That happened to me,i retired at 61,but made hardly no contributions from 55 onward because i was winding down my business ,so i did the math and 62 was the # for me.I am 64 now and it seems that it was the right move.
For those of us who retire early, does the increase in delaying either benefit outweigh the deficit of additional dropout years? Also, if I call Service Canada, will they be able to tell me the optimal time to take each respective benefit?
Delaying benefits you: Each zero year in your calculation of 39 available years costs you -2.56% of your maximum possible pension. Each year you delay gains you 7.2%, putting you 4.6% to the better
I wouldn't rely on Service Canada to tell you the optimal time but they should be able to give you the numbers and figures to come up with your own analysis.
@@rb239rtrwhat's the increase in taxes if you double your CPP at 70..you know, the year you start spending 1% less each year afterwards..I'll live now , but thanks
@@garth217 The thing is, you spend a good part of your RRSP first, and all things being equal, your income stays similar transitioning into the CPP. i.e. if CPP is 2000 a month at 70, you take 2000 less out of your RRIF. And as you age and senility creeps in, there is $24,000 that your decrepid mind does not have to manage. And taxes are the same.
I retired at 57, maxed out my CPP most of my working life. I am going to take it early because If the government is going to give me money I'm taking it! I can invest the money if I don't spend it. Just how I feel about the Canadian system paid way too much over the years.
you should still do the math. It looks like a couple poor years, giving you close to the maximum CPP amount. CPP grows at 7.2% per year below age 65, plus by the positive difference between wage growth and inflation. It never goes down in a recession or depression.
Everyone has their own thoughts and opinions on it. It is definitely situational. Taking the funds and investing can work out better off in the long run assuming you get the investment returns and stay disciplined. There is something to be said though for guaranteed, inflation protected income for life though.
@rb239rtr the problem for a lot of us is taxes. Why start paying more taxes at 70 when you can enjoy life in your 60s..I don't need more CPP because I don't want OAS clawback
Great Video Sir! But most of the Canadian Finical RUclipsrs Channels! The Canadian Ones! CPP and OAP are Tax! has income. Me, like to get the tax taken from source they ask if you like a % or Money, i gone with 20% But because I'm working and still getting CPP! after months trying to work out how much more for 2023 in July 2024, got it $20.00 then they tax that at 20%!! you thought they just add to CPP and take the 20%? plus hard to work out how much more you get all depends how much i payee into CPP in 2024,so again it be Surprise! in July 2025, OAS! i will ask for 20% taken for taxes, but will hold off way after i finish work, two years min, so get the full amount but will never get a claw back lol. still great work!
Thank you very much. Glad you enjoyed the video. A couple of thoughts: 1. Some people like to get tax taken off at source. And I get it, doing your taxes and not owing anything is a nice feeling but you are in effect giving the CRA an interest free loan when that money could be working for you. 2. Don't worry too much about OAS clawback in the year after you retire. Yes your previous years income will be high and you will get clawed back but the clawback doesn't mean the money disappears. It effectively goes as a credit against tax owing. If you are under the clawback range in the year that you retire, the money you get clawed back on will either go against taxes owing for that year or be refunded to you once you file your taxes the following spring. Hope that makes sense.
It is definitely legit. Sorry about that, not sure what is happening there, you should have got it. If you send me an email chris.jardine@bellvest.ca I will reply and email you a copy tomorrow morning.
It’s an income based benefit like GIS. Widows get Allowance for Survivor, but spouses aged 60-64 might qualify for the Allowance if the spouse gets GIS. Both based on income, both have income thresholds. Charts are online.
@ widows are entitled to their spouses old age pension from 60 to 65 it then switches to our own. We give up the survivors benefit though so my question is whether it makes sense to switch at 60 🙂
@@Love-bo3df you may be confusing the OAS with CPP.? a spouses CPP is available for widows, a percentage of the original benefit, but there is an additional stand alone OAS widow/ spouse benefit for 60-65. The.CPP benefit adjusts per age and can be taken before 60, but at 65 it blends with their personal CPP. They get both CPP and a CPP widows benefit for life. The allowance or allowance for survivor benefit converts at 65 to OAS/GIS. It isn’t the spouses OAS, It’s a GIS benefit based on their income.
@@Love-bo3df a widow can collect their widow benefit without taking their personal CPP. It is based on the spouses contributions and does not interfere with what they are contributing to CPP. At 65, the percentage changes. And you can only make up to the maximum CPP amount, widow+personal CPP
@ service Canada called it Old Age Supplement for windows who lost a spouse before retirement age but spouse was retired. I was told I could apply for a portion of his at the age of 60 whether I was retired or not. I will have to call them again I guess, it has been 3 months since I was given this information and maybe it’s changed.
What about someone who is born in and lived in Canada for 65 years but worked mainly under the table doing odd jobs. My CCP would be very small because I only worked a few jobs who took anything out of my pay. Can I still receive some kind of CCP payment ?
I disagree with your statement regarding taking CPP early if you are missing too many years of employment. Each zero year in your calculation of 39 available years costs you 2.56% of your maximum possible pension. Each year you delay gains you 7.2%, putting you 4,6% to the better. In my case, 4 university years, 9 years out of country, 5 more low earning years, 31 maximum years, gives me 90% of the maximum pension, now I am in a +65 delaying action, +8.4% better per year. You have to do the math, my math is indicating 67 to 68 for taking the CPP
I believe I said you "might" be better off. Depends on your situation. Fairly big difference between 7.2% and 4.6% though. A 7.2% increase is hard to beat in a lot of situations. A 4.6% increase though is debatable.
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That happened to me,i retired at 61,but made hardly no contributions from 55 onward because i was winding down my business ,so i did the math and 62 was the # for me.I am 64 now and it seems that it was the right move.
Similar situation. Retirement at 54...went back twice both full-time and part-time. Got my 1st CPP payment the month I turned 61
Excellent, glad it worked out for you both.
These are great tips! Thank you for the video!
You are very welcome, glad you enjoyed it.
Outstanding analysis! 👍
Thank you sir. Have a good weekend!
My wife ended up getting about 130 a month more because of the child rearing provision.We had 2 kids 5 years apart so it worked out well
It's a big difference over a 30 year retirement and something some people don't think of when making the application.
I am 76 & wife is 63, what do you suggest for her CPP & OAS
I answered you back on a different comment - let me know if you want to discuss more.
For those of us who retire early, does the increase in delaying either benefit outweigh the deficit of additional dropout years? Also, if I call Service Canada, will they be able to tell me the optimal time to take each respective benefit?
Delaying benefits you:
Each zero year in your calculation of 39 available years costs you -2.56% of your maximum possible pension.
Each year you delay gains you 7.2%, putting you 4.6% to the better
I wouldn't rely on Service Canada to tell you the optimal time but they should be able to give you the numbers and figures to come up with your own analysis.
@@rb239rtrwhat's the increase in taxes if you double your CPP at 70..you know, the year you start spending 1% less each year afterwards..I'll live now , but thanks
@@garth217 The thing is, you spend a good part of your RRSP first, and all things being equal, your income stays similar transitioning into the CPP. i.e. if CPP is 2000 a month at 70, you take 2000 less out of your RRIF. And as you age and senility creeps in, there is $24,000 that your decrepid mind does not have to manage. And taxes are the same.
I retired at 57, maxed out my CPP most of my working life. I am going to take it early because If the government is going to give me money I'm taking it! I can invest the money if I don't spend it. Just how I feel about the Canadian system paid way too much over the years.
you should still do the math. It looks like a couple poor years, giving you close to the maximum CPP amount. CPP grows at 7.2% per year below age 65, plus by the positive difference between wage growth and inflation. It never goes down in a recession or depression.
Everyone has their own thoughts and opinions on it. It is definitely situational. Taking the funds and investing can work out better off in the long run assuming you get the investment returns and stay disciplined. There is something to be said though for guaranteed, inflation protected income for life though.
@rb239rtr the problem for a lot of us is taxes. Why start paying more taxes at 70 when you can enjoy life in your 60s..I don't need more CPP because I don't want OAS clawback
Great Video Sir! But most of the Canadian Finical RUclipsrs Channels! The Canadian Ones! CPP and OAP are Tax! has income. Me, like to get the tax taken from source they ask if you like a % or Money, i gone with 20% But because I'm working and still getting CPP! after months trying to work out how much more for 2023 in July 2024, got it $20.00 then they tax that at 20%!! you thought they just add to CPP and take the 20%? plus hard to work out how much more you get all depends how much i payee into CPP in 2024,so again it be Surprise! in July 2025, OAS! i will ask for 20% taken for taxes, but will hold off way after i finish work, two years min, so get the full amount but will never get a claw back lol. still great work!
Thank you very much. Glad you enjoyed the video. A couple of thoughts:
1. Some people like to get tax taken off at source. And I get it, doing your taxes and not owing anything is a nice feeling but you are in effect giving the CRA an interest free loan when that money could be working for you.
2. Don't worry too much about OAS clawback in the year after you retire. Yes your previous years income will be high and you will get clawed back but the clawback doesn't mean the money disappears. It effectively goes as a credit against tax owing. If you are under the clawback range in the year that you retire, the money you get clawed back on will either go against taxes owing for that year or be refunded to you once you file your taxes the following spring.
Hope that makes sense.
Sorry my wife just said it was 160 a month more,my bad!
As it turns out, an even bigger difference!
I tried downloading the “free” guide 3 times, nothing happened. Is this legit? Just wondering
It is definitely legit. Sorry about that, not sure what is happening there, you should have got it. If you send me an email chris.jardine@bellvest.ca I will reply and email you a copy tomorrow morning.
Widows can collect their spouses OAS at 60 years of age
It’s an income based benefit like GIS. Widows get Allowance for Survivor, but spouses aged 60-64 might qualify for the Allowance if the spouse gets GIS. Both based on income, both have income thresholds. Charts are online.
@ widows are entitled to their spouses old age pension from 60 to 65 it then switches to our own. We give up the survivors benefit though so my question is whether it makes sense to switch at 60 🙂
@@Love-bo3df you may be confusing the OAS with CPP.? a spouses CPP is available for widows, a percentage of the original benefit, but there is an additional stand alone OAS widow/ spouse benefit for 60-65. The.CPP benefit adjusts per age and can be taken before 60, but at 65 it blends with their personal CPP. They get both CPP and a CPP widows benefit for life. The allowance or allowance for survivor benefit converts at 65 to OAS/GIS. It isn’t the spouses OAS, It’s a GIS benefit based on their income.
@@Love-bo3df a widow can collect their widow benefit without taking their personal CPP. It is based on the spouses contributions and does not interfere with what they are contributing to CPP. At 65, the percentage changes. And you can only make up to the maximum CPP amount, widow+personal CPP
@ service Canada called it Old Age Supplement for windows who lost a spouse before retirement age but spouse was retired. I was told I could apply for a portion of his at the age of 60 whether I was retired or not. I will have to call them again I guess, it has been 3 months since I was given this information and maybe it’s changed.
I need a translator 😢
For the Scottish accent? Can't help you much there unfortunately. Maybe I could try a video in a North American accent for some laughs.
What about someone who is born in and lived in Canada for 65 years but worked mainly under the table doing odd jobs. My CCP would be very small because I only worked a few jobs who took anything out of my pay. Can I still receive some kind of CCP payment ?
Unfortunately you won't qualify for much CPP. Depending on your other income you may qualify for GIS. Have you looked into that?
I disagree with your statement regarding taking CPP early if you are missing too many years of employment.
Each zero year in your calculation of 39 available years costs you 2.56% of your maximum possible pension.
Each year you delay gains you 7.2%, putting you 4,6% to the better.
In my case, 4 university years, 9 years out of country, 5 more low earning years, 31 maximum years, gives me 90% of the maximum pension, now I am in a +65 delaying action, +8.4% better per year.
You have to do the math, my math is indicating 67 to 68 for taking the CPP
I believe I said you "might" be better off. Depends on your situation. Fairly big difference between 7.2% and 4.6% though. A 7.2% increase is hard to beat in a lot of situations. A 4.6% increase though is debatable.