Pension question turning 60 next year

35 whelen · #1 09-05-2019, 07:21 AM

Haven't really looked into it yet but I will just wondering if anybody on here knows if I can collect my pension and still work full time what are the benefits and the non benefits thanks

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badbrass · #2 09-05-2019, 07:35 AM

I would think you are going to be heavily taxed on what you make working, and pulling your pension! Best to talk to a Financial Advisor.

rottie · #3 09-05-2019, 07:42 AM

You can draw CPP at age 60 but it will be greatly reduced. I believe its a .6 % reduction for every month you are shy of age 65. Whether or not its in a persons favour will depend on their own situation, taxes would be my concern I would think. Here is a link for you, it may be able to answer a few questions for you https://www.canada.ca/en/services/be...sions/cpp.html

35 whelen · #4 09-05-2019, 07:56 AM

Quote:

Originally Posted by rottie

You can draw CPP at age 60 but it will be greatly reduced. I believe its a .6 % reduction for every month you are shy of age 65. Whether or not its in a persons favour will depend on their own situation, taxes would be my concern I would think. Here is a link for you, it may be able to answer a few questions for you https://www.canada.ca/en/services/be...sions/cpp.html

Thanks

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Gear guy · #5 09-05-2019, 08:03 AM

Yes you can collect and still work full time. It's called double dipping.

Grizzly Adams · #6 09-05-2019, 08:05 AM

CPP contributions are built on the assumption, a significant percentage won't be around to collect.

Take it, while you can.

Grizz

rottie · #7 09-05-2019, 08:07 AM

Quote:

Originally Posted by 35 whelen

Thanks

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Welcome

saskbooknut · #8 09-05-2019, 08:14 AM

Do the math including taxation, and consider your own health situation.
There is significant reward if you hold off to 65.
Planning should be comprehensive considering every facet of your investment/pension income.

Buckhead · #9 09-05-2019, 08:14 AM

It has everything to do with your health and financial situation. In discussions with my financial advisor(s) it was apparent in my situation that there was no advantage to taking it until I was 67. Everyone’s situation is different.

kingrat · #10 09-05-2019, 08:33 AM

Quote:

Originally Posted by Grizzly Adams

CPP contributions are built on the assumption, a significant percentage won't be around to collect.

Take it, while you can.

Grizz

X2

lmtada · #11 09-05-2019, 08:41 AM

Quote:

Originally Posted by Grizzly Adams

CPP contributions are built on the assumption, a significant percentage won't be around to collect.

Take it, while you can.

Grizz

Yup. Take it. #2000th post in 11 AO years. Yahoo

Buckhead · #12 09-05-2019, 08:41 AM

The average life expectancy for a Canadian male is around 80 years. You have to include that in your planning.

35 whelen · #13 09-05-2019, 08:53 AM

Well if I'm anything like my family history 65 will be a long shot

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CNP · #14 09-05-2019, 09:18 AM

I been collecting for four years starting at 60. I did the right thing in my estimation. I have worked on and off, seasonally, and enjoying retirement. If you work after 60 and opt to collect CPP you must still pay into CPP. Your monthly CPP will increase as a result. For more info: https://www.canada.ca/en/services/be...etirement.html

35 whelen · #15 09-05-2019, 09:26 AM

Quote:

Originally Posted by CNP

I been collecting for four years starting at 60. I did the right thing in my estimation. I have worked on and off, seasonally, and enjoying retirement. If you work after 60 and opt to collect CPP you must still pay into CPP. Your monthly CPP will increase as a result. For more info: https://www.canada.ca/en/services/be...etirement.html

Yes that's what I might do I work anywhere from 10 to 20 days a month

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35 whelen · #16 09-05-2019, 09:27 AM

Quote:

Originally Posted by CNP

I been collecting for four years starting at 60. I did the right thing in my estimation. I have worked on and off, seasonally, and enjoying retirement. If you work after 60 and opt to collect CPP you must still pay into CPP. Your monthly CPP will increase as a result. For more info: https://www.canada.ca/en/services/be...etirement.html

What I was wondering if you do have a paycheck do they deduct so much off your pension every month

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skidderman · #17 09-05-2019, 09:27 AM

The average male may live until 80 but that means a lot of them didn't make it. I chose to take mine as soon as possible. I don't expect to see 80.

CNP · #18 09-05-2019, 09:31 AM

Quote:

Originally Posted by 35 whelen

What I was wondering if you do have a paycheck do they deduct so much off your pension every month

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No. You can make a 7 figure income and your CPP will only go up, never down.

Dean2 · #19 09-05-2019, 09:36 AM

Long and short, If you don't have a defined company pension plan that is reduced once you start collecting CPP, and not factoring in working after 60, you will need to live to be 73 just to break even with waiting till you are 65 to start to collect. (This also doesn't include the index increases to your CPP from 60-65). If you invest the CPP money from 60-65 in dividend yielding stocks averaging 5% dividend it will take much longer than age 73 to break even.

In the absence of a defined benefit plan from your employer, that reduces when CPP commences because not all do, most men are far better off collecting as soon as you can, even if you don't need the money right now. The idea that taxation will have any significant impact isn't really accurate. We are talking about $8,850 a year, not counting indexing. The worst it can do is bump your MARGINAL earned income up one tax bracket and as you know you only pay the higher tax on that last bit of marginal income not your total earned income, though if you earn north of $45,000 a year in dividend income the effect may be more pronounced.

I have done detailed workups for a lot of people and rarely was a male better off to wait. Even most females are better to start as soon as possible. To know for absolute positive you need to sit down with someone and go through it in detail but in about 95% of all cases earlier is better than later.

35 whelen · #20 09-05-2019, 09:38 AM

Thanks all for the info

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Buckhead · #21 09-05-2019, 09:52 AM

Each person needs their own individual plan.

tallieho · #22 09-05-2019, 04:40 PM

I took mine at 60 years.The next year the govt ,changed the OAS to 67 yrs old to withdraw.It's always been 65..It is 65 today for me,Because i had my papers in before there change ,but it can change.I took mine as soon i was able.In 9 days i'll be 65 .Bring on the whiskey & turdo's statue.I have something to exspell on it..

longshot270 · #23 09-05-2019, 04:50 PM

Know a guy taking company pension and works full time. Income splits with his wife I believe.

Talking moose · #24 09-05-2019, 05:10 PM

Curious as to what the monthly cheque is for someone that contributed all their life and started taking it out at age 60? Curious what it is at 65 also.

-JR- · #25 09-05-2019, 08:21 PM

$740. at age 60 and $400 more at age 65. Is it worth it ...nope !
If you do the math , if one who retires at 60 and other at 65 . both will have the same amount saved when they reach 78 , that is if they both stop working the day they collect.. So yes its worth collecting at age 60.
Not sure how much the guy would have if he keeps working and collecting after 60. i am sure its alot more than the guy at 65.

10 more months for me before I collect. And stop working !!!!!

Talking moose · #26 09-05-2019, 08:37 PM

And let’s say someone never had a pension from work or contributed too rrsp’s or any other type of investment... is there anything else for income that someone over 65 receives or just cpp?

roper1 · #27 09-05-2019, 08:39 PM

CPP augmented by OAS, I believe somewhere around $550 monthly. With nothing extra saved, works out to ~$28,000 annually, double that if you're married, I believe. Bleak!

35 whelen · #28 09-05-2019, 08:40 PM

Unfortunately I'm one of those was a guide for too many years, and never put into it worked lots of different jobs in the off-season doesn't even come out to a good car payment.

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Buckhead · #29 09-05-2019, 09:24 PM

If a person is 60 and can’t work because of a medical condition then it might be to that persons advantage to apply for the CPP disability benefits and not the regular CPP pension.

Dean2 · #30 09-05-2019, 09:56 PM

Quote:

Originally Posted by roper1

CPP augmented by OAS, I believe somewhere around $550 monthly. With nothing extra saved, works out to ~$28,000 annually, double that if you're married, I believe. Bleak!

Don't know how you do math but your figures are way out to lunch. Even at 65 the annual CPP is only about $13,800 a year, $1,155/m. Even with full oas you are no where near $28k a year.