CPP and OAS are cornerstones of retirement income for millions of Canadians, yet the decisions surrounding these benefits are frequently misunderstood. Many people simply apply as soon as they become eligible or automatically begin collecting at age 65. What they may not realize is that the timing of these decisions can permanently affect how much income they receive.
Should you take CPP early and invest the payments? Is it better to delay CPP in exchange for a larger, inflation-adjusted benefit? When should you begin OAS? Could your retirement income expose you to the OAS recovery tax, better known as the OAS clawback? And how should these government benefits be coordinated with RRSPs, RRIFs, pensions, TFSAs, and non-registered investments?
The right approach depends on several interconnected factors, including your health, expected longevity, current and future income, tax position, investment assets, retirement lifestyle, and your spouse’s or family’s needs. A decision that appears attractive today could result in less lifetime income, a larger future tax bill, or the loss of OAS benefits later in retirement.
Join Brook Wagman, in partnership with Fidelity Investments, for an informative webinar that goes beyond the basics to examine the real financial consequences of CPP and OAS timing decisions. This session will explain how both programs work, identify the trade-offs involved in taking benefits earlier or later, and explore practical strategies for integrating CPP and OAS into a coordinated retirement income plan. The objective is not to promote one universal starting age. It is to help you understand the variables so you can make a decision based on your circumstances.
During this webinar, you will learn:
- The essential differences between CPP and OAS, including eligibility, funding, benefit calculations, and inflation protection
- How taking CPP before age 65 permanently reduces your monthly payment, and how delaying it can permanently increase your income
- Why waiting to begin CPP or OAS may make sense for some retirees but not for others
- How health, life expectancy, cash-flow requirements, and investment returns can affect the break-even calculation
- How the OAS clawback works, which types of income can trigger it, and why income planning matters before age 65
- How CPP and OAS can be coordinated with RRSP and RRIF withdrawals, workplace pensions, TFSAs, and other income sources
- Practical strategies that may help reduce taxes, preserve OAS benefits, and create more dependable retirement income
