A decision to defer the CPP (Canada Pension Plan) and Old Age Security (OAS) pension might make sense for you.
The financial planning experts at Walton Financial Group in Barrie, Ontario are ready to consult with you about the best time to take your CPP and OAS
If a person chooses to wait, each year CPP is deferred after age 65, their payments increase by 8.4 per cent. That means starting at age 70 increases the sum by 42 per cent versus starting at age 65. If collecting OAS is deferred to age 70 from age 65, the benefit amount will increase by 36 per cent.
Waiting longer also transfers the risk from personal savings to inflation-protected government benefits received for life.
If you have other forms of income it might benefit you to defer receiving your OAS pension. If your other sources of income combined are greater than the maximum annual income amount as set by the government, you might end up having to repay part or all of your OAS pension. Therefore, you should consider deferring receiving your pension up to the maximum age of 70, or until your other forms of income are less than the maximum annual amount.
Arrange for a retirement consultation with an expert financial planner at Walton Financial Group in Barrie, Ontario for personalized advice.
