Retirement Planning Simplified: Demystifying CPP, OAS, and GIS in Canada

#RetirementPlanning #CPP #OAS #GIS #RetirementInCanada #financialplanning

Retirement Planning Simplified: Demystifying CPP, OAS, and GIS in Canada 💰🇨🇦

In this video, we'll dive into the world of retirement planning in Canada and simplify the complexities of CPP, OAS, and GIS. Let's break it down into easy-to-understand segments:

Types of Retirement Benefits 😌
- Explore the different types of retirement benefits available in Canada, including government pensions and private savings plans.

CPP Pension Plan 💼
- Learn about the Canada Pension Plan (CPP), its eligibility requirements, and how your contributions determine your future pension amount.

When Should I Start Receiving CPP? 🤔
- Discover the optimal age to start receiving your CPP pension based on your retirement goals and financial situation.

Old Age Security (OAS) 👴👵
- Understand the Old Age Security (OAS) pension, its eligibility criteria, and how your age and residency impact your monthly payments.

How Much OAS Will I Receive? 🧮
- Estimate the amount of OAS pension you can expect to receive based on your income and contribution history.

Guaranteed Income Supplement (GIS) 💸
- Explore the Guaranteed Income Supplement (GIS), a top-up benefit for low-income seniors and its eligibility criteria.

Income Criteria for GIS 💰
- Determine if you qualify for the GIS based on your income and assets.

How Much Do I Need to Retire? 🏡🏝️
- Get tips on estimating how much money you'll need to retire comfortably and achieve your desired lifestyle.

Conclusion ✔️
- Summarize the key points discussed and emphasize the importance of planning ahead for a secure retirement.

#RetirementPlanning #RetirementPlanningCanada #RetirementInCanada #CPP #OAS #GIS
#RetirementIncome #RetirementSavings #RetirementPlanningTips #FinancialPlanning #RetirementAdvice #Seniors #Canadians #EarlyRetirement #RetirementForWomen #RetirementForImmigrants #RetirementPlanningForFamilies #RetirementPlanningForIndividuals

1. Subscribe to my YouTube Channel: Real Estate and Taxes with Lakshay

2. Retirement plans in Canada - CPP, GIS and OAS – Are they enough? By Lakshay Gandhi CPA, CGA 647-987-4025 [email protected]

3. Types of retirement benefits Canada Pension Plan (CPP) Old Age Security (OAS) Guaranteed Income Supplement (GIS) Define and how much can come When should you start these plans Conclusion

4. CPP pension plan Taxable benefit that replaces part of your income when you retire (Canada pension plan) To qualify: Must be 60 years old Must have one valid contribution to the CPP CPP provides 1/3 of your income during retirement Employee portion is 5.95% and 5.95% is employer’s portion (3,500 to 66,600)

5. When should I start receiving CPP The standard age to start the pension is 65. However, you can start receiving it as early as age 60 or as late as age 70. How much do you get? How much did you put in? How long did you put in between 18-65? Its calculated based on best 39 years Apply online through service Canada account or through paper mail Taxable

6. Old Age Security The Old Age Security (OAS) pension is a monthly payment you can get if you are 65 and older . Your employment history is not a factor in determining eligibility. You can receive the Old Age Security (OAS) pension even if you have never worked or are still working . No contribution required; funded by government Eligibility – 18 – 65 – (maximum benefit if you worked 40 years) Canadian citizen Live here for more than 10 years

7. How much OAS will I receive? Max $718/ month after age 65; starts automatically if you don’t manually delay It until 70 OAS is decreased by 15% if you make more than 86k in retirement and becomes zero if its over $142k Apply online through service Canada account or through paper mail Taxable

8. Guaranteed Income Supplement The Guaranteed Income Supplement (GIS) is a monthly payment you can get if you are 65 or older. The Supplement is based on income and is available to Old Age Security pensioners with low income. It is not taxable. Minimum support for low income families; max benefit $1,072.93 Eligibility Must be over 65 Must Qualify for OAS Income must be less than $21,768 Must be a resident of Canada GIS is not taxable

9. Income criteria

10. How much do I need to retire?

11. Conclusion Apply 4% rule If we need $6,700 per month in retirement, here is how we would calculate it. $6,700 per month for 12 months = $80,400 Divide $80,400 by 4% conservative growth rate = $2,010,000 One step further by taking it more conservative = $2,010,000 * 1.2 = $2,412,000 You need 2.5 M to retire Look into benefits and estimators Delaying to start these benefits can help in getting higher monthly benefits

12. Thanks for listening! Any questions? Subscribe to my YouTube Channel: Real Estate and Taxes with Lakshay

13. Review withholding tax in payroll If you get a huge tax refund at the end of the year – speak to your

14. Turn bad debts and good debts Personal credit card interest is not tax deductible Use money in income producing assets to pay off personal credit cards. Why? Interest on borrowed funds through HELOC is tax deductible if its used to earn income

15. RRSP contributions If make 100k and contribute 10k to RRSP, your taxable income will reduce by this amount. Tax savings of roughly 3k