If you take the pension early, it’s not as bad as a hit as you think. For the average person it’s about 20 years before you will benefit from waiting.
Sadlsor goes x-country on the GS Adventure
- Thread starter Sadlsor
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Took mine as soon as I could. 62. Partly because I kind of had to, and as above , I did the math. It made sense to me rather than waiting which seems to be what all the financial 'experts' seem to say.
On point observation about the financial "experts"! Few do the math.
Math looks slightly better North of the 49th though, where they statistically still live about 5 year longer than US.
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They don't live longer, just takes longer to dig them out of the snow...
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Oooops...
drrod
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I don't care who you are, that is funny!!!They don't live longer, just takes longer to dig them out of the snow...
Not so funny though as I sit looking out at snow covered ground and still needing to service the bikes and put them to bed for the winter
The Globe has a calculator that you can use to determine which option is best. Turns out, my breakeven point is age 75 between taking it at 60 v. 65, i.e. it means more money prior to age 75 if I take it at 60 v. more post 75 if I take it at 65. I read somewhere that the majority take it at age 60.
That kinda hurts as we're experiencing winter a little early....and I made the mistake of going to Winnipeg.They don't live longer, just takes longer to dig them out of the snow...
I'll take the dig with the best of humour.
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I see what you did there... sorry about winter, hopefully it will not be a tough one and require a heated Kilt.That kinda hurts as we're experiencing winter a little early....and I made the mistake of going to Winnipeg.
You mean Winterpeg! Reason we live longer is from shoveling all that snow ,good exersize!
I thought it was because the corpses aren't found 'till Spring Thaw...
drrod
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The older we get, the less spending money we may need although it seems I am still on the upslope of that curve!
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Maybe in syrup land, no big expenses while hibernating or the five years they are looking for you, but for US, it is a different reality......
drrod
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How much you actually lose in $'s depends on how much you are getting in the first place. If you are like me and were self employed all your working life, you minimized "salary" and took remuneration from your business in other ways to save taxes. The downside is that CPP is calculated on contributions that were based on "salary" not total remuneration. You lose 0.6% per month if you take it early (7.2% annualized) so if you can invest at greater than 7.2% it is better to take early, especially if the tax on that investment is less.
Strictly determined by math if it is worthwhile or not.
drrod
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Yes, we are fortunate that our healthcare is not structured the way yours is.Maybe in syrup land, no big expenses while hibernating or the five years they are looking for you, but for US, it is a different reality......