Hi folks
Sorry if the answer is elsewhere.
I am in Defined Benefit pension plan (PSSP). I have prepared several retirment scenerios that involve supplementaing my pension with RRSP with drawals, savings (already taxed), and TFSA withdrawals. I have also factored in OAS at 65 and income splitting.
I have basically ignored CPP. The premise I am going with is this. If I wait until 65 (and I can hold off) then the reduction in my DB pension will be pretty much the same as what I get in CPP, so I am considering this a wash. As far as I am concerned, if the difference (if any) is not more than $50 to $100 a month in my favour or not, I am not going to bother factoring this in to my excel calculations.
I am just going to use the figures from my DB plan and proceed as if the only thing that changes at 65 is that I get OAS (and age credit). After all, my DB and the CPP will both be indexed.
Am I safe to make this assumption, or is there some horid set of curcumstances that might cause my pension reduction to be way more at 65 then the amount of CPP that will replace it?
I have been able to obtain estimates of the reduction at 65 and what my CPP will be at 65, and they are pretty close.
But, I trust these estimates about as much as It trust the tax calculator on the fed's PSSP site...lol.
Thanks in advance for any replies.
Sorry if the answer is elsewhere.
I am in Defined Benefit pension plan (PSSP). I have prepared several retirment scenerios that involve supplementaing my pension with RRSP with drawals, savings (already taxed), and TFSA withdrawals. I have also factored in OAS at 65 and income splitting.
I have basically ignored CPP. The premise I am going with is this. If I wait until 65 (and I can hold off) then the reduction in my DB pension will be pretty much the same as what I get in CPP, so I am considering this a wash. As far as I am concerned, if the difference (if any) is not more than $50 to $100 a month in my favour or not, I am not going to bother factoring this in to my excel calculations.
I am just going to use the figures from my DB plan and proceed as if the only thing that changes at 65 is that I get OAS (and age credit). After all, my DB and the CPP will both be indexed.
Am I safe to make this assumption, or is there some horid set of curcumstances that might cause my pension reduction to be way more at 65 then the amount of CPP that will replace it?
I have been able to obtain estimates of the reduction at 65 and what my CPP will be at 65, and they are pretty close.
But, I trust these estimates about as much as It trust the tax calculator on the fed's PSSP site...lol.
Thanks in advance for any replies.