Money: Should start your CPP pension at age 60 or 70? - - PressFrom - Canada

Money Should start your CPP pension at age 60 or 70?

19:40  02 december  2019
19:40  02 december  2019 Source:

Canada Revenue Agency: Here’s How Much You’re Paying Into CPP

  Canada Revenue Agency: Here’s How Much You’re Paying Into CPP CPP payments take a bite out of your paycheque. Offset them by buying ETFs like the iShares S&P/TSX 60 Index ETF (TSX:XIU) in your RRSP.With most retirees having expenses around $2,400 a month, it’s not much to live on.

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Canadians have plenty to put their faith in, so they can take care of themselves when they retire. One of the first things your mind might wander off to as you think about retirement is your Registered Retirement Savings Plan (RRSP). The Canadian government also has a role to play in supporting you through your best years.

A workplace pension could be worth three times an RRSP — yet only 37% of Canadians have one

  A workplace pension could be worth three times an RRSP — yet only 37% of Canadians have one Statistics Canada data released earlier this year found that only 37 per cent of Canadian workers are covered by a pension plan. Pension coverage continues to decline leaving more workers with a case of pension envy. As pensions become less prevalent in Canada, it begs the question: how valuable is a pension? A Healthcare of Ontario Pension Plan (HOOPP) study entitled The Value of a Good Pension contends that for every dollar contributed to a Canada-model pension — a pension with scale, risk pooling and internal fiduciary management — a retiree can expect $5.32 of retirement income.

The government has designed public pensions like the Canada Pension Plan (CPP) for Canadian citizens who are no longer working. People do, however, tend to forget that the CPP is there to bolster the retirement nest egg every Canadian wants to have for their retirement.

Related video: Money 123: Importance of having a will [Provided by Global News] 

If you’re approaching your 60s, are you thinking about starting to collect money from your CPP as soon as you retire? I would suggest waiting for a little while longer before you start your CPP. Let’s take a look at why you might want to delay your CPP and a possible way to improve your nest egg through a dividend-paying stock like Suncor Energy (TSX:SU)(NYSE:SU).

Veterans Affairs rejects pitch for social media influencers in $7M outreach contract

  Veterans Affairs rejects pitch for social media influencers in $7M outreach contract Canada's veterans department shied away from a proposal to use social media "influencers" to get its message out to an increasingly fractured and frustrated community of former soldiers, sailors and aircrew, federal documents reveal. An outside communications company called STIFF Sentences Inc. drew up a list of 15 potential "influencers", rated them on whether they had a "positive" or "negative" view of the department and pitched Veterans Affairs Canada (VAC) on the concept, which has been adopted elsewhere in the federal government.

The case for delaying your CPP

To put it plainly, the longer you wait after you are 60, the more you can get from the government through your CPP by the time you hit the golden number of 65 years old. You are eligible to start collecting your CPP when you hit 60, and plenty of retirees jump on the opportunity.

If you decide to start collecting your CPP before your 65th birthday, for every month, you get 0.6% fewer dollars than you would if you waited to start receiving your CPP at 65 years old. If you start collecting your CPP at your 60th birthday, you stand to see your CPP amount reduced by a drastic 36%.

On the opposite end, delaying your CPP collection makes you eligible to get 0.6% more for every month. If you can put off collecting your CPP until your 70th birthday, you stand to earn a 36% boost in total.

Being able to delay your CPP

Understanding the benefits of delaying your CPP collection is one thing. Being able to suspend it without the need to start collecting your CPP is a different matter. If you are wondering how you can make yourself capable of delaying the CPP without having to live under your means, there is a solution: dividend stocks.

UCP members show overwhelming support for ideas to give Alberta more autonomy

  UCP members show overwhelming support for ideas to give Alberta more autonomy CALGARY — Members of Alberta's United Conservative Party have shown overwhelming support for measures that would give the province more autonomy from Ottawa amid simmering separatist sentiment. At its first annual general meeting since winning power this spring, the UCP held a special session on Saturday to discuss ways for Alberta to get what it calls a "fair deal" from the federal government. Informal straw polls were taken on the idea of Alberta establishing its own tax collection agency, pension plan, police force, trade relationships and firearms watchdog. A panel weighing those ideas is to complete its report by March 31.

Investing in shares of reliable dividend-paying companies like Suncor can present you with a viable solution. The CPP, after all, makes up a part of your retirement nest egg. The pension plan does not have to be the only thing to rely on. Buying stocks like Suncor and storing them in your Tax-Free Savings Account (TFSA) gives you the boost you might need.

Over the years, Suncor’s management has cut down operating costs, invested in new technology to boost efficiency, and maximized the profit the company earns. A company that consistently performs better is better equipped to offer shareholders a stable flow of dividend payments.

At writing, Suncor is trading at $42.21 per share with a juicy dividend yield of 3.98%. An investment of $120,000 in the company’s shares can allow you to earn $4,775 in dividends alone.

Foolish takeaway

Between the increased Canada Pension Plan payments, if you delay collecting them, capital gains from a reliable company’s stocks, and the dividends you can get from it by holding the stock in your TFSA, you can have more than a substantial amount for your retirement nest egg.

Hundreds protest public service cuts at UCP meeting in Calgary

  Hundreds protest public service cuts at UCP meeting in Calgary Teachers, nurses and government workers marched outside a United Conservative Party meeting in Calgary in protest of cuts to public services and the potential loss of thousands of public sector jobs announced on Friday. They carried signs that read "I love Alberta public education" and "Hands off my pension." They chanted "Jason Kenney has got to go" and "Shame" from across the hotel parking lot, while UCP members lined up to get lunch from food trucks contracted to supply food for the event.

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More reading

  • If You Don’t Buy Suncor (TSX:SU) Shares Today, You’ll Be Kicking Yourself Later
  • RRSP Investors: Should You Buy Suncor Energy (TSX:SU) or Nutrien (TSX:NTR) Stock in 2020?
  • Retirees: Here’s 1 Awesome Trick to Max Out Your CPP Pension
  • TFSA Investors: 3 Top Canadian Dividend Stocks to Buy Right Now
  • Energy Investors: 2 Disrupting Technologies and 1 Top Stock

Fool contributor Adam Othman has no position in any of the stocks mentioned.

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TFSA Pension: How to Keep the CRA Away From Your Retirement Earnings .
Canadians are searching for ways to increase their income without paying more taxes. One way to meet that objective is to hold dividend stocks inside a TFSA.Beginning in 2020, each Canadian pensioner will have as much as $69,500 in TFSA contribution space. The TFSA protects all interest, dividends, and capital gains from the tax authorities, so you can create an income stream that won’t impact your current tax rate or put OAS payments at risk.Let’s take a look at two dividend stocks that might be interesting picks today.

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