MULTIZ321
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BLUEWATER BY SPINNAKER HHI
ROYAL HOLIDAY CLUB RHC (POINTS)
Want Your Money to Go Further in Retirement? Defer CPP Until Age 70
By Frederick Vettese/ Retirement/ The Globe and Mail/ theglobeandmail.com
"In past articles, I have argued that retirees are better off waiting until age 70 to start their Canada Pension Plan pension, assuming they have enough savings to tide them over until then. Doing so increases the amount of guaranteed income they will have for the rest of their lives. It also reduces your long-term investment risk because you are spending your savings first.
The reason this deferral approach is so effective is that the pension is nearly 50 per cent greater in real terms if you start payments at 70 instead of 65. To the extent you are still drawing income from your savings, the bigger CPP pension will not totally eliminate income uncertainty but it will help. By postponing your CPP pension, you are essentially transferring some of the investment and longevity risk back to the government.
In spite of the many advantages of this option, almost no one takes the government up on it. Only 1 per cent or so of all CPP recipients postpone the start of their CPP payments until age 70. What we have is a rare situation – the government is quietly doing the public a big favour and hardly anyone is taking advantage of it...."
Richard
By Frederick Vettese/ Retirement/ The Globe and Mail/ theglobeandmail.com
"In past articles, I have argued that retirees are better off waiting until age 70 to start their Canada Pension Plan pension, assuming they have enough savings to tide them over until then. Doing so increases the amount of guaranteed income they will have for the rest of their lives. It also reduces your long-term investment risk because you are spending your savings first.
The reason this deferral approach is so effective is that the pension is nearly 50 per cent greater in real terms if you start payments at 70 instead of 65. To the extent you are still drawing income from your savings, the bigger CPP pension will not totally eliminate income uncertainty but it will help. By postponing your CPP pension, you are essentially transferring some of the investment and longevity risk back to the government.
In spite of the many advantages of this option, almost no one takes the government up on it. Only 1 per cent or so of all CPP recipients postpone the start of their CPP payments until age 70. What we have is a rare situation – the government is quietly doing the public a big favour and hardly anyone is taking advantage of it...."
Richard