income from age 60 - 70 stays the same whether you are drawing CPP or not, then when drawing CPP earlier than 70 you would reduce the amount of withdrawals from savings (keeping total income the same) which in my opinion is equivalent to investing the CPP funds as your invested funds withdrawals is lower by the CPP amount received.
@@DoneByD Well, I disagree. Mostly because when you defer CPP you are deferring a guaranteed, 42% higher income source. Yes, I completely agree with you that it puts a bigger onus on the retiree to fill the gap from 60 (or earlier) to 70 with non-CPP sources of income. I'm fine with that. Once I get to 70 I will no longer have to rely on a portfolio of varying returns to satisfy my post-70 income needs. It's often said that the biggest risk in retirement is the the sequence of returns risk - or, the possibility that you may run into several consecutive years of low, or negative growth. Deferring CPP to 70 eliminates all of that risk. There is zero possibility of sequence of returns risk with my CPP pension. In fact, it is so risk free it will automatically increase and keep pace with inflation. No other investment can make that guarantee - except perhaps a defined benefit pension plan. It's true that I will have to navigate the path up to age 70, and I might encounter a sequence of returns risk during that phase, but a 10 year risk is a lot less than a 20 - 30 year risk.
I will add that today my plan is to also defer OAS for the 36% bonus, but it's also part of my plan to consider taking it earlier if the need arises, but again, melting down my RSP will probably lead to OAS prior to age 70 being clawed back. In deferring my OAS to post-RRSP meltdown at age 70 I will receive a guaranteed, indexed, higher payment with a reduced prospect of having any of it clawed back.
Is paid for retired person ,, now Plus 81 collecting max, no spousal Benifits ?? , partener passed @ 38, 9/12
I’m collecting max started 2007 , will I get spousal Benifits
What about gic
Are these calculations factoring in that the person is no longer working at ages 60, 65 and 70, or is it considered that he is continuing to work and still paying into CPP until those ages? So, if someone retires at 60 and waits until 70 to start collecting his pension, would that ten years of not contributing make a difference?
Assumes he stops working early. All built into the calculation. Would only be non-contributory to age 65, not beyond.
Ha government get their stuff together😂… having some direct knowledge as having worked for government, I apology, not possible.
Doesn't Survivor benefit end at 65?
No, svr ends when you die, not when you turn 65, not when you remarried.
Right, a lot of this is dependent on having sufficient resources to make it to age 70 before taking CPP/OAS/GIS. I literally was talking to someone yesterday who has already taken both CPP and OAS (and gets GIS) because it wasn't possible to survive without doing so. I guess I'd be interested in knowing what the percentage of people is, in Canada, who have over $100k in retirement plans vs the number who aren't saving at all for retirement, and whether that percentage changes when you look at different segments of the demographic (for example, male vs. female, or by age).
For sure, an individual or a couple, with minimal savings will most likely need to start receiving their pensions sooner (or choose to work longer). Having sufficient savings does provide a significant opportunity to maximize these benefits, especially if the savings come from a TFSA where those withdrawals will not affect GIS eligibility. Perhaps, with the knowledge shared here, future retirees will understand the flexibility that comes with even modest retirement savings.
I think Canada doesn't want people to actually understand the calculation for planning purposes otherwise we'd all know how to get the most money out for our benefit which is definitely not what they want
problem being is you can do all sort of calculations to get the most money (even now) but one big variable (death date) is beyond our control which kind of makes all the previously calculated numbers a best guestimate anyhow. You may never find out if you made a good or the correct decision unless you live past the age of 86, because in all the other scenarios you'll be dead.
Am I wrong, thought the max CPP for a person was 100% of the CPP amount, so If I collect the $18xx at age 70 and spouse dies then my survivor benefit is zero because I am at the max of the $12xx or so (100 % of age 65 CPP). Put another way if I am collecting the $18xx because i waited is age 70 and my spouse is also edible for 100% CPP at age 65, then her survivor from me is also zero because she is at 100% CPP amount.
Correct
So then how is math in the chart at age 65, person gets $201.34 while at the max CPP amount, they exceed the $12xx indicated to get $13xx in the chart.
Hopefully Alberta drops CPP and gets its own pension plan