Quick question please . Let's assume someone took an early cpp at 60 , and the total is 700 / month. Then at 65 OAS 605 + 700 = 1305 Being the total of the two , would you then qualify for 290 on a GIS supplement since you are less then the 1595 which you mention as a guarantee in your video ? Thank you for all the great information.
I am 63 and I worked for 30 years in a very unhealthy work environment and retired fro there at 48. I was self employed for 9 years and took my CPP at 60 as it was maxed. Since I see my former colleagues dying from different cancers on a fairly frequent basis and don’t know how long I realistically have. I don’t regret taking CPP at 60 whatsoever.
I too have seen the same thing.. my parents lived into their 80s... but my siblings barely made it into their 70s. Cancer.ca stats shows 1 in every 2 Canadians will get Cancer in their lifetime and 1 in 4 will die from it. I've seen friends and family have one spouse die right after retirement... two of my brother in laws both died in their 50s. I'm not trying to be pessimistic... I just don't want to assume I'm going to live into my 80s. I'm retiring this Aug at 61... and I'll be happy to live 10 to 15 more years. Anything beyond that, is a bonus.
@@MicheIIePucca I did the exact same thing for exactly the same reasons. (Retired at 61. My parents died in their 80s, my sister died at 59, and other siblings have suffered stroke/heart attacks. Not to mention Aunts and Uncles who died young.) I have no regrets about my decision. None. Enjoy your retirement. As my dear sister used to say, "This ain't no dress rehearsal."
I'm 64 and getting the CPP since I was 60 which is $682 and I've got my notice for my OAS which is going to be $615. My brother died at 61 so it made me think why wait and let the government take MY money which is MY money not there's.
@Insignificant Speck Of Dust The government basically steals our money then gives us back most of it but not all. I think when you reach 65 had paid your share in taxes and should be given a break. They didn't contribute we paid and our work paid so we should get all of it.
Thank you! My mom is 93. My dad passed away at 91. I smoke. I have no idea how long I’ll live. I’m going to guess ...... 80. If I quit smoking tomorrow ......84. However I could get hit by a bus tomorrow. I wish there was a more accurate way to than deciding how long your going to live in order to make such a life changing decision!
I know right? I agree. But that's the way the government wants it to be...keep everyone in the dark. Considering to huge bulge of baby boomers retiring at this time it's scary to see how little information or education they provide citizens who have paid into the system since the age of 18. The government website isn't overly helpful and think about how even less informative it was before the internet.
@@25Soupy As much as I understand your statements, I must disagree. The government isn’t there to hold your hand, it is up to you to get the information and properly interpret it. Not saying it isn’t more complicated now with computer access however there are humans you can speak to to get assistance. If you can’t understand it then you need to get help. Here’s the thing, the government doesn’t give you a handbook to tell u what your will need when you have a baby or how to get car insurance when you buy a car or the best bank to get a mortgage at when you have decided to buy a home yet somehow magically we all managed to have kids and take care of their needs, managed to figure out that we needed car insurance when buying our first car and discovered that we needed a mortgage to buy our first home. I’m sure if you ever got laid off you figured out pretty quickly where to go to apply for unemployment insurance for example, even without the internet. Wow, how did we ever manage? You have a situation, get the information and make a decision. Your decision. The government doesn’t make the decision for you. The reason for the CPP, OAS, the GIS, GST, trillium benefit etc is strictly as a safety net. To ensure those who can’t or won’t prepare for the future at least have some hope of survival at the end of their working life. It is not to replace your savings, retirement pension or investments. But not everyone can or does provide for themselves as they age. Not assigning blame but s..t happens. So there is something there for those who need it . If you want lifestyles of the rich and famous then you had better put money away, get a better job with a better pension, be prepared to work longer or whatever it takes to get you what you want. If not then you sacrifice the lifestyle you want for the one you can afford. Just sayin’, I for one had it all worked out, life would be more than comfortable yet a tragic accident prevented me from ever working again, my spouse had to retire very early in order to assist with medical care, rsps were used to provide for care & basic living needs for years. Not much left when the real retirement age came about. Yet I feel fortunate we had some buffer in times of great need, equally lucky to have all the safety nets in place for us to live. Are we living high on the hog? No but we are warm, have food and a roof over our heads. Just sayin’ if you want the information you can find it...just don’t expect it to be dropped in your lap without doing some legwork.
I recently have been seeing government sponsored TV ads telling us to delay taking your CPP and OAS until a later date, so I did the oppositie and collected my CPP at 60.
I'm from Edmonton. I'm going to live until 120 but elected to take my CPP this June at 60. Before I saw this video. Ooopsss... Can't untake. Your videos are awesome. Thank you.
Hello Kent, Perhaps you can correct me if I am wrong, but if you wait to take your CPP/OAS later, the future value you get includes the bump due to COLA adjustment to account for inflation. In this way, not only would you get the 42% increase, at age 70, but that number would also include the bump, making the percentage of increase potentially substantially more, especially given the inflation rates of today. It is like multiplying your gains. Also, that larger amount is the base-line for future benefits, meaning that your long-term benefits can me much higher forever. Thanks
Yeah because . I hardly worked i get a little good thing i married a cute angry highly sucessfull blonde short girl $$$$ who came with money now we blew it all living . Life large . L.o.l no one doing u any favors . So people pay yourtaxes . L.o.l and scoup it up because yes i never thought i would get old. But old man time won . He he he he at least i DON'T use people .to be richest. I think.i start another buissness after covid. L.o.l i i think so ahhh who cares life is temporary.
Just watching now. Thanks for your information. Will be taking just after 60 and still work. Will invest my cpp, until i can fully retire. Will be living in asia where it is cheap during the winters. And hope i can live to 70 yrs old.
I love learning about this. I'm 53 and didn't know much about this. Love to see videos about Canada and retirement. Planning my retirement now and full of knowledge. Great video!!
@@K4Financial Home Depot has all the half-inch black iron gas fittings and electrical lamp parts to fix that lamp. Thanks for all your retirement income info.
I was very fortunate and started my job at 19. As a result I retired on my 49th birthday. That's 20 years ago. I started my CPP at 60. I've watched far too many coworkers,friends,and relatives pass away and collect little or nothing of their CPP, or OAS. My thoughts are do it today,tomorrow may never come.
i can help. visit your electrical/hardware store, and ask for a lamp socket. you should be able to wire the two wires to the screws on the sides/end of it, re-install. oldtech.
oh, by the way. i applied for my CPP after age 64, feb of last year. start receiving OAS this year, this month, maybe, next for sure. born on the 6th, so i might get it this month on the 24 th....not sure. thankyou, WE ALL NEED THIS EDUCATION, thankyou too much......hats off to you n yours from central alberta.
I wasn't financial free until my 40’s and I’m still in my 40’s, bought my second house already, earn on a monthly basis via my investment and got 5 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made. Great video! Thanks for sharing! Very inspiring! I love this.
Not quite long I started investing. I'm very curious and need help on how to enhance and increase my returns. Any good investment tips would be appreciated. .
@@alyciagordon3447 Generally, investing requires higher knowledge. For this reason, It's important to have a solid support structure (financial consultant) to guide you through especially in asset picking. I operate with (Alexandra Diana Jose) a consultant who partners with a licensed wealth management firm. For the record, the experience has been the best for my finance. She made me financially stable investing through her help, now I earn on a monthly basis through her passive income strategy... So I'd advise you do get a good investment advisor for yourself. .
@@alyciagordon3447 She is easy to find , make a quick research of her on the internet with her name Alexandra Diana Jose . She works with anyone independent of their location. .
Tnx for this info, I just looked up your investment professional and found her page. Her experience is pretty impressive. I wrote her and I'm waiting on her reply.
Mr K4 one thing I am not sure you mentioned is if you take your CPP at 60 and invest every dollar into an RRSP or other investment vehicle you can get your RRSP tax credit and earn interest for 5 years on approximately $8500 year one $17000 dollars year 2 $25500 year 3 etc. Those returns will extend the breakeven point by a couple of years give or take. Also no mention of Net present values (inflation increases aside).
Yeah, it's definitely a consideration. It's hard to cover every option in a video, so I left it out. I know it's worth considering, but it again comes down to actually looking at everyone's specific scenario.
Wow Kent what a breath of fresh air. Your explanation is clear. I need to come see you. Every CFP or Banker has talk gobbaly goop or deliberately try to confuse or talkbover me. I already know my problem because of this video, I have too much in my RRSP & LIRA. I quit a job of thirty years but before I turned 55 for the reasons and think you may already know. How'd that work? I think I have to much RRSP & LIRA. I'll take quality of life over quantity but my conservative nature requires some prudence. We need to get together
Well, if you’re delaying, it doesn’t really matter what your income is. You can pull whatever you want out of your RRSP whenever you want, but I’m a fan of attempting to spread it out and keep your average tax rate consistent for your whole retirement. As mentioned in the video, it’s impossible to do, because we don’t know how long anyone will live, but having an honest conversation about expected longevity and realistic rates of return.
@@dwdelve I have forms that my prospective clients fill out and then I do my plan, and I see that you’ve just emailed me, so I’ll respond over there. 😊
I lived and worked in and out of Edmonton for 13 yrs. I started with nothing and had less than nothing when my job went to a less friendly place. I'll be 60 this year and will have to retain a financial planner to get me set up to take the CPP at 60 while I still work until I cannot work any longer.
@@scottcanuck525 thanks. Appreciate all the kind words. This video took off for some reason, so it’s fun to see and have so many comments to respond to.
I've just recently found your videos. I'm glad I did. My wife and I have been saving & investing approximately 20% of our incomes since our early 30's. We're 54 now, and have have accumulated a sizeable retirement nest-egg (RRSP's, TFSA's, & Non-Reg). I've been so focused on creating my own retirement portfolio and haven't given much thought (until recently) on how best to utilize our savings in conjunction with OAS, CPP, etc. when we retire (ideally in the next 5-6 years). Of course, we'll probably get some formal wealth/tax management advice as we approach that date, but it's great to get some no-nonsense, well-explained information in the meantime. Most of what I've found on YT is USA focused, so it's good to see someone providing Canadian relevant content in short, clear and informative sessions. Subscribed!
Another point to consider is quality of life. You are going to enjoy your retirement more in your earlier 60's than you are in your late 80's. I would rather go on nicer vacations early on when quality of life is better and i have more mobility so money earlier even though it is less is better in my opinion.
I agree that a proper balance should be taken at all ages and in some cases that makes sense. Homecare and other medical expenses can really add up in some cases though, so it’s not always as simple as just expecting to spend less because you do less
The real unknown to this ( if you don’t NEED the money) is how long will you live. The investment return on any early benefits is moot because you’re not going to be taking much risk if you’ve reached your sixties anyway. I would have thought some enterprising FP would have written a program into which you put the variables and it spits out the answer.
I agree about the early returns. Right now people like to talk as though everyone is getting 8% no matter what. That’s a great idea for someone who knows how to write programs
Lots of countries have treaties with Canada, so there may be some way to collect some sort of pension or even OAS I think. Lots of people are asking me about doing videos on retiring somewhere warm. I’m not sure why, it’s so nice here in the winter. I’m going to do a video on it right away.
Finally someone who covers this important topic. I am in the rare but fortunate situation where I maxed out CPP and RRSP and have more than I need in retirement. So for tax management I delay OAS and CPP so I can max out RRSP withdrawals while keeping my target tax rate of 13.5%. That way I'll minimize the tax impact of the RIF income at 71. My parents lived to almost 100 so this is the best bet all around. On thing you did not mention. At 65 set up a RIF that pays out $2k per year as you get that tax free.
After tax and before tax are confusing terms. Stick to Net Income and Total Income as per your tax return since this is where the calculation actually takes place.
Good information that we are not always taught. Now just need to figure out how to keep as much money as possible in my pocket and not the government's
Is there a spreadsheet with ways to play with all these variables? How can one find out one's CPP current and projected account? Thx. Love these vids. Brantford Ontario is liberally dotted with Walter Gretzky shrines this year. Do you Oilers fans still honour Wayne, or does the L.A. move still smart? The kid (I'm 61) layed down a lot of good stats in Edmonton.
Probably, but basically I either run them by hand or the software program we use lets me know, so I don't know of a good one for users that don't pay for it. Oh, we'll never forget about Wayne here, he's a God in Edmonton. There's a road named after him and a statue. His stats are mind-boggling when I look at them today. Now I'm just lucky that I get to watch McDavid. Hopefully he can win one for us.
I am planning to retire out side canada because I don't think I can afford to live in Canada with the amount I will get,can you make a video about retiring outside canada an the implications?,thanks
Probably a good idea, because a lot of people ask, but it’s tough as it can be different depending on where you go. I’ll look into it and do one soon. Definitely not my expertise, but it will fun to research
Help, I am on disability and have been since 2015, I’m on Ltd plus CPP right now they told me that goes till 65 and then any pension I have plus OAS&cpp. WHAT SHOULD I BE DOING IM RENTING NOW AND RENT IS GETTING INSANE ADVICE?
You also have to look at what you lose by not taking early (ex $ 1000 a month CPP, $12,000 for year) and whether you can makeup that loss by living longer. For example if you defer 5 years, at$12,000 you will forgo $60,000. Can you recover that by the extra CPP you get within the years you live?
Nobody can get CPP = $1000 a month at age 60, so I will assume you mean $1000 a month if you take CPP at age 65. You are right, by taking CPP at 70 you'd be forgoing $60,000 (12,000x5) but when you start getting CPP at age 70 you will get 42% more = $17,040 a year, that is $5,040 more a year. At that rate, it will take you almost 12 years to "break even", but you will need to live well into age 81 for having delayed CPP 5 years (to age 70) to start being advantageous based solely on total accumulated CPP payments to you. Now, let's say you live to be 85, the difference between having started CPP at 65 vs 70, based on the example above, would be just over $20K, amount not enough to take the risk of not applying for CPP at an earlier age than 70, perhaps. Corrections to the above figures are welcome.
If you're planning to be in a rest home at 80, that makes sense. My goal is to see 100 and live independently well into my 90s, and I've no reason to think I can't - I'm 60 now and in better shape than when I was 40. We are debt free, own our own home, I'm retired, and my wife works half time, making enough to pay our bills without touching the RRSPs. At some point in the next few years, though, we'll become empty-nesters and will want to start spending a bit more for travel, etc. At that point we will start drawing down on the RRSPs. When we turn 70, CPP and OAS max out, and that's when we'll add that into the mix. Unlike RRSPs, CPP and OAS are guaranteed for life, so when we finally do make it to a rest home, we'll have a guaranteed income to get by on to our dying day, even if the RRSPs are long gone. Yes, you could start taking CPP/OAS at 60, but if you wait to age 70, your pay-out is roughly double, which could make a significant difference in your rest-home years if that winds up being your sole remaining income source.
@@davidjorgensen877 sit around, playing cards, shuffleboard, and singing, waiting to pass away, while the old age 'care' home charges you lots, food is trucked in, crap food, too. tasted it, BLAH...... And they really don't give a damn about you. Look around the news, trouble all over the country in them, for profit. life is cheap there. ........ Not the life for me......i'll be active till my last breath. I operated a taxi for years, and have seen TOO MANY wasted, wonderful lives, in this situation. Saddens me, BUT, THERE is hope. hang in there, David.
I’m 57 right now and I will fully retire at 60 and not a minute later. Will use my investments to live until I turn 65 and the supplement with the government pensions. I plan to off myself at 85, before I get too frail or lose my marbles, so I’m not worried.
@@petersack5074 I retired at 52 and plan to be living in my own home well into my 90s, maybe even 100. I have an aunt in Manitoba who just turned 104, still in her own house, still does all her own cooking and cleaning - it's completely doable, if you take care of yourself. I live in the country, eat right and run 5-10k every morning. I just finished a 3-year, end-to-end home renovation project - house looks fantastic! I write and play music, and am learning new skills all the time. Still plenty of gas in my tank. Some people stop working and have no direction in their lives, so they let themselves fall apart - happened to my dad and my father-in-law. Not this puppy - I was born to be retired! Having way too much fun to think about pulling the cord anytime in the next 40 years - I just need to make sure I never have to worry about my income drying up, and that's what my plan is designed to achieve. It's all about your perspective on life - I don't believe in an after life, so this is the only one I've got, and I intend to make it count. So far, so good.
@@davidjorgensen877 Nice to hear your aunt is still alive at 104 but what about your father? My grandmother lived until 92 but my grandfather died at age 36. You can't predict your age of death by your relatives. Considering you retired at age 52 you have good reasons to wait as your CPP benefit will be low and you've been enjoying the benefits of retirement for the last 8 years of your life. Most people will be taking it early to start retirement early. Nice to see you have no mortgage but you still need to pay taxes and feed yourself, how are you paying for your daily expenses for the last 8 years not working?
great advise honest and factual. i have had many conversation with financial planners who all to often ignore CCP and OAS benefits when talking about a plan. this help a great deal thank you
You’re welcome. Problem is that there is no reason or incentive for an advisor to discuss it, so most don’t really even understand it themselves other than to tell you to take it and invest it so that they can make more money now. The industry is not designed to help people, it’s designed to make money off of them.
@@K4Financial I can upvote your comment only once, unfortunately. If people can find an advisor, as I did, who will discuss CPP and OAS with respect to the client's financial position, stick with that advisor. As with so many career paths, financial advisor for some is a vocation, for others it's merely a paycheque.
@@agcons it’s an unfortunate problem with the industry. I urge anyone to find an advisor who talks about more than returns and what they’re doing for you. There are a lot of great advisors out there and they’re usually not the ones that you have to be wealthy enough to meet.
@@K4Financial WOW that is scary. I watch another video where you were using an example of 60000 a year to live on. I was wondering if that was for each person or would that change for a couple, who both would receive full CCP and OAS ?
@@paulc5518 I'm not sure. Honestly, I don't really remember how I present the topics in my videos. I just kind of think about it, write down some numbers, film it and then never think about it again. I'm not sure if I've ever used an example of a couple who needed $60,000 each as that's more than most retirees ever spend, even if they have the ability to do so. The most common numbers I plan for are between $3,000 and $7,000/month after-tax. Some people want $10,000, which they can achieve, but they don't even spend $10,000 a month now, so it's funny and I have to tell them to live more now.
Good advice to delay CPP and OAS. People who take CPP at 60 have either short life expectancies, no money, or are bad at math. Taking it at 60 because you know people who died young is dumb. Smarter to draw down your RRSPs early, because if you truly think you're going to die young, the tax hit to your estate on the RRSPs will hurt way more than you benefited from taking CPP early. God we have to start teaching this in schools, fast.
Since wages were decoupled from productivity in 75? This was done to reduce wages, and it also kept CPP @ OAS low. Try living on 19k -26k a year, Why kids are now taking care of parents.
Most people are supposed to own their home free and clear by that age, etc. And really, people who are that age currently had much lower real estate costs, etc.
When there are only a few fairly vague general rules that apply to everyone differently, you either do your homework dilligently or hire someone reputable to do it. There's a mountain of advice available on this issue, and this video covers the basics quite well. What I find lacking in many of these presentations is a clear explanation of why people who retire or have significantly reduced income between 55 and 60 should opt for payments at 60 rather than wait for what appears to be more money at 65 or later. You touched on it, but I think it warrants more of an explanation than, "the formula's different". Incidentally, I was fortunate enough to retire at 55 and have spent the time to find out why, but I have no plans to start a YT channel.
The problem with doing an explanation about that in this video is that it would have added 10-minutes to the video for a very specific few. In the end it’s just a number you’d check at 60 and compare it to 65 and then run your own math, because everyone will be different
K4Financial what if you are still working at 60 and you start drawing cpp, then decide that you’ve heard it’s best to hold off with collecting CPP until you’re 65. What should you do then, would you then cancel the CPP money coming in until you’re 65?
You can only do that if you took it less than 6-months ago and you have to pay back what you've received. I'm not sure if that would be the correct avenue or not, but I'm generally against people taking CPP when they're still working. You can still grow the amount of CPP you'll get however, because you will still be contributing.
I don't know if you are still answering questions....I have a union job and have been on WSIB since age 55 expiring age 65. My OMERS pension remains matched, no worries. BUT, my pay does not include CPP and I pay no taxes. Does this mean I am not contributing to CPP anymore, or is my workplace doing this?
Thank you enjoyed that. I retired at 55 with a private pension. So the wait until 65 for me with CPP might not be as beneficial as I thought. Also indexed is nice don’t think my pension is. Thinking I might split the difference 62.5 ? Oiler fan here born in Edmonton. I like your office. Liked subscribed and comment the trifecta. MJ Salt Spring Island BC.
Awesome, thanks MJ. It was my old office in the old house. Was basically just a set, but I thought it looked cool. Usually it depends on how the pension reacts to CPP, some are bridged, so it’s basically a given to take CPP at 65. Sounds like yours isn’t.
@@K4Financial I can take the cpp whenever I like. The oas is deducted from my private pension. So it equals out it’s bridged but based on oas. Maybe it’s different in BC. I’m a retired dairy worker it’s a teamsters Canada private pension FYI. Thx for the reply cool👍 Go Oil.
Oh ok. Yes I know there is no guarantee of a big return but over the past number of years they have been good. Not many guaranteed principal products out there that can actually have decent return.
Segregated funds would have had good returns over the last few years as well. I guess you could suggest that these products can be good because they provide the security some people need to actually invest in the market, but I just see them as products that take an extra cut from consumers who are already being charged an arm and a leg for everything
I am from Colombia, 60 years old. I have worked here in Toronto for 5 years. Fortunately, I got my retire back home. Could you please, make a video about what benefits or how could be the pension benefits in my case? And more...
Have been buying 3-5 year GIC's that are driven by the TSX. TD has has some good ones over the past few years. Principal is guaranteed but your gains are geared to the markets which have been very good in this decade. Just renewed a 5 year two weeks ago that had a 30% yield on the initial GIC. The downside is their is a annual cap on what they will pay. The cap depends on the term. Some of them have had a 10% annual cap which is OK by me given the principal is fully protected.
a big study in the USA showed those who retired at 65 and collected a company pension lived on average 3 years. Those who retired at 55 years lived to 81 years of age. So if you followed this and collect CPP at 60 you can collect for 8 yrs or 21 years. Lot of things to consider....
I've seen those numbers more than once myself. Scary indeed. . But lets be honest, if your financially secure enough to go at 55 chances are you'll be a whole lot less stressed than someone working later in life.
YAH THAT DRUG SMOKE FUCKING PRICK OF OUR PRIME MINISTER MR UUH AND EERRRR🤬🤬🤬 is handing out free Covid $$$ TO EVERYBODY . Also he hasn’t FINANCES IN GENERAL VERY WELL. HE HANDS IT OUT TO ALL THE INDIANS AND WHEN THATS GONE HE GIVES THEM SOME MORE 🤣🤣☠️☠️☠️☠️☠️☠️☠️🙄🙄🙄. Yes CPP ...AND OAS WILL BE GONE ONE OF THESE DAYS🤷♀️
you mentioned in one of your videos on when to take CPP and OAS that if you hadn’t worked all the years between 55 -60 yrs old you might want to take your CPP early.. You didn’t explain why so have you done another video that explains what effects this will have for early retirement before 60? I worked 35 yrs but took early retirement at 56 with a full work pension. I'm now 60 years old. Thanks, Freddie W. Vancouver
How will this 'year off' due to covid affect my retirement funds, when they come around? I'm 63 years old, and self employed in the entertainment biz and haven't worked since mid-March 2020.
Hard to say, because CPP is based on all of your working years between 18 and 65, but you are allowed to take of your worst 8-years. Then there is another part that allows primary caregivers to take of up to 7-years per child, but not like 7 + 7. 7 after the child was born. Worst case, it will reduce your CPP by 2.6%
was wondering if at 61 plan on working at least 5 more years, if it would be worth while to buy some RRSP which i never have before , to save some tax money going into retirement ?
Do you know if i am allowed to start receiving qpp at age 64 while still working but less hours? Im working now for 12-13 hours a day to make 2.500$ a month. If i start receiving ~ 500$ from qpp i can work 8 hours a day, which is important to me now due to my health issues. Im 63 and im self employed delivery courrier. Thanks in advance.
You're welcome. It all seems very complex, but the reality is that most of it is pretty simple. The products are complex because it's super competitive and corporations develop products that can easily confuse customers.
I wouldn’t think so. Their pensions should work the same as every other public servant. But, when you get to make up your own rules without being checked, that’s what happens
CPP is well managed and is reported to have enough to last at least 90 years. OAS is different as they just give it out of general revenues, so maybe the government doesn’t have enough to pay it, but I wouldn’t expect them to just drop it as it would cause millions of seniors to become homeless. Worst case, they’d maybe make the clawback number lower and so if you have some money they might not give it so easily and then you’d be right to take it early.
Question: what if a person leave Canada before 65 after completing 20 years in Canada, will he needs to come back once in a year. Your knowledge about all this appreciable.
Very good information. Is there a blog that you know of where retirees can go and get into specifics on strategies of people in similar situations? I have been planning my retirement for 44 years and I did retire at 63 / original plan was 60 but I wanted a larger cushion. I have not yet applied for CPP or OAS but I want more detailed information on income splitting. Where can I get that. I am going to look at your youtube broadcasts to see if I can glean any knowledge from that as well. Thanks.
Probably my favourite blog is from the guys at Retire Happy. They’re very bright and thorough. I’m sure there’s something on there. Brings up a good point that I’ve never really talked about it in detail. Good idea for a video.
@@K4Financial Yes i read the Retire Happy blog all the time but am still confused on a solid strategy for income splitting. Just looking for any feedback and input. Keep up the good work. I watched your other vids as well, all good advice!
Ok, so in a scenario when someone is working from 65 - 70 and they are making $140,000/year they should take OAS? Or they're making over $300,000/year from 60 - 70 in Ontario, they should get $0.47/$1 on a significantly decreased amount? I guess it is that easy. Sorry for even explaining it
Great explanation of the facts... I turned 65 last summer and put off collecting CPP and OAS until 70. I'm still working full-time with medical and dental benefits and am planning on working full-time to 70. After that, as long as I'm physically able, I'll continue part-time to supplement my retirement income. In our industry we have some people still working into their 80's.
Good to hear it. I think a lot of people will be in that position when they reach your age. I personally don’t see why I will need to retire before 70 - 75, unless my health fails. Definitely depends on the industry, but enjoying your job and having a good balance with life makes retirement planning pretty easy.
Nearly every person I know of that has worked and worked til they are past the normal age of retirement ended up getting sick with ill health and or dieing, and regretted working so late and never got to enjoy their retirement they saved for and dreamed of. So I always tell ppl get out as soon as you can and enjoy your health while you have it, cuz you won’t have it forever and the older you get the less time you have till you become ill or die.
@@ivandempsey6139 I have partied in a lot of places with a lot of people. Can’t remember what year we were there or the name of the resort but I think it was 7 or 8 years ago
Depends on a few things. What your total income will be and then if you’d prefer to not see it and give it to them early, or if you’re good with money management and can easily pay the bill every year. Depending on your income, you might not owe anything.
I look at it as just another investment. Waiting is the same as being paid interest. If I can earn more than the government is paying I would take the money early. However since I completely suck at investing and I don't want to become an investor (it's work to me) I'm happy to get the 8% interest the US government pays if I wait to collect social security. The easiest choice of course is if a person needs the money nothing else matters.
91rss haha. Depends how old you are with the Oilers part. I won’t start cashing mine in when McDavid hoists the cup in 3 years. That is average, but there is a stat where if you live to 65, there’s something like. 50% chance you’ll live past 90. Personally I wouldn’t think of that one based on average life expectancies, but on a realistic one for yourself based on your health and longevity in your family.
Hello, Really enjoyed your video. Just a precision to make perhaps. I believe the OAS Clawback is calculated based on a individual's NET INCOME, not AFTER TAX income of the previous year. Net income would be total income, less allowable deductions, but before taxes.
I believe that you have to set it up to be taxed at source. So I’d calculate what I thought my average tax rate is going to be and have that taken off at source.
What takes place when one choses to draw CCP at 65y/o, and continues to work and counties to pay CCP until 70? Does this affect the outcome at 70y/o? And, this person choses not to draw OAS until 70y/o? What can we at 70y/o expect at retirement? This person paid maximum for over 40 plus years.
OAS is unchanged, you’ll just get the maximum plus 36% at 70. CPP has a post-retirement benefit which can increase your amount by 1/40 of the maximum each year if you contribute up to YMPE. The benefit will be reduced if you earn less than YMPE. Basically it works out to about an extra $30/month per year. You don’t have to contribute after 65 if you don’t want whether you’re collecting CPP or not.
underscr0e thanks. Longer than I hoped it would be. I always struggle with if I should break them up into a bunch of little things, or just not explain things.
Glad I saw this video, I turn 60 this year. I plan on working 2 more years. I just ran the numbers (of holding off 2 yrs) taking into account claw-backs and extra taxation (as I'm still working) my break even point is closer to 66 . Considering the extra $100 month clear from there on out its a no brainer for me to hold off til I retire.
And, yet, on average, my investiments bring in 15%. I retired at 55 and live off of monthly dividend income. For me, the CPP and OAS were not even included in my calculations for retirement. I will take CPP early and invest it. Who knows when I'll die? Not me, so take the money now.
Yeah, it is. A lot to unpack when other benefits are tied to it. As far as I can tell, and the system is far from perfect, the benefits try to work so that you’re almost best to do it at 65 if you are on other benefits before 65. It’s hard to keep it straight though, because each province is different and benefits change depending on who’s in power.
Are my calculations off or what? Take everything early at 60 cpp and oas at 65, you have made $234000 when you hit 75. And NOW Wait til 70 for both at 75 you have made, $135000. ??
Nice vlog. I fall within the retired early (55) with gov DB pension - that's it. You suggested if you don't work 55-60 then consider taking both early, but my thought to offset this and early years of not hitting max CPP contributions (28 years of max CPP) was to hold off taking CPP until 67 maybe 68 max. It won't be huge gains obviously but by my calc gives me more cash in pocket. Question, does Service Canada provide some advice on the matter? Been thinking of scheduling an appt once masks are off ;-)
That adds another layer, because there is probably a bridge in your pension, so it will reduce at 65 when you are “supposed” to take CPP. Haha, I wouldn’t exactly trust the information that you would get from an employee with the CRA. They don’t usually get it. You’d be best to hire a fee-for-service planner to do an analysis and show you the different options/outcomes.
Kent -- that was great information! Having retired at 57 one year ago I'm focused on trying to understand this stuff so I can get it right. Your video was very helpful.
Ross Macintosh happy to hear that Ross. It can be pretty overwhelming, complicated, but it’s not rocket science. Congratulations on your retirement. Impressive to be able to retire at 57.
Is there any calculator that will calculate the CPP I will receive at age 65 versus age 60, taking into account me not working after age 60? Also, I went to university, so I didn't enter the workforce full time till age 27, so I already have many years with zero/low contribution. A big problem with the government CPP calculator to compare age 60 versus 65 is that it assumes I'm working and contributing to the CPP till age 65. I'm 59 this year and already stopped working. So, if I'm already retired, already have 8 years of zero contributions, how does taking CPP at age 60 compare to ages 65 and 70? How much less (or more) do I really receive?
@@K4Financial But then how does me not working between age 60 and 65 affect that? How much will 5 zero years affect the amount I get at 65? Or are those zero years taken into consideration when doing the 36% calculation? That is to say, if Service Canada says at age 65 I receive $1000/month, age 60 I receive $640/month - but then, will me not working between ages 60 and 65 reduce the $1000/month amount?... and hence the difference will be less than 36%? Also, there is a cost of living adjustment too, so the $640/month will grow each month, right? But the $1000/month doesn't grow until I start it?
@@RonaldH I understand the confusion and it’s a lot to unpack and it’s not very clear. My understanding is that it says, this is what you’ll get if you were 65 today, so you can base the 60 on that. I’d always work off of their 65 figure, which I think shows what you’d get if you didn’t work again. I may be incorrect
Glad I came across you videos. I have subscribed and liked. I hope to get more advice and info in the near future. I recently left a full time decent wage job, for a part time job (about 13K a year) I do have a nest egg off RRSP's . I was wondering how to maximize the tax break on my low income by drawing some rrsp to supplement my single income. I am not sure how much income I can make before it is not beneficial. I live in BC and I am 59yrs old
There’s a video somewhere about withdrawing from your RRSP. I’ve made a couple. Tough to answer without more info, which is why I don’t usually attempt to answer specific questions on RUclips. You can always email me at info@k4financial.ca and I can likely help you decide on the specifics.
CPP for sure, because it’s yours. OAS, is a bit different as there are residency requirements, but I think it’s ok because I believe Mexico and Canada have a treaty that allows for it. Definitely not my expertise, but I think it’s fine
As with everything, there’s no one answer that would work for everyone. I’m also not an expert when it comes to all of the potential government benefits for people with disabilities, but a lot of the time I think people are required to convert at 65
Hi Kent, thanks for your videos. I’m a little confused on the GIS. Here is my scenario. I’m a single man turning 65 next year, my estimation will be CPP- $1050.00 per month, OAS - $630.00 per month. No other income. Will that qualify for the GIS supplement ? Also if I need to draw from my RSP savings does that count towards income earned. Much appreciated !
You should get a GIS top up. If you Google GIS estimate you can see what you will receive by just earning the CPP. If you draw from your RRSP it counts as income and will reduce your GIS the following year
I am just retired from a house cleaning business. Always declared every cent on my income tax returns. I once met a lady (friend of a client) who admitted to me that she worked cleaning houses under the table. Then she admitted "now I don't get CPP" I actually don't get much CPP in my own name but have married one and buried one, so I am actually fairly comfortable. But I also have kept my expenses down
I made a mistake about the OAS clawback. It’s based on before tax income, not after-tax. Apologies.
@G P 10 years. You get the max if you’re here for 40 years
@G P that sounds familiar. I think you're right.
its based on net income, not gross
If you bank on living past the age of 72 your better off waiting till 65 ,
Quick question please . Let's assume someone took an early cpp at 60 , and the total is 700 / month. Then at 65 OAS 605 + 700 = 1305 Being the total of the two , would you then qualify for 290 on a GIS supplement since you are less then the 1595 which you mention as a guarantee in your video ? Thank you for all the great information.
I am 63 and I worked for 30 years in a very unhealthy work environment and retired fro there at 48. I was self employed for 9 years and took my CPP at 60 as it was maxed. Since I see my former colleagues dying from different cancers on a fairly frequent basis and don’t know how long I realistically have. I don’t regret taking CPP at 60 whatsoever.
I too have seen the same thing.. my parents lived into their 80s... but my siblings barely made it into their 70s. Cancer.ca stats shows 1 in every 2 Canadians will get Cancer in their lifetime and 1 in 4 will die from it. I've seen friends and family have one spouse die right after retirement... two of my brother in laws both died in their 50s. I'm not trying to be pessimistic... I just don't want to assume I'm going to live into my 80s. I'm retiring this Aug at 61... and I'll be happy to live 10 to 15 more years. Anything beyond that, is a bonus.
@@MicheIIePucca You can always find a way of getting more money but you can’t get more time. I sincerely hope you enjoy a long, healthy retirement. 👍
As a nurse, I see people die everyday. I won't be waiting to take out my CPP and OAS.
@@MicheIIePucca I did the exact same thing for exactly the same reasons. (Retired at 61. My parents died in their 80s, my sister died at 59, and other siblings have suffered stroke/heart attacks. Not to mention Aunts and Uncles who died young.)
I have no regrets about my decision. None. Enjoy your retirement. As my dear sister used to say, "This ain't no dress rehearsal."
60 or 65 are the most common years. Almost no one waits until 70.
Set Playback speed to 1.25x
Krauser Romanov 😂😅
Underrated comment.
I'm 64 and getting the CPP since I was 60 which is $682 and I've got my notice for my OAS which is going to be $615. My brother died at 61 so it made me think why wait and let the government take MY money which is MY money not there's.
I agree. I did the same thing!
@Insignificant Speck Of Dust The government basically steals our money then gives us back most of it but not all. I think when you reach 65 had paid your share in taxes and should be given a break. They didn't contribute we paid and our work paid so we should get all of it.
Thank you!
My mom is 93. My dad passed away at 91. I smoke. I have no idea how long I’ll live. I’m going to guess ...... 80.
If I quit smoking tomorrow ......84.
However I could get hit by a bus tomorrow.
I wish there was a more accurate way to than deciding how long your going to live in order to make such a life changing decision!
I know right? I agree. But that's the way the government wants it to be...keep everyone in the dark. Considering to huge bulge of baby boomers retiring at this time it's scary to see how little information or education they provide citizens who have paid into the system since the age of 18. The government website isn't overly helpful and think about how even less informative it was before the internet.
@@25Soupy As much as I understand your statements, I must disagree. The government isn’t there to hold your hand, it is up to you to get the information and properly interpret it. Not saying it isn’t more complicated now with computer access however there are humans you can speak to to get assistance. If you can’t understand it then you need to get help.
Here’s the thing, the government doesn’t give you a handbook to tell u what your will need when you have a baby or how to get car insurance when you buy a car or the best bank to get a mortgage at when you have decided to buy a home yet somehow magically we all managed to have kids and take care of their needs, managed to figure out that we needed car insurance when buying our first car and discovered that we needed a mortgage to buy our first home. I’m sure if you ever got laid off you figured out pretty quickly where to go to apply for unemployment insurance for example, even without the internet. Wow, how did we ever manage? You have a situation, get the information and make a decision. Your decision. The government doesn’t make the decision for you.
The reason for the CPP, OAS, the GIS, GST, trillium benefit etc is strictly as a safety net. To ensure those who can’t or won’t prepare for the future at least have some hope of survival at the end of their working life. It is not to replace your savings, retirement pension or investments. But not everyone can or does provide for themselves as they age. Not assigning blame but s..t happens. So there is something there for those who need it
. If you want lifestyles of the rich and famous then you had better put money away, get a better job with a better pension, be prepared to work longer or whatever it takes to get you what you want. If not then you sacrifice the lifestyle you want for the one you can afford. Just sayin’, I for one had it all worked out, life would be more than comfortable yet a tragic accident prevented me from ever working again, my spouse had to retire very early in order to assist with medical care, rsps were used to provide for care & basic living needs for years. Not much left when the real retirement age came about. Yet I feel fortunate we had some buffer in times of great need, equally lucky to have all the safety nets in place for us to live. Are we living high on the hog? No but we are warm, have food and a roof over our heads. Just sayin’ if you want the information you can find it...just don’t expect it to be dropped in your lap without doing some legwork.
I recently have been seeing government sponsored TV ads telling us to delay taking your CPP and OAS until a later date, so I did the oppositie and collected my CPP at 60.
I respect that.
Always a Good Strategy to do THE EXACT OPPOSITE of what Canadian Goobermint says!! 🎯👍😎😁
Plus we don't know how long we're going to live, so I took mine at 60 as well.
Mike A thinks like me :). I’ve been paying attention to government spending and I fear they have depleted our pension funds.
@@Char209 well, luckily they have tried to touch CPP, but they can’t. However they pay for OAS is another story.
I'm from Edmonton. I'm going to live until 120 but elected to take my CPP this June at 60. Before I saw this video. Ooopsss... Can't untake. Your videos are awesome. Thank you.
You can change your mind still. Glad you like them. Thanks.
Hello Kent,
Perhaps you can correct me if I am wrong, but if you wait to take your CPP/OAS later, the future value you get includes the bump due to COLA adjustment to account for inflation. In this way, not only would you get the 42% increase, at age 70, but that number would also include the bump, making the percentage of increase potentially substantially more, especially given the inflation rates of today. It is like multiplying your gains. Also, that larger amount is the base-line for future benefits, meaning that your long-term benefits can me much higher forever.
Thanks
Thank you for sharing this info. P.s.I love your lamp!
Thats is cool
Excellent advice.Drawing down rrsp prior to taking govt plans make sence for me. Gis here we come bsby , just kiddin.
You’re calm and refreshing .
Kev Wills thanks Kevin. I try to do what I can.
Take every penny you can get as early as possible while you are still young and healthy enough to travel
Yeah because . I hardly worked i get a little good thing i married a cute angry highly sucessfull blonde short girl $$$$ who came with money now we blew it all living . Life large . L.o.l no one doing u any favors . So people pay yourtaxes . L.o.l and scoup it up because yes i never thought i would get old. But old man time won . He he he he at least i DON'T use people .to be richest. I think.i start another buissness after covid. L.o.l i i think so ahhh who cares life is temporary.
You wait and then you die then you get nothing, so take your money .
@@williamdolyniuk7804 He did mentione about life expectancy and health issues as reasons to get CPP early.
Just watching now. Thanks for your information. Will be taking just after 60 and still work. Will invest my cpp, until i can fully retire. Will be living in asia where it is cheap during the winters. And hope i can live to 70 yrs old.
I love learning about this. I'm 53 and didn't know much about this. Love to see videos about Canada and retirement. Planning my retirement now and full of knowledge. Great video!!
Shawna Smith thank you. Definitely important to learn as much as you can.
love the lamp!
Thanks, me too, but it’s broken unfortunately. Hoping I can fix it
@@K4Financial Home Depot has all the half-inch black iron gas fittings and electrical lamp parts to fix that lamp. Thanks for all your retirement income info.
@@ricktalbot8676 thanks Rick.
I was very fortunate and started my job at 19. As a result I retired on my 49th birthday. That's 20 years ago. I started my CPP at 60. I've watched far too many coworkers,friends,and relatives pass away and collect little or nothing of their CPP, or OAS. My thoughts are do it today,tomorrow may never come.
Yes Sir:) I tend to agree !
i can help. visit your electrical/hardware store, and ask for a lamp socket. you should be able to wire the two wires to the screws on the sides/end of it, re-install. oldtech.
oh, by the way. i applied for my CPP after age 64, feb of last year. start receiving OAS this year, this month, maybe, next for sure. born on the 6th, so i might get it this month on the 24 th....not sure. thankyou, WE ALL NEED THIS EDUCATION, thankyou too much......hats off to you n yours from central alberta.
im in hardisty :) no XL for us.....yet.....
I wasn't financial free until my 40’s and I’m still in my 40’s, bought my second house already, earn on a monthly basis via my investment and got 5 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made. Great video! Thanks for sharing!
Very inspiring! I love this.
Not quite long I started investing. I'm very curious and need help on how to enhance and increase my returns. Any good investment tips would be appreciated. .
@@alyciagordon3447 Generally, investing requires higher knowledge. For this reason, It's important to have a solid support structure (financial consultant) to guide you through especially in asset picking. I operate with (Alexandra Diana Jose) a consultant who partners with a licensed wealth management firm. For the record, the experience has been the best for my finance. She made me financially stable investing through her help, now I earn on a monthly basis through her passive income strategy... So I'd advise you do get a good investment advisor for yourself. .
@@davidreus9321 please how do i get in touch with her
Impressive. Would you mind sharing some more details. I’d like to have a talk with her.
@@alyciagordon3447 She is easy to find , make a quick research of her on the internet with her name Alexandra Diana Jose . She works with anyone independent of their location. .
Tnx for this info, I just looked up your investment professional and found her page. Her experience is pretty impressive. I wrote her and I'm waiting on her reply.
Mr K4 one thing I am not sure you mentioned is if you take your CPP at 60 and invest every dollar into an RRSP or other investment vehicle you can get your RRSP tax credit and earn interest for 5 years on approximately $8500 year one $17000 dollars year 2 $25500 year 3 etc. Those returns will extend the breakeven point by a couple of years give or take. Also no mention of Net present values (inflation increases aside).
Yeah, it's definitely a consideration. It's hard to cover every option in a video, so I left it out. I know it's worth considering, but it again comes down to actually looking at everyone's specific scenario.
Wow Kent what a breath of fresh air. Your explanation is clear. I need to come see you. Every CFP or Banker has talk gobbaly goop or deliberately try to confuse or talkbover me. I already know my problem because of this video, I have too much in my RRSP & LIRA. I quit a job of thirty years but before I turned 55 for the reasons and think you may already know. How'd that work? I think I have to much RRSP & LIRA. I'll take quality of life over quantity but my conservative nature requires some prudence. We need to get together
Well, if you’re delaying, it doesn’t really matter what your income is. You can pull whatever you want out of your RRSP whenever you want, but I’m a fan of attempting to spread it out and keep your average tax rate consistent for your whole retirement. As mentioned in the video, it’s impossible to do, because we don’t know how long anyone will live, but having an honest conversation about expected longevity and realistic rates of return.
@@K4Financial I'll call for an appointment but what would you need to assess the situation? Wife retired im sorta still working
@@dwdelve I have forms that my prospective clients fill out and then I do my plan, and I see that you’ve just emailed me, so I’ll respond over there. 😊
I love that lamp
D OC thanks. Me too
I lived and worked in and out of Edmonton for 13 yrs. I started with nothing and had less than nothing when my job went to a less friendly place.
I'll be 60 this year and will have to retain a financial planner to get me set up to take the CPP at 60 while I still work until I cannot work any longer.
Took at 60 put it in my account !Will use it when i need it you get squat if you pass !Working out fine glad i did it !
I’m glad it’s working for you.
@@K4Financial tks great post by the way !
@@scottcanuck525 thanks. Appreciate all the kind words. This video took off for some reason, so it’s fun to see and have so many comments to respond to.
I've just recently found your videos. I'm glad I did. My wife and I have been saving & investing approximately 20% of our incomes since our early 30's. We're 54 now, and have have accumulated a sizeable retirement nest-egg (RRSP's, TFSA's, & Non-Reg). I've been so focused on creating my own retirement portfolio and haven't given much thought (until recently) on how best to utilize our savings in conjunction with OAS, CPP, etc. when we retire (ideally in the next 5-6 years). Of course, we'll probably get some formal wealth/tax management advice as we approach that date, but it's great to get some no-nonsense, well-explained information in the meantime.
Most of what I've found on YT is USA focused, so it's good to see someone providing Canadian relevant content in short, clear and informative sessions. Subscribed!
Glad to hear that you’re finding my videos helpful. Thanks for the kind words and for subscribing
Another point to consider is quality of life. You are going to enjoy your retirement more in your earlier 60's than you are in your late 80's. I would rather go on nicer vacations early on when quality of life is better and i have more mobility so money earlier even though it is less is better in my opinion.
I agree that a proper balance should be taken at all ages and in some cases that makes sense. Homecare and other medical expenses can really add up in some cases though, so it’s not always as simple as just expecting to spend less because you do less
The real unknown to this ( if you don’t NEED the money) is how long will you live. The investment return on any early benefits is moot because you’re not going to be taking much risk if you’ve reached your sixties anyway. I would have thought some enterprising FP would have written a program into which you put the variables and it spits out the answer.
I agree about the early returns. Right now people like to talk as though everyone is getting 8% no matter what.
That’s a great idea for someone who knows how to write programs
so many variables lol! The OAS max requiring living 40 years after 18yo in Canada is a bummer because I want to retire early abroad. LOL.
Lots of countries have treaties with Canada, so there may be some way to collect some sort of pension or even OAS I think. Lots of people are asking me about doing videos on retiring somewhere warm. I’m not sure why, it’s so nice here in the winter.
I’m going to do a video on it right away.
Finally someone who covers this important topic. I am in the rare but fortunate situation where I maxed out CPP and RRSP and have more than I need in retirement. So for tax management I delay OAS and CPP so I can max out RRSP withdrawals while keeping my target tax rate of 13.5%. That way I'll minimize the tax impact of the RIF income at 71. My parents lived to almost 100 so this is the best bet all around.
On thing you did not mention. At 65 set up a RIF that pays out $2k per year as you get that tax free.
Good plan and tip. Thanks
After tax and before tax are confusing terms. Stick to Net Income and Total Income as per your tax return since this is where the calculation actually takes place.
You’re right. It is confusing.
Good information that we are not always taught. Now just need to figure out how to keep as much money as possible in my pocket and not the government's
Plenty of ways to do that depending on your situation.
Is there a spreadsheet with ways to play with all these variables? How can one find out one's CPP current and projected account? Thx. Love these vids. Brantford Ontario is liberally dotted with Walter Gretzky shrines this year. Do you Oilers fans still honour Wayne, or does the L.A. move still smart? The kid (I'm 61) layed down a lot of good stats in Edmonton.
Probably, but basically I either run them by hand or the software program we use lets me know, so I don't know of a good one for users that don't pay for it.
Oh, we'll never forget about Wayne here, he's a God in Edmonton. There's a road named after him and a statue. His stats are mind-boggling when I look at them today. Now I'm just lucky that I get to watch McDavid. Hopefully he can win one for us.
I am planning to retire out side canada because I don't think I can afford to live in Canada with the amount I will get,can you make a video about retiring outside canada an the implications?,thanks
Probably a good idea, because a lot of people ask, but it’s tough as it can be different depending on where you go. I’ll look into it and do one soon. Definitely not my expertise, but it will fun to research
Me too 👍👍👍Old, Poor and in the Cold must be horrible 🤪😂😂😂
Help, I am on disability and have been since 2015, I’m on Ltd plus CPP right now they told me that goes till 65 and then any pension I have plus OAS&cpp. WHAT SHOULD I BE DOING IM RENTING NOW AND RENT IS GETTING INSANE ADVICE?
Never too long. Great stuff. Thanks
Good to hear. Thanks for watching
I think because of talk by govt best to take as early as you can for as long as is available
Great info. Thanks. I just subscribed.
You also have to look at what you lose by not taking early (ex $ 1000 a month CPP, $12,000 for year) and whether you can makeup that loss by living longer. For example if you defer 5 years, at$12,000 you will forgo $60,000. Can you recover that by the extra CPP you get within the years you live?
Nobody can get CPP = $1000 a month at age 60, so I will assume you mean $1000 a month if you take CPP at age 65. You are right, by taking CPP at 70 you'd be forgoing $60,000 (12,000x5) but when you start getting CPP at age 70 you will get 42% more = $17,040 a year, that is $5,040 more a year. At that rate, it will take you almost 12 years to "break even", but you will need to live well into age 81 for having delayed CPP 5 years (to age 70) to start being advantageous based solely on total accumulated CPP payments to you. Now, let's say you live to be 85, the difference between having started CPP at 65 vs 70, based on the example above, would be just over $20K, amount not enough to take the risk of not applying for CPP at an earlier age than 70, perhaps. Corrections to the above figures are welcome.
At 80 more money in the rest home won't really make life any better. Take it when you can still enjoy it. Leave nothing behind for the tax man.
If you're planning to be in a rest home at 80, that makes sense. My goal is to see 100 and live independently well into my 90s, and I've no reason to think I can't - I'm 60 now and in better shape than when I was 40. We are debt free, own our own home, I'm retired, and my wife works half time, making enough to pay our bills without touching the RRSPs. At some point in the next few years, though, we'll become empty-nesters and will want to start spending a bit more for travel, etc. At that point we will start drawing down on the RRSPs. When we turn 70, CPP and OAS max out, and that's when we'll add that into the mix. Unlike RRSPs, CPP and OAS are guaranteed for life, so when we finally do make it to a rest home, we'll have a guaranteed income to get by on to our dying day, even if the RRSPs are long gone. Yes, you could start taking CPP/OAS at 60, but if you wait to age 70, your pay-out is roughly double, which could make a significant difference in your rest-home years if that winds up being your sole remaining income source.
@@davidjorgensen877 sit around, playing cards, shuffleboard, and singing, waiting to pass away, while the old age 'care' home charges you lots, food is trucked in, crap food, too. tasted it, BLAH...... And they really don't give a damn about you. Look around the news, trouble all over the country in them, for profit. life is cheap there. ........ Not the life for me......i'll be active till my last breath. I operated a taxi for years, and have seen TOO MANY wasted, wonderful lives, in this situation. Saddens me, BUT, THERE is hope. hang in there, David.
I’m 57 right now and I will fully retire at 60 and not a minute later. Will use
my investments to live until I turn 65 and the supplement with the government pensions. I plan to off myself at 85, before I get too frail or lose my marbles, so I’m not worried.
@@petersack5074 I retired at 52 and plan to be living in my own home well into my 90s, maybe even 100. I have an aunt in Manitoba who just turned 104, still in her own house, still does all her own cooking and cleaning - it's completely doable, if you take care of yourself. I live in the country, eat right and run 5-10k every morning. I just finished a 3-year, end-to-end home renovation project - house looks fantastic! I write and play music, and am learning new skills all the time. Still plenty of gas in my tank. Some people stop working and have no direction in their lives, so they let themselves fall apart - happened to my dad and my father-in-law. Not this puppy - I was born to be retired! Having way too much fun to think about pulling the cord anytime in the next 40 years - I just need to make sure I never have to worry about my income drying up, and that's what my plan is designed to achieve. It's all about your perspective on life - I don't believe in an after life, so this is the only one I've got, and I intend to make it count. So far, so good.
@@davidjorgensen877 Nice to hear your aunt is still alive at 104 but what about your father? My grandmother lived until 92 but my grandfather died at age 36. You can't predict your age of death by your relatives. Considering you retired at age 52 you have good reasons to wait as your CPP benefit will be low and you've been enjoying the benefits of retirement for the last 8 years of your life. Most people will be taking it early to start retirement early. Nice to see you have no mortgage but you still need to pay taxes and feed yourself, how are you paying for your daily expenses for the last 8 years not working?
wow just learned lots!
awesome info thanks Kent
Noah D thanks Noah
Thanks for the basic info talked about in this video. I didn't think that you took too long to get to the point :)!
great advise honest and factual. i have had many conversation with financial planners who all to often ignore CCP and OAS benefits when talking about a plan. this help a great deal thank you
You’re welcome. Problem is that there is no reason or incentive for an advisor to discuss it, so most don’t really even understand it themselves other than to tell you to take it and invest it so that they can make more money now. The industry is not designed to help people, it’s designed to make money off of them.
@@K4Financial I can upvote your comment only once, unfortunately. If people can find an advisor, as I did, who will discuss CPP and OAS with respect to the client's financial position, stick with that advisor. As with so many career paths, financial advisor for some is a vocation, for others it's merely a paycheque.
@@agcons it’s an unfortunate problem with the industry. I urge anyone to find an advisor who talks about more than returns and what they’re doing for you. There are a lot of great advisors out there and they’re usually not the ones that you have to be wealthy enough to meet.
@@K4Financial WOW that is scary. I watch another video where you were using an example of 60000 a year to live on. I was wondering if that was for each person or would that change for a couple, who both would receive full CCP and OAS ?
@@paulc5518 I'm not sure. Honestly, I don't really remember how I present the topics in my videos. I just kind of think about it, write down some numbers, film it and then never think about it again. I'm not sure if I've ever used an example of a couple who needed $60,000 each as that's more than most retirees ever spend, even if they have the ability to do so. The most common numbers I plan for are between $3,000 and $7,000/month after-tax. Some people want $10,000, which they can achieve, but they don't even spend $10,000 a month now, so it's funny and I have to tell them to live more now.
Good advice to delay CPP and OAS. People who take CPP at 60 have either short life expectancies, no money, or are bad at math. Taking it at 60 because you know people who died young is dumb. Smarter to draw down your RRSPs early, because if you truly think you're going to die young, the tax hit to your estate on the RRSPs will hurt way more than you benefited from taking CPP early. God we have to start teaching this in schools, fast.
Since wages were decoupled from productivity in 75? This was done to reduce wages, and it also kept CPP @ OAS low. Try living on 19k -26k a year, Why kids are now taking care of parents.
Most people are supposed to own their home free and clear by that age, etc. And really, people who are that age currently had much lower real estate costs, etc.
When there are only a few fairly vague general rules that apply to everyone differently, you either do your homework dilligently or hire someone reputable to do it. There's a mountain of advice available on this issue, and this video covers the basics quite well. What I find lacking in many of these presentations is a clear explanation of why people who retire or have significantly reduced income between 55 and 60 should opt for payments at 60 rather than wait for what appears to be more money at 65 or later. You touched on it, but I think it warrants more of an explanation than, "the formula's different". Incidentally, I was fortunate enough to retire at 55 and have spent the time to find out why, but I have no plans to start a YT channel.
The problem with doing an explanation about that in this video is that it would have added 10-minutes to the video for a very specific few. In the end it’s just a number you’d check at 60 and compare it to 65 and then run your own math, because everyone will be different
Great video and info! Thanks.
You're welcome, thanks for watching!
K4Financial what if you are still working at 60 and you start drawing cpp, then decide that you’ve heard it’s best to hold off with collecting CPP until you’re 65. What should you do then, would you then cancel the CPP money coming in until you’re 65?
You can only do that if you took it less than 6-months ago and you have to pay back what you've received. I'm not sure if that would be the correct avenue or not, but I'm generally against people taking CPP when they're still working.
You can still grow the amount of CPP you'll get however, because you will still be contributing.
I don't know if you are still answering questions....I have a union job and have been on WSIB since age 55 expiring age 65. My OMERS pension remains matched, no worries. BUT, my pay does not include CPP and I pay no taxes. Does this mean I am not contributing to CPP anymore, or is my workplace doing this?
It doesn’t sound like you’re contributing to CPP anymore.
@@K4Financial thanks for your prompt reply!
Thank you enjoyed that. I retired at 55 with a private pension. So the wait until 65 for me with CPP might not be as beneficial as I thought. Also indexed is nice don’t think my pension is. Thinking I might split the difference 62.5 ?
Oiler fan here born in Edmonton. I like your office. Liked subscribed and comment the trifecta.
MJ Salt Spring Island BC.
Awesome, thanks MJ.
It was my old office in the old house. Was basically just a set, but I thought it looked cool.
Usually it depends on how the pension reacts to CPP, some are bridged, so it’s basically a given to take CPP at 65. Sounds like yours isn’t.
@@K4Financial I can take the cpp whenever I like. The oas is deducted from my private pension. So it equals out it’s bridged but based on oas. Maybe it’s different in BC. I’m a retired dairy worker it’s a teamsters Canada private pension FYI. Thx for the reply cool👍 Go Oil.
It would be great if you had your credentials or more info in the description. Is this a hobby for you or a profession? Do you have a website?
I believe that is all answered if you click on the description of my channel
Thanks K4: I've made a lot of those decisions already but the Gis portion has always been a puzzle so I'll watch yuor video on that too. Brian 80
Oh ok. Yes I know there is no guarantee of a big return but over the past number of years they have been good. Not many guaranteed principal products out there that can actually have decent return.
Segregated funds would have had good returns over the last few years as well. I guess you could suggest that these products can be good because they provide the security some people need to actually invest in the market, but I just see them as products that take an extra cut from consumers who are already being charged an arm and a leg for everything
I am from Colombia, 60 years old. I have worked here in Toronto for 5 years. Fortunately, I got my retire back home. Could you please, make a video about what benefits or how could be the pension benefits in my case? And more...
Have been buying 3-5 year GIC's that are driven by the TSX. TD has has some good ones over the past few years. Principal is guaranteed but your gains are geared to the markets which have been very good in this decade. Just renewed a 5 year two weeks ago that had a 30% yield on the initial GIC. The downside is their is a annual cap on what they will pay. The cap depends on the term. Some of them have had a 10% annual cap which is OK by me given the principal is fully protected.
Those are not GICs.
I would like to know: If you start your CPP at 60 but continue working , does it still go up because you are contributing?
Yes.
I'm on board with that.
a big study in the USA showed those who retired at 65 and collected a company pension lived on average 3 years. Those who retired at 55 years lived to 81 years of age. So if you followed this and collect CPP at 60 you can collect for 8 yrs or 21 years. Lot of things to consider....
I've seen those numbers more than once myself. Scary indeed. . But lets be honest, if your financially secure enough to go at 55 chances are you'll be a whole lot less stressed than someone working later in life.
Take it as soon as you can because Canada won't have any money left later on! WE ARE BROKE!
YAH THAT DRUG SMOKE FUCKING PRICK OF OUR PRIME MINISTER MR UUH AND EERRRR🤬🤬🤬 is handing out free Covid $$$ TO EVERYBODY . Also he hasn’t FINANCES IN GENERAL VERY WELL. HE HANDS IT OUT TO ALL THE INDIANS AND WHEN THATS GONE HE GIVES THEM SOME MORE 🤣🤣☠️☠️☠️☠️☠️☠️☠️🙄🙄🙄. Yes CPP ...AND OAS WILL BE GONE ONE OF THESE DAYS🤷♀️
Right on point 😜
Thanks for the valuable information
You’re welcome, thanks for watching.
I made the decision to take my CPP and OAS as I needed money to pay all my bills. period.
And that's something to take into consideration. You don't want to go into retirement with debt
If you need the money, I don’t think there’s any question about when to take it.
you mentioned in one of your videos on when to take CPP and OAS that if you hadn’t worked all the years between 55 -60 yrs old you might want to take your CPP early.. You didn’t explain why so have you done another video that explains what effects this will have for early retirement before 60? I worked 35 yrs but took early retirement at 56 with a full work pension. I'm now 60 years old. Thanks, Freddie W. Vancouver
I had the same question
Those years are zero earnings years and are dragging down your average (for the calculation of your payout).
Thanks for another great info and video
eric calata thanks for commenting.
How will this 'year off' due to covid affect my retirement funds, when they come around? I'm 63 years old, and self employed in the entertainment biz and haven't worked since mid-March 2020.
Hard to say, because CPP is based on all of your working years between 18 and 65, but you are allowed to take of your worst 8-years. Then there is another part that allows primary caregivers to take of up to 7-years per child, but not like 7 + 7. 7 after the child was born.
Worst case, it will reduce your CPP by 2.6%
I need money and didn't work from 55-60, I'm turning 64 in june 2021. Will i get back pay from 60 until now from CPP ?
No, they don't give you back pay.
was wondering if at 61 plan on working at least 5 more years, if it would be worth while to buy some RRSP which i never have before , to save some tax money going into retirement ?
Most likely, yes
Do you know if i am allowed to start receiving qpp at age 64 while still
working but less hours? Im working now for 12-13 hours a day to make
2.500$ a month. If i start receiving ~ 500$ from qpp i can work 8 hours a
day, which is important to me now due to my health issues. Im 63 and im
self employed delivery courrier. Thanks in advance.
What happens if you over contributed on your CPP and EI contribution? Will th CRA give you the full over contribution added to your tax refund?
They should, yes
thanks a lot k4. you have a great ability to explain finances that seem complicated
You're welcome. It all seems very complex, but the reality is that most of it is pretty simple. The products are complex because it's super competitive and corporations develop products that can easily confuse customers.
Excellent video Kent...thanks so much!
Triton B. You’re welcome, thanks for watching.
And if your a fired/retiring Governor General you get to have 350,000 a year pension/expense account, and this is guaranteed....fair right? 👎
I wouldn’t think so. Their pensions should work the same as every other public servant. But, when you get to make up your own rules without being checked, that’s what happens
Will OAS or CPP programs last? May be best to collect a little less sooner than zero later.
CPP is well managed and is reported to have enough to last at least 90 years. OAS is different as they just give it out of general revenues, so maybe the government doesn’t have enough to pay it, but I wouldn’t expect them to just drop it as it would cause millions of seniors to become homeless. Worst case, they’d maybe make the clawback number lower and so if you have some money they might not give it so easily and then you’d be right to take it early.
Thank you as usual.
Burt Fiddler of course. Thanks for letting me know it was helpful.
Question: what if a person leave Canada before 65 after completing 20 years in Canada, will he needs to come back once in a year. Your knowledge about all this appreciable.
Very good information. Is there a blog that you know of where retirees can go and get into specifics on strategies of people in similar situations? I have been planning my retirement for 44 years and I did retire at 63 / original plan was 60 but I wanted a larger cushion. I have not yet applied for CPP or OAS but I want more detailed information on income splitting. Where can I get that. I am going to look at your youtube broadcasts to see if I can glean any knowledge from that as well. Thanks.
Probably my favourite blog is from the guys at Retire Happy. They’re very bright and thorough. I’m sure there’s something on there. Brings up a good point that I’ve never really talked about it in detail. Good idea for a video.
@@K4Financial Yes i read the Retire Happy blog all the time but am still confused on a solid strategy for income splitting. Just looking for any feedback and input. Keep up the good work. I watched your other vids as well, all good advice!
actually its really easy ....whenever you are eligible for a pension ...take the money and run
Ok, so in a scenario when someone is working from 65 - 70 and they are making $140,000/year they should take OAS? Or they're making over $300,000/year from 60 - 70 in Ontario, they should get $0.47/$1 on a significantly decreased amount? I guess it is that easy. Sorry for even explaining it
What about the value of money over time. I took mine at 65 and have put all money in a GIC that averaged a 7% return compounded.
Where does one find a GIC that averages 7% a year?
@@K4Financial Not sure about other banks but TD has had some good ones. See above.
Great explanation of the facts... I turned 65 last summer and put off collecting CPP and OAS until 70. I'm still working full-time with medical and dental benefits and am planning on working full-time to 70. After that, as long as I'm physically able, I'll continue part-time to supplement my retirement income. In our industry we have some people still working into their 80's.
Good to hear it. I think a lot of people will be in that position when they reach your age. I personally don’t see why I will need to retire before 70 - 75, unless my health fails. Definitely depends on the industry, but enjoying your job and having a good balance with life makes retirement planning pretty easy.
Nearly every person I know of that has worked and worked til they are past the normal age of retirement ended up getting sick with ill health and or dieing, and regretted working so late and never got to enjoy their retirement they saved for and dreamed of.
So I always tell ppl get out as soon as you can and enjoy your health while you have it, cuz you won’t have it forever and the older you get the less time you have till you become ill or die.
You're in Edmonton? I live in Hinton, only 3 hours away >.
ImVeryBrad definitely pretty close.
I drive through your town pretty regularly to go to Jasper.
Thank you very much. It helps to clear things up at this time when I am considering retirement or partial retirement.
Happy to help
You remind me of a fellow my wife and I partied with in Cuba at bielive resort a few years ago?
@@ivandempsey6139 I have partied in a lot of places with a lot of people. Can’t remember what year we were there or the name of the resort but I think it was 7 or 8 years ago
What about taxation. I’m applying and it asks to take tax or not not sure the best decision?
Depends on a few things. What your total income will be and then if you’d prefer to not see it and give it to them early, or if you’re good with money management and can easily pay the bill every year.
Depending on your income, you might not owe anything.
I look at it as just another investment. Waiting is the same as being paid interest. If I can earn more than the government is paying I would take the money early. However since I completely suck at investing and I don't want to become an investor (it's work to me) I'm happy to get the 8% interest the US government pays if I wait to collect social security. The easiest choice of course is if a person needs the money nothing else matters.
Does this apply only to Canadian citizens? I haven’t heard these terms (CCP & OAS) in the USA.
This is Canadian info. It’s like our version of social security
@@K4Financial Thank you.
seeing men only have a life expectancy of 83 so guessing we are better off to go early. or when the oilers take the cup?????
91rss haha. Depends how old you are with the Oilers part. I won’t start cashing mine in when McDavid hoists the cup in 3 years.
That is average, but there is a stat where if you live to 65, there’s something like. 50% chance you’ll live past 90.
Personally I wouldn’t think of that one based on average life expectancies, but on a realistic one for yourself based on your health and longevity in your family.
Hello, Really enjoyed your video. Just a precision to make perhaps. I believe the OAS Clawback is calculated based on a individual's NET INCOME, not AFTER TAX income of the previous year. Net income would be total income, less allowable deductions, but before taxes.
Yes, it was my mistake. Unfortunately I can’t fix it on this video without deleting it completely. Appreciate the heads up.
I’m glad you caught that detail. Thanks!!
Do you do any personal consultations?
I sure do, you can click on the link here:
www.k4financial.ca/book-consultation
Is OAS taxed at source/payment or it is simply added to our taxable income at year end and your MTR applied?
I believe that you have to set it up to be taxed at source. So I’d calculate what I thought my average tax rate is going to be and have that taken off at source.
don't have savings or rsps or stocks
What takes place when one choses to draw CCP at 65y/o, and continues to work and counties to pay CCP until 70? Does this affect the outcome at 70y/o? And, this person choses not to draw OAS until 70y/o? What can we at 70y/o expect at retirement? This person paid maximum for over 40 plus years.
OAS is unchanged, you’ll just get the maximum plus 36% at 70.
CPP has a post-retirement benefit which can increase your amount by 1/40 of the maximum each year if you contribute up to YMPE. The benefit will be reduced if you earn less than YMPE. Basically it works out to about an extra $30/month per year. You don’t have to contribute after 65 if you don’t want whether you’re collecting CPP or not.
Excellent video!
underscr0e thanks. Longer than I hoped it would be. I always struggle with if I should break them up into a bunch of little things, or just not explain things.
If i still plan on working to 65, would it be worth taking cpp at 60 and investing in rrsp, then retire at 65.
I’m not sure. It’s not a bad idea most of the time, but it may not be the best idea.
Glad I saw this video, I turn 60 this year. I plan on working 2 more years. I just ran the numbers (of holding off 2 yrs) taking into account claw-backs and extra taxation (as I'm still working) my break even point is closer to 66 . Considering the extra $100 month clear from there on out its a no brainer for me to hold off til I retire.
And, yet, on average, my investiments bring in 15%. I retired at 55 and live off of monthly dividend income. For me, the CPP and OAS were not even included in my calculations for retirement. I will take CPP early and invest it. Who knows when I'll die? Not me, so take the money now.
Its hard to decide when you're on odsp benefits
Yeah, it is. A lot to unpack when other benefits are tied to it. As far as I can tell, and the system is far from perfect, the benefits try to work so that you’re almost best to do it at 65 if you are on other benefits before 65. It’s hard to keep it straight though, because each province is different and benefits change depending on who’s in power.
@@K4Financial province is ontario i turn 57 this summer haven't worked in 10 years god know lifespan lol
But thx for your input
Are my calculations off or what? Take everything early at 60 cpp and oas at 65, you have made $234000 when you hit 75. And NOW Wait til 70 for both at 75 you have made, $135000. ??
Well, I could be wrong, but for full CPP/OAS I get about $211,000 to about $152,000.
Did you decrease and increase the payments accordingly?
Nice vlog. I fall within the retired early (55) with gov DB pension - that's it. You suggested if you don't work 55-60 then consider taking both early, but my thought to offset this and early years of not hitting max CPP contributions (28 years of max CPP) was to hold off taking CPP until 67 maybe 68 max. It won't be huge gains obviously but by my calc gives me more cash in pocket. Question, does Service Canada provide some advice on the matter? Been thinking of scheduling an appt once masks are off ;-)
That adds another layer, because there is probably a bridge in your pension, so it will reduce at 65 when you are “supposed” to take CPP.
Haha, I wouldn’t exactly trust the information that you would get from an employee with the CRA. They don’t usually get it.
You’d be best to hire a fee-for-service planner to do an analysis and show you the different options/outcomes.
Kent -- that was great information! Having retired at 57 one year ago I'm focused on trying to understand this stuff so I can get it right. Your video was very helpful.
Ross Macintosh happy to hear that Ross. It can be pretty overwhelming, complicated, but it’s not rocket science.
Congratulations on your retirement. Impressive to be able to retire at 57.
Is there any calculator that will calculate the CPP I will receive at age 65 versus age 60, taking into account me not working after age 60? Also, I went to university, so I didn't enter the workforce full time till age 27, so I already have many years with zero/low contribution. A big problem with the government CPP calculator to compare age 60 versus 65 is that it assumes I'm working and contributing to the CPP till age 65. I'm 59 this year and already stopped working. So, if I'm already retired, already have 8 years of zero contributions, how does taking CPP at age 60 compare to ages 65 and 70? How much less (or more) do I really receive?
For that you can just do it yourself. You’ll get an extra 36% at 65 from now and an extra 42% on that number at 70.
@@K4Financial But then how does me not working between age 60 and 65 affect that? How much will 5 zero years affect the amount I get at 65? Or are those zero years taken into consideration when doing the 36% calculation? That is to say, if Service Canada says at age 65 I receive $1000/month, age 60 I receive $640/month - but then, will me not working between ages 60 and 65 reduce the $1000/month amount?... and hence the difference will be less than 36%? Also, there is a cost of living adjustment too, so the $640/month will grow each month, right? But the $1000/month doesn't grow until I start it?
@@RonaldH I understand the confusion and it’s a lot to unpack and it’s not very clear.
My understanding is that it says, this is what you’ll get if you were 65 today, so you can base the 60 on that. I’d always work off of their 65 figure, which I think shows what you’d get if you didn’t work again. I may be incorrect
Glad I came across you videos. I have subscribed and liked. I hope to get more advice and info in the near future. I recently left a full time decent wage job, for a part time job (about 13K a year) I do have a nest egg off RRSP's . I was wondering how to maximize the tax break on my low income by drawing some rrsp to supplement my single income. I am not sure how much income I can make before it is not beneficial. I live in BC and I am 59yrs old
There’s a video somewhere about withdrawing from your RRSP. I’ve made a couple.
Tough to answer without more info, which is why I don’t usually attempt to answer specific questions on RUclips. You can always email me at info@k4financial.ca and I can likely help you decide on the specifics.
If we are Canadian citizens but move to Mexico full-time in our retirement can we still collect CPP & OAS?
CPP for sure, because it’s yours. OAS, is a bit different as there are residency requirements, but I think it’s ok because I believe Mexico and Canada have a treaty that allows for it. Definitely not my expertise, but I think it’s fine
What about the people depending (forever of various reasons) on the " Social assistant or the disability benefit"?.
As with everything, there’s no one answer that would work for everyone. I’m also not an expert when it comes to all of the potential government benefits for people with disabilities, but a lot of the time I think people are required to convert at 65
@@K4Financial Thanks.
Hi Kent, thanks for your videos. I’m a little confused on the GIS. Here is my scenario. I’m a single man turning 65 next year, my estimation will be CPP- $1050.00 per month, OAS - $630.00 per month. No other income. Will that qualify for the GIS supplement ? Also if I need to draw from my RSP savings does that count towards income earned. Much appreciated !
You should get a GIS top up. If you Google GIS estimate you can see what you will receive by just earning the CPP.
If you draw from your RRSP it counts as income and will reduce your GIS the following year
This is when working under the table and avoiding taxes really bites you in the ass ,so what do you think of tax avoidance now ?
I am just retired from a house cleaning business. Always declared every cent on my income tax returns. I once met a lady (friend of a client) who admitted to me that she worked cleaning houses under the table. Then she admitted "now I don't get CPP" I actually don't get much CPP in my own name but have married one and buried one, so I am actually fairly comfortable. But I also have kept my expenses down