Video

Thanks Rhys!

QUESTION: OAS, for those people, like myself, that has no other pension income, and waiting to age 70 to collect both OAP and CPP, is the BENEFIT of waiting to age 70 a fallacy, when one can do a top up with OAS? EDIT: I will also add, I may have substantial investment income at age 70, so the OAS would be a moot point for me.

Thank you for explaining this so thoroughly. Now following for more :)

Well…currently in the go go go phase of our retirement. Have been in Spain for a month. Leaving next week for Portugal…also a month. Then on to Switzerland for the same. Have to leave Europe after that (stupid 90 day Schengen Zone rules) and haven’t decided where we’re going but England for September and Montenegro/Albania/Turkey October/November sounds good. Christmas in the Philippines and then January in Thailand and February in Vietnam. We met a Kiwi couple doing something similar to us and they invited us to NZ for March and I think we’ll take them up on it. Maybe head home in April to check up on our kids and check in with our friends. Wife is already saying she doesn’t want to stay home too long as we won’t have seen Morocco or Kenya or Italy or Greece or Sri Lanka or Argentina or Cambodia or… The funny thing is I was the one pushing for the World travel but she told me the other day that she’s having the time of her life. I’ve created a monster. 😂

My question is lets say you live to the age of 80, If you start taking the CPP at age 60 how much have you taken by the age of 80? Same thing with taking it at the age of 65, to the age of 80? And if you start at the age of 70 to the age of 80? So pick a nice average rate that you would take at 65 and do the decease for early take out and do the inverse with the overage at the age 70. Would you get more by doing a early decreased rate for a longer term or the age 65 or 70? Thank You Don

Good stuff. Interesting. But I’d like to see you fight the Parallel Wealth guy. Fight until one of you taps out. Like, a full on screaming hair pulling shrieking schoolyard fight. Only then will we know when is really the best time to take your CPP.

If you leave Canada, CPP wont increase with inflation depending on the country you go to.

The main reasons I can retire about 12 yrs earlier than most are due to life choices - no ownership of anything (therefore no debt), no brats, no vehicle, good $$ saver, happily single. If you had kids in the last 30 yrs - you are screwed. Have fun working til you're 70. Sounds like fun.

Canada Peanuts Plan...

Hi. Your numbers? Before or after taxes? Thank you

It would be interesting to see at what age people who retire at age 60 or earlier are taking their CPP? I wonder if the spike at age 65 is due to people who don't retire until age 65.

Lol start melting down traps 2 years ago. But have more in it now than when I started

The catch 22 to waiting until 70 to take CPP for me is that it would mean I'd have to work to 70. Defeats the purpose, if retirement is the focus. I suppose if you can retire and not need your CPP until 70, that would be a good option. As for me, I need my CPP when I retire, and I don't want to wait to 70. There can be a big difference in health between 65 and 70, and I think it's a mistake to assume your health will not decline at all during those five years. A bird in the hand.....

They told me I’m gonna get $57 a month. That’s what happens when you raise your kids and not go to work.

Way too much rambling on...your videos would be much shorter if you would repeat yourself less.

Whenever you take it . Early or late and die, your not going to know you missed out on it, cause your dead.

The figures might be correct in delaying until 70, but I would rather spend the governments money at 65 rather than my own.

i never spend a nickle in to cpp but i am sure i will get old pension , but i will never send money to greedy goverment , it makes no sense to me .....why give it to them when you can simply save it in your bank, also its getting harder now days just to do that with all high bills lol

Anyone living in Portugal from Canada? That's where I'm thinking of moving

My Dad worked all his life and passed at 59. When I turned 60 I took my CPP invested it. I still work so I get the post retirement benefit I know I that my CPP is reduced but it has allowed me to have extra money to spend on my family and create memories

Since biggest sequence of return risk is first 5 years of your retirement, I have 5 years of stacked GIC. Afterward will maintain 3 years of required income in stacked GIC, specially our rate is still decent. Peace of mind is the king when retire. Thanks Ryhs, believe you will approve my approach.

Departure tax?

Is cpp indexed for inflation if you leave Canads? My mother's British pension is not and since the uk and Canada do not have an agreement on this,, it never goes up as it would if she were still living in Britain.

It funny that the government states that the full amount is at age 65, when actually, it's just a calculation starting at age 60 going forward. It's like they want to control your life and when you take the payment. The longer you wait, the more you get. There is no actual full amount at 65, just a load of crap!

Sounds like your better off not using an RRSP.

Thanks Rhys, interesting to see the high concentrations at 60 and 65 - would not have guessed. I’m blessed with good health and needing to melt down my RRSP so I’ll wait until 70 for CPP, though I’m not as sure with OAS. Question - with OAS being funded from general revenues and the government’s poor fiscal situation, do you think there’s a risk of OAS reform that reduces future payments and only grandfathers those currently collecting, thus wiping out the benefit of waiting..?

Excellent video. One portion of the puzzle which is important for a sub-set of people is how income affects low income benefits. As you point out many people can control their income to a large extent. This is especially true for those who have managed to save a fair amount in TFSA (whether by frugal living or a fortunate windfall). If you have a large TFSA and reasonable RRSP and no company pension perhaps the best strategy is to delay all CPP payments until 70. If you have a frugal lifestyle and can live off savings for FIVE years you could enjoy OAS and GIS as well as other benefits for low income households such as carbon tax credits and Canadian Dental Plan. This may not apply to many people but it is a real strategy for those of modest income and no company pension or healthcare plan. I didn’t delay my CPP and it cost me 50 cents on the dollar in GIS reduction (for five years) which changes the equation for early vs late CPP by quite a bit

My father-in law just turned 70. He started collecting CPP at 65. Even though he's house rich, he would have had to sell his house and downsize to a condo if he waited until 70 to collect his CPP. With property taxes, insurance and utilities constantly going up he needed that extra money to stay in his house. I guess everyone's situation is different.

I'm 58. My advisor tells me to take CPP at 70 and live off my RRSP's. Otherwise the taxes will kill me. I've yet to make a decision.

How do we make an appointment with you. I am 59 years old, a professional with a decent salary.

New subscribers here question make 54k after tax would it be wise to take cpp at 60 contribution for 15 years

Why do utube planners never talk about "Post Retirement Benefit"? Take CPP at 60, work through to 65, and end up where you thought. That way you're 5 years positive cash flow.

Why do you have to call to postpone CPP?

Thank you for your video. I am an immigrant and has been living and working in Canada for 17 years. I plan to retire at the age of 65 and take my DB pension + CPP + OAS. And my Canadian-born husband and I plan to sell a house in BC and relocate back to Thailand where I am from. It is very complicated matters for any one who wants to retire abroad. We need lots of research and info, as it is involved taxes in both countries like withholding taxes plus OAS claw back, plus losing your Canadian resident status and health care after living abroad for more than 6 months etc., etc., thank you again for your great info.

Why do we need gis why cant they just give us enough to live on 1800$a month is really pathetic we work and payed taxed all our lives for this pittance

If you work only 7 years not enough cpp how can you do

Expectation to live longer

Assuming you can retire fairly comfortably at 60, the most critical factor is how much more "useful" the money is from 60-70 versus 70-80. I had an acquaintance tell me that his 60th birthday was awesome since he still felt really fit and ready to really enjoy retirement, he also said his 70th birthday was completely different, with age really starting to become "noticeable". He was still very able-bodied at 72, but he said there is absolutely no comparison to 62! Past 60, age-related effects are an exponential curve, so don't kid yourself into thinking that 40-60 is at all the same as 60-80.

Yes, delay your pension to age 70. The government thanks you. There is a reason they made this delay possible; because it saves the pension plan money at your expense.

So we get an extra 42% if you wait until 70 and then shuffle off at 72 was it a good gamble to wait?

Yeah sucks but was injured 2000 now 61 couldn't go back to work now received 137 monthly

I will take it a 60 if I get to live that long.

When you delay your CPP, the annual inflation increases are not included and you lose it. Nobody talks about it and a lot of people are not aware of that.

Love your videos Reese. God bless you. 😊

I agree with the math that it often makes so much sense to delay cpp until 70, but every situation is unique and there can many situations to take it earlier such as: -you need the money -limited life expectancy -limit OAS clawback -enjoy the money while you have good health. People in their 70’s and older may have health issues or lack of energy for travel, golf , meals out etc. -taking it earlier can be an opportunity to create inter generational wealth by gifting the cpp to adult children, helping with house down payments etc and potentially reducing taxes for the retiree. -consider this scenario- both spouses decide to wait until 70 and draw down heavily on their rrsp’s, TFSA’s and non registered accounts before 70. Then one spouse passes away at 69. Now surviving spouse may only have their own cpp and oas to survive on for the rest of their life. Make sure you go over your situation with a CFP so you can make the best decision for you.

Death is always around the corner. Nobody wants to wait until 70 for that reason. Once you're 70, time is really ticking for us all.

The average person might be healthy until, what, 78 ? If the average lifespan is '80s then those last years are not going to be fun. It's going to be in poor health, lack of mobility, diseases, suffering , you name it. Nobody dies when they're healthy. Why would anybody delay it past 65 and not enjoy life while you can. Starting your your pension when you're 70 and you might be lucky to have 8 years of health is insane to me. Tomorrow isn't promised to anybody. Live while you can.

My retirement income is $2000 a month and I do just fine. I have no debt Have a nest egg put aside.,Travelled a lot in my life and I don't get the travel bug anymore. Love my small apartment in my beautiful small city in PEI ( where people dream of retiring to btw)I'm 70 snd have been retired 6 years.

That extra 8.4% worth nothing when you’re six feet under.

Unless there are extraordinary circumstances due to your health or financial situation, taking CPP at 65 seems to be the best compromise. Keep in mind also that even though you will get less, you are able to enjoy your life and your money a lot more at 60 than at 70.