Part II - Collecting CPP early -

A client wrote an addendum

On Tue, 2007-09-25 at 23:30 -0700, US / Canada Income Tax Help -
david ingram replies:

You may apply to collect your Canadian CPP at age 60 whether youlive
in the US or Canada   You will receive 30% less than if you started at
65. That workls out to about 6% less per year that you collect the
pension early.
Of course in the case of my dad, who unfortunately passed away at 63, if
he'd have waited until 65, he'd have received 100% less.


david ingram replies

I am alive past where I expected to be and have paid in for five more years than I had to and if I dropped dead tiomorrow, my 15 year old daughter will get up to 9 years of orphan's benefits if she continues in school and college.

My 20 year old will get four years if he stays in college.

They will get more than if i had taken it out sooner.

I still intend to pay in for the next three or four years and take a higher amount.  If I live a long time, I will get more.  If i live a short time, I will clearly get none or less and have paid a lot more in.

However, since I do not need it now, I owuld rather have a larger amount when i am not working or can not work.

Another big argument vcan be made for taking it early and investing the money.

That way you do receive something if you die first.

Hey, maybe I will change my mind.  where's that application again?



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