Freedom 75 PT 2: Oh, you can make big bucks on CPP

Hey, I’m back.

(And yes, that was the longest bathroom break on record).

Yesterday I mentioned that there is some good news related to retirements and pensions if you are Canadian.

For example:

“If you stay on the job until 70, payments could be $4,600 a year more (than if you retired at 65), based on maximum CPP benefits.” (Oct. 27, Brantford Expositor)

Goodness gracious. You could barely carry that much extra money around in a wheel barrow.


[“More money. I’ll stop making birdhouses”: photos GH]

I mean, that’s $383 MORE per month or about 13 bucks MORE per day.

I can hear you say, be still my beating heart.

But there’s more good news and you deserve it, especially if you’ve been staring at your computer screen while I’ve been ‘away.’ (That’s as nice as I can put it).

I also read the following in the same news article:

“By age 90, someone who retired at the age of 70 will have collected about $100,000 more from the CPP than someone who retired at 60.” (full article here)


[“I’ll finally be able to afford that boat trip!”]

Let me put that another way so you catch the full impact of the good news.

If you take a late retirement you will be graciously rewarded by the Canadian Government, to the tune of $4,600 MORE per year. That’s every year for the rest of your long and healthy life.

If you live until you’re 90 - and I know you want to - you’ll collect, free of charge (don’t even think about the work you would have to do between the ages of 66 - 70; it will be a cakewalk), another $100,000 to spend in any way that you wish.

Hopping down to the local coffee shop, that will be me!

Yes, I must admit, if you do the math it will be more like $92,000, but let’s not quibble right now. I can almost guarantee you won’t be quibbling if you reach 90.

So, after all the bad news I’ve been sharing recently (e.g., re THRIFT is dead), doesn’t the good news about our CPP make you smile?

It does me, that’s for darn sure.

The sense of optimism associated with the news carries on, I’m sure, when you read about the government’s reasons for suggesting such changes to our pension plan.

For example:

"The government has been tweaking the CPP to ease the burden on the state retirement system as the baby boom generation begins to leave the workforce. Concern is mounting over inadequate personal savings and the potential drag on the economy as new retirees find themselves facing a big drop in spending power.”

See?

The government doesn’t want the pension system to collapse and leave all us old-timers stranded.

The government knows our savings is kaput and wants to help us along. And an extra $100,000 (okay, okay, it’s more like $92,000) - talk about your Golden Handshake, eh, as long as they don’t squeeze your hand too tight.

Plus, the government doesn’t want us to be a drag on the all-important economy, and I know that’s what I’m going to be thinking about when I’m 90. Yes sir.

Nothing but good news here today.

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More thoughts about Freedom 75 here

And here.

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