If you are working after the age of 60, something you need to consider is whether or not you want to collect CPP. This is where the CPP post retirement benefit comes into play.
In this video, I explain how it works and then give an example of how the numbers play out over time. Hopefully this will help you decide whether or not to collect CPP if you’re still working.
If you are unsure about which option is right for you, please feel free to visit our website, k4financial.ca or email us anytime at info@k4financial.ca
Also, I apologize for parts of the video, as I don’t love my explanation of how it works, but I think the comparison is valuable.
Thanks for watching.
Do you have more questions that have been unanswered? Would you like to understand your finances better?
or email info@k4financial.ca
K4 is the home of the $500 plan- a new, better option for the average Canadian.
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DISCLAIMER: All content being published on this platform are for informational and entertainment purposes only, and do not constitute formal financial, accounting, nor legal advice. Kent Tilley does not hold formal education nor registry to be held accountable for any professional recommendations – those in need of formal financial advice/ planning must seek help from licensed professionals. Kent takes pride in the sense of freedom, satisfaction, fulfillment, and empowerment that financial competence that he has built through conscious management of his family’s money. With this, there is no guarantee that the overall content found here are appropriate or applicable for every individual. By proceeding, you agree to hold Kent harmless from any ramifications, financial or otherwise, that may occur to you by acting upon the information found on this platform….(read more)
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The Canada Pension Plan (CPP) Post-Retirement Benefit is a program designed to provide additional income to retirees who continue to work and make contributions to the CPP. The Post-Retirement Benefit is a way for retirees to increase their retirement income while they are still working.
To be eligible for the CPP Post-Retirement Benefit, individuals must be between the ages of 60 and 70 and must be receiving CPP retirement benefits. Additionally, they must still be working and making contributions to the CPP.
The amount of the Post-Retirement Benefit is based on the individual’s contributions to the CPP while they are receiving CPP retirement benefits. The benefit is calculated using a formula that takes into account the individual’s earnings and contributions while they are receiving CPP retirement benefits.
The maximum amount of the Post-Retirement Benefit changes each year, and individuals must apply to receive the benefit. The benefit is not automatic, so individuals who are eligible for the Post-Retirement Benefit must actively apply to receive it.
It’s important to note that the CPP Post-Retirement Benefit is not a mandatory program. Individuals can choose to continue working and making CPP contributions without receiving the benefit. However, if they decide to receive the benefit and continue working, their contributions will increase their CPP retirement income.
Overall, the CPP Post-Retirement Benefit provides an opportunity for retirees to increase their retirement income while they continue to work. By making contributions to the CPP while receiving the Post-Retirement Benefit, retirees can ensure that they have a steady stream of income in their retirement years.
In conclusion, the CPP Post-Retirement Benefit is a valuable program for retirees who are still working and making contributions to the CPP. It provides an additional source of income and allows individuals to continue to build their retirement savings. It’s essential for individuals to understand the eligibility requirements and application process for the Post-Retirement Benefit to take full advantage of this program. By doing so, retirees can maximize their retirement income and enjoy a more secure financial future.
Finally! The clearest explanation yet. Thanks!
I suppose it screws gis too.
This is absolutely the best explanation I've seen of this issue with actual sise by side comparisons.
Thank you for your video.
The 'dep dive' needed to include that each of the first five years would also have been earning 3%.
Did you say 'inflation stays at 99% or whatever it is right now"?
How are we contributing to CPP?
So, PRB is only calculated after 24 months of working while collecting CPP and paying CPP premiums, or, in other words, the year after the year of initial contributions while working and still paying into CPP. I’m 66, started my CPP over 12 months ago, and Service Canada hasn’t given me a definitive answer concerning PRB. In all my research it suggests that it’s a good return on the investment and each year between 65 and 70 it’s compounded. What says Kent? Enjoy all your hard work. Keep it up.
Hi, I am turning 60, I want to take the CPP, but I am going to continue working,. Is ir an está form , I have to fill out,,?
Thanks Kent….great segment.
I'm planning on working until 70 and deferring CPP/OAS to get the higher amounts at age 70…
My earned income past 64 yrs old is going to be greatly reduced (100+ K/Yr down to only 30K/Yr)
What I'm trying to understand is- will continuing to earn after 65 at a very reduced earned income and contributing to CPP between 65-70 actually pull down my CPP/OAS amount when I reach 70? If it does pull down the future amount -can a person just opt out of paying CPP past 65?
Any thoughts? Thanks.
I'm not sure the 30.5 % reduction is applied to the post retirement amount. Is it?
Good video. Even though it is a fringe situation, I appreciate the deep dive.
I'm 61, still working.. makes more sense to wait as long as possible before collecting CPP.
I decided to take my CPP at 61. I could die any day.