Pension question turning 60 next year

[32-40win]

I've been collecting it since 60, paid tax every year because of it, and apparently my payment from CPP will be going down from 740 to 601 next year when I hit 65. I just got a letter stating that. So if the supplement is only 5-600, that certainly does make having collected what I have already, worth it.
It's in the bank, it'll help.

[-JR-]

Originally Posted by Talking moose

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?

old age pension every one gets at age 65 as long as you do not have an income over so much

[tallieho]

Originally Posted by -JR-

$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 !!!!!

I started paying into cpp at 16 yrs old.Never laid off,or drew monies from UIC ever. So I Recieve $647.83 CPP. & they say $526.00 OAS.You would think that all of those jack-off Gov't employees.Could pro-rate a pension start-up..Birthday is 091454.OAS will not start til oct 1 2019,with no cheque til oct 30th.We earned this money.They held it & used it to but our country in the dismall mess that it is. Yea $266.00 bucks,lived here all my life.No immigrant ,gift for me.......

[Buckhead]

There is no shortage of money to pay CPP. There is around $400 billion in the CPP investment account and CPP is solvent for the next 75 years verified by third party audit. They could certainly raise the pension.
Now if only we can get the politicians to stop lying to us and saying how there is a shortage in CPP and they have to raise the contribution rate and raise the retirement age and all the other garbage.
Pure BS - not based on facts.

[Talking moose]

Originally Posted by Buckhead

There is no shortage of money to pay CPP. There is around $400 billion in the CPP investment account and CPP is solvent for the next 75 years verified by third party audit. They could certainly raise the pension.
Now if only we can get the politicians to stop lying to us and saying how there is a shortage in CPP and they have to raise the contribution rate and raise the retirement age and all the other garbage.
Pure BS - not based on facts.

If a federal party were to campaign for. Significant ccp increase, I’m sure they would get 90% of the votes from the 45 year plus olds....

[Dog_River]

I just turned 60 the other day and started drawing CPP. I can't wait until all that money starts to roll in

Dog_River

[lmtada]

Originally Posted by Dog_River

I just turned 60 the other day and started drawing CPP. I can't wait until all that money starts to roll in

Dog_River

Better take it before it’s gone.......or you are gone.........Sweden considers Cannibalism???? Lefty’s?
https://www.breitbart.com/europe/201...limate-change/

[Bigwoodsman]

Originally Posted by Buckhead

There is no shortage of money to pay CPP. There is around $400 billion in the CPP investment account and CPP is solvent for the next 75 years verified by third party audit. They could certainly raise the pension.
Now if only we can get the politicians to stop lying to us and saying how there is a shortage in CPP and they have to raise the contribution rate and raise the retirement age and all the other garbage.
Pure BS - not based on facts.

What happens to all the unclaimed pensions. Person passes on before age 60 or 65. If MP's can get six figure pensions why can't the contributors to CPP get a decent pension instead of a kick in the ass!

BW

[TROLLER]

I took mine at 60 but that was before they made big changes to anyone wanting to collect early. My calcualtions were I had to live to be 82 to break even if I started at 65 instead of 60. Big diff now, buddy took his and he gets a few hundred less than I do even tho I too took mine at 60.

If you don't need the money there is a significant diff between 60 and 65. Tough decision but yours alone to make. BTW once you are collecting you will no longer have to contribute if you go back to work.

[The Cook]

I took mine at 63 and get $940.00/ month or $11,000.00/ year. I and my employers paid the max for most of my working years, going to be 66 in a month and sure have enjoyed my first year collecting OAS $7,200/ year. I took CPP 2 months after I retired and headquarters took hers at 60. I've always been told to take it as soon as you can, and if you don't need it to survive right away then slam it into a TFSA for later.

[35 whelen]

So let me get this right you can collect CPP at 60 and OAS at 65 didn't realize you could get both thanks

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[rottie]

Originally Posted by 35 whelen

So let me get this right you can collect CPP at 60 and OAS at 65 didn't realize you could get both thanks

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Here is a link to check out, it will explain things better than I can
CPP is based on years service , age , and contributions , OAS is based on income , not everybody receives it. If I remember correct its on a sliding scale, after a certain income OAS is reduced. Some have enough income OAS is not given

https://www.canada.ca/en/services/be...-security.html

[35 whelen]

Originally Posted by rottie

Here is a link to check out, it will explain things better than I can

CPP is based on years service , age , and contributions , OAS is based on income , not everybody receives it. If I remember correct its on a sliding scale, after a certain income OAS is reduced. Some have enough income OAS is not given



https://www.canada.ca/en/services/be...-security.html

Thanks

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[MyAlberta]

Originally Posted by rottie

Here is a link to check out, it will explain things better than I can
CPP is based on years service , age , and contributions , OAS is based on income , not everybody receives it. If I remember correct its on a sliding scale, after a certain income OAS is reduced. Some have enough income OAS is not given

https://www.canada.ca/en/services/be...-security.html

GIS is income dependant, OAS is fixed based on your citizenship, and CPP is based on time weighted contributions.

Regardless, CPP and OAS generally make up your basic exemption, and should be considered as such. If you are working and drawing CPP early, pump it through an RRSP for the tax play.

Don’t let an ‘advisor’ roll this basic income out of its tax position to sell you their products. Those need to prove themselves against the taxman.

[rottie]

Originally Posted by MyAlberta

GIS is income dependant, OAS is fixed based on your citizenship, and CPP is based on time weighted contributions.

Regardless, CPP and OAS generally make up your basic exemption, and should be considered as such. If you are working and drawing CPP early, pump it through an RRSP for the tax play.

Don’t let an ‘advisor’ roll this basic income out of its tax position to sell you their products. Those need to prove themselves against the taxman.

From this chart , those above 125,937 do not receive OAS am I reading this correctly ?
https://www.canada.ca/en/services/be...ents.html#tbl1

[Bigwoodsman]

Originally Posted by rottie

Here is a link to check out, it will explain things better than I can
CPP is based on years service , age , and contributions , OAS is based on income , not everybody receives it. If I remember correct its on a sliding scale, after a certain income OAS is reduced. Some have enough income OAS is not given

https://www.canada.ca/en/services/be...-security.html

So you pay into it for 45 years and then because THEY decide you make to much money THEY keep YOUR pension!

Can someone explain to me why we tolerate this bull ****e?

BW

[Buckhead]

Originally Posted by Bigwoodsman

So you pay into it for 45 years and then because THEY decide you make to much money THEY keep YOUR pension!

Can someone explain to me why we tolerate this bull ****e?

BW

If I’m pulling in $125K after I retire I could care less about CPP or OAS and count myself fortunate I do not need them.

[Talking moose]

Originally Posted by Buckhead

If I’m pulling in $125K after I retire I could care less about CPP or OAS and count myself fortunate I do not need them.

Was thinking the same. Still able to pull 125k after 65 they can keep that 500 bucks

[roper1]

Originally Posted by Dean2

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.

Certainly wasn't trying to mislead anyone. My old neighbor & his wife had been by for coffee the night before from the mailbox, still get their "cheque" instead of direct deposit. I believe they would also qualify for some GIS top-up, I re-read my post & see I missed that. Was simply quoting their figures, apologies to anyone that might have made an investment decision since yesterday!

As I said then, with no other savings there won't be any extra cash. Good luck!

[Dean2]

Originally Posted by Bigwoodsman

So you pay into it for 45 years and then because THEY decide you make to much money THEY keep YOUR pension!

Can someone explain to me why we tolerate this bull ****e?

BW

I agree with you!. I don't care if someone is pulling down over 100K a year after 65, all that means is he invested well or runs a business. Doesn't change the fact he paid into this savings plan/pension scheme for 40 years. He is as entitled to get a return on his investment as anyone else. This is a MANDATORY government savings program, they don't just get to keep the money because they decide someone doesn't need it. This would be like the bank deciding they don't have to give you your money back cause you already have enough.

As far as the OAS goes, even people who never worked a day in their life qualify for this. It is funded out of tax revenue, which all of us that worked hard our whole lives also paid a pot load of. You don't get a tax holiday after age 65, you still pay full bore Federal and Provincial income tax then on top they add in OAS, claw it all back while punting you to a higher tax bracket on money you never actually get.

At what point is enough, enough! Flippin government keeps getting bigger at the Fed, Provincial and Municipal levels and keeps taking more of my hard earned money to pay for stuff I never asked for and mostly don't use. No way am I on side with them scooping the CPP surpluses by starting to disqualify high income earners, which currently they can't do.

[-JR-]

We only pay into cpp not into oas.
It would also be nice if we do not get taxed on it and
Get a break on Property Tax after paying it for 40 years.
Its one of the hardest thinks to come up with, once retired.

[Talking moose]

Originally Posted by Dean2

I agree with you!. I don't care if someone is pulling down over 100K a year after 65, all that means is he invested well or runs a business. Doesn't change the fact he paid into this savings plan/pension scheme for 40 years. He is as entitled to get a return on his investment as anyone else. This is a MANDATORY government savings program, they don't just get to keep the money because they decide someone doesn't need it. This would be like the bank deciding they don't have to give you your money back cause you already have enough.

As far as the OAS goes, even people who never worked a day in their life qualify for this. It is funded out of tax revenue, which all of us that worked hard our whole lives also paid a pot load of. You don't get a tax holiday after age 65, you still pay full bore Federal and Provincial income tax then on top they add in OAS, claw it all back while punting you to a higher tax bracket on money you never actually get.

At what point is enough, enough! Flippin government keeps getting bigger at the Fed, Provincial and Municipal levels and keeps taking more of my hard earned money to pay for stuff I never asked for and mostly don't use. No way am I on side with them scooping the CPP surpluses by starting to disqualify high income earners, which currently they can't do.

You get your cpp.
They treat oas like welfare. Making too much? Don’t get it. I’m fine with that.
I think that’s how I’m reading it anyway.
Or do I have it bass ackwards?

[catnthehat]

Originally Posted by Dean2

I agree with you!. I don't care if someone is pulling down over 100K a year after 65, all that means is he invested well or runs a business. Doesn't change the fact he paid into this savings plan/pension scheme for 40 years.
.

There are many members of my union on the tools that are over 65 and are making more than 100K a year with an hourly rate , they do not want to retire
(some cannot afford to however for various reasons), are in good health, and earn every penny of it.
Cat

[saskbooknut]

Just to recap -
The tax system claws back OAS when you have a big income. OAS is an entitlement that you don't pay into, just a redistribution of government revenue to old people.
CPP is a Pension Plan that you pay into - it is not taxed more than any other income - but yes, it is taxable.
CPP was never designed to be a total income replacement in retirement. It was designed to be a minimal pension plan for those not wise enough, nor fortunate enough to have savings and investments in their old age.
Someone earning over $125K is not going to gather much sympathy for their hardship.
Elderly survivors, like my Mom was, with little income except for OAS and the Guaranteed Income Supplement have a tough time making ends meet with the increased cost of living.

[badger]

The Canada Pension Plan (CPP) is one of the largest sovereign wealth funds in the world, it is set up to provide a supplemental income to Canadian workers. Unlike Social Security in the U.S., CPP is based on individual contributions. You get back proportionately what you contribute, and it does not rely on future payments from workers to remain solvent. Contributions are held in a separate account from the government and are stewarded by professional managers. Currently it is funded for existing retirees through 2095!

Most people see the CPP as an unnecessary tax on their income while working. The tax rate is currently 4.95% from the worker and the employer contributes the same. Contributions are tax deductible. In reality, it is a forced savings plan that is to the benefit of both the government and the worker. The worker gets a guaranteed income for life after 65, indexed to inflation. In general, people have shown that they are unwilling to save for their own retirement even with tax incentives like the TFSA and RRSP. The government saves social services costs that would otherwise happen if retirees end up living in poverty. If these social services were to be provided out of general taxes, the distribution would be unequal. Those retirees who squandered their money would be the largest recipients of the services, those who were prudent would receive nothing despite having contributed. Therefore the forced savings through CPP is a much fairer system. The CPP is also portable, you don’t start over to vest in benefits when changing jobs.

The annual return on investment of the fund is better than the average investor is capable of achieving on their own; about 8% over the 40 years I have contributed. Not only that, I have not had to actively manage my contribution pool during that time which is worth something. Like any retirement plan, there should be many sources of income to live a financially sustainable retirement, but government pensions can be quite successful when managed correctly.

I was fortunate to work for a company that had a defined benefits retirement plan. When I left, there was a choice to receive a lump sum, or wait 23 years for a lifetime monthly pension. I took the pension, and the pension has a present value 16 times greater than the lump sum. In 23 years, I could never have grown the lump sum by that return (12% compounded) which the Company’s pension fund accomplished. There was a risk that the company would default, go bankrupt, or reduce the pension payment after the fact.

After a normal working career and contributions to your RRSP, with the Canada Pension Plan you are above the poverty line. With a paid off house and your own savings, the average worker can retire comfortably with some planning.

[powersteve]

In less than the time you spent soliciting advice from strangers on the internet about what to do with your personal finances, you could have opened a spreadsheet and calculated it yourself.

[35 whelen]

Originally Posted by powersteve

In less than the time you spent soliciting advice from strangers on the internet about what to do with your personal finances, you could have opened a spreadsheet and calculated it yourself.

If you're addressing that to me you could have just stayed off this post

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[Gear guy]

Lots of good info here and I appreciate it

[CNP]

Originally Posted by Bigwoodsman

So you pay into it for 45 years and then because THEY decide you make to much money THEY keep YOUR pension!

Can someone explain to me why we tolerate this bull ****e?

BW

What BS? You need some education on this subject. You pay directly into CPP through contributions. You don't pay a penny into OAS, it comes out of general tax revenues. Everyone qualifies for CPP and their is no scaling back or reduction because of higher income. OAS is cut off if you make more than $123,000.

[Dean2]

Originally Posted by Talking moose

You get your cpp.
They treat oas like welfare. Making too much? Don’t get it. I’m fine with that.
I think that’s how I’m reading it anyway.
Or do I have it bass ackwards?

Pretty much spot on for the time being. The increasing CPP contributions levels as well as the backroom discussions floating the idea of starting to claw back CPP at a certain income level are what I have a big problem with.

Not getting OAS, max about $907 a month (single, no other income), or the Guaranteed Income Supplement, max $607/m for someone who has no CPP or other income beyond OAS, if you earn too much money, I am fine with. My big issue with this is someone who never worked, paid tax or contributed to the country is getting $1,500 a month in welfare payments, after probably being on welfare their whole lives. I also object to still having to pay income tax after I retire, I paid way more than my share already.