# Dividends to top up OAS, CPP



## RedRose (Aug 2, 2011)

> Fewer and fewer Canadians have an employer-sponsored pension waiting for them at retirement. Although many retirees will receive some government retirement benefits, the most a person 65 years or older can collect from Old Age Security and the Canada Pension Plan is about $18,000 (2011 figures).


Does anyone know if other sources of income affect this 18K maximun? 
I presently receive a portion of my late husband's CPP, his UK pension, and I was delaying my CPP until I am 65 as I still contribute to it. When I turn 65 and I draw my OAS, this will take me over the 18K so is this the clawback people talk about.

Full article here: http://cawidgets.morningstar.ca/ArticleTemplate/ArticleGL.aspx?id=450206

I am just trying to educate myself in this new finacial world that I find myself in. Some of the abbreviations in other threads I totally do not understand yet.


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## Square Root (Jan 30, 2010)

CPP is not clawed back. They are referring to OAS which is clawed back (reduced) if your income from all sources is over about $65k per year. Clawed back at 15%


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## bbsj (Aug 26, 2010)

Square Root said:


> CPP is not clawed back. They are referring to OAS which is clawed back (reduced) if your income from all sources is over about $65k per year. Clawed back at 15%



CPP may be clawed back in the sense that those receiving survivor's CPP will lose a big chunk of it when they start collecting their own CPP.


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## MoneyGal (Apr 24, 2009)

That's just to stop all us gold-digging women from marrying tons of widowers and collecting multiple CPP pensions after a series of unfortunate events.


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## RedRose (Aug 2, 2011)

Oh Thank YOU ALL for such a prompt response.
I have approx. 6K year my husband's CPP
UK Pension 7K yr. 

My Cpp may be 5k year
My OAS may be 6K year

Will all these be safe as they top over the 18K talked about in the article?

I am trying to figure out what my income will be at 65 without any investments like dividend paying stocks mix, GICs mutual funds...annuity and such. The risk of the DB pension tends to scare me. Like all eggs in one basket.


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## bbsj (Aug 26, 2010)

RedRose said:


> Oh Thank YOU ALL for such a prompt response.
> I have approx. 6K year my husband's CPP
> UK Pension 7K yr.
> 
> ...


Since your CPP plus survivor's CPP combined do not exceed the maximum CPP amount, you are not going to lose any amount in your CPP. The 18k is about one person's maximum CPP plus full OAS.


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## Four Pillars (Apr 5, 2009)

@RedRose - Unless I'm misreading you, I think you might be misreading that article you quoted.

When they say that the most someone can collect from CPP + OAS is $18,000 - they mean that the maximum payout of CPP (ie the most you can be eligible for) plus the maximum payout of OAS you can be eligible for is $18,000. 

As stated in the thread - the CPP isn't clawed back at any income level.

OAS is clawed back after about $65k. But the $65k amount is your total income, which would include everything.

One other note - any dividend income gets grossed up so that could affect OAS payments.


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## RedRose (Aug 2, 2011)

Thank YOU ALL again for clarifying this info for me. I greatly appreciate it.
My mind is not functioning 100% yet, plus all this finanacial stuff is new to me. All the maxims too are a learning curve, so many abbreviations...


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