4 Ways To Increase Your Retirement Income (by $1,000+ per month)

In this video we'll go through 4 strategies that can raise your retirement income well over $500 per month.
If you have any further questions about this video's topic or any financial planning questions in general, I encourage you to find a certified financial planner in your area or book a consultation with us to get your retirement plan on track.  You can learn more about our services at www.parallelwealth.com/planning
Financial Resources I personally recommend:
➡️Retirement Income for Life: Getting More without Saving More (Second Edition): amzn.to/3tvIdVN
➡️Parallel Wealth Masterclass: www.parallelwealth.com/education
➡️Future Value Calculator: amzn.to/3EA6Qqv
➡️Neo Mastercard - no annual fee and average 5% back! - join.neo.cc/parallelwealth
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➡️Maximize your Savings with EQ Bank - bit.ly/EQBankPWFG
The above affiliate links are provided for your convenience. If you click on a link and end up purchasing a product or service, this channel may receive compensation for the referral. We have personal vetted each product and service we provide links to.
OUTLINE
0:00 - Intro
0:21 - Strategy One
3:46 - Strategy Two
6:40 - Strategy Three
8:20 - Strategy Four
This presentation is intended for information purposes only and does not constitute an offer to buy or sell our products or services nor is it intended as investment and/or financial advice on any subject matter. Every effort has been made to ensure the accuracy of its contents. Certain of the statements made may contain forward-looking statements, which involve known and unknown risk, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Returns are not guaranteed and past performance may not be repeated.
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DISCLAIMER: The videos and opinions on this channel are for informational and educational purposes only and do not constitute investment advice. Adam Bornn is not registered to provide investment advice and as such does not provide recommendations - those looking for investment advice should seek out a registered professional. Adam is not responsible for investment actions taken by viewers and his content should not be used as a basis for investment trades.
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[@AMG-BENZ-1]

You’re the best for youtube financial advice here in Canada. Thanks for being here 👍🏻

[@JosefaJO1]

Retired at 55. 61 now. DB pension. Always lived within our means which has never stopped us from enjoying life. Sat with FA to plan tax planning going forward. Started drawing down on RRSP at 60 (move $ to TFSA & remainder into Open & keep if needed). Delaying CPP to 70 & possibly OAS as well. My husband retired last year at 62 but continues to work PT by choice because he loves what he does and can't sit still for long. He's looking to further reduce hours at 65. Writing this as my husband and I enjoy the Caribbean sun while also planning an Alaskan cruise.

[@sailinglatis]

I’d love a video discussion on downsizing and owning vs renting and determining cash flow from say 65 to 90. Thanks

[@pamelafrancis8131]

Thanks for remembering singles Adam. So many of these kinds of videos only speak to couples.

[@InBritishColumbia1]

I was happy to see singles covered as well.

[@markust8904]

Yes to the singles, would like more content on this.

[@stopkafirophobia]

Indeed!

[@nikkik3711]

I was always bummed that single travelers had to pay more.... then to find out retirement isn't kind to us also.....argghh!! Good thing I started saving at 26, have a DB, am pretty frugal, and did other investing in order to retire early. 13 months to go and I can't wait.

[@wd1598]

Single supplements for travel makes me crazy!!!

[@liverpool3469]

This is a great video. I want to watch it again!

[@dougtratch8260]

Love this episode. Thanks Adam. I’ll certainly be asking my planner these questions. Cheers Doug

[@Ram.73]

I need a planner. Can you recommend anyone?And how does it work with paying them? Thanks.

[@ronm6585]

Thank you.

[@roberttaylor3594]

Finally got my my service account set up so I can see my CCP. Can see the years fritted away when young! lol! Good to see the estimated ccp in different scenarios. Makes it clear to wait until 65, but not necessary to go to 70.

[@brucebanner2222]

Thank you Adam.

[@ParallelWealth]

My pleasure!

[@ramican9155]

Great video, Thank you!!!

[@ParallelWealth]

You are welcome!

[@tundrusphoto4312]

First, you don't know how long you will live. If you are certain that you'll live long enough to make advantage of the increased CPP, then a delay based on your other financial considerations, may be worth the wait. However, the second problem is that the "house always wins". In short, CPP is set up to make sure it never runs out of money. To do this the bean counters have figured out how much money you'll get by waiting, but know that a certain percentage of the population won't be collecting that money for very long. In short, you're closer to death at 70 with an average lifespan of 82/83 than you are at say, 62 with the same lifespan. Third, if don't need the money now and can afford to wait, you may just be putting yourself into a higher tax bracket later when you have to draw down your other savings. This may or may not be your case, but don't think that a blanket rule of "want to 65 or longer" doesn't have other effects.

[@garmin1488]

They don't want you to know that, I think these advisors must be getting a kick back from the government. Take CPP at 60 on your birthday. lol

[@ronwiebe4816]

Very clear sound advise - another great reason for delaying CPP is that if you ever do decide to go back to work, you cant reverse your decision and the tax implications could be very expensive; the CPP payments will be taxed at your top marginal rate (that how you should think about it anyhow). - Thanks for your great videos

[@garth217]

An increase in CPP means more taxes as well. If you spend all of your investments to increase that CPP you will have nothing for your estate. Once you maximize your spouses CPP nothing is added

[@iczemi]

I retired at 62. In order to be able to do that, me and wife downsized big time. We have zero debt. Live frugal within our means. We scrapped the "go-go", we are doing "very slow go" from the start. Very strict bugets, and trying to stay in low tax brackets.

[@ghostpainter1019]

Hi , how have you guys found the big downsize ? It one thing me and my wife are thinking of doing but do wonder about living in a smaller space .

[@garth217]

It all depends on how you want to live. If you're happy, you've already won the game of life.

[@iczemi]

@@ghostpainter1019 Moved from bigger house in big city, to smaller house far away from big city. I am speaking of Toronto. To do that one must completely change their way of life. And we kinda planned this all our life. If your end game is retirement, than it can be done.

[@ghostpainter1019]

@@iczemi thanks you for the reply , funny am in Niagara and just purchased land in Timmins so will see how it all works out .

[@tvmosh3425]

As a small business owner during covid we had no choice but to downsize from a 3500sqft house to a 512=sqft condo two years ago the absolute BEST thing we ever did. No debt … such freedom… retiring in 3 years before we turn 60.

[@blaineturner2528]

My concern is depleting our various savings to take cpp at 70, then I die, and all my wife has is her cpp and oas- basically poverty level.

[@Moluccan56]

I do not regret taking my CPP the month after I turned 66. My annual increases are larger than if I had taken it early. It would not have been smart to take it 5 years earlier while still working as I would have found something to spend it on.

[@davewave36]

Great information Adam, could you do a video for retiring to another country for better cost of living? Those of us fortunate enough to own a home and have a pension & savings could sell everything, buy a million dollars worth of GIC's and get (currently) 5.5% annually, or 55k to live on risk free + CPP and or OAS if 65. Would love a strategy video dealing with these types of scenarios. Thanks.

[@bobbyjames4300]

I’m thinking the same thing.. going to another country. Phil’s.

[@garth217]

In Mexico you can live well on $2000 CDN a month.

[@user-pe3rb3wf4k]

Adam great content. Is there hope for us who are late to the retirment planning game and have already tapped into our CPP/OAS since most of your content prescribes delaying till 70 and drawing down your registered accounts. Is there any way to right the ship, I'm pretty sure we are not the only seniors in the same situation. If there is a way to fix this wrong an episode on this situation would be greatly appreciated. Keep up the great work.

[@ParallelWealth]

I will work on a video around this- for most there would be things you can do still. Not all hope is lost!!

[@user-pe3rb3wf4k]

Thanks that would be greatly appreciated, keep up the great work.

[@colinmagee5155]

Another helpful video Adam. Quick 2 questions around cash flow within RIF, LIF, etc. I get the idea of putting money into GIC, bond, etc as that return is protected. May be less or more than market returns but takes the risk out. First, 1-2 year GICs may be good now but what about when interest rates go back down. Second, would assume as a GIC matures, I would want a high interest account in my RIF to put that money into and draw monthly from there?

[@iczemi]

I have put all my money in GIC, for the past year. I will do the same for the next. I cannot gamble my pension money.

[@James_48]

Risk / reward is very personal and highly subjective. You are correct, rates for GICs are likely to trend lower but nothing is certain. It should be possible to utilize a high interest savings account within your RIF but you might have to compare rates across institutions to find what works best for you.

[@sorooshd7895]

I wonder how would your taxes in retirement change If you could retire in one of the states in the U.S. with lower tax rates.

[@ddavidson5]

With regard to deferring CPP I saw an interesting article in the February 14th 2024 Globe & Mail by actuary Frederick Vettese. The upshot is that men have slightly more than an 80% chance they will receive more money from CPP by taking it at 70 rather than at 60. I suspect that for women the case for deferring CPP is even better but that information will be in an upcoming Frederick Vettese article.

[@simpleshoes]

My mom delayed until 70 and she’s now 93. So I think she has come out ahead?

[@ParallelWealth]

Way ahead!

[@mr.canada]

Many planners also say take your CPP as soon as possible, its your money, if you die the reduction is significant (if married,) why not factor the money you receive from CPP and potential return if invested into a TFSA or another investment vehicle, or just spend it ...

[@ParallelWealth]

Oh that's factored in. And most FA recommend this because they get paid on your investment strategy...so could be a conflict of interest.

[@DrivingPhilippines]

Get your money as soon as possible, adjust your lifestyle appropriately (downsize, move to lower cost country, etc), and enjoy your life with travel, exploring, cruising. We never know when we go.

[@Chooseearth]

Hi Adam ~ Thanks for what you do. I'm planning to retire at 60 and with that wont be contributing to CPP anymore. Trying to figure out what to do here... If I wait till 65 before taking CPP will I still get the 5 year wait benefit even though not contributing?

[@ParallelWealth]

Typically makes sense to wait. Just have your planner run options at 60, 65 and 70. Worth having this done, could save you tens of thousands...

[@scotbarlow213]

Maintaining a stable tax rate makes perfect sense. If you want to gift funds to family how best to do that without spiking your tax rate?

[@janehladky5270]

What happens if you are on CPP disability and they want you to automatically make you start at 65? Can you request it be delayed?

[@seanh2390]

sure you can get more by deferring your CPP but the other factor that typically gets ignored is that you may get more joy out of less money now (e.g. because you are still healthy enough to travel, etc).

[@marionsutcliffe1119]

I'll be deferring it to get more money overall ... Which also means more money now.

[@garth217]

The other factor that has never been said is, taxes..more money ie 42% more at 70 means more taxes..it also means spending or melting down your money sooner and faster which also means more taxes

[@macker0077]

As long as you have the savings (income) to cover all your needs, your idea is good.

[@1983dmd]

LOL!!! Soooo true regarding ''financial plans '' from the Big Banks !!! They tell you : 1)You are good to go and 2) You can withdraw $ 70 000 /year.....but ...from where ?? RRSP?TSFA? etc,etc...Will probably give you a call...

[@ParallelWealth]

It's pretty sad, isn't it.

[@sandray7609]

Adam can you explain the 3 year attribution rule for spousal RRSP please?

[@James_48]

The main idea of a spousal RSP is one spouse contributes and gets the tax benefit while the other spouse withdraws the funds which are taxed in their name. However if the funds are withdrawn within three years of the original contribution then the withdrawal ends up being attributed to the original contributor (and likely taxed at a higher rate than originally planned)

[@mpTraveller87]

Three Jan1sts have to pass after your last contribution for the tax to be attributed to the spouse. (Rest of calendar year plus two full years)…

[@sandray7609]

@mpTraveller87 this is what I have been looking for!

[@paulhunter6652]

TFSA accounts and income splitting are great strategies. Why delay CPP and OAS unless you are already wealthy? Finanicial planners don’t have crystal. balls on your life expectancy. Take the money!

[@garmin1488]

Totally disagree with delaying CPP, the break even point is 14yrs , if you start at 60, at age 74 you will have collected the same amount as someone who started at 65. It's only after 74 do you see a benefit . better off to take the money when you can know one knows how long you will live.

[@KeithHanlan]

Unless one has known health issues which are expected to shorten life expectancy, a person retiring at 60 can expect to live well into their latter 80s.

[@mfdominguez]

When I am ready to retire, I will be 62 years old, and I will have lived in Canada for 21 years. Since OAS is based on residence time within Canada, once I am 62, if I delay OAS until 70, would I get double benefit advantage? In other words, 1. from the age of 62 to 70, would I gain more years towards the 40 years max for OAS calculations, and, 2. would I, additionally, get the 0.6% monthly increase from 65 to 70? Thank you.

[@kyungshim6483]

That's a great question. I would like to know as well.

[@rb239rtr]

residency stops counting at 65, ie the time in canada between 18 years old and 65, with 40 years being the calculating number. So, at 65 you will have 25 years in Canada, so 25/40ths of the OAS. Years after 65 are not counted. You will get the 0.6% per month delaying the 25/40 OAS pension.

[@mfdominguez]

@@rb239rtr Thanks for the reply; however, when I look online I get conflicting information. Would you kindly share where you are obtaining this information?

[@ddavidson5]

@@rb239rtr I believe you'll find that residency in Canada from the age of 18 counts until you actually apply to receive OAS at age 65 or later. For example you could arrive in Canada at age 62 apply for OAS at age 72 when you reach the minimum 10 residency years required for OAS and be eligible for 10/40ths of the OAS benefit (and maybe GIS too). I have no idea about double dipping with the OAS 0.6% monthly increase but on the surface it seems unlikely, however, I am just guessing.

[@rb239rtr]

@@ddavidson5 yes, you are right regarding being +65 and adding more years to the pension calculation. On the moneysense website, I found the answer on the double dipping, the answer is no. You get the maximum of the 0.6% per month, or the additional years added

[@TheBreamer999]

You seem to think we all live to our 90's. How 'with it ' will we be in our 90's?. I'm 60, took my CPP at 60. Not because I needed it, but because I *wanted it*. You talk about the GO-GO years. Well this is it!. Statistically, 79, that's it babe. I'm gob smacked at how long people will think they will live, let alone functionally, get over yourselves and get the money now!

[@ParallelWealth]

87 is life expectancy for a 65 year old. This is why the laddered income strategy is so important. More early, less later.

[@ramspace]

Since 2024, QPP can be delayed until 72.

[@shellywhite2145]

hello

[@KinnerSurprise]

Hi Adam, why do most retirement financial advisor use 95 as the life expectancy for calculation when the average life expectancy in North America is 85? Wouldn't using a longer expectancy would skew our retirement readiness assessment because it will recommend us to work longer than we have to?

[@ddavidson5]

In a Globe & Mail article from November 7 2023 by actuary Frederick Vettese gives some stats on longevity of couples from age 65. The average life expectancy that you generally see bandied about is typically from birth but by age 65 you have already avoided dying at a younger age from whatever cause, by looking at only those that have made it to retirement age the statistics are different. Frederick Vettese says that for a 65 year old couple there is a 70% chance that at least one of them will reach age 90 and a not insignificant 34% chance that one will reach age 95. I imagine that most financial planners are aware of these statistics and try to plan for their clients accordingly. That said, most people are in the slow-go stage for those last 10 years or so and spending is usually quite low in those years, something Adam talks about frequently on this channel.

[@James_48]

I think of it as I’d rather die with some money left at age 85 than have nothing left in case I live beyond 85.

[@marionsutcliffe1119]

So, with a 34% chance of one or both of a couple surviving to 95 ... (whips out the calculator) ... implies a 19% chance of an individual living to 95. Can't be dismissed.

[@ddavidson5]

@@James_48personally I delayed CPP & OAS to age 70 (started last year) for the maximum, guaranteed for life, indexed monthly cashflow no matter what. The idea is that "nothing left" will never happen because the enhanced CPP & OAS will be enough in my later years and last as long as I do. That's the plan anyway.

[@marionsutcliffe1119]

Similarly, for age 90, 70% for couple implies 45% for individual.

[@oldunclemick]

I'm not so sure about spending less as you age - the retirement home industry (edit: especially long-term care) has its sights on seniors' savings. Post-boomers' futures were milked via 35-year mortgages and student loans so the next big target of the carpetbaggers is boomers' retirement savings. Retirement home fees are eye-watering, and their nickel & diming and gotchas make cellphone plans seem reasonable in comparison.

[@stopkafirophobia]

Exactly. Even if you don’t go into a retirement home or assisted living, you could have a heart attack, stroke, dementia, etc. and end up needing home care which could also be quite costly.

[@wd1598]

Can you apply for OAS after 70, say 71 or 72?

[@ParallelWealth]

Sure, but no benefit. You have lost a few years of money for nothing extra

[@wd1598]

@@ParallelWealth thanks……I will be making too much during the years leading up to 71/72, so it will just be clawed back

[@Dupont550]

Delay CPP (don’t get $800 now, get $1200 later). So don’t retire and keep working?

[@ParallelWealth]

Typically other assets would fill the void - if you don't have any of them, then CPP it is!

[@marionsutcliffe1119]

Use more retirement savings earlier, and less later (because cpp will be higher)

[@sandray7609]

By using your rrsp before you take CPP, it will lower taxable income when you start collecting CPP

[@garth217]

​@sandray7609 RRSP income is taxable. So you burn your money early and then depend on government income. The government is banking on you not taking that extra money for too long. You can look at statistics or you can look at family history.

[@Dupont550]

@@garth217 or I can look in the mirror, overworked, underpaid, super stressed, and fat as hell. I’d take it now if I could. 😉

[@murraytown4]

I’m doing all of this already but still could use that extra $1K/month. 😂😂😂

[@ParallelWealth]

🤣🤣

[@mbabcock111]

The reality is: if you have a pension in a place like Canada - you've won.

[@shellywhite2145]

What are the best additions to a $500k portfolio to boost performance? btc is Up and will do better in 2024 I believe as indicators for profits continue to improve. investors like me believe that “Santa has come early” to the markets..

[@laurawheeler-zh8gv]

I think you're better off with majority investment in S&P500 and uprising equities cos they always outperform. Alternatively speaking to a certified market strategist can help with pointers on which to acquire

[@shellywhite2145]

wow massive gains! my partner recently hinted on going same direction.. what did you invest in, and who is your investment advisr please, if you don’t mind me asking? in dire need of asset allocation

[@laurawheeler-zh8gv]

ashley airagahi is the licensed advisor I use. Just research the name. You'd find necessary details to work with to set up an appointment..

[@shellywhite2145]

Thank you for this amazing tip. I just looked the name up, wrote her explaining my financial market goals

[@georgiautube]

So everyone doesn’t include those who haven’t saved $250k? I’m out then. :(

[@pride1970]

Why would you be in the market after you retire? Why would you take that risk This world is a roller coaster?

[@valveman12]

"Why would you be in the market after you retire? Why would you take that risk This world is a roller coaster?" As a retiree and investor, my investments bring in more money every month than I ever got working. I would have retired a lot earlier if I had known then what I know now about investing. Risky? Not when you invest in a diversified portfolio.

[@pride1970]

So you have not lost money in the market? @@valveman12

[@RC-fh2lk]

I hope to have a 30 year retirement…that’s why I’ll stay in the market of 15 yrs of those yrs.

[@marionsutcliffe1119]

Inflation is not just a risk, it's a certainty. At 4% inflation, your cost of living will double in 18 years (effectively cutting each dollar of savings in half). You need to ensure your savings are growing at at least the inflation rate.

[@pride1970]

What about 5% at the bank guaranteed no loss

[@danvanninhuys745]

Take it as soon as possible, the government doesn't want you to so they can keep your money.

[@scottclarke8522]

Total return is still better than dividends. Dividends are just a psychological security blanket.

[@ParallelWealth]

Somewhat agree, but dividends provide tangible income - and for retirees this matters.

[@yssubed2]

and if you can cover your expenses with secure dividends it provides a lot of long term security. I've balanced my approach, but my retirement dividend income basically covers what I used to spend when I had a paycheque. My growth portfolio continues to grow and I'm pulling money out of RRSPs to fund any extra requirements (extra travel, home improvement,..)

[@sandray7609]

The problem if you don't have dividend income, you could be selling investments when they are down. You could run out of investments that you need later. There's a place for dividends to cover basic expenses

[@James_48]

I also agree that total return is mathematically better but I still choose the dividend route. I suppose if there was a way to buy BCE, ENB, MFC etc. without taking the dividend that might be “better” but it’s not an option. My choices are mine to make and ease my planning and reduce the need to manage the account into the distant future when I might not have the means to do so.

[@mpTraveller87]

Canadian eligible dividends are also taxed quite favourably and go a long way…

[@mikethomas3258]

If you delay after 65 does it still increase if you stop contributing at 65

[@ParallelWealth]

Yes it does. 0.7% per month

[@mikethomas3258]

Thanks