Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.
Good video What isn't addressed is the income shortfall when the spouse passes away. The max a survivor can receive between their CPP and decades spouse is $1432 per month. by foregoing CPP to 70 they used most of RRSPs. this leaves the survivor in a bind with lower income and a small nest egg left to rely on
A note about legal separation and CPP survivor benefits: if you are legally separated but NOT divorced (in Canada, you can apply for a divorce one year after the date of separation, I believe) and you pass away before you start collecting your CPP and your ex is under 65, they will collect CPP survivor benefits of a flat rate portion AND 37.5% of your retirement pension. When the ex themselves start to collect CPP, the amount of survivor benefit will be adjusted downwards so they won't go over the CPP maximum monthly payment. The ex will collect the CPP suvivor benefits for the rest of their lives, even if they remarry. We had a youngish family member pass away unexpectedly and now their cheating, gaslighting, lying ex is receiving survivor benefits for the rest of their life. If they had gotten around to divorcing, the ex would not have been eligible for a survivor benefit.
Watch that divorce clause that says you agree to sharing of pensions. That could be a surprise when you start cpp. It came up in mine, but luckily we both agreed to remove interests. Not paying attention because you're thinking of something else at the time, easy enough to miss.
@hjcabc good information to know. My Ex tried to get a part of my Pension but found out that her Pension at the time was worth more than mine... she's older by 12 years. Ill see if I can get hers now!!!
Those saying we need 20-30 years of retirement income, just remember a lot of people die in their 60s, paying into CPP all their lives, leaving a reduced pension to their spouse. When the spouse starts collecting CPP, age 65 or whatever, he gets full pension plus the survivor pension he is already receiving. But it is MAXED as far as I know. So the survivor is not only getting less than the full CPP benefit his spouse would have received, it is reduced further when the two are combined. That's my understanding anyway. All those years a husband and wife paying into it, but you don't necessarily get it back.
What happens if the CPP is at 100 percent instead of 70 percent? Is there still a survivor benefit? (I'm thinking not.) Also, the surviving spouse has less RRSP remaining because it was reduced to cover expenses for the two delayed years. How does that work into the equation?
They are retiring this year. If both took a reduced CPP at 60, this year 2024 as in the example, that would be $1364.60 minus 36% penalty for taking CPP early, resulting in $873.34 each, $20, 960.26 for both of them for 2024. I assume they have RRSP's and maybe LIF's that they are "melting down". That CPP money amount would be left in the RRSP's or the LIF's. So the total income for each year would not be any higher than planned, meaning there would be no extra taxes to pay. But that $20, 960.26 amount, indexed every year for 7 years, would have accumulated to $146, 721.79 (Not including indexing, not including returns on that money in RRSP's or LIF's.) And that is the amount that any remaining spouse would have. I took my CPP at 60 in 2016. I used it to help bring down debt until I retired in 2022.
one thing I also discovered is that my maximum combined was NOT the maximum CPP benefit, it was MY maximum benefit. For many women that could be a big hardship
Maybe a silly question Adam, but what if someone got bad advise and started taking CPP when they retired early at 60, could they stop now at 65 and start again at say 72 to make up some of that time they did an early withdrawal? Or is it mandatory that you start CPP at 70, and once you choose to start, you’re committed? Thanks Doug
baseline bills are the same . Some have $$ meds. You have added expenses cleaning, help grocery shopping, lawn and garden work, shoveling snow and you may need personal help to get places ( not just a taxi but someone to listen to what is being said, help entering and exiting buildings.
@ I agree with some of it but at 87.. come on.. seriously.. 90% of the time you are in an extended living facility that cleans, shops… and takes care of all your surroundings for a set fee per month. Often you pay what you can… and social security kicks in the rest. Your expenses are pretty darn predictable with no large outlays happening unless your favorite niece talks you into paying her tuition at Ohio state..
My wife and I are both 60. 1) I take CPP at 60, collect $10k/year, and after 10 years die at 70, passing my wife $100k. 2) I wait ... wait... wait and die at 70, passing my wife ZERO money. My question: What option should the honest person choose?
@@davecarpenter4917 1) If she is maxed out on her CPP, than survivor's part is ZERO. 2) Survivor's part is really small anyways. 3) Wife is going to get survivor's part in both cases, with $100k in the first case and with ZERO in the second. And in my situation, I am not going to live till 80, there is no option - take at 60.
Interesting video once again. The one thing I have looked at if the surviving spouse lasts to 95 yes they come out $53467 ahead that is equivalent to $5.23 / day. That $5.23 is however indexed for inflation. I just started my CPP at 61 . I'm taking 50% of that payment and putting it in monthly into my TFSA. I will do so until I reach 65 and my Pensions bridge Benefit drops off. The return on my TFSA is currently 10.?? %. By adding $20,000 extra into my TFSA in 4 years I believe I will be much further ahead at 87 or 95. The remaining 50% is play money during my GoGo years. A drop in household income from $66,000 to $42,000 is very significant, considering that the majority of expenses stay the same..ie heating, hydro, property tax, home and auto insurance, home and car maintenance. The question becomes can the person sustain their lifestyle in order to make it to 70 in order to get the extra money from CPP?
i personally do the same early CPP and out in TFSA. i have not gone thru the math but i think CPP each year withdraw is 8% less. which mean CPP treat the investment as 8% a year. so if you buying a reasonable low risk index you can easily get 10%+ return. and it snow ball. or course every 10 years market collapse, and god knows if north american will still do well after 20 years… so you may have to do global fund or rebalance. so there is a risk. but i rather take risk myself than trusting gov managing my money. and like you said, taking from TFSA is tax free, so you may actually qualify GIS.
Thx Adam. Got me thinking a bit so I ran a number of projections of my plan at various plan lengths and various passing away scenarios. From what I can tell there is no consistent pattern of when to start CPP; it all depends on how long each of the spouses live, who passes away first, and how long until the second spouse passes away. If you are working with a plan say that both live to 95; then yes you can figure out when it is optimal to take CPP. In reality you most likely the future will not be as one has planned and thus optimal CPP start age will depend on what happens from start of plan. Does that make any sense?
Use statistics - at the end of the day you need to use data that is available to us and accurate. Life expectancy, returns, inflation etc. Nobody knows when they are going to die, so like everything else in life, use the data we do have and map out the most realistic option(s) based on that.
The Government does not collect any of John's CPP. The cash that isn't paid out remains in the CPP pension pot. It works like many DB pension plans; there are people who live a very long time, and there are those who don't. The plan is balanced to account for this. In effect, those who die early help pay the pensions of those who live a long time.
Government gets none of it, other contributors would. But the focus needs to be on how to get th empty after tax income in the lifetime (plus keeping an eye on the estate
I have a suggestion. Take your CPP at 60 and invest in gold and keep working until you are 65. In another 10 years you will have real wealth and not paper promises that are sure to be worth far less
I was a stay at home mom and have never worked outside the home. I'm 63 now. My husband will be 68 in December and will have worked 50 years. He plans to retire in 2025. If something was to happen to him what would happen with his CCP? He is my sole provider. No OAS for 2 years. He has a work pension as well. Just wondering what the survivor benefit would be.
Another reason to not rely on anyone for your $$$. Housewives should get a special 'pension' for all that unpaid work. They worked far harder than any man.
I don't like not having the entire picture laid out --- IE you can't judge or understand if you are better or worse off when you don't see the estate values, other assets value changes and need to complete a thorough examination of all the numbers that are changing in these scenarios. I don't know if the real dollar value increased or decreased because of additional or lesser amounts being pulled from other assets. Also somewhat confusing as comparisons were sometimes in real dollars and then other times nominal dollars... For instance 53K nominal dollars over the course of 25-35 years isn't much when you consider inflation at 1.5% over 25 year period would amount to 1.451 reduction factor so the real dollar term would be around $36,500 over that time period. If you peg inflation at 3% then the reduction factor is even greater at 2.0938 so the difference in real dollar terms would become $25,300 (over 25 ish years). So in the grand scheme of things and because all these numbers are theoretical I would come to the conclusion it's almost a wash. Too much having to dig through this video to fully comprehend and understand it all in my opinion so this video would make me conclude one way isn't any better or worse than the other and it's all a matter of user preference in what makes it easier for the person to sleep at night.
that’s why you pay a financial planner to so you can sleep better lol why spend time, when you can spend money for expert? if you think you can do better, then, please, you do a better video. ;-)
@@bossanesta 😂 I do have a financial planner but this comment isn't about that. I follow and watch all videos on Adam's channel. This one, for the very first time, left me with more questions than answers. Also didn't want to dig into video, pausing etc to try to figure it all out. The biggest metric was the $53K difference so that is what I made my conclusion on which I understand isn't necessarily correct as it's a single metric. Also thought the income drop off (>36%) upon the husband's death was substantial so wondered about other assets etc. and that information wasn't touched upon to any degree. It was also kind of greyed out in frame pauses which made it hard to read for me. I will continue to watch Adam's video as they are very good. I also understand you can't go into every detail in these videos but a comparison summary is usually there. Thanks for commenting.
@@ParallelWealth thanks Adam, sorry this comment wasn't meant to be a negative critique. It was more about me coming to my conclusion based on very limited understanding of everything that may be going on. I did note larger differences in RRSP values at 70 between scenarios but because of the highlighting/shading it made the numbers hard to read on my PC. Anyway I very much appreciate your videos and all the efforts you put forth to educate Canadians on all retirement planning and financial literacy.
I'm single, no dependents, no real concern for leaving a legacy. My biggest concern is running out of money before I die if I unexpectedly live to, say, 95. My best bet for long term security appears to be to defer CPP until 70. If I die before or shortly after that, leaving CPP money on the table will be the least of my concerns. Obviously if I knew when I was going to die I might make some different decisions, but my crystal ball is on the fritz, unfortunately 😂
Defer CPP if you choose. It's a personal decision. The only thing I consider is lifestyle..I'm living comfortably on my Pension alone, I got my first CPP 3 days ago at age 61. I don't need the money, so 50% is going straight into my TFSA. I must have the same brand of crystal ball too, because it's broken as well. I'm living for the now, because I can't scrimp and save until 70 in the hopes I'll be good until 85
@kikik8009 oh wow a full 11 months!!!! I think I will collect for 9 years..that $90,000 sounds better to me. But hey you can take the 1/10 th if you like
@@kikik8009 I'm pretty sure you can't apply for CPP after your dead... you can apply when living and get your CPP start date back dated 11 months however once your dead this isn't an option that I'm aware of.
@@garth217 I'm not making any adjustments to my intended lifestyle going this route, it's roughly a wash in the long run financially, but less risky if I do live longer. I'll just be dipping into my RRSP more heavily earlier in my retirement, and less later in it if I live that long lol. I don't have any defined benefit pension plan to depend on, other than OAS and CPP.
Take every dollar you can get as soon as you can get it. A dollar in your hand is money you can invest and capital that is yours. CPP is a promise from the government and when you pass away they keep the capital you and your employer put into the plan. There is more redistribution built into the cpp/oas/gains than the government wants to admit.
CPP is not pension splittable, but what if I plan to work until 65, but start taking CPP at 60 and putting it directly into my RRSP so the taxes are a wash. At 65, I can use that RRSP CPP contribution and income split it. I know its 36% less, but I don't expect to live past my mid 70's. Is this a good option?
Any money you put into an RRSP is a good idea. Reduction in taxes and hopefully an increase in value. Don't forget your TFSA as well. I would consider splitting the money
Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.
Tough question to think about - but very valuable to know - Thanks for doing these videos
Good info. Exactly the question I’ve been wondering
Great analysis. It just goes to show you, don't guess - GET A PLAN.
this is the same quote "Pay Adam money."
Good video
What isn't addressed is the income shortfall when the spouse passes away. The max a survivor can receive between their CPP and decades spouse is $1432 per month. by foregoing CPP to 70 they used most of RRSPs. this leaves the survivor in a bind with lower income and a small nest egg left to rely on
The video takes this all into account. The net income is higher by delaying CPP - which was a big part of the video and why it works
A note about legal separation and CPP survivor benefits: if you are legally separated but NOT divorced (in Canada, you can apply for a divorce one year after the date of separation, I believe) and you pass away before you start collecting your CPP and your ex is under 65, they will collect CPP survivor benefits of a flat rate portion AND 37.5% of your retirement pension. When the ex themselves start to collect CPP, the amount of survivor benefit will be adjusted downwards so they won't go over the CPP maximum monthly payment. The ex will collect the CPP suvivor benefits for the rest of their lives, even if they remarry. We had a youngish family member pass away unexpectedly and now their cheating, gaslighting, lying ex is receiving survivor benefits for the rest of their life. If they had gotten around to divorcing, the ex would not have been eligible for a survivor benefit.
Watch that divorce clause that says you agree to sharing of pensions. That could be a surprise when you start cpp. It came up in mine, but luckily we both agreed to remove interests. Not paying attention because you're thinking of something else at the time, easy enough to miss.
@hjcabc good information to know. My Ex tried to get a part of my Pension but found out that her Pension at the time was worth more than mine... she's older by 12 years. Ill see if I can get hers now!!!
Those saying we need 20-30 years of retirement income, just remember a lot of people die in their 60s, paying into CPP all their lives, leaving a reduced pension to their spouse. When the spouse starts collecting CPP, age 65 or whatever, he gets full pension plus the survivor pension he is already receiving. But it is MAXED as far as I know. So the survivor is not only getting less than the full CPP benefit his spouse would have received, it is reduced further when the two are combined. That's my understanding anyway. All those years a husband and wife paying into it, but you don't necessarily get it back.
We have a lot of female seniors living on a very small income. My 94 year old mother is a prime example she has so far outlived my dad by 24 years!
What happens if the CPP is at 100 percent instead of 70 percent? Is there still a survivor benefit? (I'm thinking not.) Also, the surviving spouse has less RRSP remaining because it was reduced to cover expenses for the two delayed years. How does that work into the equation?
Thanks for the video Adam
They are retiring this year. If both took a reduced CPP at 60, this year 2024 as in the example, that would be $1364.60 minus 36% penalty for taking CPP early, resulting in $873.34 each, $20, 960.26 for both of them for 2024. I assume they have RRSP's and maybe LIF's that they are "melting down". That CPP money amount would be left in the RRSP's or the LIF's. So the total income for each year would not be any higher than planned, meaning there would be no extra taxes to pay. But that $20, 960.26 amount, indexed every year for 7 years, would have accumulated to $146, 721.79 (Not including indexing, not including returns on that money in RRSP's or LIF's.) And that is the amount that any remaining spouse would have.
I took my CPP at 60 in 2016. I used it to help bring down debt until I retired in 2022.
I got divorced at 60. I was married for 41 years. Explain what I can expect.
Your divorce agreement will outline that. Was there a splitting of CPP? All that info would be in your agreement.
I am more confused after this video now about when to start my CPP at 65 than before I watched it
If there is a big difference between CPP incomes of a couple. CPP survivor benefit adds a lot less to the higher CPP income earner.
Or nothing if they met the maximum
one thing I also discovered is that my maximum combined was NOT the maximum CPP benefit, it was MY maximum benefit. For many women that could be a big hardship
Maybe a silly question Adam, but what if someone got bad advise and started taking CPP when they retired early at 60, could they stop now at 65 and start again at say 72 to make up some of that time they did an early withdrawal? Or is it mandatory that you start CPP at 70, and once you choose to start, you’re committed? Thanks Doug
Unfortunately too late to stop. You have 12 months only.
Here's Doug hollering back from the other side of his decision.... making the rest of us about to start CPP early squirm in our chairs a bit.
Thks for the video Adam
Great info
Adam ? Do you have a way I can send you a new subject / request for a possible new video for your channel??
Sure thing! Info@parallelwealth.com
@@ParallelWealth Thks email sent
What exactly does one expect to do on daily basis at age 87… that requires any large monetary outlay?
Golden diapers and caviar?!
baseline bills are the same . Some have $$ meds. You have added expenses cleaning, help grocery shopping, lawn and garden work, shoveling snow and you may need personal help to get places ( not just a taxi but someone to listen to what is being said, help entering and exiting buildings.
@ I agree with some of it but at 87.. come on.. seriously.. 90% of the time you are in an extended living facility that cleans, shops… and takes care of all your surroundings for a set fee per month. Often you pay what you can… and social security kicks in the rest. Your expenses are pretty darn predictable with no large outlays happening unless your favorite niece talks you into paying her tuition at Ohio state..
So, if I take CPP at 60 and die at 70 my wife will have less money, than I don't take anything and die at 70. Correct?
My wife and I are both 60. 1) I take CPP at 60, collect $10k/year, and after 10 years die at 70, passing my wife $100k. 2) I wait ... wait... wait and die at 70, passing my wife ZERO money. My question: What option should the honest person choose?
@@liverpool3469 She would get the survivor's part of your monthly added to her own , no ?
@@davecarpenter4917 1) If she is maxed out on her CPP, than survivor's part is ZERO. 2) Survivor's part is really small anyways. 3) Wife is going to get survivor's part in both cases, with $100k in the first case and with ZERO in the second. And in my situation, I am not going to live till 80, there is no option - take at 60.
@@davecarpenter4917 Moderator deleted my answer to you. Think about it ...
@@davecarpenter4917 Moderator deleted my answer (two times). Think about it...
Interesting video once again. The one thing I have looked at if the surviving spouse lasts to 95 yes they come out $53467 ahead that is equivalent to $5.23 / day. That $5.23 is however indexed for inflation.
I just started my CPP at 61 . I'm taking 50% of that payment and putting it in monthly into my TFSA. I will do so until I reach 65 and my Pensions bridge Benefit drops off. The return on my TFSA is currently 10.?? %. By adding $20,000 extra into my TFSA in 4 years I believe I will be much further ahead at 87 or 95.
The remaining 50% is play money during my GoGo years.
A drop in household income from $66,000 to $42,000 is very significant, considering that the majority of expenses stay the same..ie heating, hydro, property tax, home and auto insurance, home and car maintenance. The question becomes can the person sustain their lifestyle in order to make it to 70 in order to get the extra money from CPP?
i personally do the same early CPP and out in TFSA. i have not gone thru the math but i think CPP each year withdraw is 8% less. which mean CPP treat the investment as 8% a year. so if you buying a reasonable low risk index you can easily get 10%+ return. and it snow ball. or course every 10 years market collapse, and god knows if north american will still do well after 20 years… so you may have to do global fund or rebalance. so there is a risk. but i rather take risk myself than trusting gov managing my money.
and like you said, taking from TFSA is tax free, so you may actually qualify GIS.
@@bossanestano such thing as low risk 10% return, year over year.
@@James_48true… sp500 ETFs are not generally considered med risk. because market changes.
i hold leveraged ETF like TQQQ, so i am bias :p
@James_48 wrong
I just looked at my portfolio and it is currently at 10 %.. I never said year over year.
@@garth217 as my comment indicates my reply was not for you, it was for @bossanesta
Thx Adam. Got me thinking a bit so I ran a number of projections of my plan at various plan lengths and various passing away scenarios. From what I can tell there is no consistent pattern of when to start CPP; it all depends on how long each of the spouses live, who passes away first, and how long until the second spouse passes away. If you are working with a plan say that both live to 95; then yes you can figure out when it is optimal to take CPP. In reality you most likely the future will not be as one has planned and thus optimal CPP start age will depend on what happens from start of plan. Does that make any sense?
Use statistics - at the end of the day you need to use data that is available to us and accurate. Life expectancy, returns, inflation etc. Nobody knows when they are going to die, so like everything else in life, use the data we do have and map out the most realistic option(s) based on that.
I understand if u don't collect CPP and die your spouse looses it till age 70 for 1 year only
Nope
It is best to check the Government of Canada website about these topics.
Oh no, it is a confusing and incomplete source of information, unfortunately.
Haha, have you ever checked any government website? As clear as mud!
Government of Canada website is for Government of Canada people.
Sounds great! The only thing is the Government will collect most of "John's" CPP at the end
The Government does not collect any of John's CPP. The cash that isn't paid out remains in the CPP pension pot. It works like many DB pension plans; there are people who live a very long time, and there are those who don't. The plan is balanced to account for this. In effect, those who die early help pay the pensions of those who live a long time.
Government gets none of it, other contributors would. But the focus needs to be on how to get th empty after tax income in the lifetime (plus keeping an eye on the estate
@@ParallelWealththe maxx will be 1400 after death of the spouse
I have a suggestion. Take your CPP at 60 and invest in gold and keep working until you are 65. In another 10 years you will have real wealth and not paper promises that are sure to be worth far less
Does the surviving spouse get 60% of the deferred CPP amount or the standard amount the deceased spouse would have gotten at 65?
Why would cpp stop around 80 something ? I thought it was till death ?
It is until death
I think he said around 80 , cpp stops ?
I was a stay at home mom and have never worked outside the home. I'm 63 now. My husband will be 68 in December and will have worked 50 years. He plans to retire in 2025. If something was to happen to him what would happen with his CCP? He is my sole provider. No OAS for 2 years. He has a work pension as well. Just wondering what the survivor benefit would be.
CPP
I think it maximize to 60+ % of the spouse CPP to the max limit which is currently 1300 + per month
Another reason to not rely on anyone for your $$$. Housewives should get a special 'pension' for all that unpaid work. They worked far harder than any man.
I don't like not having the entire picture laid out --- IE you can't judge or understand if you are better or worse off when you don't see the estate values, other assets value changes and need to complete a thorough examination of all the numbers that are changing in these scenarios. I don't know if the real dollar value increased or decreased because of additional or lesser amounts being pulled from other assets.
Also somewhat confusing as comparisons were sometimes in real dollars and then other times nominal dollars... For instance 53K nominal dollars over the course of 25-35 years isn't much when you consider inflation at 1.5% over 25 year period would amount to 1.451 reduction factor so the real dollar term would be around $36,500 over that time period. If you peg inflation at 3% then the reduction factor is even greater at 2.0938 so the difference in real dollar terms would become $25,300 (over 25 ish years). So in the grand scheme of things and because all these numbers are theoretical I would come to the conclusion it's almost a wash. Too much having to dig through this video to fully comprehend and understand it all in my opinion so this video would make me conclude one way isn't any better or worse than the other and it's all a matter of user preference in what makes it easier for the person to sleep at night.
Excellent comment
All those comparisons are there. One day I'll create a 5 hour video and go through it all, but you need to piece together the videos at times
that’s why you pay a financial planner to so you can sleep better lol
why spend time, when you can spend money for expert?
if you think you can do better, then, please, you do a better video. ;-)
@@bossanesta 😂 I do have a financial planner but this comment isn't about that.
I follow and watch all videos on Adam's channel. This one, for the very first time, left me with more questions than answers. Also didn't want to dig into video, pausing etc to try to figure it all out.
The biggest metric was the $53K difference so that is what I made my conclusion on which I understand isn't necessarily correct as it's a single metric. Also thought the income drop off (>36%) upon the husband's death was substantial so wondered about other assets etc. and that information wasn't touched upon to any degree. It was also kind of greyed out in frame pauses which made it hard to read for me. I will continue to watch Adam's video as they are very good.
I also understand you can't go into every detail in these videos but a comparison summary is usually there.
Thanks for commenting.
@@ParallelWealth thanks Adam, sorry this comment wasn't meant to be a negative critique. It was more about me coming to my conclusion based on very limited understanding of everything that may be going on. I did note larger differences in RRSP values at 70 between scenarios but because of the highlighting/shading it made the numbers hard to read on my PC. Anyway I very much appreciate your videos and all the efforts you put forth to educate Canadians on all retirement planning and financial literacy.
I'm single, no dependents, no real concern for leaving a legacy. My biggest concern is running out of money before I die if I unexpectedly live to, say, 95. My best bet for long term security appears to be to defer CPP until 70. If I die before or shortly after that, leaving CPP money on the table will be the least of my concerns. Obviously if I knew when I was going to die I might make some different decisions, but my crystal ball is on the fritz, unfortunately 😂
Defer CPP if you choose. It's a personal decision. The only thing I consider is lifestyle..I'm living comfortably on my Pension alone, I got my first CPP 3 days ago at age 61. I don't need the money, so 50% is going straight into my TFSA.
I must have the same brand of crystal ball too, because it's broken as well. I'm living for the now, because I can't scrimp and save until 70 in the hopes I'll be good until 85
if you defer CPP and die at age 70 or after, before receceiving it, your estate can apply and receive up to 11 months of your CPP
@kikik8009 oh wow a full 11 months!!!! I think I will collect for 9 years..that $90,000 sounds better to me. But hey you can take the 1/10 th if you like
@@kikik8009 I'm pretty sure you can't apply for CPP after your dead... you can apply when living and get your CPP start date back dated 11 months however once your dead this isn't an option that I'm aware of.
@@garth217 I'm not making any adjustments to my intended lifestyle going this route, it's roughly a wash in the long run financially, but less risky if I do live longer. I'll just be dipping into my RRSP more heavily earlier in my retirement, and less later in it if I live that long lol. I don't have any defined benefit pension plan to depend on, other than OAS and CPP.
only two person both die early take cpp early make sense.
Curious of the results if CPP started at 60 years of age
Even less total income
Except for John...he didn't collect any because he is dead and waited too long.
Take every dollar you can get as soon as you can get it. A dollar in your hand is money you can invest and capital that is yours. CPP is a promise from the government and when you pass away they keep the capital you and your employer put into the plan. There is more redistribution built into the cpp/oas/gains than the government wants to admit.
CPP is not pension splittable, but what if I plan to work until 65, but start taking CPP at 60 and putting it directly into my RRSP so the taxes are a wash. At 65, I can use that RRSP CPP contribution and income split it. I know its 36% less, but I don't expect to live past my mid 70's. Is this a good option?
You can split, just done at source and not on tax return
Any money you put into an RRSP is a good idea. Reduction in taxes and hopefully an increase in value. Don't forget your TFSA as well. I would consider splitting the money
1. Become mortgage FREE. 2. Only then try TFSA.
What about singles
If you are dead you go sleep with the worms
That's not what this video is about. Pretty clear in the title.
@@vm6824 delaying until 70 for a single?
What happens if the person dies early and has no survivor beneficiary to pass it?
@michaelgod6714 what if you win the lottery?