Written by Matthew J. Ardrey, B.A., CFP, FMA, CIM | Consultant & Manager, Financial Planning November 27, 2013
In my previous two blogs in this series, I took a look at the pure mathematical decision as to when you should take your CPP (here) and OAS (here) to maximize their payout. In my final entry on government pensions for financial literacy month, let’s examine a couple of cases to get a sense of how personal circumstances can affect the decision.
If I stop working is it still better to defer?
Jim is planning to retire next year at age 55 and not work afterwards. He is single and his assets and future income are such that his decision to take the CPP at 60 or 65 will not affect his OAS clawback. Jim has a Statement of CPP Contributions that shows for the first 5 years he made 50% of the maximum contributions and then 75% of the maximum for the following 3 years. After this point he has made the maximum every year. Should Jim defer his pension to age 65 or take it at age 60?