3 Financial Steps You Must Take At 65

And a year or so later have Rev Canada reassess CPP to be certain all contributions are taken into consideration.

After my stroke in 2019 I applied to Revenue Canada Agency for 'disabled' designation so no income tax owed on my CPP Disability payments and subsequently CPP when I become 65 years old. I will then also withdraw some mony from my RRSP eh

If you are drawing CPP, OAS and a work pension will a RRIF still give you a $2000 tax deduction?

How about a video on Inheritance on people that are retired and their parents pass away? Will that effect my benefits on the year of Inheritance, etc.

Thank you for another helpful and informative video Adam. Assuming you are not at risk of OAS clawback from 65-70, at what age would the benefit of deferring OAS till 70 be realized?

This was super wise to discuss this topic. I was actually wondering if I covered all that I need to consider in prep for 65. Adam, thank you for giving us all the heads up....keep topics like this on your radar if this topic needs to be covered for other age groups. Awesome! 👍💯🙏🇨🇦

I can't imagine why, given a choice, anyone would retire a single day later than they have to

My wife got a letter last year from Service Canada (she turns 65 this year) stating that she will have to apply for OAS. Apparently they don’t have all the info needed to start her OAS automatically when she turns 65. Don’t know why that is as she has lived all her life in Canada and had T4 income all her life till she retired at age 56. Works for us as she will be deferring OAS so we can aggressively draw down our RRIF and avoid Clawback.

Thanks

Dead at 80 ? Why wait ✋️ take it asap

I have a request/question? The CPP bridge on a Db pension? The details please? I thought is was so you could wait and get CPP at 65 with no penalty. I am hearing different things about it though. Can you do a video about it please. Thanks! Great videos too. ;)

First step is to make it to 65!

Can you claim the pension income tax credit if you draw a defined benefit pension when you are 55?

I'm a little bit confused by your information about the "pension credit". Pension credit is a non-refundable tax credit and it's worth the same amount regardless which tax bracket a taxpayer is in. If one lives in BC, as I do the "pension credit" is worth 15% of 2,000 (federal credit) and 5.06% of 1,000 (BC credit) to a total of $350.6. Therefore nobody will save $1,000 if they withdraw $2,000 from their RRIF.

You recommend for people to update their CPP pension eligibility amount and reach out to Doug Runchey. Doug is a wonderful and very knowledgeable pension consultant, but of course he charges, and should charge money for his service. I would recommend one calls Service Canada, the CPP and OAS Call Centre to receive the same information for free. The only difference is that Doug might be able to recommend if one should take their CPP pension earlier or later and the SC officer will only provide the information and can calculate the break even point.

Hi Adam,
So We are early 60s, we finally topped our tfsa, we have no other investments or rrsp etc.
At our age, where should we throw our $$ at?
I think we are, at second quarter 2023, about 10k$ sitting uselessly in our checking accounts.
Where should we put that $$ to work for us???
rrsp seems dumb, I mean if we could we would retire now!

Another variable/aspect is your life expectancy e.g. a stroke 4 years ago and a pacemaker last December; enjoy life/retirement while you are still here/around eh! :)

Do you have any videos with financial advice for people in their 70's?

They need to make OAS and CPP tax free benefit.

At age 65 you get a free eye exam in Canada.

hi there, how does one hire your firm? thanks!!

I was told by a Services Canada rep that the CPP is going to develop a tier system for different income levels. The higher your income level, the higher your CPP deduction could possibly be, resulting in a higher payout when you begin to collect CPP. A rather smart strategy on the part of the CPP when the possibility exists that some contributors won’t live many years after turning 65. Interested in feedback.

Hi you say if i wait to collect CPP i get .7 percent more per month, i remember back in 2006 to 2016 everyone's CPP was reduced by 36% over a ten year period if you were not colleting it and in 2017 forward it would come back to you over a ten year period so this .7 percent i believe is part of the pay back ? and not a bonus for waiting longer !!. I do remember the 36% reduction ,do you have knowledge of this !

Once you start your CCP/OAS can you change your mind and postpone it for some yrs.???

Another well well constructed and informative video, thanks Adam! A suggestion for future video could be a more detailed analysis showing why postponing OAS benefit isn't as advantageous as CPP postponement (or maybe why you should postpone OAS as well). I understand that there is the 0.1% difference, but in many of your videos (or at least the ones I've seen...and I've seen most of them...LOL) you always recommend taking OAS at 65 instead of waiting to get the 0.6%/month benefit (assuming fully retired to mitigate claw-back). Cheers.

Hi, on OAS, I'm a naturalized Canadian citizen and will have lived in Canada for 10 years by age 65. I'm 61 now. I had also lived in the USA for 20~ years altogether and quite a few years in Taiwan after age 18. So when I receive the OAS letter at age 64, will Setvice Canada count those years and how do I let Setvice Canada know about those years? Thank you.🎉

Another informative video Adam Couple questions though. Assume a DB uses the pension income credit so RIF/LIF strategy is moot in those cases? Also, assuming no cpp disability, no child years, etc, if I look at my CPP amount at 65 and know I will retire at 60, is there an easy way to figure out what my real CPP amount will be from 65 - 70?

Adam do you take on clients out of province (Edmonton)?

Good grief….. uh, what???? All I caught was, I’m supposed to call Doug..I think.

I’m supposed to have a Financial Planner???? I knew I should’ve taken that left turn at Albuquerque!

Just a word of warning about delaying OAS. My OAS payments were to start automatically at 65, as per Service Canada mail I received. I decided to postopne the payments, it was easy, just select that option in “my Service Canada” online account. However, to recieve the OAS payments at a lter date, you have to apply for OAS and the application is no joke to fill out. You will need original copies of marriage certificate, if married, proof of date when you became landed immigrant (if not born in Canada), etc. Plus, it can take up to 5 months to approve your application. Government doesn’t tell you this when you conveniently postpone your OAS with a couple mouse clicks!!!

If I can earn 9-9.5% investing CPP at age 60 and not withdrawing it until I’m 70 will I be better off than taking it out at age 65?

If you defer the OAS does mean the Ontario Drug Benefit is deferred as well? 🤔

The $2000 only gets you a 15% refund though doesn't it? So kf you are in a 50% tax bracket you only get a $300 redund, not a $1000 refund right? Please confirm, that's awesome if I'm wrong, but i think it's just a 15% tax credit.

Here we are in Mar '24 and thought I would revisit this video and, sure enough, picked up on the $2K idea that didn't matter as much 9 months ago. Now iit matters. You just saved me my marginal rate x $2K!

Go on take the money and run🎶

Hello Adam I have RRSP I want to switch to RIPF I'm goin 65 yrs old this year month of July how much the limit widraw how can tke 65 yrs old thank Adam 😊

I need a financial advisor/planner.

Here is Rules for RRIF withdrawals: You must start taking withdrawals the year following the year you opened your RRIF. You can choose your withdrawal amounts as long as you make the minimum annual withdrawal, which is a set percentage determined by the government. As you get older, this percentage increases. You cannot just take out $2K each yrs you must take out the minimum amount, and if you are in higher income like he said oodles of money that will put you in a higher tax bracket. But I agree you have to start taking it out sometime. And you must roll RRSP into RRIF by December of yr you turn 71. And start getting MA the next yr.

Is this RIF at 65 for Canadians or US citizens?

If I am 65 and drawing from a RIF Account and 2 LIF Accounts’s, am I eligible to get the $2000 Pension Income tax Credit from each account ?

The $2000 RRIF withdrawal pension income tax credit part raises more questions than answers. Statement is made in video "withdraw $2000 every year tax free". No, RRIF withdrawals are fully taxable. Statement is made in video that the tax credit is applied at your marginal rate with example of 50% marginal rate getting $1000 deduction. No, the federal tax credit rate is 15%, so you won't get any more than $300 for the $2000 pension income. Am I missing something?

$2000 pension credit only applies to one, either an rrif or lif and not both

Thanks, Adam. if you want to take the 2K tax free from a RIF, all you need to do is transfer the 2K per year and no need to transfer a big chunk from the RRSP account.

Is the 2k tax free income only at 65, or every year?