Personal Finance

I'm a Canada Pension Plan (CPP) expert. Any questions?

  • Last Updated:
  • Jul 17th, 2017 4:44 am
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Newbie
Jun 6, 2017
8 posts
Hi,

At 65 , I will have 26 years lived in Canada, a CPP of 9745CAD /year and an OAS of 4512CAD/year.
My wife, at 65 will have 27 years lived in Canada, a CPP of 5271CAD/year and an OAS of 4686CAD/year.

How do I calculate how much GIC will receive each of us, as a couple, with no other income?

All websites will give you GIC tables if you receive FULL OAS and not partial OAS.

Thanks,
Claudiu
Newbie
Jun 4, 2017
7 posts
Going to be filling in the paperwork for a CPP Credit Split for my mother and late father. Mom turned 65 in January. They married in 1971 and he moved out in 2000. The divorce was finalized in 2004.

Does the credit split have any effect on the monthly CPP amount my mom receives going forward, or will that remain the same and the credit split is a one time payment? She had worked less that my father did.

How much does a credit split, on average, usually bring in? My father was a short order cook, usually bringing in about $400 per week.

Thank you for your help.
[OP]
Member
User avatar
Dec 12, 2012
439 posts
216 upvotes
Courtenay
Krubba wrote:
May 30th, 2017 11:02 am
My wife stayed home with the kids, and i understand the CRDO applies until kids are 7. So if two children, 2 years apart, does it work out to a total of 9 years? So from birth of first child to 7th birthday of second child?

Also, she has continued to work only very part time and freelance, so not really making any CPP contributions the last few years. Is it possible to make up CPP Contributions retroactively? And going forward, is it possible to make max CPP contributions even if her earnings are small, and if so, how?

Thanks!
Hi Krubba - Yes, she can drop out all 9 years of zero earnings under the CRDO plus approx. 6.5 years under the general 17% dropout. Contributions can be made only on earnings from employment or self-employment up to the YMPE, and it's not possible to make voluntary contributions otherwise.
[OP]
Member
User avatar
Dec 12, 2012
439 posts
216 upvotes
Courtenay
claudiu wrote:
Jun 7th, 2017 6:36 pm
Hi,

At 65 , I will have 26 years lived in Canada, a CPP of 9745CAD /year and an OAS of 4512CAD/year.
My wife, at 65 will have 27 years lived in Canada, a CPP of 5271CAD/year and an OAS of 4686CAD/year.

How do I calculate how much GIC will receive each of us, as a couple, with no other income?

All websites will give you GIC tables if you receive FULL OAS and not partial OAS.

Thanks,
Claudiu
Hi Claudiu - For GIS purposes, your combined annual income will be approx. $15,016 (your CPP of $9,745 plus your wife's CPP of $5,271). Under GIS rate table 2 (married couple, both receiving GIS), someone who's eligible for full OAS ($578.53 monthly ) would receive a monthly GIS of $170.23, for a combined total of $748.76 monthly. You would be eligible for the same total of $748.76, so you would receive GIS of $372.72 added to your partial OAS of $376.04 (26/40ths of $578.53).

Read this article for more details: https://retirehappy.ca/receiving-partia ... s-amounts/
[OP]
Member
User avatar
Dec 12, 2012
439 posts
216 upvotes
Courtenay
neospiked wrote:
Jun 9th, 2017 4:34 am
Going to be filling in the paperwork for a CPP Credit Split for my mother and late father. Mom turned 65 in January. They married in 1971 and he moved out in 2000. The divorce was finalized in 2004.

Does the credit split have any effect on the monthly CPP amount my mom receives going forward, or will that remain the same and the credit split is a one time payment? She had worked less that my father did.

How much does a credit split, on average, usually bring in? My father was a short order cook, usually bringing in about $400 per week.

Thank you for your help.
Hi neospiked - Yes, the credit split will affect the amount of monthly CPP that your mother will receive from this point forward. It is not a one-time payment. It's impossible to estimate the impact of a credit split without seeing both of their lifetime earnings records.
Newbie
Jun 6, 2017
8 posts
Thank you for your answer!

In table 4 "GIS and Allowance for couples" in the document: "Benefit amounts in effect from .April to June;2017" (see here: http://publications.gc.ca/collections/c ... 2017-2.pdf) I have $941.75 per person (OAS+GIS) for an income of 14,976.00- 15,023.99.

Am I reading right? Why table 2 and not table 4???
[OP]
Member
User avatar
Dec 12, 2012
439 posts
216 upvotes
Courtenay
claudiu wrote:
Jun 9th, 2017 4:53 pm
Thank you for your answer!

In table 4 "GIS and Allowance for couples" in the document: "Benefit amounts in effect from .April to June;2017" (see here: http://publications.gc.ca/collections/c ... 2017-2.pdf) I have $941.75 per person (OAS+GIS) for an income of 14,976.00- 15,023.99.

Am I reading right? Why table 2 and not table 4???
Once you're both over age 65 and both receiving OAS, your GIS will be determined under table 2. Table 4 applies only if/when one of you is receiving OAS and the other is between age 60 and 65.
[OP]
Member
User avatar
Dec 12, 2012
439 posts
216 upvotes
Courtenay
divx wrote:
Jun 10th, 2017 8:17 am
so is the retirement age 65 or 67 now?
The "normal" starting age for both CPP and OAS is age 65. For CPP, a retirement pension is payable starting as early as age 60 (reduced by 0.6% for every month under age 65) or as late as age 70 (increased by 0.7% for every month over age 65. For OAS, the amount is increased by 0.6% for every month you delay starting past age 65.
Deal Addict
Oct 4, 2009
1841 posts
651 upvotes
Montreal
claudiu wrote:
Jun 7th, 2017 6:36 pm
At 65 , I will have 26 years lived in Canada, a CPP of 9745CAD /year and an OAS of 4512CAD/year.
My wife, at 65 will have 27 years lived in Canada, a CPP of 5271CAD/year and an OAS of 4686CAD/year.
Your previous country of work/residence isn't providing either of you with any retirement benefit? Sucks if that's the case.
Deal Addict
Jan 2, 2015
1063 posts
230 upvotes
Toronto, ON
divx wrote:
Jun 10th, 2017 8:17 am
so is the retirement age 65 or 67 now?
Stephen Harper was pushing for age 67 for Old Age Security (some time in the future) but Trudeau put a stop to that. I suspect a later Prime Minister will raise the retirement age anyway. Much of the western world is doing that right now.

I don't believe I saw any plans to push CPP to over age 65. It's well-funded and isn't facing the same monetary troubles that OAS is facing. Which would mean everyone would have multiple retirement ages. (If you're 66 years old, working full-time, getting full CPP but no OAS, can you call yourself semi-retired? Does it matter if you're still paying into CPP?)
Deal Expert
User avatar
Oct 26, 2003
26594 posts
1626 upvotes
Winnipeg
FoFai2015 wrote:
Jun 10th, 2017 6:52 pm
Stephen Harper was pushing for age 67 for Old Age Security (some time in the future) but Trudeau put a stop to that. I suspect a later Prime Minister will raise the retirement age anyway. Much of the western world is doing that right now.

I don't believe I saw any plans to push CPP to over age 65. It's well-funded and isn't facing the same monetary troubles that OAS is facing. Which would mean everyone would have multiple retirement ages. (If you're 66 years old, working full-time, getting full CPP but no OAS, can you call yourself semi-retired? Does it matter if you're still paying into CPP?)
if cpp is doing good, then the expanded cpp will be good for everyone?
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Newbie
Jun 6, 2017
8 posts
Dogger1953 wrote:
Jun 10th, 2017 11:40 am
The "normal" starting age for both CPP and OAS is age 65. For CPP, a retirement pension is payable starting as early as age 60 (reduced by 0.6% for every month under age 65) or as late as age 70 (increased by 0.7% for every month over age 65. For OAS, the amount is increased by 0.6% for every month you delay starting past age 65.
If you delay OAS, this will increase with 0.6 every month but so will decrease GIS, so what is the advantage of delaying CPP or OAS?
Member
Oct 14, 2012
427 posts
181 upvotes
Woodstock
Many, possibly even most, people have other income for retirement not just CPP/OAS/GIS, such as a work pension, personal savings or RRSP. Many people will not qualify for any GIS.

If they can manage for a couple of years using income from their RRSP, income from part-time work, a work pension or personal savings and investments, they can get a higher CPP and OAS by waiting. CPP and OAS are partially indexed to inflation so they are good types of pensions. Many work pensions are not indexed to inflation at all and gradually the expenses you can pay with them decreases over time because you get the same, say 10 000 a year but your expenses which were 8000 climb each year due to inflation. So delaying starting CPP and OAS is one way to "buy" more of an indexed-to-inflation pension if you are worried about inflation.

STATSCAN reports http://www12.statcan.gc.ca/nhs-enm/2011 ... 01-eng.cfm
"Private pensions were received by 59.2% of seniors and the median amount was $11,700." Those people are not likely going to be eligible for any GIS.
Newbie
Jun 6, 2017
8 posts
BetCrooks wrote:
Jun 11th, 2017 3:50 pm
... personal savings
I was under the impression that "personal savings" are not considered "income" for OAS+GIS determination

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