CPP/QPP and Social Security

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pl0910001
Posts: 18
Joined: Fri Jun 21, 2019 6:33 pm

CPP/QPP and Social Security

Post by pl0910001 » Thu Jun 18, 2020 9:39 am

Hello All, there have been several posts regarding this topic but wanted to have another go at it. My situation is that i have over 40 credits with social security, as well as many (20+) years paying into QPP.
I believe that the best course for myself is to take social security at 62, and apply for my wife's spousal benefits as well.
I will then take QPP at age 70 so that i can collect 8 years of social security without any WEP.
I believe that once my spouse starts taking social security (based on my work history), that even if she is already taking QPP, or takes it at age 63, her social security is unaffected, as the benefit is calculated based on my current social security payout. At age 70, both hers and mine will then be lowered by the WEP as i begin to collect QPP.

For dual collectors, is taking social security first the better option? Any arguments for doing the reverse and taking QPP early and delaying social security to 70?

Thanks

nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: CPP/QPP and Social Security

Post by nelsona » Thu Jun 18, 2020 3:34 pm

I've done some work on this, and it is probably better to stagger the dates when you begin each pension, like you state. BUT, Personally I believe one should take CPP first, if one is not working, at 60 if possible. Waiting will result in a break-even well into one's 80's. Do you know many 80-yr olds who are out spending their "extra" CPP/SSN? I don't.

If you and your spouse are the same age, there may be advantage to wait one or two years for SS, because of the spousal amount. but not until you are 70. You are correct that her spousal amount will not be imapcted by WEP a second time: only yours will be, and then hers will be half of yours.

Personnally I plan to take CPP at 60 and SS at 62. my spouse will take her spousal at 62.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

pl0910001
Posts: 18
Joined: Fri Jun 21, 2019 6:33 pm

Re: CPP/QPP and Social Security

Post by pl0910001 » Thu Jun 18, 2020 3:39 pm

Thanks again Nelsona. Many moving parts to this but certainly becomes clearer the closer your get to retirement as the numbers firm up.

pl0910001
Posts: 18
Joined: Fri Jun 21, 2019 6:33 pm

Re: CPP/QPP and Social Security

Post by pl0910001 » Thu Jun 18, 2020 3:44 pm

One thing I should have mentioned, delaying one of them (CPP or Social Security) might make sense in that is essentially guarantees and indexes a larger portion of your retirement income, reducing longevity risk. But you would need to couple that with larger withdrawals in the "active" retirement phase. Thanks again for the response Nelsona

nelsona
Posts: 16414
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: CPP/QPP and Social Security

Post by nelsona » Thu Jun 18, 2020 4:04 pm

Indexing is attractive (not the 8% yearly increase, which is foolish reasoning). However, your wise use of the money should far outstrip the indexing benefit.

I view the "reward for waiting" a complete falacy. It is like saying, Start working for me this year, without pay, and I will give you 8% more next year when I start paying you. Huh? What about the year I just missed? How long before I recoup that? About 15 years. Sign me up. Not.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

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