Should you collect CPP and OAS while working in your 60s? Dec 7th

How to go about securing the best Retirement Plan in Canada.

Latest News

Not sure what to put in your RRSP and TFSA? Make contributions anyway Feb 1st

If your financial goals include putting more money into your registered retirement savings plan (RRSP) and tax-free savings account (TFSA), here’s a strategy that can help: making year-round contributions to high-interest registered savings accounts. Whether you’re a saver or a stock picker, .... More »

Can you survive on Canada’s government pension alone in retirement? Experts say you might be surprised + MORE May 10th

Until fairly recently, CPP replaced a quarter of your average work earnings — but it’s already providing more. We asked experts what to do if CPP and OAS will make up most of your retirement income..... More »

In the years leading up to retirement, an updated financial plan is key: Experts + MORE Jun 29th

Retirement planning getting you down? There are always smart ways to plan the financial aspects of your retirement. In the years leading up to retirement, an updated financial plan is key: Experts - thestar.comContinue Reading On thestar.com » How to become a digital nomad—and not g.... More »

How to model retirement income in Canada Feb 15th

Ask MoneySense I am retired early at 58 years old. My wife is 56 years old. We live on a Christmas tree farm, which was paid for years ago. I have a work pension, and my wife was bought out for her pension. We have considerable RRSPs, farm income, and farm property. Where do w.... More »

CPP and disability: When should you retire and start your pension? Sep 28th

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 projectio.... More »

Should you collect CPP and OAS while working in your 60s?

– moneysense.ca

I have lived in Canada for 24 years and I’m 65 years old now. I am still working at a company making a $78,000 salary. Since my health condition is OK, I am going to continue to work for two to four years. My question is: In my situation, it is better for me to apply for OAS and CPP now or delay to apply for them?—Simon

Collecting CPP and OAS while working in your 60s

You can begin your Canada Pension Plan (CPP) pension as early as age 60 or as late as age 70, Simon. At age 65, you generally need 39 years of maximum contributions to receive the maximum CPP retirement pension. Given you have only 24 years of contributions, there may be a benefit to continuing to contribute and delaying the start of your CPP.

What are the maximum pensionable earnings for CPP in 2022?

Your $78,000 salary exceeds the maximum pensionable earnings of $64,900 for 2022, so you will contribute the maximum of $3,500 in CPP contributions this year. Your employer will contribute the same.

This will entitle you to about 1/39th more CPP retirement pension, or about $386 per year in today’s dollars, because the best 19 years of your contributions are used to calculate your pension at 65…

Continue Reading On moneysense.ca »

Stay tuned for more Retirement wisdom brought to you by banks.ca!

Share