OLD AGE SECURITY

After sleeping on it, I ran 3 scenarios with my very particular numbers. End result, it is in my financial interest to take start taking all my offsets (CPP, OAS & private pension) at 65 years old. If I delay until 70 years old the breakeven point will be about 90 years old before it makes it worthwhile to take it at 70 years old. So 65 years old it is to take all benefits. Definitely worth doing the math and talking it through on this forum. Thanks for all of your perspectives.

AirLog

A secondary pension I am sure is an offset,  private RRSP are surely not unless its part of a company-sponsored plan where they both contribute.

With the 70% reduction at 65 and all things considered I can't see any way that holding off on CPP and OAS is a benefit. There may be a way if its just OAS?

The policy to reduce to 70% wasn't just an arbitrary number it was with accounting and money-saving considerations.

The good news for those with the former CIA Suppl we are partly ahead of the game.

Comments? I would love to see a scenario of a situation where it actually is best to delay OAS and CPP to 70 or even 66 years of age with numbers.

ok home ya just confused the frack right out of me lol . im assuming your numbers are correct and misworded something ore misunderstand something .

just to be straight if your IRB minus the protected CIAS amount will be about $400.00 that's all they can deduct .

if you take your CPP/OAS at 65 ( im assuming you are not on CPPD ) you will be getting %1500.00 and loosing $400.00 from IRB . a gain of $1100.00 .

so if you don't take it you will be loosing $1100.00 a month in those 5 years . will take a while to make that up at an extra $400.00 a month my friend . 14years plus I guestimate .

propat

This question I can answer. Short answer "Yes." If you look at what "Offsets" are private pensions are included in the definition of offsets. So, as with me, our private pension plans (not sure about RRSP's) are used as offsets.

AirLog

AirLog wrote:My case is similar. At 65 if I take OAS, etc my IRB would be reduced to about $200 so my protected CIAS would be my minimum amount. If I wait until 70 years old for my OAS and civilian pension then my bottom line (gross) pay would be about $300/mth more than the amount at 65. Just my personal numbers.

AirLog

any what about those who are going through this but are not getting CIAS, would it be worthwhile to delay under those circumstances....I failed math in school.

AirLog wrote:Good morning Home,

I recalculated all my personal numbers and compared them to imaginary numbers (Corporal 25 year pension) and unless you are also receiving a secondary pension from a private company that is also an offset it isn't worth delaying your OAS. In my particular situation I would loose approximately $350 per month of my OAS if taken at 65. At 65 I will receive a private pension from this company. So I will most likely wait until 70 years old to take my OAS for the added benefit. Again, it is a personal financial choice when to take OAS.

AirLog

this is kind of where I fall because in 3 years, ( before I hit 65 ) , l will start receiving a pension from a private company I once worked for but it is locked in. Let’s say that pension is $500 a month, is that $500 additionally subtracted from my ELB as “ earned income” .?

My brain hurts doing the math. It all makes sense but I will try again tomorrow. Need some rest first.

AirLog

Got it figured out. If I take the Cpp and OAS  at 65 it amounts to an additional $1500 total. Without it, my IRB is $1512, now with it, (CPP, OAS) it is capped at $1145. Just short of 400 dollar loss.  So at 65, I would get an overall gain, if I do not take it oas /cpp I lose $400 a month. NOW If I delay to 70 for 5 yrs I will lose $400 per month between 65-70 years old BUT my oas and cpp will be increased from $1500 to $1900.  So in conclusion. I take a $400 dollar a month decrease in total income between 65 and 70 to gain an additional $ 400 at 70.
It is an advantage but too hard on the head I am taking it at 65.
Comments on your take of this scenario.

ok guys just to start i just want to make sure you are removing the CIAS protected amount before you calculate the 70 % . seems to me you guys have a lot of deductions enough to zero out your IRB ( except CIAS ) .if that is in fact the case your decision all comes down to your health . ya see you will get to keep the full OAS at 65 because once you are zeroed out they cant deduct anymore from your IRB .

the extra 300 bucks is great but it will take a long time to make up for the 5 years of OAS you will loose . about 15 years bringing you to age 85 to break even .

calculate properly its important .

remove the CIAS protected amount then calculate your 70% the reduce by your deductions with the exception of OAS and GIS .

that will give you what you need to know to make your decision properly .

if you get zero then its a health question and gamble .

if you get say $900.00 and you look to see your benefits of OAS and GIS will be $900.00 then you know taking it at 65 will zero your IRB and you will get no benefit but if you wait till 70 it will still zero your IRB but your OAS will be about $1200.00 thus a $300.00 gain .

and of course you could have a high IRB with little deductions in witch case it doesn't really matter I guess .

its all in the math do it correctly .

propat

My case is similar. At 65 if I take OAS, etc my IRB would be reduced to about $200 so my protected CIAS would be my minimum amount. If I wait until 70 years old for my OAS and civilian pension then my bottom line (gross) pay would be about $300/mth more than the amount at 65. Just my personal numbers.

AirLog

In my case, my numbers are actually reducing IRB to $300.  BUT because $1145.00 is protected it can never be lower than $1145.00. Even though the CIA's is indicated in the IRB column it is still protected. The 70% of 90% at 65 adjusted by the clawback in most cases will put you all below the $1145.00  So everyone with the CIA's portion it's protected.  So its dollar for a dollar only to the $1145.00 point.  Comments?
Does this make sense?

well like I said do the math . say your OAS is $898.32 a month and 0.00 for GIS and after deductions ( not including OAS and GIS ) your IRB ( not including your protected CIAS amount is right around $ 900. 00 . taking it would zero you out and no advantage either way immediately . but if you do not take it the bonus increase over the next five years would be the difference and advantage when you reach 70 . its all about your deductions and the math .

everyone's sit is different so do the math .

propat

Good point Bigrex. I didn't look at it that way. I guess it won't really matter in the end so might as well start receiving it at 65 years old. Won't make a difference. Always nice to have a different perspective on these calculations.

AirLog

It really doesn't matter what you get for OAS, or CPP, or when you get it, Because it will be deducted dollar for dollar from the reduced IRB amount. So if they calculate that your post 65 IRB amount is supposed to be $4000, it won't matter if that all comes from VAC alone, or several of the described sources. In the end you will still have the $4000.

Good morning Home,

I recalculated all my personal numbers and compared them to imaginary numbers (Corporal 25 year pension) and unless you are also receiving a secondary pension from a private company that is also an offset it isn't worth delaying your OAS. In my particular situation I would loose approximately $350 per month of my OAS if taken at 65. At 65 I will receive a private pension from this company. So I will most likely wait until 70 years old to take my OAS for the added benefit. Again, it is a personal financial choice when to take OAS.

AirLog