Claiming CPP early

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julieamag
Posts: 3
Joined: Mon Sep 18, 2017 12:39 pm

Claiming CPP early

Post by julieamag »

My husband and I are both Canadian citizens living in the US. I am also a US citizen.

We contributed to CPP until the ages of 30. Since then, we have both contributed to Social Security, though I will claim through my husband.

I am wondering if we should take our meager CPP benefits as soon as possible (with early withdrawal penalty) to maximize our payments before WEP reduces our claim at 67 1/2. I also have a Canadian Government pension to consider.

Thank you so much for any suggestions.
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

I have done some analysis of this on another site, and if WEP will apply, it is indeed best to take your CPP early (and your pension, too). Even though it will be reduced, what you get will be ALL YOURS, before WEP kicks and essentially takes away some of its value. It is still better to take CPP as early as possible, in my opinion, WEP just makes the decision easier.

Be aware that your spousal benefit will not be reduced by WEP. Your spouses benefit might (if he does not have 30 working years in US), and then your benefit will be based on this post-WEP amount.

And don't forget to claim your OAS when the time comes.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
julieamag
Posts: 3
Joined: Mon Sep 18, 2017 12:39 pm

Post by julieamag »

Thank you so much for the reply.

If i understand correctly, you are suggesting I take my CPP and my CDN pension as early as possible, even though it doesn't directly affect the application of WEP to my spouse's SS.
As for my spouse taking CPP early, that is definitely recommended before WEP kicks in and affects his benefit - and mine by association.

From your comment in parenthesis, do I understand that if my spouse has more than 30 years working in US, WEP may not apply?

Thanks

PS I don't think we will be eligible for OAP as we did not live in mighty Canada for at least 20 years after the ages of 18. :(
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Let's be clear. YOUR Husband's SS (and thus your spousal benefit) will be impacted by HIS CPP and Pension. So he should take those as soon as possible, so he gets the full benefit from tham at least for a few years. (It is simpler to view WEP as affecting your CPP rather than CPP affecting your SS). If WEP doesn't apply (because of working 30 yrs in US), then you have nothing to worry about


Your SS, since it will be a spousal benefit, should not be affected by WEP, so if you wish to wait, go ahead. But it is rarely beneficial, in my view, to wait to take CPP if you are no longer contributing.

as to OAS, as long as you contributed to SS for the years you need to make up to reach 20 yrs, you will get some OAS for life. So, if you left when you were 30 (12 yrs as an adult in Canada) and you contributed 32 quarters (8 yrs of SS), you will get 12/40th of the normal OAS at 65.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
julieamag
Posts: 3
Joined: Mon Sep 18, 2017 12:39 pm

Post by julieamag »

Very helpful. Thank you!!
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