# Drain RRSP?



## tfin (Feb 13, 2012)

I just took a package. Full salary to the end of 2012 ($100,000) Then start pension Jan 1 2013 ($52,000). Age now 62. My latest CPP statement says if I were 65 today I would receive $787 a month. I have $200,000 in RRSP account. Turn 65 in July of 2014.

Would I be better off delaying taking CPP till I"m 65 and making up the forgone money by removing the same amount from my RRSP. Or even removing more from RRSP up to just below the next tax rate. This would however would add more years of low contributions to CPP which might further decrease my eventual CPP payments. Might it even be worthwhile delay CPP beyone age 65 and continue draining the RRSP at lower tax rate.


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## RoR (Jan 18, 2012)

How is your health? I don't think there's any perfect answer to the CPP question unless you know when you're going to die. A dely could be a good idea, but you need to live past 85. If you delay it and you die in the meantime, you get nothing. 

They are changing the CPP rates, check on that first.


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## OhGreatGuru (May 24, 2009)

Another consideration is that, unless you have a spouse with whom you can split some of your pension, you are going to be close to the OAS clawback level when you start collectiing OAS & CPP. It might make sense to move some of yuor RRSP money out before age 65, particularly if you have TFSA room to put it in.


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## thebomb (Feb 3, 2012)

Not sure if you have already signed the package or if you worked with a lawyer on the details, but you should read up on "grow in benefits" related to pensions. I am not sure where you are located, but in Ontario new legislation is coming in 2012 that provides employees in DB pensions a number of enhanced benefits. Worth a look.


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