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Email this1:01 pm
January 25, 2024
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Did anybody delay CPP (and/or) OAS?
I understand delaying one or both will get you more money later.
Idea behind delaying both is to use RRIF as early as possible to (try to) empty THAT account first.
Any pro and cons regarding CPP/OAS delay?
Thanks for your thoughts!
2:10 pm
April 21, 2022
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CAD said
Did anybody delay CPP (and/or) OAS?
I understand delaying one or both will get you more money later.
Idea behind delaying both is to use RRIF as early as possible to (try to) empty THAT account first.Any pro and cons regarding CPP/OAS delay?
Thanks for your thoughts!
Ding, ding, ding, we have a winner! It's a race against time, don't want to die and leave CRA a windfall. Otherwise known as decumulating.
3:53 pm
November 5, 2022
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There must be some calculators you can plug in the numbers, to see what is the best strategy?
5:42 pm
October 13, 2023
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"Any pro and cons regarding CPP/OAS delay?"
The major negative I came up with was spousal survivor benefits. Next to impossible to calculate the exact amount for CPP (OAS has none that I could determine) but it ain't the 100% that a RRIF/RRSP would have.
6:52 pm
March 15, 2019
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The question is how long before you catch up to the CPP payouts (plus re-investment earnings) from those payouts during the deferral period?
I did one calculation which showed that deferring the CCP payout for 4 years will take 10-11 years to catch up.
7:08 pm
November 21, 2015
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I did, and I am on this site, because I saved $, thus not playing for GIS bracket:
OAS: taken at 65. Reasoning: Oher funds potentially available later on, like RRIF, which might limit the OAS. AND, the OAS payments are at the whim of the government, as it is not a "contract". Someday, in the not so distant future, I hear the government roar: "IN THE NAME OF FAIRNESS, should we support those who ..." and thresholds might be adjusted to "whatever". And I might not qualify. Thus I am enjoying the OAS now. And some age credit.
As a note, I know a person who listened to a "" and applied for OAS at 65 although still working with a renumeration worthy of having the whole OAS clawed back.
CPP: taken at 70. Reasoning: Security. Firstly, it is a contract I paid into, thus harder to deny payments. Secondly, having experienced "CPP" in other world's jurisdictions, CPP there was ALWAYS adjusted to the "pre-turmoil, inflation, government change, devaluation, savings " level. Thus having a higher $ base is comforting if other income venues, like savings, "disengage".
I calculated the break-even point, which is at the age of 82. Should I die before, I won't be sorry, as there will be no entity to be sorry. After that age, a 42% higher CPP income is welcome.
RRSP: early de-accumulation/drawdown (except $2K yearly, through a yearly $2K RRIF, for pension credit): Not done. Reasoning: It would have affected the OAS income I had for 5 OAS years, with its 15% added tax on top of the marginal tax rate.
That was my plan and I executed it as described. What is important, that whatever you do, CAD, then later on do not be "in grief" about your plan, as you created it under different content and context from today.
5:48 am
November 8, 2018
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Is it possible to apply for OAS before CPP? Never thought one can do that.
6:16 am
April 27, 2017
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“Is it possible to apply for OAS before CPP? Never thought one can do that.”
Sure. And it can make sense sometimes. Your “return on investment” from delaying CPP is a bit better than from delaying OAS. But you can’t start OAS before 65 even though CPP could be started at 60.
Ben Felix on optimizing CPP start in 10 minutes:
6:19 am
January 25, 2024
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Alexandre said
Is it possible to apply for OAS before CPP? Never thought one can do that.
CPP and OAS are not related.
OAS cannot start before 65.
CPP can start before 65 - based on what you see on Service Canada My Account: What you can get NEXT MONTH - $xxx.xx.
As per Service Canada agent, if you do NOT apply for either they assume you are delaying both payments. For OAS you might get invitation letter 1 month after turning 64 letting you know When your OAS will start and THEN you can tell them you want to delay it.
7:04 am
November 18, 2017
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Of course, one must consider whether one course or the other would lead to OAS clawback at some point. (But most Canadians won't face that - our company here is more well-heeled than the average.)
I chose to take both CPP and OAS at the earliest opportunity. With minimal RRSP holdings after years of decumulating, and TFSA room maxed out, I get increased GIS and SAFER benefits as well as earning interest on the early CPP and OAS payments. The extra one could earn from delaying must be balanced against the interest the early payouts could earn. That will in considerable part depend on one's tax situation.
Fill up those TFSAs, folks!
RetirEd
7:39 am
November 8, 2018
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Alexandre said
Is it possible to apply for OAS before CPP? Never thought one can do that.
Thanks for clarifications. I thought that this is the order of application:
1. CPP
2. OAS (must apply for CPP to apply for OAS)
3. GIS (must apply for OAS to apply for GIS)
While if I understand it correctly now, this is the right order:
CPP - any time after reaching 60
1. OAS - any time after reaching 65
2. GIS (must apply for OAS to apply for GIS)
8:55 am
January 13, 2022
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CAD said
Did anybody delay CPP (and/or) OAS?
I understand delaying one or both will get you more money later.
Idea behind delaying both is to use RRIF as early as possible to (try to) empty THAT account first.Any pro and cons regarding CPP/OAS delay?
Thanks for your thoughts!
Completely bought into this. My partner and I are both early 60s, retired. Healthy, touch wood. No kids/heirs. Completely deferring CPP to the max, and will probably defer OAS for at least a couple of years past 65. Income until 70 will be from emptying RIFs/most of RRSPs; we won't touch TFSAs or non-registered investments during that time. At 70/71, we'll rely on the max CPP and OAS payments (maybe GIS too depending on our situation), and dip into TFSAs/savings as required -- which is not viewed as income for the purposes of OAS or GIS.
1:24 pm
October 21, 2013
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Much depends on your personal situation; there is no one-size-fits-all rule.
That said, here are some general comments:
If you don't need it now, don't take it until 70.
If you are going to get OAS clawed back but income less than about 150,000,, defer OAS to 70. It takes a larger income to claw back a larger (deferred) amount, so you may still get some (or more). It's a ludicrous system, but there it is.
If you have no kids, defer.
Note, in your calculations, that OAS will increase at age 75 by about 70/month or so, a fixed amount but probably adjusted to inflation,.
Our health care system is in chaos and not likely to improve in foreseeable future, more likely to get worse with demographic bulge. This is going to cost you lots of money as you're going to have to pay to get adequate help if you have a lingering decline. You may be glad of the extra income from deferral at that point, and there will be some tax credits to offset, depending on income
Unless the govt goes broke, I think there will always be OAS. It won't be reduced but it might be clawed back differently. Right now, every politician is focused on the amorphous "middle class". This middle class doesn't like paying for OAS but will definitely want it when their turn comes. Population is aging.
There have been adjustments in CPP also - higher contributions, changes in investment protocols, much lower pension for survivor spouses (the first time either OAS or CPP has been reduced as far as I know). While CPP is more "fixed" than OAS, it is also adjustable.
3:36 pm
September 11, 2013
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No direct deposit showed up for me today in TD account re this month's CPP & OAS due today, anybody have anything similar or heard anything? Never happened before to me.
4:48 pm
December 18, 2024
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Company defined benefit pension was 100%, then 70%, then 87%, then hopefully in summer will be 90%. Retired 20 years ago. 20 years of fluctuating income. Had to cover the loss.
OAS at 65.
CPP at 60.
Don’t forget that delaying CPP and OAS to age 70 can lead to zero collected if you die @ 69.9 years. Spouse can will get a survivor pension from your CPP.
Either way it’s a crapshoot.
Things to check.
1.
Is CPP survivor pension based on the 65 yr old amount or 70 yr old amount. But keep this in mind……the spouse will never get more than the full CPP amount according to a friend of mine that worked art CRA.
Take CPP early and invest it, carefully??!! Or both at 70 and invest it and space out RRIF to 70 or later.
2.
Depleting the RIF isn’t as easy as what one would think. Even if you take more than the mandatory amounts and keeping the taxable within your tax bracket or control how much goes into the next tax bracket. I am looking at a 10 year plan to deplete and that may be, being optimistic.
3.
Plan to keep you and spouse in a low taxation bracket so you can maximize on income based benefits like the federal dental plan and provincial prescription plans.
4.
Consider life insurance policies and private health plans. Know what federal and provincial government coverages are.
5.
Depleting RRIF sure. But you can start at the RRSP level as well and “may” receive a pension credit on your income tax. And that money will be used for? ……TFSA purchases or monthly income or?
6.
If any company benefits cover you in your retirement years, when do they stop…65…70…never? What if the company offers to buy out your benefits? And if company goes into receivership…what happens?
7.
Check out if OAS or CPP starts automatically without making an application. Our OAS required no application and was semi automatic and we had to sign off and approve it to start after our 65th birthday.
There is no wrong decision.
But you need to list all the scenarios out, that may apply to you and/spouse and research the “what ifs” thoroughly and develop a plan.
4:49 pm
December 18, 2024
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Bill said
No direct deposit showed up for me today in TD account re this month's CPP & OAS due today, anybody have anything similar or heard anything? Never happened before to me.
Nope on both. No BMO alert, yet.
Too early.
5:19 pm
September 11, 2013
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Thanks, GIC-Fanatic, my mistake, I don't know why but today only I somehow thought it was on the last Wednesday of the month!
9:44 am
September 24, 2019
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GIC-Fanatic said
Nope on both. No BMO alert, yet.
Too early.
I didn't get the 2.7% increase in CPP payment yet.
A low income senior asked me about the Seniors "top up" He didn't have any increases in his payments this month yet. Any info on this anyone? Sorry if I missed any comment on this.
9:53 am
November 6, 2018
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Alexandra said
I didn't get the 2.7% increase in CPP payment yet.
A low income senior asked me about the Seniors "top up" He didn't have any increases in his payments this month yet. Any info on this anyone? Sorry if I missed any comment on this.
The increase is 2.6% and was added to both my spouse’s and my CPP benefit payments in January.
10:29 am
September 24, 2019
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BillieBob said
The increase is 2.6% and was added to both my spouse’s and my CPP benefit payments in January.
I'm not sure from reading on who qualifies but the senior I know is certainly low income.
What I have read:
Key details; Up to $1250 Extra payments including:
OAS Top-Up of $650 payment date 27 March 2025 &
CPP increase of 2.7% with payment date of 27 March 2025
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