A Solid 33 Minutes of CPP Knowledge Every Canadian Should Know

[@Richard-ht1qk]

Invaluable information. Required listening/viewing for every 55 year old Canadian.

[@ParallelWealth]

Thanks

[@DavidRedpath-s7v]

I would say required for every Canadian starting work.

[@davecarpenter4917]

@@DavidRedpath-s7v A booklet from the govt when you're starting out at 19 or such ? Ya, thats going in the garbage can for most people I think. Maybe a mandatory board in public spot in each workplace ? That would perhaps get people talking about it once in a blue moon. I know I had absolutely nil interest in it when I was 22 when I started. I was looking at paydays, maybe even grumbling about this CPP contribution thing. I rode the lucky carpet to the far end. My own (blue collar good money) kid is much smarter, he already is focused on retirement investing. Maybe there's still hope for this generation.

[@DavidRedpath-s7v]

@ agreed a booklet is going to get chucked. Unless you seek it out yourself, no body tells you how it works.

[@James_48]

The PWL site is extremely empowering and really does a great job of removing the guess work for near retirees. 2-3 years to go Adam!

[@dominiquetheeasyminimalist]

This calculator is amazing, thank you so much for sharing it! It's eye opening, and it can change drastically when you decrease or increase the life expectancy.

[@moehashmi]

Thank you for this

[@ronwiebe4816]

Very well laid out - So many people need this

[@ParallelWealth]

Thanks Ron. Merry Christmas to you and the family.

[@RajSingh-ns6bc]

Great video, as always.

[@Joe-hl4xi]

Thx ur visual graft is much easier to see

[@SummitMan165]

Very good stuff ! Excellent épisode ! Thanks for your good works !

[@ParallelWealth]

Our pleasure!

[@jrock1724]

HEY, I'm a fairly long way away from retirement. But i love these videos. So much information on your channel!

[@ParallelWealth]

Glad you like them!

[@ns123]

Great informational video, thank you

[@SlickSydney]

Very informative. I found you at the perfect time. This is the year I make all these decisions. Thank you.

[@OptimisticHominid]

Adam, at 6:38 you say "when we look at the difference between CPP at 60 and 65 it was around $2,500 a month". I think you meant $2,500 a year, and I think that's the difference between 60 and 70.

[@nickstark8479]

Everyone's numbers will be different... But generally, receiving at 60, 65 and 70 would net you 64%, 100% and 142% of your potential CPP payments. So waiting until 65 is a 1.56X increase while waiting to 70 is a 2.22x increase compared to receiving at 60. Meaning a difference between 60 and 70 being 2500 per year is unlikely, since receiving $2000 vs $4500 per year respectively is well bellow the average yearly payments.

[@garth217]

​@nickstark8479 he was making a point that Adam misspoke. Most people knew that

[@DoneByD]

@@nickstark8479 The $2,547 a year difference is the total amount of real dollars extra per year you get by deferring to age 70. You get this higher total annual real dollar retirement income amount by using your savings at a higher rate earlier in life and then also getting a higher CPP benefit later in life relying less on your retirement savings at that time. It's an increase in real dollar annual spend for your entire retirement period to RIP date (in this case from age 60 - 90).

[@markjustinthompson]

Great segment. Very helpful. I took a look at the CPP calculator. The results must be in real dollars as the benefits are constant over time. Do you know if they are presented in current dollars (2025) or in real dollars in the year our benefits start? For those of us considerably younger than 70 this can make a big difference.

[@andreagraham296]

Love all the Videos, thank you so much!

[@ParallelWealth]

You are so welcome!

[@KLumley]

pretty excited to learn about the calculator as we're struggling with our decision to take cpp early or not, given retirement at 55. Unfortunately, the calculator wouldn't work for us on our MacBook. It kept re-setting and was very frustrating. Hopefully it works for others!

[@jimcunningham61]

I took it at 60 so I could retire at 63. My parents both died in there early 60 s , I just want to enjoy my last 10 years of life

[@wrongwayconway]

I took my at 62 and continued to work until I retired at 63. Most of my family make it to 75(max) and the other side makes it beyond 85. I used the CPP calculator on the myservice Canada website and I have a defined pension (thank goodness). No regrets, I've done most of my bucket list travels and what's left is to revisit some of my fav spots in the future.

[@FeydHarkon666]

We love you man, Happy New Year

[@ParallelWealth]

Happy new year! And many thanks.

[@AbbeyRoad1962]

very useful video. Thanks

[@ParallelWealth]

Glad it was helpful!

[@AbbeyRoad1962]

@@ParallelWealth Now I know approximatley what my CPP will

[@JakeNorth24]

Could you please do an updated video about OAS and GIS? How to qualify and when to begin collecting. Are these sustainable or are they dependent upon the current political environment at that time? Much appreciated Adam and team! 😊

[@lw1405]

Did you not listen to his video in full? At 15:20 he talks about sustainability-- oops....apologies to the poster I replied to. Clearly I wasn't paying attention to what he was asking!

[@brianxyz]

@@lw1405 Video deals with CPP not OAS and GIS.

[@JakeNorth24]

@@brianxyz Thank you!😊

[@lw1405]

@@brianxyz Thanks for that Brian-I edited my reply.

[@heidilevens6284]

Great presentation on CPP. Do you know if it’s possible to pay “make up years” if some years were missed? Thank you!

[@James_48]

It is not possible to purchase or otherwise make up for years of no CPP contributions

[@heidilevens6284]

@ thank you for responding. Good to know.

[@ParallelWealth]

No you cant

[@heidilevens6284]

@@ParallelWealth Thank you! 🙏

[@RobSnow-ui4sz]

Good video for sure- Still not answered is how accurate is what you see when you log into and see what you will get for CPP? Are those numbers accurate or NOT when you are 65 already?

[@vhateverlie]

Any chance you'll have a comprehensive video on the CPP2 for those of us going to retire in 30 years 😅

[@ParallelWealth]

Coming soon

[@bboyda4399]

What if you retire at 55? Extra info. Receiving private pension with bridging and have enough rrsp to cover 65 to 70.

[@nickwade9467]

Thanks Adam! In a this video you did not touch on the CPP enhancement program, I would like to peak behind the curtains to see how PWL incorporated this into the future dollars. From the video I believe you used an inflation rate of 2.5% assuming that the calculator indexes the benefit at that rate over the duration CPP is paid out. I am a hybrid born in 1980, so 1st half my career before the CPP enhancement and 2nd half of my career full participation. Question: How do we estimate the CPP enhancement benefit into the calculation? If I added an extra $500/year to my RRSP I can calculate the future benefit, how to we overlay that principle with CPP? I am not relying or planning on the CPP enhancement to change my retirement plans, but I would like to know how the government intends to enhance the benefit in future dollars. Right now it seems to be a big mystery, should I lower my expectations of the CPP benefit? Thanks again for the video, keep up the great work!

[@grantwatkins2898]

When delaying to 70, do you apply to start as of the 70th birthday month? Or, the month after, which is the payout date?

[@ParallelWealth]

You could start either, but usually month after

[@mikellock]

I really enjoy your videos… I’m 52 and left Canada at 40 for the USA. I’m now starting to look ahead and your videos are helpful to at least point me in the direction of questions to ask. Does Parallel Wealth help with people like me who have retirement saving in Canada, but have “new” lives in the USA?

[@ParallelWealth]

We would recommend a US based advisor if you plan to retire there.

[@MorzhSD]

Try retire mitten he has some videos on transborder situations

[@AdamCampbell-pv5fk]

Great video thanks. My wife has been running a home daycare for 15 years and mostly likely will continue until we retire for another 20 years. She has paid into CPP but not a lot. I expect she will get little. I have been maxing my CPP out during this time and expect to keep maxing until I retire in 20 years. This will be a big part of our income when we retire. If I die before her. She does not get collect my CPP monthly payment?

[@meredithkerrigan5395]

/forced to take it. Life dealt some challenges. Have tons of RRSP room yet waiting for abundance in what I want to help other with and money to manifest.

[@dantremblay3180]

Love the Channel Adam, i've learned so much. I was just curious, I have been paying the maximum CPP for a number of years now and as of last year, started CPP2 the full amount. I have 9 years left to work of which I will be paying the maximum CPP and CPP2. Will CPP2 make that much of a difference? Do those who pay CPP2 get more? Thanks,

[@ParallelWealth]

Yes it will boost the final payout

[@bkgdnoize111]

Would have liked some info about cpp credit splitting for divorcees and how can we reflect split credits in the cpp calculator?

[@ParallelWealth]

Current calc doesn't have it built in yet.

[@nadmak9093]

I have been on disability since 2016... and hence have not contributed. Does that mean I will have a huge penalty come age 65 when my CPP disability ends? I was contributing the max for 17 years before getting ill. Or will my CPP benefits be roughly the same I am getting right now?

[@katethegardener]

Good question, I would like to know this too.

[@rabbiddog]

Fundamentally, they can not penalize you for not contributing during your disability because you couldn't work. That would be discrimination based on disability.

[@James_48]

The PWL calculator will utilize disability periods (that can be configured) to do the calculation.

[@moehashmi]

Your CPP eligibility will be based on the total contributions you made until you stopped contributing, the estimates will be on service canada website for example how much you will be eligible for at 65. If for example you were receiving 1000 a month in disability you will get that until 65 , and if your normal CPP was less let’s 900 then at 65 you will get 900. And vice versa let’s say your normal CPP is 1100 then you get 1100. CPP disability is what you can get until 65. I hope this helps

[@OptimisticHominid]

My personal preference is to look at money in today's value. That way, I have a better idea of what I'm truly gaining. My spreadsheet tells me that if I delay CPP from age 62 to age 70 (with 2.5% inflation and a 6.43% portfolio gain), our estate at age 90 will be $86,231 higher. However, if I adjust to today's value, it's just $43,436. There is an added twist because I use a dynamic portfolio gain: the early CPP payments allow me to have a slightly more aggressive portfolio (the fixed income is set at what I need, not at a percentage). The end result is that delaying CPP from age 62 to age 70 increases our estate value by $32,312 at age 90. So, that's how much I'm playing with when trying to decide when to start. Note: I have many non-contributory years, I'm also on the boundary of the next tax bracket up, a higher CPP will bleed into that higher tax bracket vs drawing from my TFSA. A higher CPP also reduces the Age Amount tax credits.

[@ParallelWealth]

100% agree. Always inflate, but look at nominal dollars

[@wrongwayconway]

I had a few very LOW income years but when I took my CPP at 62 and continued to another year my CPP increased $100/month. I look forward to seeing what my inrease will be in the second quarter of 2025.

[@davecarpenter4917]

Thats an interesting situation. So you started drawing CPP and continued working. Since you were still under 65, it was mandatory to keep putting into CPP but they go into the PRB (Post Retirement Benefit) part of CPP. The extra $100 a month cant be explained only by CPI increases.. that would only be something like $25/month (11,500 x .0265)/12 . I have no idea how exactly the PRB grows... was that what cause the $100/mo ? Seems kinda high. That would make one think that they used your year worked into recalculating the original CPP ??? Or.. some combination of the aboves ? I'll be in a similar situation in about a year, so I'd love to hear someone's take on this.

[@triciamtl]

How about some QPP posts?

[@ParallelWealth]

Very much the same. We cover the differences between in most videos.

[@wrongwayconway]

I worked in Quebec for 10yrs and in Ontario for 30yrs. When I wrote to Quebec asking about QPP they replied "it will all be in your CPP."

[@RobbieSolo]

How do this stack up against the QPP ? Where do the similarities start and end ?

[@jolenethiessen118]

Do you know if fostering children is included in the child raising years?

[@JOSEPHJRTORCHIA]

Hello, what happens to my CPP contributions if I decide to become a non-resident?

[@MrGav777]

In your calculations around starting CPP at 60,65 or 70 do you assume that the individual continues to work during those years, and make contributions??? I don't see where this is explicitly states and would drastically effect the decision making and numbers

[@teenidol18]

Might skip this one. Can you talk about OAS? Would be really valuable to have information on that.

[@ParallelWealth]

Many videos on OAS ..and many more to come!

[@koraytugay]

if you do max contributions for 15 years how much can you expect to get at 65?

[@davecarpenter4917]

15/39 would be 38% of max CPP, or about $525/mo. If you had some years of disability or child rearing, it would be better.

[@koraytugay]

@davecarpenter4917 Thank you.

[@davecarpenter4917]

@@koraytugay Please note that I am not an expert. That was just , as they say.. a back of the napkin calculation.

[@phil6926]

I’m not sure how any other calculator would be more accurate than Service Canadas. It gives your benefits at 60, 65, and 70 based on their record or your contributions. Am I missing something? Please let me know.

[@davecarpenter4917]

Service Canada does some assumptions into the future that you cant change. With the PWL calculator, you can specify future income . Also, the PWL lets you make a scenario where you start CPP (at say 60) and then continue working (starts to add PRB funds into CPP). You can also adjust CPI and wage growth (which affects YMPE, which affects how much CPP you get when you start CPP).

[@James_48]

In addition to what Dave said, if one stayed at home to care for children there are additional drop out years that get considered. The PWL calendar has a tool to configure this. Service Canada does not consider this when posting the amounts.

[@Backtoreality1873]

Service Canada has no idea about your personal situation. Kind of a theme with this government.

[@DoneByD]

@@James_48 the PWL calculator does let you put in dates for children however it doesn't let you share those years between the 2 parents. So the calculator CRDO provision is definitely useful in some case but certainly not all cases. In our case my wife would claim some of the CRDO years and I would claim others so this calculator does have limited use (unless I just didn't see the option to select only certain years for CRDO). Doug Runchey might be the best option in these cases still.

[@phil6926]

For our situation it’s not that complicated. We “retired” at 60 and have lived off savings/RRSP’s and my wife’s “bridge” pension since. Our only concern is when to start CPP and or OAS, I’m turning 65 in 2025

[@yvonnevandenberg7606]

Adam, first off all, thankyou for all your information. My husband and I both plan to wait until age 70 for CPP. However, I have one question. My benefit will only be 60% and my spouse 100%. If he were to pass early I would be bumped up to his age 65 amount; if i were to pass early, he would not receive a bump up as he is at the max. Would it be beneficial for me to take my CPP at 60 or 65 in this case? I have made some rudimentary spreadsheets that would still lean to both delaying to age 70. Please advise.

[@ParallelWealth]

Usually not. Worth having your planner run for you though

[@jimmyb6842]

Im sure the MAID service will get ya first

[@RichardSadlowski]

I retired in August can I still do fianacal planning

[@ParallelWealth]

Of course. Many hire us well into retirement. Never too late to pay less taxes!

[@MH-lk8md]

Wow, that’s a really slick tool. Too bad the page refreshes every two minutes, wiping out all of the custom data entered, rendering the tool useless. If they fix it, I’m looking forward to using it.

[@melaniewatt7803]

How does one appeal? My CPP is considerably lower than their own calculator.

[@master15951]

Register at Service canada they show how much at 60 next month and 65.

[@davecarpenter4917]

Even when you account for the tax they are withholding ?

[@bobbush5339]

I am 60 years old and start taking CPP. CRA pay me $680 each month and I put it in RRSP. I still work remote IT job and plan to work till age 75 years. My salary is $200K. Will my CPP will increase as I contribute to it? As I understand after age 65, my CPP deduction will not be there. Is it true?

[@helentrotter8703]

I am 61, the average Canadian who does not earn the big bucks. I have no other liras or rrsp etc. my highest income has been 60,000 but I had a few years that I lived in Germany with my then military husband and stayed home with my kids till they were 5. I didn’t start a full time career till I was 29 because of this. I have worked full time since. What would I need for documentation for these circumstances and how do I calculate that now ?

[@catharineho8264]

if you only contributed for 10 years is it better to take it earlier/

[@lw1405]

Wow- I get three different numbers for taking CPP at 70 using the 3 calculators. On the CRA account, $1519, Doug's site, $2056 and PWC's site, $2372. I'll take Ben's calculations. But that's a very big swing. What do I believe?

[@murraytown4]

The only number that matters is that from the Government.

[@brianxyz]

@@murraytown4 That's not true. Service Canada's estimates are the worst as they assume what you've made in the past, on average, is what you'll make in the future which is not always true. PWL's figures are higher as they take inflation into consideration.

[@murraytown4]

@@brianxyz the Government is the one paying your CPP benefits, not some random company. It will pay according to its data. It’s like taxes. H&R block may prepare your taxes but CRA will tell you how much you have to pay or are refunded.

[@brianxyz]

@@murraytown4 Those are estimates on Service Canada's website. Doug Runchey worked for them for 30+ years and has written numerous times that those estimates are garbage useless you're very close to retirement.

[@James_48]

I think the PWC site takes projected wage inflation into account as well.

[@annashulman4717]

Will I get more $$ by taking CPP at 65 vs 60 if I retire at 60, therefore won't actually contribute for those 5 years? Are those 5 years into 7-8 non contributory years?

[@James_48]

Yes, the years from 60-65 will count as non-contributory years. But, in many cases, one will still benefit from deferring CPP beyond 60, all the way to 65 or later. This is especially true if one contributed the CPP maximum in the majority of their working years before age 60.

[@Backtoreality1873]

I’m retiring at 55 and the numbers don’t make sense to delay taking CPP. I’ll be calling it at 60.

[@KevinWitt-f6r]

Why do so many think they will live to or past 90??? Retire and take the cpp as soon as u can...

[@James_48]

@@KevinWitt-f6r ​​⁠ it’s not so much that I think I will live to 90, although both my 1930 born parents made it to 89, it’s that I’d rather transfer a significant amount of risk from me to our guaranteed, inflation indexed social programs. I cannot guarantee that my investments will deliver that return - no one can. Many admire defined benefit pension plans for their longevity and inflation protected income but when we get the chance to secure a better pension for ourselves we don’t take it. It’s very strange to me.

[@nataschawitt3088]

@@James_48 My dad is 91 and mom lived to 88 . It is a great pension...but when we melt down Our rrsp s and rely solely on cpp and oas for couples who are both at maximum benefit, when one spouse passes the income is cut to 50 % . ...and I am not sure why they advise to melt down rrsp because thats how they generate income

[@johnwillock6787]

One thing I never see it, is that if the calculation of inflation is 2.5 percent you need to take that into consideration in the overall numbers in the timing. The actual growth in truth would just be 4.5 percent correct? Of course it’s only one number in the total calculation.

[@James_48]

When deferring CPP past age 65 you not only get the 7.2% boost, but also the increase in wage inflation - so you get both increases.

[@DoneByD]

⁠​⁠@@James_48 a correction and clarification --- deferring past age 65 gets you a 8.4% bump (actually 0.7%/mth) along with the wage inflation. That being said you only get the wage inflation bump if you wait until Jan of the next year as YMPE isn't adjusted till that point.

[@James_48]

@@DoneByD You're quite right my mistake - it is indeed 8.4% / year. And yes, if you take CPP mid-year you will receive the CPI increase the following year, as opposed to the wage inflation increase (as it pertains to the future calculation).

[@roberttaylor3594]

Hard to imagine I'll be taking CPP before 65, but probably not 70

[@JeanVeuPu]

If i understand good , i am 66 still working , expecting to work until 70 , i still paying CPP and maximize contribution each year until 70 i ´d pay maximum for 39 years , i better stop paying because i will not get more $ from it ? And should i began to collect CPP or wait until 70 when i retired ?

[@YvonBolduc_Tip007]

Yes, only for 39 years @ max contribution.

[@ddavidson5]

As I understand it once you are past age 65 and still working you don't have to keep paying into CPP if you don't want to. As far as I know you don't have to start your CPP then, you can still defer which, if you are still working, is probably a good idea but you'd have to run the numbers. If by age 65 you already have your 39 years at maximum CPP contributions then there's no reason to keep on contributing even if you are still working.

[@Roof_Pizza]

My understanding is that you can delay taking CPP and collect GIS if applicable, is this true?

[@ParallelWealth]

GIS is tied to OAS. So yes, you could delat CPP and collect GIS if eligible.

[@Roof_Pizza]

@@ParallelWealth Thanks for confirming for me.

[@donovjo]

If I retire at 65 but delay my CPP to 70 do I pay into CPP between 65-70? I’m currently self employed

[@DoneByD]

You can opt out at age 65 or if you have too many zero years between 18-65 affecting the included 39 years in the calc you could pay into the CPP and be able to wipe out some of those other lower years to get a higher lifetime contribution rate for 39 years therefore a higher benefit.

[@donovjo]

@@DoneByD great thanks

[@ramspace]

Hi Adam, Please mention that QPP can be delayed until 72.

[@pablopiquante3227]

How long we live is really the wild card in the planning process. I thought mortality tables had average lifespan guesses of about 82, not 90. Also, what about factors in our current lifestyle that reduce our lifespans like stress, unhealthy relationships, unnatural chemicals in our food, air, and body (those we take voluntarily and those coerced upon us by the government). Unless we can invert those factors, we may not even make it to 82! And when do we really need the money and are going to use it? If we take care of ourselves and are lucky enough to still be living in our 80's, not just alive, we will be in our slow-go/no-go years. Will we actually get to enjoy our CPP or will it just go to our bank accounts, taxes and our heirs? Everyone has a different situation so please make a decision with as much information as possible.

[@johnnyv5995]

100% agree. Waiting until 65-70 to have an extra $200/month while emptying your own 'bank account' makes no sense to me - especially when you consider that once you pass away your spouse gets next to nothing from your CPP. In my case taking it at 60 will allow me to finance my travels while I'm still hopefully healthy & able.

[@OptimisticHominid]

"those coerced upon us by the government" That's funny!

[@dvdvno]

Very good real life analysis.

[@svenhodaka9145]

Exactly, retirement financial planning is not an exact science! The challenge is creating an equation to solve for about 25 (or more) variables. Just be reasonable about your choices and best wishes to you.😁

[@ParallelWealth]

Life expectancy for a 60-65 in North America is late 80s. If you are a couple there is better than 50% chance one lives in 90s

[@jameserskine9980]

The required return at 60 is 11%. 64% × 1364 = 873, 7.2% × 1364 = 97, 97 ÷ 873 = 11%. Each year delayed decreases the percentage return because the denominator increases by $97. Take early to invest debunked, mostly.

[@gmac2249]

if I die before i collect CPP what does my spouse get?

[@dragonfly1146]

Survivors Pension, Death Benefit (1 time only) Google it

[@James_48]

Yes, your spouse would receive a spousal benefit based on your contribution history.

[@APICSKH]

@@James_48Yes it is 60% of what one’s spouse would get at 65, up to the maximum CPP for single person.

[@sunysuny3030]

Everything is good if you live to 90! Not everyone’ luck.

[@OptimisticHominid]

Adam, in the example, I can see that inflation is 2% and portfolio gain is 5%, but what is the target estate value at age 90? Thanks

[@kajjebre]

WHY don't you do CPP amount for people who worked for minimum wage all their lives so we know what is worse case scenario?

[@ParallelWealth]

That's why we mention the calculator. You can put all your data in to get your number.

[@kajjebre]

@ParallelWealth i dont understand the logic. Everything is click bate. Giving max amounts to lure people in. But 90% don't qualify... so you are doing videos for 10 % of population. Ty

[@ParallelWealth]

@kajjebre we do videos in all scenarios. And then supporting resources for your specific scenario. This video is designed for every person that has made at least one payment to CPP regardless of income.

[@MegsCarpentry-lovedogs]

Well, I received a letter that stated that I was dead as of Sept, 2024! I called and it was to be sorted however it is not. How could they confirm that I was dead? There was no death certificate in sight. Just the heads up in case anyone else had this issue. :) Meg, chiming in East Canada.

[@OptimisticHominid]

"I received a letter that stated that I was dead as of Sept, 2024!" Well done, you're living proof of life after death!

[@DoneByD]

What was the impetus for the letter being sent? Did you apply for a benefit and that was the response? Trying to figure out why a letter would be sent if they believed that person was dead ☠️. 🤷‍♂️

[@dirtdevil70]

Guessing someone at CRA incorrectly entered an actually deceased persons SIN somewhere in the system

[@Montrealmum]

Wish someone could do this for the QPP😢

[@dominiquetheeasyminimalist]

It's similar overall, and the calculator can be used for QPP

[@fredhooshi4294]

can hardly manage my daily expenses

[@garth217]

Things to think about timing of CPP OAS clawback Having to live off your RRSP and being left with little or none of your own money at 70 Delay means you have little or none RRSPs to pass to a surviving spouse. CPP survivors benefit is a small fraction of your CPP and is based on the amount at age 65 not what you get at 70 if you Delay. I took CPP at 61 because I retired the first time at 54..non contribution years kicked in. Im putting my CPP into my TFSA and high interest savings account.

[@ParallelWealth]

This is the biggest decision you will make around CPP - financial versus emotional. As long as your plan still allows you to meet financial needs and goals then all good. Too many take it early and can't enjoy retirement financially the way they could have.

[@garth217]

​@ParallelWealth delaying CPP works for many people because as you say its guaranteed money indexed to inflation. Im lucky to have a pension that does the same. I can't aggressively meltdown my RRSPs because of taxes then OAS clawback. My RRSP withdrawals will last until 85 or more if i based my withdrawals on the additional income i would have got if i delay my CPP until 70...but im getting that money NOW , why wait 9 years ? That extra money in my TFSA sounds better to me. That pushes my breakeven point to 79 and ill still have 15 years worth of RRSPs left. Thanks for keeping us informed and up to date.

[@richardmichael59]

Your math has me confused. Comparing from age 60 to age 70 your increase in CPP should be 79% . How does that only amount to an increase of $200 a month? If he is getting $9000 a year at 60, with the percentage of increases yearly if he waits he would receive $16,100 a year at 70. That’s $591 more a month. Once again I am confused on your calculations. What am I missing?

[@James_48]

It isn’t a 79% difference. If say, you would receive $1,000 / month at 65 you would receive $640 (36% less) at age 60. If you defer to age 70, instead of $1,000 you would receive 42% more, or $1,420. $1,420 is about 120% more than $640.

[@garth217]

​@James_48 if you win the lottery, what percentage is that?

[@DoneByD]

The $2,547 a year difference is the total amount of real dollars extra per year you get by deferring to age 70. You get this higher total annual real dollar retirement income amount by using your savings at a higher rate earlier in life and then also getting a higher CPP benefit later in life relying less on your retirement savings at that time. It's an increase in real dollar annual spend for your entire retirement period to RIP date (in this case from age 60 - 90).

[@xgmbx3468]

ROI for watching this type of content has exponential returns. Yet no one has enough patience or attention span to do it. 🤷

[@ParallelWealth]

Average watch time currently 6-7 mins. Missing a LOT of great free education.

[@xgmbx3468]

@ParallelWealth I'm 42 and I would be hard pressed to find even 5 people that would actually listen to even 5 minutes of this video. Financial planning has never been more important but people think we can still just exchange time for money forever. Not good.

[@APICSKH]

I watch his videos for the full length.

[@claudia-vp1kd]

Can you do one for immigrants? I came here and just working 20 years, do I still have those years deducted, even if my kids were Born before I emigrated here? Thank you

[@annashulman4717]

Second that. I am an immigrant too, only working from 2007. My future numbers of CPP аnd OAS will be so small it's depressing. My RRSP and TFSA are minimal. I couldn't save more, we had to support our children as a first priority. I have to downsize to at least to get rid of mortgage, but my retirement concers me.

[@APICSKH]

@@annashulman4717, you will more likely qualify for GIS, open a service Canada account and run your numbers, tat will give you a rough Idea of benefits you can collect.

[@APICSKH]

Answer to your question is no. Time is calculated from the year you migrated or became a permanent resident.

[@AdriL-b7i]

Yes you get back what you contributed. Most of us Canadians born here and started contributing at 18 yr old first jobs contributed very little because we started out with low paying jobs and could not contribute to RRSP because of raising families. TfSA is a newer retirement plan and is geared to weather who can find an extra 7 grand a year!!! Immigrants may be able to apply to their birth counties for partial pensions.

[@annashulman4717]

@AdriL-b7i regarding pensions unfortunately it's not true for most countries. For me Canada is a 2nd immigration. The last country I worked is not paying any pension, unless a person is actually living there. I know some immigrants go back to their country for retirement, at least if those countries are inexpensive in terms of living cost. That's not our case, we plan to retire in Canada with all pros and cons, so I am collecting information.

[@ReneBold]

CPP? I stopped paying CPP few years ago. Im investing it privately.

[@kc218]

CPP for immigrants to Canada would be interesting…. There are a lot of us!

[@jillybean6604]

trying working in canada for 40 years and then ask again.

[@murraytown4]

CPP is for all Canadians, regardless of origins.

[@DoneByD]

Should have watched the video - CPP is for anyone as long as you've made at least one contribution to the plan...

[@heidilevens6284]

It’s a good question. I came to Canada 17 years ago. It would be interesting to know if it’s possible to pay make up years. I have paid in to other countries systems, so that will add on at retirement too.

[@DoReMeaCulpa]

​@@heidilevens6284No, you cannot pay "make up years". Geez, especially since you say you have pensions from other countries, don't be so greedy.

[@Backtoreality1873]

Retiring early in your early mid fifties? You’ll be taking your CPP at 60 if you’ve done the math.

[@ParallelWealth]

If you have done the math, likely not. We do plans for this scenario weekly and would rarely make sense financially. More of an emotional decision if taking early.

[@DoneByD]

Sorry disagree... The CPP timing decision isn't just about the math, it's how the decision fits into your overall financial plan as well as the way you value whatever it is you want to get out of CPP and your retirement... The math, as Adam and many others, have demonstrated generally pays off to wait to 70 if you are expecting to live past 85ish. This of course means you are measuring the total cumulative lifetime benefit received as your most important goal. There are good reasons to take CPP earlier than 65 and there are good reasons to delay to 70. It's just depends upon how those reasons resonate with you and which ones fit best to your overall situation.

[@RajSingh-ns6bc]

One question no one answers. Does the CPP payout increase if someone contributes more than 39 maximum years? For example. 1986 age 18 to 2025 at age 57 someone contributes the maximum amount into CPP every year for 39 years. If they work any additional years past 39 and contribute more maximum years.

[@YvonBolduc_Tip007]

Only the best 39 years, if more years @ max contribution, no change since you have achieved the max payout

[@RajSingh-ns6bc]

Thank you. That was my understanding also. I will have to run a few different scenarios through the CPP calculator.

[@RajSingh-ns6bc]

Are the 8 dropout years mandatory? What if someone has 13 partial years and 34 maximum years. With 8 dropout years that still leaves 5 partial years. Can some of the 8 dropout contributions top up the 5 partial years remaining to achieve 39 maximum years?

[@James_48]

⁠@@RajSingh-ns6bc No, it doesn’t work that way. The dropout years will be the years with the least amount of CPP contributions, including whole or partial years when one did not work, or worked part time.

[@RajSingh-ns6bc]

Thank you. After doing some research, I found that out. I used the CPP calculator with my particular contribution scenario and have come to the conclusion that even if I work to 65 and and have maximum contributions moving forward which I will, I will be $45/month short of my possible maximum if I had 39 years of maximum at age 65.

[@DoneByD]

When comparing lifetime cumulative increased CPP benefit why does that amount always reflect the nominal dollar amount? Your example states increased income in real dollars for delaying goes up by $2,547/year if you wait till 70 to start CPP. So a person will be collecting the $2,547 in real dollar terms for 30 years (Age 60 - 90) the lifetime cumulative dollar effect of delaying for 10 years (age 60 to age 70) is really $76,410 (in real dollar purchasing power terms). By changing to nominal dollars I believe the example artificially inflates the cumulative lifetime dollar amount benefit because a user is thinking in real dollar terms (todays dollars) yet the $119,000 (nominal dollars) can only buy goods or services in todays dollars to the $76,410 point over the next 30 years. Because of this, I feel the $119,000 figure is really irrelevant in the discussion. Am I missing something?

[@OptimisticHominid]

No you're not missing anything. It's my view too that we should be looking at the value in today's dollars. See my comment about 6 hours after yours.

[@angelocardoc]

Most people die after age 55. I'm retiring early and spending my kids inheritance. FTS working like a slave.

[@GoodTimeCatchers]

7% is a pretty easy yearly gain. And it’s then ensured you’ve gotten your money vs potentially dieing and getting nothing before age 70.

[@ParallelWealth]

But 7% would leave you far behind delaying CPP. We have another video showing the break even is closer to 13%

[@phoreal22]

I don't understand the break even point comment, why wouldn't you want to know when you'd get your money that you've invested. How would your other retirement investment influence your cop returns? I think it normal to want to get your value back. I can understand that shouldn't be the only decision factor.

[@CGB65]

Your videos are useless. Too much detail and not explained in an organized manner . I would never pick this form for financial advice.