I'm a CPP expert. Any questions?
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Thread: I'm a CPP expert. Any questions?

  1. #1
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    I'm a CPP expert. Any questions?

    I worked for CPP for more than 32 years, and have recently retired.

    I'd like to share my knowledge if you have any questions, especially around the calculation of CPP benefits.


  2. #2
    Senior Member Daniel A.'s Avatar
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    Sounds good thanks.

    Question I retired at 56 and had maximum contributions for most of my working life so from age 18.
    The year I turned 56 was also a full year of contributing.
    Between 57 and 65 I don't have any contributions.

    I'm trying to decide when to start CPP.

  3. #3
    Senior Member My Own Advisor's Avatar
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    Welcome Dogger1953.

    Congrats on the retirement - good for you!

    I wish I was able to retire, early as well. In my late-30s, got at least another 15 years to go.

    I'm tempted to take CPP early, at 60. Take the money and enjoy it while I can, even with the 30+% reduction.
    Hidden Content - Saving and investing my way to a million dollar portfolio.

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  5. #4
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    Quote Originally Posted by Daniel A. View Post
    Sounds good thanks.

    Question I retired at 56 and had maximum contributions for most of my working life so from age 18.
    The year I turned 56 was also a full year of contributing.
    Between 57 and 65 I don't have any contributions.

    I'm trying to decide when to start CPP.
    If I knew your current age, I could give you a better response than just ballparking.

  6. #5
    Senior Member Daniel A.'s Avatar
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    Just turning 59 next month.

  7. #6
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    Quote Originally Posted by Daniel A. View Post
    Sounds good thanks.

    Question I retired at 56 and had maximum contributions for most of my working life so from age 18.
    The year I turned 56 was also a full year of contributing.
    Between 57 and 65 I don't have any contributions.

    I'm trying to decide when to start CPP.
    Daniel - With your current age being 59, and with 39 yrs of max contributions (age 18 to age 56 inclusive), your choices are fairly simple, even with the evolving legislative changes in the general dropout and in the age adjustment factors. I will give you some approximates here, and if you want exact calculations you could email me at DRpensions@shaw.ca. I charge $25 per actual calculations, but I guarantee the accuracy of those calculations!

    Using 2013 rates, your approximate choices are $672.30/mth at age 60, $730.62/mth at age 61, $793.80 at age 62, $866.70 at age 63, $939.60 at age 64 or $1,012.50 at age 65. Your actual start date doesn't have to be at those ages, but this gives you the range. If you want to calculate the "breakeven points", let's use age 60 and 65 as an example. You can receive $672.30 for life starting at age 60, or choose $1,012.50 for life starting at age 65. If you delay to age 65, you will have passed up on $40,338 ($672.30 x 60 month), but you will be ahead by $340.20/mth if you wait. It would take you 119 months ($40,338/$340.20) or 9.9 years to make up the "passed on benefits", or age 74.9.

    So, purely from a CPP benefit perspective, you are better off taking the CPP at age 60 if you die before age 75, but better off waiting until age 65 if you live beyond age 75. I'll let you work out the other breakeven points.

  8. #7
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    I will be turning 54 in May and plan to retire from my P/T position in December 2014 at age 55 & 7 months. My most recent statement (Feb 07, 2013 says I would collect $938.43 at 65)
    22 of my 35 working years on the the statement (1977-2011)were at MPE, 3 had no contributions(self employed) and 10 yrs at various levels probably averaging 60%, and a little higher % for the years 2012-14.

    I would like to know what benefits would be at ages 60 through 65 as I'm not sure the government calculator factors in leaving work earlier than when benefits would be available. (I'm not expecting $938.43 at 65)

    TIA
    Last edited by RBull; 2013-03-10 at 02:17 PM.

  9. #8
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    Should someone more than 35 years from retirement still count on CPP being there for them when they retire?

  10. #9
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    Quote Originally Posted by RBull View Post
    I will be turning 54 in May and plan to retire from my P/T position in December 2014 at age 55 & 7 months. My most recent statement (Feb 07, 2013 says I would collect $938.43 at 65)
    22 of my 35 working years on the the statement (1977-2011)were at MPE, 3 had no contributions(self employed) and 10 yrs at various levels probably averaging 60%, and a little higher % for the years 2012-14.

    I would like to know what benefits would be at ages 60 through 65 as I'm not sure the government calculator factors in leaving work earlier than when benefits would be available. (I'm not expecting $938.43 at 65)

    TIA
    RBull - Your calculations are a little more complicated than Daniel's. Since you have less than 39 years of max contributions, although you'll get a higher % each year that you wait, your actual "calculated retirement benefit" decreases because of the extra year of zero earnings. I could still do precise calculations if you wanted to email me @ DRpensions@shaw.ca, but for now I can give you the following estimates, based on the equivalent of 30.4 yrs of max contributions (22 @ max, 10 @ 60% and 3 @ 80%):

    At age 60, you could receive $586.29 (66.4% of $882.96); at age 61 $622.33 (72.16% of $862.43); at age 62 $660.78 (78.4% of $842.83); at age 63 $705.43 (85.6% of $824.10); at age 64 $748.14 (92.8% of $806.18) and at age 65 $789.23 (100% of $789.23).

    Using the ages of 60 and 65 to compare, your breakeven calculation changes a bit from Daniel's. You could choose $586.29 at age 60 or delay until age 65 and receive $789.23. You would be passing up $35,177.40 ($586.29 x 60 mths) to receive $202.94 ($789.23 - $586.29) more monthly. It would take you approx 173.3 mths (14.4 yrs) to make up this amount, so your breakeven age would be 79.4 yrs old.

  11. #10
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    Quote Originally Posted by Sherlock View Post
    Should someone more than 35 years from retirement still count on CPP being there for them when they retire?
    Not my area of expertise, but I think (hope) so!


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