CPP… when should a person start collecting? 60, 65 or 70.

[badbrass]

And still taxed on it, when you get it!

Originally Posted by I’d rather be outdoors

Take it while there’s still something to take. You were taxed your entire working life for it.

[roper1]

Who has experience taking CPP while still working ? Wouldn't the exorbitant tax hit rule out the early investment or lifestyle upgrades?? Thanks

[MyAlberta]

Originally Posted by roper1

Who has experience taking CPP while still working ? Wouldn't the exorbitant tax hit rule out the early investment or lifestyle upgrades?? Thanks

Took mine at 65, and worked for this last year. Hefty tax bill. Promptly resigned. Will have to be contract going forward.

[lakerman]

How much does the gov't take of your rrsps when you check out? Wouldn't it make more sense melt down the rrsps or transfer them into the tfsa and then get that cpp at 70. The tax brackets can hurt ya if you have so much income, and what about the oas clawbacks?
Any financial calculators out there that the financial planners use available, I don't really wanna spend 4000$ for a computer program to tell me how to get to 0.

[roper1]

Originally Posted by MyAlberta

Took mine at 65, and worked for this last year. Hefty tax bill. Promptly resigned. Will have to be contract going forward.

Thanks for that!

Google-fu says my wife is entitled to 60% of my CPP after she turns 65. That, however, is not over & above her CPP & OAS at that age. We're pretty good savers so our investment guy says wait. I just worry he wants us saving...

[yoteblaster]

Took mine the day I turned 60. Best move ever. I can manage MY money better than the government or anyone else can I firmly believe. In my case I bought a grain bin which I rent back to the farm. CPP of $630/month covers my payment and then some. After 5 years of renting it out it’s paid for and I own it outright and can either sell it to the farm or someone else as it is a moveable hopper bottom bin.

[CanuckShooter]

Took it at 60 and invested it into a spousal RRSP till I retired at 64.

[58thecat]

Everyone’s life is different financially so sit down well ahead of time and plan things out just like you should have done investment wise a long time ago.


Sent from my iPhone using Tapatalk

[32-40win]

I took it at 60, put 1/2 in bank, cleared out RRSP's before retirement at 66, as I didn't think Trudope would keep income taxes where they were, wasn't making next to squat off them anyway. Had to pay taxes for the 5yrs on the CPP, but, didn't change tax brkts because of them. At the moment I am at a net income close to what I made as gross in 1985. I could always use more, but, it pays the expenses and I can put enough in the bank to cover house/vehicle insurance and property taxes. I made sure I had toys and supplies in place before retirement, about all I buy now is groceries and gas. My OAS and CPP are near to equal amounts, no income to reduce OAS and no worries about investments or RRSP's affecting that. I remembered what RRSP's did with my mother's OAS, that was another reason to dump them.

[elkhunter11]

My decision was made for me, at 65, my company pension is reduced by the amount that I will receive in CPP, and OAS.

[The Cook]

Originally Posted by Fordman

62 now. Started collecting at 60. Take the money while you can.

Took mine @ 63, so far over $70,000 in my jeans.

[Dean2]

Originally Posted by lakerman

How much does the gov't take of your rrsps when you check out? Wouldn't it make more sense melt down the rrsps or transfer them into the tfsa and then get that cpp at 70. The tax brackets can hurt ya if you have so much income, and what about the oas clawbacks?
Any financial calculators out there that the financial planners use available, I don't really wanna spend 4000$ for a computer program to tell me how to get to 0.

The OAS claw back starts at 90,350 a year of income. Above that amount they claw back 15% of each dollar in excess, so at 100,350, the claw back is $1,500. You don't lose 100% of the OAS until you hit $147,062 income. If you each have annual retirement income of $90,000 or more, let alone $149,000 each, the OAS claw back isn't much of an issue, and CPP is basically beer money. Some of you guys need to sit down with a good advisor.

https://www.taxtips.ca/seniors/oas-clawback.htm

[elkhunter11]

Originally Posted by lakerman

How much does the gov't take of your rrsps when you check out? Wouldn't it make more sense melt down the rrsps or transfer them into the tfsa and then get that cpp at 70. The tax brackets can hurt ya if you have so much income, and what about the oas clawbacks?
Any financial calculators out there that the financial planners use available, I don't really wanna spend 4000$ for a computer program to tell me how to get to 0.

I pull RRSPs every year, at a rate that will drain the account by 71, without having to draw too much past
65, so I have to pay back any OAS. If your pension exceeds a certain amount, you want to withdraw all of your RRSPs by 65. RRIFs are something that I will avoid, as if the holder passes, the beneficiary will be taxed on the balance, which can result in the beneficiary paying a
higher rate of tax on the RRIF, than the holder would have.
So basically, each person has to look at their own financial situation, to decide what works best for them.

[Stinky Buffalo]

Excellent thread, All.

I'm getting close to the time where I can start drawing on it as well... I really like the idea of starting early and investing it. I'd rather have that money under my control, thank you.

[funkman]

I took it as soon as I could...the payment is the only thing guaranteed...health and longevity is a crap shoot.

[Cement Bench]

Scotia bank is paying a 6.7 % dividend today

take your money and put it in bank stocks when they dip and enjoy dividend income and retirement more

[Au revoir, Gopher]

Originally Posted by elkhunter11

I pull RRSPs every year, at a rate that will drain the account by 71, without having to draw too much past 65, so I have to pay back any OAS. If your pension exceeds a certain amount, you want to withdraw all of your RRSPs by 65. RRIFs are something that I will avoid, as if the holder passes, the beneficiary will be taxed on the balance, which can result in the beneficiary paying a higher rate of tax on the RRIF, than the holder would have. So basically, each person has to look at their own financial situation, to decide what works best for them.

If the beneficiary is your spouse or common-law partner, they should be listed as the successor not beneficiary. Then the RRIF passes to the successor and the only taxes are on withdrawals from the RRIF.

https://www.canada.ca/en/revenue-age...annuitant.html

Aren't you paying your bank for every withdrawal from your RRSP? There is no fee to convert a RRSP to a RRIF and no fees to withdraw from a RRIF.

ARG

[Cement Bench]

Originally Posted by Au revoir, Gopher

If the beneficiary is your spouse or common-law partner, they should be listed as the successor not beneficiary. Then the RRIF passes to the successor and the only taxes are on withdrawals from the RRIF.

https://www.canada.ca/en/revenue-age...annuitant.html

Aren't you paying your bank for every withdrawal from your RRSP? There is no fee to convert a RRSP to a RRIF and no fees to withdraw from a RRIF.

ARG

most riff’s pay crap-o-la

[Sundancefisher]

Originally Posted by Stinky Buffalo

Excellent thread, All.

I'm getting close to the time where I can start drawing on it as well... I really like the idea of starting early and investing it. I'd rather have that money under my control, thank you.

Agreed. It’s so important to see how stuff works in practice than on paper by a bureaucrat.

[Sundancefisher]

I just found this

Less than 5% of Canadians defer CPP payments past age 65, and fewer than 2% chose to delay until age 70.

https://www.sunlifeglobalinvestments...p-investor.pdf

[Buckhead]

Originally Posted by Cement Bench

most riff’s pay crap-o-la

RRIF's have a minimum withdrawal amount. There is no maximum withdrawal amount.

It is up to the individual to determine that based on their retirement plan and their circumstances.

[Buckhead]

Originally Posted by Dean2

Some of you guys need to sit down with a good advisor.

This right here.

[cowmanbob]

I’ve already chatted with my adviser, his name was Dean. Forgot his last name.

[chasingtail]

Those that never paid into CPP end up getting close to the same as those that paid into it for 45 years when you factor in GIS.

[TBark]

Started mine a year ago now, at age 62.
Started company pension a year prior.
Drawing almost as much out of our portfolio, wife too.

All in, not so bad, won’t starve.

TBark

[lakerman]

https://youtu.be/fis1N3cFAlk?feature=shared

[Dean2]

Originally Posted by Buckhead

RRIF's have a minimum withdrawal amount. There is no maximum withdrawal amount.

It is up to the individual to determine that based on their retirement plan and their circumstances.

You and Cement Bench are both wrong. A RIF earns what you have it invested in. So if you are earning a 7% dividend and drawing 4%the RIF is growing, not counting Capital appreciation. If you are earning 2%, you are shrinking. The reason most RIFs earn dick all, is because they are in Mutual Funds and they have to sell some every month just to pay the monthly payout. Thus your capital is eroding every month.

Second, a RIF has to payout out the Statutory min based on your age, even if you RIF out before 71, but there is also a Statutory maximum. AN RRSP has no max, or min, withdrawal, it is only limited by how much tax you want to pay. Once you convert to RIF, you are far more regulated.

[Dean2]

To be clear, max withdrawal applies only to locked in RIFs once converted from RRPS. A standard RIF has not withdrawal max and can be totally collapsed at nay time.

[flyguyd]

Originally Posted by urban rednek

If CPP is your only retirement income, might be wise to wait in order to maximize the monthly return. If you have a decent amount of other investments, take it while you can.

If CPP is your only retirement income, i suspect that you will be woring up until the day of the funeral

[mryimmers]

I'm looking at delaying until 70 as longevity insurance