3 Things Every Canadian Should Know About CPP (No music)

[@canadianoddy8504]

Another great video Kent. I see some commenters here saying take cpp at 70 because you get more. That is only part of a complete picture. When you get real old what good will the money do ? You may not be mobile anymore. You may have severe health issues and now you can't travel. You might not get travel insurance anymore (like what happened to my dad -- he's gone now), or the price of that insurance will wipe out your "gains" in your cpp. My dad never had two EXTRA nickles to rub together his entire life and he only had money late in life. By then he had kidney failure, very over weight, memory issues, mobility issues, breathing issues. He always said that when he died he wanted to owe money to the terrorist state. He would have succeeded in that except that as those issues came up he could do nothing but sit at home while the money collected in the bank. Like I said what good is the money if you are bed ridden and at home waiting for the end. I'm 63 now and haven't worked for the last 3-4 yrs and am pulling my rrsp's slowly. I'll take my pension at 65. I don't drink, don't smoke, not a dope fink and very healthy and reasonably fit (NOT over weight - BMI is correct). Money won't do me (or you) any good if we are too old to use it. I consider old to 75 +. After that it's a real dice roll for us males. Just my opinions.

[@Pmjay00]

Yeah, that background music was painful...now I can listen to Kents melodic tones unimpeded.😄

[@waste1100]

I know it's extra work for you doing this, but so many get the right info. You did a great job on this video!! NO MUSIC PLEASE. It's a distraction. 5 stars out of 5 stars for this one. We need you. Thank you.

[@brucecampbell7347]

The 2500 death benefit is taxable. A $2,500 CPP benefit generates $625 in taxes payable by the Estate. Love your videos and go Oilers!

[@antlese]

Funny stuff man. And very informative too. Self employed here for over 20 years, so I totally got what you were saying about the employer CPP contributions. My wife and I are looking at retirement in the next 1 to 2 years. Will be in touch with you.

[@K4Financial]

Sounds great!

[@raydemers5669]

As usual. Terrific job. Mixing humor with facts helping people (like me) understand how s*(it works. Important stuff. I am curious, and no need to do anything with this-what does an aging population mean for those who are generations younger? Maybe a video about the future for those younger clients. (Which is not me :) Thank you. Your team and you are awesome.

[@K4Financial]

Thanks Ray. Problem is that the impact would really only be speculative on my part, based on my own thoughts and reading. I think it’s fairly dire, unless something major changes, which I also believe will happen. We’re about to launch a second channel that discusses those types of things and is more comedy/opinion based than what this channel is.

[@mrslcom]

Generally speaking, if you are in poor health, take CPP at 60. If you are at average health, take it at 65. If you are at great health, take it at 70 (assuming you have other funds to live on).

[@mikekovacs8981]

Kent this is some of your best comedy yet lol

[@K4Financial]

Had some help. Good team effort, but thanks. It was a fun one to make

[@loneranger8293]

Great video Kent! Your CPP payout chart from Age 60-70 you referenced I assume is before tax? I am turning 60 next month and retired other than some contract work but will restrain from taking it as long as I can. Cheers!

[@K4Financial]

Thanks. Yes, it’s before tax

[@piperread9474]

I found this video super interesting and informative. I am self-employed and have noticed CPP going up dramatically. Now I understand why 😢

[@K4Financial]

Yeah, it’s pretty painful right now, especially with everything else going up so much

[@jeromeleoterry]

My parents fall into 2 lines of think. 1. You might not live a long life, so take CPP early. 2. Don’t trust the government, and take the money while you can. I don’t take financial advice from my parents 😂

[@K4Financial]

Haha, they’re certainly not alone in their thinking.

[@evadeanu1]

Haha! I love your jokes! Love your content as well. Thanks.

[@K4Financial]

Thanks Enid. We try our best

[@viewerplus]

The $2500 death benefit is NOT tax -free. It’s fully taxable.

[@MrLabradorwildman]

Thanks for the info! Great Video. Two question's, On OAS can you tell them when you get money each month. Because Both OAS and CPP is on the same date!! Love to get OAS, say second week of each month, Plus i get 20% taken out of CPP for my the Tax's can you do the same with OAS? Not sure, that's a video on it own lol! Get tax's taken out and placed in a High Interest account, ready for the Tax Man or get it taken out each Money! Hard one too, thanks for your time Dave From Labrador Canada.

[@Bykv78]

I immigrated to Canada when I was 36 years old. that means at age 65, I would have contributed to CPP for 29 years instead of 39 years. How does that effect my pension?

[@K4Financial]

Well, if you contributed the max for those 29 years, then the amount you would get is 29/39 = 74% of CPP

[@danman9017]

tks

[@Chooseearth]

Great channel Team K4 ... If one retires at 60, not contribute any further and then waits to take CPP at 65, will they receive more at 65 or will this not matter? Thanks

[@James_48]

Yes, you will receive more if you delay.

[@K4Financial]

Thanks. Not quite as simple as James says depending on your situation. If you haven’t fully contributed to CPP, the number will reduce because you aren’t adding to it for 5 years, but the amount will increase as you delay, so it completely depends on your circumstances as to how much it would shift.

[@James_48]

@@K4Financial agree with all of this. The increase might be minimal based on prior contribution levels. But in many cases, with a lot of ‘M’s (maximum contributions in previous years) it could be considerably higher also.

[@chuckmuysson5513]

Fyi - at 4:32 mark you have 5.95% + 5.95% = 12.9% -but shouldn't that be 11.9%?

[@K4Financial]

It certainly should be

[@chuckmuysson5513]

@@K4Financial It's ok - you're an Oilers fan... that explains everything :-) [ Said by a die-hard leaf fan 🙂]

[@K4Financial]

@@chuckmuysson5513 haha, so you’re saying that Leaf’s fans don’t make mistakes? Isn’t that an oxymoron?

[@ryanthaeditor]

I did that math while I was editing this video I'm the one who blew it everyone listen you try sitting in front of this math all day editing some people get to edit like sunsets and hockey highlights then you got me listening to this guy doing math all day yeah some numbers slip Seriously though I'm sorry

[@chuckmuysson5513]

@@ryanthaeditor Huh?? No worries - just wanted to tease an Oilers fan more then anything else :-)

[@haleyjae4145]

❤❤❤

[@don7117]

By the numbers on the chart at the 16:50 mark, if you take CPP at 60, over the 10 years to 70, with a compounded indexed increase of 3%, by age 70 your CPP is around $1123, which is $732 less than you would get if you started at 70. However, in the 10 years, you have collected around $114k, and that $114k could be invested over those 10 years. So, conservatively, let's say at age 70, by taking CPP at 60, you have $120k in the bank that you don't have by waiting to take CPP at 70. That's going to take around 10 years to balance out (ie you only start getting ahead at around 80 - the no-go years). Am I missing something?

[@mrslcom]

With no indexing and not investing any of the CPP money you received from 60-70, it will take 12 years (age 82) to break-even. If you invest that money, then depending on your investment returns, it will take additional years to break-even.

[@don7117]

@@mrslcom So I am not 'missing something' :-) . This is why I don't get the whole 'wait until 70' bit. Use the money while in the go-go and even slow-go phases. You won't use the extra money in no-go. I have yet to get a good explanation to wait, given this break even point.

[@mrslcom]

@@don7117 You want to wait if you are: (1) confident you’ll be in good health and will live until at least age 82, because that will maximize the total amount of CPP you’ll collect over your lifetime. And, (2) you don’t mind having less money to live on from age 60-70. Otherwise, you should take CPP somewhere between age 60-70, depending on how much money you will need to live in case you survive into your “no-go” years of 80s and 90s.

[@davidhughes6048]

I would say however that you could be in ill health for a protracted time and have greater needs as a result. So having a larger deferred guaranteed income from CPP can make sense in this case. Just some thoughts. I’ll likely defer at least until I’ve substantially melted down my RRSP to level out taxes and minimize market risk.

[@crisb6755]

What type of income qualifies for CPP and RRSP contribution?

[@K4Financial]

Employment income

[@dvdvno]

Canada committed close to 1 Billion to U-Crane. That could have lowered contributions a LOT! Nice to put contributions for over 40 years at 0% interest, that reflects the finance department accurately.

[@DavincisGirl66]

That is how you think about the thousands who have been killed or displaced? This is making me pay a few more cents on my paycheck?

[@debbielockhart7762]

What a stupid comment. As if foreign aid ha a ythin to do with the CPP issue. You sound like a heartless jek.

[@suziebeeslittlebits4183]

Hi Kent, love your content. As I have a survivor's pension, I will take CPP at 60. The two together will be the max I can receive so no point in waiting for 65 or 70 in my case! Well, this was my original thought. but would I only get the max of 836.20 starting at 60 or would it be 1,306.57? I guess the question is, when my CPP is combined with survivor, what is the max I will receive - is it the max at the age I take CPP or is it the max of what it would be if I took it at 65?