Retirement Planning: Is Deferring Your Pension Right for You?
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Canadians are living longer than ever before. In fact, depending on when you decide to retire, you could spend more than 30 years in retirement.
Choosing when to start your retirement is a major life decision and there are many factors to consider: your health, your family situation, your finances, how you want to spend your time in retirement, and how you will fund your retirement.
The Canada Pension Plan (CPP) retirement pension and the Old Age Security (OAS) pension provide a modest financial base that you can build on with your savings and other income. Depending on your situation, you may decide to defer your payments for either pension.
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CPP deferral
The CPP retirement pension is a monthly, taxable benefit. If you qualify, it will replace part of your income when you retire.
The standard age to start the CPP retirement pension is 65. However, you can start receiving it as early as age 60 or as late as age 70.
If you start receiving your pension earlier, the monthly amount you’ll receive will be smaller. If you decide to start later, you’ll receive a larger monthly amount.
The maximum monthly amount you can receive is reached when you turn 70.
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OAS deferral
The OAS pension is a monthly, taxable payment you can get if you are 65 or older and meet the eligibility criteria. You can receive your first payment the month after you turn 65, or you can defer your start date to receive a larger amount each month.
You can delay payment of the Old Age Security pension for up to 60 months (five years) after you turn 65. The longer you delay, the larger your pension payment will be each month.
After age 70, there is no advantage in delaying your first payment.
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Is deferral right for you?
Everybody’s retirement situation is different. If you’re healthy, expect to live a long life, or have access to other sources of income, you may decide to delay your payments to help protect yourself from outliving your savings.
The Canadian Retirement Income Calculator can help you better understand your future financial situation and decide if deferral is right for you.?
EX- CARDIOLOGY TECHNOLOGIST at DAUPHIN HOSPITAL
1 年Those who would be under various categories of disabilities community. They may not have any other income sources., so their exception case for them must be considered exceptional as separate model under old age pension plan so that their quality life would be protected until death under conscience of moral obligation in any nation globally if proved by data involving justice system