By Adrian Mastracci, KCM Wealth
Special to the Financial Independence Hub
Some important homework is in store for those retiring during 2016. Age 65 was the normal age to begin receiving CPP/OAS pensions.
A few timelines have changed recently. The changes are about deferring CPP/OAS pension benefits to age 70.
Your finances will need review vis-a-vis the personal circumstances. Here’s my summary of pension deferrals (figures rounded):
CPP benefits
2016 maximum CPP pension is about $1,092/mo at age 65.
Starting CPP pension after age 65 increases benefits by 0.7%/month of deferral, up to age 70.
Individuals who start CPP at age 70 receive a maximum 42% more, versus starting it at 65.
Hence, delaying CPP from age 65 to 70 raises pension benefits near $1,550/month.
Electing to receive CPP before age 65 reduces the pension by 36% at age 60.
Those employed after age 65 can make voluntary CPP contributions up to age 70.
Requesting your “CPP Statement of Contributions” provides the personal estimates.
OAS benefits