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CPP/OAS Timing

CPP/OAS Timing

As retirement planning specialists, we help you determine the best time to collect Old Age Security and Canada Pension Plan benefits

Why CPP/OAS?

The timing of when you start receiving Canada Pension Plan (CPP) and Old Age Security (OAS) benefits can significantly impact your financial situation during retirement. Understanding the optimal time to begin these payments is key to ensuring that you maximize your benefits.

Benefits of CPP/OAS

Steady Monthly Income

CPP provides a predictable, inflation-adjusted monthly income for retirees starting as early as age 60. This helps ensure a stable cash flow during retirement.

Income Replacement

CPP aims to replace about 25% of an average worker's earnings during their working years. While it's not intended to fully replace pre-retirement income, it can provide significant financial support.

Inflation Protection

CPP payments are indexed to inflation, meaning they increase over time to keep pace with the cost of living. This helps retirees maintain their purchasing power as inflation rises.

Early and Flexible Start

You can begin receiving CPP as early as age 60, though payments will be reduced. Alternatively, you can delay it up until age 70 to increase your monthly payments. This flexibility allows you to choose the start date that best fits your retirement plan.

To do that, we take into consideration how these benefits will interact with other income sources such as:

Rental income

Pensions

Required Minimum RRIF Payments

Dividends and interest

Capital gains

We also factor in family health conditions, spousal benefits, personal preferences, and more. By analyzing your entire financial picture, we are able to choose an Old Age Security and Pension Plan timing strategy that reduces your tax bill in retirement and optimizes your income stream.

FAQ

You can begin receiving CPP benefits as early as age 60, but if you start early, your monthly payments will be reduced. The full benefit is available starting at age 65, and you can increase your monthly benefit by deferring CPP payments until age 70.

  • Yes, you can continue to work and receive CPP or OAS. However, if you're under age 65 and working while receiving CPP, you will continue to contribute to the CPP and your benefit may increase. If you're earning high income, OAS payments could be reduced due to the OAS clawback.

The decision to take CPP early or delay it depends on your personal situation, including your health, financial needs, and whether you plan to continue working. Starting early gives you access to funds sooner but reduces your monthly payments. Delaying results in higher payments but a later start.

Get Started Today with CPP & OAS Planning!

Planning for your retirement is essential to securing your financial future, and your Canada Pension Plan (CPP) and Old Age Security (OAS) benefits play a major role in that. Whether you’re just starting to think about retirement or are already planning how to maximize your benefits, we’re here to help!

Trusted experts at your service.

Speak with Mount Columbia Private Wealth to discover a deeper understanding of your financial landscape and more.

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