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How to save (and invest) your first $100,000 + MORE Mar 28th
A popular milestone goal for young adults just starting out is to save $100,000 cash. YouTube and TikTok are buzzing with videos on this very topic, and it makes sense—$100,000 is enough to give you financial breathing room and life-changing options, like making a down payment on a condo or house,.... More »
40 and no pension: What do you do? + MORE Aug 23rd
Pension envy is real. That’s because, when it comes to retirement planning, a defined-benefit pension does the heavy lifting for you. Contributions come right off your paycheque and go into a pool of pension dollars that will fund your retirement, or most of it, anyway. It’s the ultimate “pay .... More »
Making sense of the markets this week: December 24, 2023 Dec 28th
Kyle Prevost, creator of 4 Steps to a Worry-Free Retirement, Canada’s DIY retirement planning course, shares financial headlines and offers context for Canadian investors.
It’s a tough job, but…
It’s really hard to predict what the investment world will do. It’s even harder to predic.... More »
Reducing risk in an RESP: How to invest as your kid approaches college or university + MORE Oct 5th
If you’ve opened a registered education savings plan (RESP) for your child or grandchild, congratulations. You’ve taken the first step towards financing their future college, university or trade school education. And now your family can start benefiting from generous government grants worth thou.... More »
Should I draw down my RRIF to avoid estate taxes? + MORE Apr 25th
Ask MoneySense
Is it a good idea to withdraw more money monthly than one needs from one’s RRIF? What about beginning a regularly automated transfer of this extra money to one’s non-registered investments so that there is less money in the RRIF account upon death? As a result, the estate will be .... More »
Ask MoneySense
I have a brain injury and I’m collecting CPP disability of $15,000 a year, along with a workplace disability income of $16,000 a year. I am 61 years old, married, and I can’t figure out if I should retire now and start my pension or wait until I turn 65. My pension projections show that, if I retire now, I will get $29,905 a year, indexed, dropping to $20,034 a year at age 65. If I wait to start my pension at age 65, I’ll get $23,034 a year. I’m told that if I retire now and start my pension, my workplace disability income will stop. But I’m not sure what will happen to my CPP disability pension. Should I retire now and start my pension or wait until age 65?
I have a brain injury and I’m collecting CPP disability of $15,000 a year, along with a workplace disability income of $16,000 a year. I am 61 years old, married, and I can’t figure out if I should retire now and start my pension or wait until I turn 65. My pension projections show that, if I retire now, I will get $29,905 a year, indexed, dropping to $20,034 a year at age 65. If I wait to start my pension at age 65, I’ll get $23,034 a year. I’m told that if I retire now and start my pension, my workplace disability income will stop. But I’m not sure what will happen to my CPP disability pension. Should I retire now and start my pension or wait until age 65?
—Wilma
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What happens to disability benefits when you retire?
Wilma, to summarize, I will try to answer these two questions for you:
Will your Canada Pension Plan disability income (CPP DI) continue once you retire and start your pension? And, should you start your pension now, knowing that your workplace disability income will stop?
Do you lose disability when you retire?
Let’s deal with your CPP question first…
