CPP at 60 vs. 65 vs. 70: The Biggest Mistake Most Retirees Make

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OUTLINE
0:00 - Intro
1:09 - CPP at 60
2:44 - CPP at 65
3:28 - CPP at 70
4:17 Harvest ETFs
6:07 - Total Nominal Dollar Difference
8:38 - Additional Tax Planning
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.

[@amgengroup5352]

What are the best etfs for retirement ?

[@jasminemccumber4694]

I have 2 core holdings (SCHD, Broad US market), and 10 satellite ETF holdings - all dividend or dividend growth ETFs... The usual suspects: DGRW, DGRO, DIVO, SCHY, VIG, VIGI, VYM, etc. I allow myself to increase or decrease contributions to my satellite holdings while being consistent in my core holdings. I only hold one stock: BRK.B. I just don't have the confidence buying and holding single stocks. Hopefully my strategy is enough to secure my retirement, Personally I put down 2.5m$ on few ETFs, still diversifying. it was this time last year I made my first million with a liquid 200k. handed it to a trader here in CA, I get weekly pay out which I put back on long term ETF's. Tesla will be a huge buy for me when the market bottoms.

[@amgengroup5352]

Good move, Smart strategy for beginners, Please share this Expert with me.

[@jasminemccumber4694]

Katherine Elizabeth Humphreys is her name look her up online

[@harlibassham8187]

I've known Kath since my early days as an investor. She trades for me and advised me to diversify dividends to 50% FXAIX, 25% SCHD, and 25% QQQM, which has been great. I highly recommend her.

[@ahmedahmm7545]

Katherine !! I know her from my early days as an investor. She's brilliant and patient. Many of my colleagues have worked with her.

[@simpleshoes]

My mom delayed her CPP to 70. She is now 93. I took my CPP last year when I turned 65. All max contributions each. My mother gets more CPP than I do, but lives in a nursing home where she has no use for the extra money now. I think 65 is the right time.

[@antoniomeza1457]

Hi @simpleshowes I agree about your comment... main reason is about your health first, since the people around me, only have employment income, my advise for those enjoy live, since the different is nothing... thanks! I have my father in law at nursing home wit dementia and Alzheimer and the all income pension go to them (25k annually )

[@timothythomson719]

She should buy a cool sports car. 😁

[@garth217]

I don't understand why people want more money in their less active years, like you said..once in a LTC home the cost is based on your income. In a LTC home you don't get better care if you pay more

[@carpediem6431]

I love the saying you have three stages in retirement: go go, slow go and no go. Great point you made about how useless extra $ is when you can’t spend it and it provides no added benefit to your enjoyment of life. My mother lived to 69, father to 72 and brother to 55 (cancer). $ now and usable is better then never used or unable to use.

[@debbieking3442]

Nailed it.

[@ryanvanderheyden3324]

Great video I still think no matter what happens 62 is the best time to take cpp. Why wait so long for it. Take it as soon as possible. Waiting until 70 is to late

[@peterdob8868]

If my brother would of taken his CPP at age 60, he would have gotten approx $700.00 per month, $8400.00 per year. So when he reached the age of 70 he would have collected $84000.00 over the 10 years. He decided to wait until he was 70 to take CPP, unfortunately he died 2 months before his 70 birthday, so he collected NO CPP at all. So when experts say wait until you are 70 to collected, that is ok if you live into your 90"s. I started taking my CPP at 63 and happy I did. I paid into it for 40 years and hopefully I can collect for many years to come.

[@herbfth5281]

Well said

[@DoneByD]

All experts don't say everyone should wait. They do say you'll get more inflation adjusted money if you wait and live to life expectancy. However all will also say it's a personal decision and there are reasons to take it early as well. So everyone's situation is different and unique and this decision should weigh all the known facts of each situation (including the number) to make an informed decision on what is best for you.

[@user-fv9nl6bb8l]

Don’t take the bait. Take CPP at 60. Take YOUR money back ASAP.

[@user-fv9nl6bb8l]

The government will love you for taking CPP at 70.

[@Supe063]

CPP is not governement money.

[@user-fv9nl6bb8l]

@@Supe063 Exactly.

[@jasamtp]

Hi Adam. liked your videos. Most ofthem are for people with big savings in tfsa, rrsp, 500k etc..etc I'd like to see one for peole with little or not savings at all for people which rrsp will impact GIS etc...thanks

[@DoneByD]

If you are qualifying for GIS - there isn't much planning involved as your retirement will be just covering the basic necessity needs - housing, utilities and food. There have been some videos on this as well though to boost CPP but you need some TFSA money or non-taxable savings where you can fund additional years of delaying CPP without affecting your GIS benefits.

[@colingoldthorpe5918]

I see way too many people retiring way too late, and then something happens to their health and all their plans go sideways. I plan on enjoying my 60’s travelling with my wife. I don’t want to wait until I’m too old to climb up stairs and walk to see some of the great places on earth….

[@ploverlittle532]

having money while you can still do things is very different than sitting at a home and cannot do much that part is very emotional too

[@jasonmooreqb]

But they have money while they can still do things. Then they have more money when they can still do things but maybe not as many things because they are older. You have created a false narrative: there is no lack of money now and more money later. They is enough money now and more money later.

[@TwinsDragon3]

From a numbers point of view this makes sense however life expectancy in Canada is 83, not 90. I think 65 is a good age to start. None of us have a crystal ball so who knows what age we make it too. My dad paid in all his life and never collected, died at 62 however my mother started collecting at age 60 and is now 83 and going strong! Better to collect and enjoy, practical isn't always the answer! Luv the channel!

[@DoneByD]

Thanks Adam for this perspective, another interesting video... In this case I do take a little different perspective as this video doesn't solely look at CPP 60, 65 & 70 timing effect, in my opinion, as other financial assets were also adjusted significantly from scenario to scenario. So my conclusion in this case is savings or increases in annual retirement income is more a result of the better planning around Mr. KZbin's financial assets (400K RRSP,. 95K TFSA and 300K LIRA) than when he started drawing his CPP. I know and understand if you live to life expectancy based off current age 65 tables you are better off delaying CPP to age 70. My measuring stick is will delaying significantly change my life style throughout retirement on a month to month basis. I used to be a take at 60 kind of guy but over the past few years I've changed to waiting till age 65ish (mostly because of penalty and we have the financial assets to be able to fund those 5 years). CPP lifetime amount I'm giving up by taking at age 65 vs 70 if I live to age 84 is only $13,443 (based on 2024 dollars) or about $708/year gross. This amount of money will not change my lifestyle for the better or worst to warrant delaying about $76,000 (based on 2024 dollars) of benefit payments between age 65 and 70.

[@todd4317]

You take your CPP when you need the money. Simple as that. Plenty of people who take it at 60 cannot afford to wait until they're 65 or 70.

[@kuro515]

When you need it and life expectancy, if you can afford to wait til 70 but only expect to live til 75 then it's best to take it earlier as well

[@bobjones1620]

Just wondering what was new on your channel and tuned in to this one that just dropped. You have convinced me to hold off to age 70. It's going to make a big difference. Greatly appreciate all you do. Amazing channel for young and old.

[@ParallelWealth]

Thanks - and come back more often to watch!

[@RachelleCorr]

Hi Adam I love your program. You have convinced me that waiting to take my CPP until 70 is a great idea. I live in Ontario and wonder if you have any advice on how to find a reputable wealth adviser near me. What are the top three things I should be looking for?

[@Redneckboy991]

My buddy took his at 60 and regrets it as he gets just over $700/month. I'll wait until 65 and use it for my vacations.

[@peterdob8868]

When your buddy is 65, he will have already collected $42,000.00, so waiting until you are 65 you have to hope you live to an old age.

[@garth217]

@peterdob8868 CPP is indexed to inflation..so the 7.2% yearly increase is actually 9%. And then more the next year..it compounds...but those who wait also risk getting nothing if they die...

[@Redneckboy991]

@@peterdob8868 $42,000 is really not that much money over 5 years. Either way, I have no worries about living well into my senior years. The women in my family live into their 90's and the men into their mid 80's.

[@user-fv9nl6bb8l]

Can you guarantee that you’ll live to be 65, 70, etc.?

[@James_48]

@@user-fv9nl6bb8lthe better question is can you guarantee you won’t? Better still, how will you fund your life if you do live to 80? 90+?

[@jordonhope3408]

Adam, you need to consider what happens if a client takes CPP at 60 and invests the entire amount into an "extra nest egg" , in their RRSP until they are 70. Then you have to add the income from the "extra nest egg" to their CPP income stream... compare the total of those 2 incomes to CPP-at-70. In other words, you need to consider the opportunity cost of 10 years foregone income... with a proper DCF model. That's the only way to compare apples to apples.

[@Golf4LifeGrandview]

If I only knew how long I would live, I could plan better! Ultimately, do you need the money now or can you wait to potentially maximize the amount you receive. Similar to the stock market and risk. The more money you have, the more patient you can be

[@barbhaines2357]

I"m 64 & plan on working until I'm 70. I'm delaying my CPP until 70 because I come from longevity & with the cost of living the way it is today, I will need that extra income. It's a gamble no matter what you decide to do. Plus, I want to travel as long as I can. I exercise & try to keep myself healthy so maybe it will all pay off.

[@kevinthailand2567]

I ran the break even for 60 versus delaying to 65 and the break even year was age 74. I will be happy to enjoy more money in my gogo years. Thank you 😊

[@AMG-BENZ-1]

That's a very simplistic approach that doesn't take into consideration other sources of income and leveraging your annual taxes. When you actually run the numbers and look at net, after tax income, 95% are better off delaying.

[@DoneByD]

@@AMG-BENZ-1 this only really matters if your goal is trying to maximize CPP income in your life. That is only one measuring stick to consider and equally as simplistic. I would much rather measure by balancing max lifetime benefits average over timeframe receiving those benefits with other income and what amount I'm forgoing on a monthly basis. Then looking at that amount and answering the question will that amount of money on a monthly basis make my retirement lifestyle significantly better or worse.

[@kevinthailand2567]

Well as this video only discusses maximising CPP after tax that's all we can measure each of our answers against. True enough some are better not taking it due to taxation rates. But better a dollar in my pocket today than a promise tomorrow. I am financially set. CPP is a bonus. I will take my funds thank you very much 😊

[@DoneByD]

@@kevinthailand2567that is where this video is misleading in my opinion. Adam does adjust more than just the timing of CPP in each scenario, and by doing so compounds the problem of figuring out what is the CPP impact on the total differences of each scenario. The LIRA, RRSPs and TFSA amount were adjusted and in my mind that $800K made up a significant portion of the stated net benefits in your pocket.

[@Supe063]

As always, great info! Obviously, gauging the comments on this video, there is a LOT of opinions on timing for takiing CPP. The key is simply knowing as much as possible before making your own decision. The math, coupled with a reasonable life expectancy simply says waiting til 70 makes sense. Again, referring to the comments on this subject, there just isn't a one-size-fits-all rule. It's not an emotional decision. Just a practical one with one question to answer ... When is the right time for me? Personally, after learning so much from your channel Adam, I created my own spreadsheet, did the math and applied it as pragmatically as I could to my life and decided 67-68 is optimal. Granted, things may change ... but having so much practical information and knowing that the plan can/will change sure makes moving on to retirement A LOT LESS WORRYSOME!! Thanks Adam ... and Parallel!!

[@ParallelWealth]

Well said!

[@garth217]

Good video, but once again I'll ask if you could do a similar video on someone with a defined benefit pension with a bridge to 65. If I meltdown my rrsp from 60 to 90 I'll lower my taxes overall than if I burnt them down until 70 and not taken CPP until then.

[@murraytown4]

I’ve a DB plan indexed and bridge to 65. I plan to melt down my RRIF from 57 to 70, with increased withdrawals over time. I’m considering OAS at 65. My OAS and a more aggressive RRIF meltdown from 65 to 70 will exceed the bridge amount. Much depends on your pension amount and how big your RRIF is. Seems to me the bridge replacement value is key.

[@garth217]

@murraytown4 my bridge is about $9000/ yr CPP at 63 will be 12,000.. I can w/d $10,000/ yr from my rrsp for 23 years ...OAS will be clawed back but it's all bonus cash..tfsa will buy me a nice car

[@DoneByD]

@@garth217 I'm assuming you don't have a spouse where you can share income. OAS clawback in 2024 isn't until taxable income hits 90,997 so in theory two people can have $182,000 of taxable income before any clawback happens on OAS. Note taxable income rather than gross income.

[@garth217]

@@DoneByD I pension split. Assuming can get you in trouble

[@DoneByD]

@@garth217 I know assuming can get you in trouble but I can't understand where the concern is. You both must have good pensions if you are worried about OAS clawback as mentioned above that means you can bring in $182,000 taxable income per year before clawback should start to affect you and you need $296,130 before it would be fully recovered. Although if you both have good pensions then splitting income doesn't really make sense and wouldn't be any help either. What am I missing? Why you are worried about OAS recovery tax. I guess if you're at or somewhere in that income level then you should be alright in retirement regardless.

[@wcg66]

Adam, I wonder if this in response to a recent Reddit post :). So many ill informed comments it's scary. The key thing is, people need to realize that taking CPP early is more of an emotional decision than a rational one. This is fine, but if you trying to remove the emotion from your retirement planning you have to, at least, acknowledge that waiting is better. Plus, if you NEED the money at 60, then take it. People seem to think you have to starve until 70 and there's no nuance, like taking it somewhere between 60 and 70.

[@RachelleCorr]

Agreed, no one should wait if they really need the money. Everyone has to realistically assess their own situation.

[@James_48]

I think some of the challenge is how to measure “need”. If one has sufficient resources via RSP, TFSA, etc. They may not “need” CPP before 70, but letting go of their savings can be a challenge. What isn’t debated enough here is how many advisors, who also maintain their client’s portfolios, are in a serious conflict of interest when they advise to take CPP early. By taking CPP early they may be prolonging the length of time they keep assets under management, thus enriching themselves on commissions. Whereas drawing down the portfolio more quickly earns them less money.

[@StevenClements]

The latest available life expectancies for the Canadian provinces and territories show that Ontario and Quebec have the joint highest life expectancy closely followed by British Columbia. In Ontario and Quebec the life expectancy for both sexes combined is 82.6 years and in British Columbia it is 82.4 years. Nunavut has the lowest at 72.1 years. Ontario and Quebec - 82.6 British Columbia - 82.4 Prince Edward Island - 82.0 Alberta - 81.5 New Brunswick - 80.7 Nova Scotia - 80.4 Saskatchewan - 80.2 Manitoba - 80.0 Newfoundland and Labrador - 79.5 Yukon - 78.6 Northwest Territories - 77.1 Nunavut - 72.1

[@ddavidson5]

Those life expectancies you show are from birth not from, say, age 65. If you are thinking about when to take CPP you are probably at least close to age 60 and using the stats on life expectancy from birth isn't the best. As Adam says, this is a common mistake people make on deciding when to take CPP.

[@JP-tq7ni]

Exactly. Find your life expectancy (not at birth) but at age 65. Or at age 70. More relevant look at stats agencies life tables. Or google it

[@DoneByD]

Look at life expectancy at age 65 rather than at birth. Life expectancy for males making age 65 is around 19.3 so average life expectancy is actually 84 4 month.

[@kevinthailand2567]

More money sitting in a retirement home or a hospice doesn't do you much good at 84 or 90? Enjoy life now. Tomorrow is promised to noone.

[@ddavidson5]

@@kevinthailand2567 Well, more money will help pay for a nicer retirement home. The truth is that very few people actually end up in a facility for any length of time, typically 2-3 years if at all. But I think having a decent steady income to cover expenses and that you don't need to manage is something you would appreciate at 84 or 90. Of course enjoy life and although "Tomorrow is promised to no one" if you are still working you might want to save something for retirement anyway. If you are retired I think it's a great idea to spend down your retirement savings and I often say to myself "If I didn't save it so I could spend then why did I save it?" It seems to me that when you have the enhanced CPP to count on when you move into your later no-go years that makes spending your savings now less of a risk. Unlike your savings CPP is indexed and will not run out for as long as you live. I think you are right inferring it's not about the money, the whole "break even" discussion is pointless, it's about enjoying life and having peace of mind. For me having the indexed, guaranteed for life, enhanced CPP to see me through no matter what gives me the peace of mind to spend my retirement savings enjoying my actual retirement rather than letting it sit in the bank "just in case".

[@waynehutchison3794]

If you're also collecting US Social Security, then it usually works out that maximizing your income means taking CPP early due to the WEP rules.

[@renegadegl]

I'm turning 60 later this year, and plan on retiring between 65-67. If I start taking my CPP at 60 and dump it all into a RRSP, am I ahead? or should I wait?

[@paulat8444]

I’m 66 and still working and a very good bill of health as per my Doc. Friends of mine say I should take it now, as I will lose in the long run if I take it at 70. I don’t feel I should. Am I doing the right thing.

[@garth217]

Do what you think best, but remember at some point you will slow down and need less money.. so why get more that you don't need, when you could enjoy it now

[@jetshockeyguy]

Since you are still working I would say delay it while you are working. If you can take out RSPs/TSFAs when you retire you could delay a little longer. But you don’t have to make a decision to delay till 70, just delay while you are still comfortable doing so. The general advice though is to take OAS when you’re 65 (unless your work gets it all clawed back)

[@petert1692]

What people need to realize that once you get your CPP at 65, you also get a seniors deduction on your T1. Prior to that you don’t have that deduction.

[@DoneByD]

What deduction are you talking about? If it's the $2000 pension credit you can qualify for that prior to age 65 if you have eligible pension income. I have been claiming that since 54.

[@davecarpenter4917]

Retired before 60 with a db/bridged/indexed pension. Plan was to work part-time until CPP at 60. I could potentially keep working pt past 60 and let the CPP grow, but how the heck do you figure the dilution effect on CPP of adding more years in a low-wage situation ? Does CPP always calculate to 65 (and then drop the lowest 7 years or whatnot), regardless of when you actually start the CPP ? If you wait until 70 to start, does that add 5 more years of 0 income ? (presuming you're not actually working, but rather just waiting for CPP/70 )

[@DoneByD]

dropout provision allows 17% of the lowest contributory period to be removed. At age 65 (576 months) that is 8 years (96 months). low wage years can affect the calculation if they are lower than your average lifetime earnings. However if you alreay have 39 years of max earnings then additional low total earning years wouldn't affect your CPP benefit at all. You CPP benefit is calculated based off your contributory months and earnings, whichever is earlier, between age 18 and age 65 or between age 18 and whatever age you are when you start collecting CPP. So delaying CPP past age 65 can only increase your benefit by 0.7%/mth to a max of 42%.

[@davecarpenter4917]

@@DoneByD Thanks ! So for someone starting CPP at 60 (516 months), they can drop 17% (87.7 mo or 7.3 years) and end up needing 35.7 years ? I have 32yr of full, a coupla 80% , but the rest will be 30%. If this is all true, then it seems that continuing working at 30% will dilute my CPP down .

[@DoneByD]

@@davecarpenter4917 no your dropout provision is calculated based off 17% of the contributory months, it doesn't actually lower your full qualify period down from 39. You can only get max CPP pension IF you have 39 years of max earnings and start collecting at 65. So if you had 32 years at max contributions the most you could get is 32/39 (82%) of max. And then because you start early at age 60 you would get another 36% reduction from your max of 82% so the new max would be around 52.5%. Assuming you don't have any other dropout provision you could use like child rearing dropout for example that would help lower your qualifing years to something less than 39. The new earnings at 30% are better than having $0 years below 39 years so they should actually help rather than lower your benefits because you are taking away a zero year and replacing it with a 30% year.

[@DoneByD]

If you want detailed specific information on what is best for you I would talk with Doug Runchey from DR Pensions. He will do fee for service specific calculations for your exact situation. Very knowledgeable about CPP & OAS legislation. His contact info can be found on his website.

[@TemujinBC]

I don't think it's a mistake to take the bird in hand rather than hoping for the two birds in the bush. Too many anecdotes of people dying at 60-65 of a heart attack or cancer, makes me want to err on the side of caution. It might be an emotional decision but what good does "maximizing retirement" do if you don't even survive to enjoy any of it?

[@nelsonfernandes1593]

What if you just invest the CPP amount you get for 5 years in a TFSA (If you have the room) How does that change the numbers assuming a 8% rate of return over the next 20 years?

[@acdatz6222]

Is that 8% guaranteed? The 7.2% from age 60 to 65 is a guarantee and uses no TFSA room.

[@nelsonfernandes1593]

@@acdatz6222 Nothing is guaranteed ….Just curious how many more years it pushes back the break even date.

[@TonyaPenelope]

All the comments are about trying to predict lifespan and if it makes sense to get more money in the long run by delaying getting it. Is anyone worried about the CPP money not being there in 30, 40, 50 years? With inflation and AI, ... all bets are off in my opinion. I'm 51 and I'm planning on working until 53, then living off my RRSPs for 7 years, and start collecting my teacher pension and CPP at 60.

[@pistachiocroissants]

Great topic for discussion but I would take CPP at 60 no doubt. Nobody's life is guaranteed. You think you are healthy but you might get a call from above anytime. And I would rather take my money from the government sooner than later. I'll probably put all the cpp to invest and more than make up the difference in amount. Government gives you more later as a reward because it's better for the government to keep that money so it's a bait. Whether you need it or not, I would take it early and make use of it myself

[@colinmagee5155]

"I'll probably put all the cpp to invest and more than make up the difference in amount." - Doubtful. Adam has done a couple of videos on this you should look up and watch.

[@GT-tm1ft]

Lol. The government doesn't use it as bait. The CPP is not managed by the government- it has had a separate management board since the '90's. And getting greater benefits by waiting is common with pension plans.

[@pistachiocroissants]

@@colinmagee5155 I've seen the videos and they are estimates based on very conservative returns on investment based on historic averages. If you don't do your own investments and your return is less than the average return of the market, than sure, keep it with the government. But if for the last 20 to 30 years your returns have far outpaced the market, than a bet on your own investing capabilities would not be a bad choice. Of course it's not for everybody to manage their own money and past returns are no guarantees of continuous success. I've had terrible years but also very good years. The CPP returns are safe because CPP can't invest in pot ipos or in coins but you won't have outsized gains.

[@pistachiocroissants]

@@GT-tm1ft I'm aware that CPP is a separate entity. But in my mind, they are the same. Board members at CPP have the same/similar government friends. Do you think the government has no influence with CPP and its policies? No real difference in my mind. And that's what I'm saying. Why do they give you more benefits? Because no "fund" whether it would be a mutual fund or pension fund would want the customer to start drawing the funds earlier. Funds make money with your money.

[@richardc.3513]

CPP has a guaranteed return every single month/year. The more you wait, the more you get for life.

[@lemino10]

Hi Adam. Is there a free software program that you can suggest similar to your's to do retirement scenarios like you do in your videos?

[@DoneByD]

If you belong to a DC pension plan a number of them now include a planning part to their website. The DC plan that I'm part of actually looks like it using a cut down version of Conquest software. Doesn't allow you to do everything you see in Snap Projections in Adams videos but gives me lots of functionality. If you are excel savvy you could also build something there - again not as elaborate and automated as what you see in this channel but it can do all the financial calculations if you are savvy enough.

[@James_48]

@@DoneByD I’ve created a spreadsheet to mimic SNAP. It has taken a while to get it to a point where I think it will serve me well. It fudges taxes a bit, but very much on the conservative side (for instance it doesn’t do any income splitting to reduce taxes).

[@Geraldowashere]

I wouldn't be surprised if life expendency starts to decline due to our health system. Over 40,000 people in our city don't have a family Dr. People have actually died in emergency while waiting hours to see a Dr. Some cancer patients are getting treatments in other countries due to long delays in Canada. The health system is failing. I'm leaning on taking CPP early as the future has alot of uncertainty.

[@c.s.4845]

Life expectancy IS declining, how many people do you know living till 90 these days especially after the forced injections.

[@wrongwayconway]

I've met many people in their 90s. In fact one of them turned 100 last year(and they all were vaccinated). I work in a hospital so I see people 90+ alot.

[@timothythomson719]

Hey there Adam, is there a way to contact you directly?

[@ParallelWealth]

[e-mail]

[@bryanwiley5550]

Your numbers are not making any sense to me . . . if it's only $1600 diff a year, divided by 12 = $133/month . . . that's not the same as the $2500/month difference that you mention at 6:13 of the video . . . please explain?? Even if you take the nominal diff of 119,000 (age 60 to 90 differential), if you divide that by 360 months that is $330 per month. Confusing . . .

[@DoneByD]

See my other post in this thread. The larger difference has more to do with proper planning on Mr. KZbin's ~$800k of other financial assets than it does with timing of CPP.

[@ramspace]

QPP is now set at a maximum age of 72.

[@LivingTheLifeRetired]

For Mr KZbin in your example what his his break even age, meaning at what age would he have to live to have been indifferent to taking CPP at 60 vs 70? It’s going to take a while to make up 10 years of collecting CPP early.

[@kevinthailand2567]

Yep. For me starting at 60 it will be almost 15 years before I cross the now versus later threshold. A long time to enjoy more of the fruits of my life while still able to. 😊

[@DoneByD]

The crossover point for an age 60 vs age 70 benefit with age 65 benefit amount equal to $1,365 CPP is age 78 and a few months. At age 78 the age 60 cumulative payment is $188,698 and age 70 cumulative payments would total $186,077.

[@CoolPilot71]

There's not much left in the Go-Go phase as you reach 70. I'd rather enjoy my defined benefit pension with CPP (RRQ in my case as I'm in Quebec) a bit earlier (65 seems like the sweet spot) as we don't know what the future holds in terms of health. Like, what is the benefit of gaining all that extra money past 70 if my condition has deteriorated to a point where I just can no longer enjoy life?

[@bobbyjames4300]

I have a question that nobody seems to have an answer to. I am currently collecting WSIB money for a serious job related injury. I will collect this money until age 65 . My question is , can I collect my CPP at age 60 and continue to collect my WSIB money without any problem or penalty ? Nobody can give me a straight answer. Thanks for any help or advice, love your channel..

[@ParallelWealth]

Email this to me [e-mail] and our team will look into it. It's a great question. My gut says you should be able to, but lets confirm that.

[@annashulman4717]

What happens if I stop working at 60 but collect my CPP at 65? Will it still grow, considering the fact that nothing will be contributed between 60 and 65?

[@carlphinney4026]

Yes it will still grow.

[@annashulman4717]

@@carlphinney4026 thank you.

[@kevinthailand2567]

Depends on how many low income years you have to already scratch off the allowed 5. For some your scenario means less money from CPP at 65 as Adam has mentioned previously. You best get an actuarial to assist you in discerning your specific case numbers.

[@elp2689]

They base it on your highest 39 years of income. That won’t change for you. (They drop the lowest 8 out of 47 years of working from age 18-65.)

[@DoneByD]

@@elp2689 only true if you wait till 65 to start collecting - the dropout provision is 17% of your contributory periods between age 18 and age 65 or 18 and whenever you start collecting CPP which ever is earlier. So if you start collecting CPP at age 60 (516 months) you only get to dropout 88 months (7 yrs 4 months) and CPP benefit is measured over highest 35 years & 8 months (428 months).

[@neilfoster9517]

Remember the wealth industry looks after themselves first. Take the money when it works for you only. The fees we pay this industry is criminal they want fees from you.

[@libbert5757]

Suggest that you look at data 2021 -2024 from insurance actuaries regarding excess deaths.

[@chrisrauschning7376]

Definitely a concern for those who got all jabbed up

[@martinf2740]

Your charts are hard to see. What is the calculation of the 10 years that you didn’t take CPP? Yes, you get $2400/year more, but you’ve also gone 10 years without that additional income. So you’ve forgone a total of $90,000 income during those 10 years. Of course, the biggest gamble is that you’re going to live 25 years after age 70 to level that out. Personally, having volunteered in them for years, I have no plans to ever enter a retirement home.

[@bobkalpakis2583]

What happens if you die at 66

[@kmnichol1]

Average life expectancy is no where near 90.

[@StevenClements]

The latest available life expectancies for the Canadian provinces and territories show that Ontario and Quebec have the joint highest life expectancy closely followed by British Columbia. In Ontario and Quebec the life expectancy for both sexes combined is 82.6 years and in British Columbia it is 82.4 years. Nunavut has the lowest at 72.1 years.

[@j.frankparnell3087]

@@StevenClements Those are life expectancies at birth. The more relevant stat is life expectancy at 65. And in Canada, a 65 year old can expect to live another 20 years on average.

[@kmnichol1]

@@StevenClements as soon as you referenced incorrect average life expectancy you lost credibility and I turned the video off.

[@ZREXER1250]

Father is coming 99 this year, mom is coming 94. They still live in their own home and my dad still drives. So old age does happen.

[@kmnichol1]

@@ZREXER1250unfortunately that is not how modelling works. With your logic we could also reference someone who died at 68 before they ever received a dime but that wouldn’t make sense now would it? Hence why accurate data is paramount.

[@jg3724]

What is CCP?

[@AMG-BENZ-1]

😧

[@JJ-gb1vu]

Chinese Communist Party

[@RachelleCorr]

11:09

[@talu1999]

Ya but did you do the comparison by calculating if he takes the money when he is at 60 and then reinvest that money at say 6 percent what will be his net worth at 65 and or 70? Should he not be ahead instead?

[@ParallelWealth]

We have in other videos and for clients in their planning - still not even close! Typically need close to double digit returns to come close.

[@talu1999]

@@ParallelWealth double digit or higher is possible right

[@AMG-BENZ-1]

@@talu1999 Very improbable plus when you get older your risk tolerance definitely goes way down and you have no time to catch up on market downturns.

[@talu1999]

@@AMG-BENZ-1 fair

[@kevinthailand2567]

I have been posting double digit gains in my portfolio for the past 6 years. Depends on how risk tolerant and smart your decisions are but it can be done.

[@therealshizlow]

The 60/40 portfolio is a bit of a joke. And yes the govt would love more people to take at 70. Are people really living much longer now? You should take it when you need it, which for most peiple will be sooner due to whats been going on in the country economically.

[@mr.gregory6768]

No pension ? I suppose I am lucky.

[@robertmurison1789]

Adam, shame on you. A TFSA is only marginally an income source- it is a cash flow source. please do not confuse income with cash flow! Income and cash flow are independent concepts. Look at Financial Statements- the Income Statement is very different from the cash flow statement. Surely you understand these concepts- please educate your users as by and large you do a good job. But I am convinced you could do an exceptional job!

[@bobkalpakis2583]

Take your money right away because tomorrow may never come .

[@AMG-BENZ-1]

Keep your fingers off that ''start now'' button. Patience pays off.

[@kevinthailand2567]

Take it if you need it. Why wait if it doesn't add to the quality of all your days? Not just those over 70!

[@DoneByD]

@@kevinthailand2567 agree that you should take it when you need it or whenever you feel comfortable that is the right thing for you to do given everything else in your life. No right or wrong answer here in my opinion.

[@thomaselliott9485]

Took CPP at 62. House sold. Invested monies. Debt free. MY time is MY time. Huge psychologically for me. OAS at 65 in one year. No company pension. Take GIS. End up with 2k a month from the Government. If I have more earned income, GIS goes down. Go figure! I am young and reasonably healthy. Winters in the south. Be dead by 78 as per genetics. If I live longer, the retirement home is NOT getting my hard earned money. To each his own. Enjoy Life!! 🌴

[@therohugin8676]

So I heard that the CPP invested heavily in USA commercial real estate…which has fallen 45% and possibly will crash by February 2025…hopefully the CPP remains solvent after this.

[@chrisrauschning7376]

It survived the crash of 2008, Not sure your fear is reasonable

[@ZREXER1250]

Retired at 55 and took CPP at 62 1/2. So 7 1/2 years with no contributions to it. Didn't really need it, but I have concerns how our CPP is invested. I know it is separate from gov't of the day, but still worried. My RIF withdrawals are at a higher tax rate than the majority of the early years when I contributed.

[@petert1692]

The CPP has a lot of money. It will not run out any time soon. The bank’s propaganda has had the effect.

[@paulmitchell8312]

I am sorry you’re basing this all on the person living to 90. How about living your best retirement life now. At 75 your most likely will not be doing the same things you are able to do at 60. Have an extra $200 a month and not be well enough to really use it. Live your best life now while you can still enjoy. Your stats on life expectancy is a bigger risk and not true. I honestly feel your perspective is swayed one way and that don’t retire at 60 because at 65 your pension will be potentially $$200.00 a month. lol.

[@seanfrank4158]

It's a bit of a gamble eh? How long are you going to live. We're promised nothing. Sure it might be better financially to take it at 70 but then you're gambling literally with your longevity.

[@karorouzi1796]

I'll be dead at 70 :)

[@e.m.-lw1dn]

Wait till 70? Umm no thanks

[@MM-xg2td]

This does not take into account the health history of this person.....Chances are most people will not live until 90, the average person will live until 82 if you have a good health, so you will make a lot more money out of your CCP from 60 to 82 then if you take it from 70 to 82.

[@DoneByD]

Only one comment about living to age 82 - most (I will qualify the word most meaning more will than will not) people that make it to 65 will make it past 84 according to Stats Can.

[@MM-xg2td]

@@DoneByD average life expectancy in Canada is 79.49 years for men and 83.9 for women if there is no health issues. Check your stats again.

[@DoneByD]

@@MM-xg2td Stats Canada life expectancy table for age 65 both sexes in Canada is 21 years (2015-2017 data) - 86 Stats Canada life expectancy table for age 65 males in Canada is 19.5 years (2015-2017 data) - 84.5 Stats Canada life expectancy table for age 65 females in Canada is 22.3 years (2015-2017 data) - 87.3 Taken from 150 statcan gc ca

[@DoneByD]

You'll actually have more money in the age 70-82 timeframe than the 60-82 timeframe because of the 36% penalty for early withdrawal and the 42% increase for delaying. If your age 65 benefit was $1365/mth your age 60 benefit is $874 and your age 70 benefit is $1,938. Cumulative payments age 60-82 equal $230,630 and cumulative payments age 70-82 equal to $279,115 an increase of 48,485 for age 70-82 payments. Go figure.

[@MM-xg2td]

@@DoneByDEh not really as your OAS will be impacted..at 60 the maximum is 770* 12 * 22 = 203 280 compared to 72 : 1937 * 12*10= 232 440 .....so you will earn around 28 000 but less OAS

[@RachelleCorr]

Hi Adam I love your program. You have convinced me that waiting to take my CPP until 70 is a great idea. I live in Ontario and wonder if you have any advice on how to find a reputable wealth adviser near me. What are the top three things I should be looking for?

[@acdatz6222]

Why not have Adam do it for you? He serves all of Canada.

[@RachelleCorr]

Hi Adam I love your program. You have convinced me that waiting to take my CPP until 70 is a great idea. I live in Ontario and wonder if you have any advice on how to find a reputable wealth adviser near me. What are the top three things I should be looking for?