I received my “Statement of Contributions” for my Canada Pension Plan (CPP) benefits today.

As I get closer to age 60, it appears I need either a crystal ball or a set of dice to decide when I want to start collecting my CPP.

If I apply at the age of 60, I would receive $536.37 each month. If I hold off until I reach 70, I would receive $1147.05 each month.

Hmmm.

If I apply for my pension at age 60, I will have received $64,364 by the time I reach age 70.

At age 75, I will have received $96,546 if I start early, and will have received $68,823 if I delay.

By the time I reach 80, however, the numbers start to change: I will have received $128,728 with the smaller payment, or $137,646 by delaying.

If I can make the grand age of 90, there is no competition: 30 years of CPP would have paid me $193,093; 20 years of CPP would have paid me$275,292.

If I apply for CPP somewhere in the middle, like age 65, my monthly stipend is $807.78 and by the time I am 90, I will have received $242,334.

The million dollar question? $$How long will I live?

What would you do?

When you look at these numbers, it is easy to understand why so many “seniors” decide to stay in the workforce until age 70. When you look at numbers like $807.78/month, it is easy to see why so many retired persons are returning to the workforce, part- and full-time. Even with OAS, monthly income is only $1358/month. I’m not sure where you live, but I can’t live on that.

That’s why I am developing out my on-line business. I plan to be gone from my j.o.b. in the near future but the streams of income I am creating here will give me a pretty nice income for as long as I choose.

And do I need to remind you how much fun it is? or that I can work this business from anywhere in the world with an internet connection?

J

Just a heads-up: my next post will give you a little tid-bit about the GIS you probably never considered!