CPP & OAS: When to start? | 2022 Canada Pension Plan

[@oscarc.3114]

Thanks for your information. This is the most clear and practical explanation I have watch in KZbin. Great help in my situation

[@pensionsolutionscanada]

Thanks Oscar. Let me know if you want to discuss your retirement. Cheers

[@Robboa1]

Hmmm, but if I take the CPP at 65, then I will have received 5 x $15,000 by the time I’m 70 (i.e., $75,000). If I wait until 70, the I receive $5,000/year more, but it will take me 15 years to get the equal amount. I have some room in my RRSP, and a private pension plan and so can invest in my RRSP, and so get at tax break as well. Can do the same with OAS (but just put it into TFSAs). Anyhow, the situation isn’t so cut and dry.

[@DC-nj8kv]

You're right about that. But you've got factor in tax efficienty too. If you're drawing from a pension, and your RRSP, you could suffer claw back of your CPP (especially when it becomes a riff. Could be better to take CCP at 70, melting down the RRSP up to that point. It is a complex equation and different for everyone.

[@view23015]

In these plans I would most often recommend that client keep some life insurance to offset early deaths with these plans. For some I’ve suggested coverage to stay until age 75-85 range . That way if someone dies early you are covering off that lost income , as well as delayed CPP . I plan on delaying mine , thus I have a term policy to cover this to nearly age 80. Just a thought .

[@parkerbohnn]

Life insurance is for suckers. If you're worth enough money your heirs will realize that you always lose by taking out insurance of any type.

[@JasonGaudet01]

thank you for this easy and understandable explaination

[@pensionsolutionscanada]

Glad to hear. Cheers

[@AaronWealthManagement]

Great explanation of CPP/OAS and sound advice about when to start taking CPP/OAS. Of course, I'd add one note, Longevity. If you have a history of early death then taking CPP early is the obvious, otherwise good direction from this video.

[@pensionsolutionscanada]

Thanks Aaron. I'd say, if you live, you'll be happy to have that extra dough. But if you die, you won't miss it. Cheers

[@James_48]

Hopefully I don't have a history of early death......lol

[@pensionsolutionscanada]

You are correct. The amounts collected equal out at about age 80. so, when you are > 80, can't work, dying of inflation, would you rather have more income or less?

[@grantdavidson1926]

Great explanation. Thank you

[@James_48]

It’s astounding to me how many comment to take it right away as opposed to ensuring a higher, indexed payment. Sure, if you need the money to live, by all means go ahead but you are giving up a boat load of money. It’s best to work with a planner to truly understand the best decumulation plan that maximizes indexed pension and OAS. Great advice here.

[@pensionsolutionscanada]

Thank you James. Another video in the pipe re final year contribution, I.e. at age 71. Two strategies. My question to all: why take unused RRSP room into retirement? Cheers

[@James_48]

@@pensionsolutionscanada I have a few reasons, some of which may apply to me. 1) I have significant capital gains in my non-registered accounts that i will take into retirement and I might use available RSP room to offset the taxes in the year(s) I sell. 2) I might own a rental property, also with significant gains, and I no longer want to be a landlord after retirement. Having some RSP room can help mitigate those taxes. 3) There could be an income splitting opportunity that I want to leverage by using that room to contribute to a spousal RSP. Lots of variables there of course, but it's another reason. To me, it boils down to if there is the potential for a significant tax liability after retirement that can be mitigated with RSP room. Of course, it must be factored in if that available room can be used more efficiently by using it sooner.

[@pensionsolutionscanada]

Hi James. May I invite you to book a 15 minute chat with me. No obligation, just better communication. Go to website. Watch for the pop up. I'm happy to speak with you. Cheers

[@AnthonyYoung-n7b]

Hi,I am in a unique situation,my wife is collecting cpp oas and me,being 17 years her junior and working a union job for 30 years with a good pension. Any advice is greatly appreciated.thanks for a informative pod.

[@pensionsolutionscanada]

How can I help you?

[@FlorentGulliver]

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family...

[@EmilyEvelyn-90]

I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks...

[@FlorentGulliver]

@@EmilyEvelyn-90 Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. *MARGARET MOLLI ALVEY* ..

[@EmilyEvelyn-90]

@@FlorentGulliver Oh please I’d love that. Thanks!

[@FlorentGulliver]

*MARGARET MOLLI ALVEY*

[@FlorentGulliver]

Lookup with her name on the webpage.

[@mikefarhat6461]

straight forward , thanks

[@pensionsolutionscanada]

Cheers

[@jansupronowicz1300]

How are CPP benefits adjusted for inflation?

[@pensionsolutionscanada]

Sorry for the slow reply. Both CPP & OAS are increased with CPI. CPP annually. OAS quarterly. Look at our website for other comments. Cheers

[@billyrock8305]

A boring yet excellent and practical presentation. Thank you!

[@pensionsolutionscanada]

Yup. Boring but important . Government guaranteed, inflation protected income. Stay safe. Cheers

[@billyrock8305]

@@pensionsolutionscanada 10-4 PSC 💰 ⬆️

[@garth217]

Don't wait. You don't know how long you will live. At 60 start taking the minimum out of your RRSP ( 5000 at 10% tax) run that for 5 years..remember the more you take out of your RRSP the higher the withholding tax.. if you can flip that 4500 after tax money and fund your yearly contribution to TFSA. At 65 take your CPP. This video doesn't say anything about OAS clawback. To say at 70 you and your spouse will get 60 k of indexed income, because that's just not true. Between 60 and 65 you will have the best health and the most money you have to enjoy. You cant take it with you

[@pensionsolutionscanada]

Thanks Scott. Two things. First of all, thanks. I neglected to point out the OAS clawback which starts around $80k. Most Canadians are not in that bracket. 2nd, I am correct. A couple delaying both CPP & OAS can receive $60k. Have a look at the math. Finally, if you die, you're dead. I'm concerned with advising the living. Thanks

[@garth217]

@@pensionsolutionscanada $60,000 a year if you delay taking the CPP and OAS, until 70 is mathematically possible , but as you say, MOST canadians can't afford to wait until 70...if they don't have an income level that would initiate an OAS clawback. You're concerned about advising the living? I'm interested in sound advice. Thanks

[@jjlad5037]

Retired at 55 with $1-Mil in my RRSP. Starting drawing down at $100K a year. At 65 my CCP/OAS kicks in. RRSP should be fully depleted by then (more or less). From 65+ my non-reg investments form my income.

[@pensionsolutionscanada]

Congrats

[@NN-gw7qc]

Where are you located?

[@pensionsolutionscanada]

Ontario, Dundas

[@krikoralexanian1593]

Good morning sir. My name is Krikor Alexanian. I have been leaving abroad for about 10years. On Oct. I will be 65years old. I would like to know if your company is able to apply for my retirement pantion plan of course for a fee. Because it is very hard for me to travel to Canada. I am leaving in Philpen. I will be waiting for a reply thanks. Hoping to hear from you soon.

[@pensionsolutionscanada]

No. Sorry. You have to contact Cdn gov directly.

[@robertross8565]

What are you doing personally? Taking CPP at 70 and OAS at 65?

[@pensionsolutionscanada]

I made a mistake. i took CPP early. I'm waiting on OAS due to clawback.

[@johnmitilias3063]

What do you charge?🙂

[@pensionsolutionscanada]

Sorry for the delay. Lost in the volume. I invite you to go to our website. Book a 15 minute talk. Free.

[@pensionsolutionscanada]

sorry, i missed your question. No charge 15 minute chat. go to website to book a time slot. Cheers

[@pedroadriano9183]

That's peanuts

[@pensionsolutionscanada]

$30k a year plus your spouse at age 70. Not too shabby.