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How Much RRSP You Actually Need To Delay CPP To 70 (Ep 056)

Parallel Wealth

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Work with our team: https://www.parallelwealth.com/planning

On episode 56 of Retirement Unpacked, Adam Bornn and Gord Manzer discuss if there is a minimum RRSP amount needed to delay your CPP to 70, when CPP sharing can make sense, whether you need an income wedge for your entire retirement, how to manage large capital gains in retirement, moving money from your RRIF to your TFSA, and much more.

Later in the episode, Peter Filippakis joins the show to discuss some of the nuances around the principal residence exemption, and some scenarios where you are not eligible to claim it.

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DISCLAIMER: This presentation is for informational purposes only and should not be considered financial, investment, tax, or estate planning advice. All investments carry risk, and past performance does not guarantee future results. Any forward-looking statements are based on assumptions and may not reflect actual outcomes.

The content on this channel is for educational purposes only and does not provide specific investment or planning recommendations. Viewers should consult a qualified professional for retirement, tax, or estate planning guidance. Parallel Wealth and Adam Bornn are not responsible for any decisions made based on this content.

TIMESTAMPS
0:00 Intro
0:18 Delaying CPP: Is there a minimum RRSP amount needed?
3:48 Can you have OAS withheld at source to avoid instalments?
7:09 Does CPP sharing make sense?
11:09 CPP survivor benefit: What happens if you delay CPP to 70?
13:14 Income splitting to avoid OAS clawback
17:50 Do you need an income wedge for your entire retirement?
20:59 How to manage large capital gains in retirement
25:39 How selling propery affects OAS clawback
30:32 Does it ever make sense to defer a HOOPP pension?
33:26 Moving money from your RRIF to your TFSA
36:33 The Nuances of the principal residence exemption
41:35 When should you actually use your income wedge?

20 Comments

@twifosp 3 days ago

44:25 - Thank you for pointing out the issue with blended Equity/Bond funds. They never made sense to me when it comes to withdrawing funds, so it's nice to finally hear someone confirm what I've been thinking.

@reno5948 6 days ago (edited)

Adam, one can control how much withholding tax is being taken off your DB pension. Yes, by default, they take very little, but one can request early in the month how much extra withholding tax one wants withheld. You can leave it at this amount and each month they'll withhold that amount, on top of the small default amount, or you can request a different amount each month. I do it every month, which also generates a monthly pension statement which is mailed out to me. If no amounts change on that monthly pension, the administrator of that pension does not produce and mail out the statement. Thanks so much to you and your team for the invaluable videos you put out.

@franks5396 8 days ago

Life was so much simpler when I was just saving and watching my investments grow...I was blissfully ignorant about what retirement income truly means and how it needs to be managed...unless you want to share a large amount with the government. That being said, I just want to thank you for this amazing information. truly life changing.

@seang3538 8 days ago

I have learned so much from Adam and team. And I still use Excel to help future income/tax/savings, etc...and have used these basic principles: delay CPP/OAS to 70, melt down RRSP from retirement to before 70, try to keep total income each year consistent. It's interesting talking retirement with friends and co-workers and how vast majority plan to take CPP/OAS at 60 because they can do better, and I'm like you do you. One question I ask them is, what happens if you live well into your 90's. Then get the Oh I won't live that long, and stutter. In my planning I have gone to 90, and still have $ available to 97 and 105 (me and spouse). Thanks again for all the "free" advice, it's is certainly worth more than that!

@DL-bl6qp 8 days ago

I learned a bunch of new things on this podcast today! Thanks!

@Robot_Overlord 7 days ago

Thank you for talking about when to use income wedge. Very relevant right niw.

@niceguy8305 2 hours ago

I think it's a mistake to draw down all your rrsps before 70. Its better to start cpp earlier with a lower amount and upon a death of a spouse the rrsp will roll over. Living spouse will get little most likely from the passing spouse cpp amount.

@GoffyInvestor 8 days ago

Another excellent episode.
Just a general observation: While the volume level on your YouTube videos is perfect, the volume level on your Apple Podcasts is generally a bit low. I notice that all the time because I listen to several different podcasts while I am walking. Hoping you will be able to do something about it.
But keep up the excellent work on the educational content.

@adijhamb528 1 day ago

Do you recall if math for HOOPp pension works favourably if taking it at age 55 as well? Vs 60

@henryrearden9764 3 days ago

Question for a future episode. An older relative, Manitoba resident, has recently turned 85. His wife passed a few years ago and now the RIF combined is over $700k. Taxable income is $90k. I believe even with the OAS recovery tax factoring in it is still a good financial decision to increase manual withdrawals to bring the balance down under $200k over the next 5 years. Please discuss pros and cons. The RIF is 100% in GIC ladder averaging over 4.0% return.

@ezib698 8 days ago

Also when drawing from funds, if you have a balanced portfolio, can you actually draw from Only the income funds & not growth funds if its a whole balanced portfolio??

@Cheeky-x5o 6 days ago

If I’m buying covered call ETFs that are leveraged, and spend 3/4 of the distributions and reinvest the rest, do I really need a cash wedge?

@FrancisYeung-l5j 4 days ago (edited)

how come you guys never talk about defined benefits should take the CPP and OAS earlier and never consider that if he has a spouse and not income in her life being a house wife and she will only collect 60% of the survive benefit of the spouse defined benefit.

@rockinrog5 7 days ago

Adam, once again at the end of the podcast you mentioned GIC at 2% and prior podcasts you mentioned EQ Bank.
EQ bank website clearly shows GIC’s at the following levels:
1 year 3.70%
2 years 4.00%
3 years 4.15%
4 years 4.20%
5 years 4.30%
You can even get higher than these posted rates if you shop around.
Please research your numbers before stating 2.00%
Thanks.

@stevewoitas7217 8 days ago (edited)

Thanks for the great video. If I may, please also pay attention to your expenses. Inflation is much higher than the CPI states. Taxes, Gas, Insurance, Food, Utilities, Auto.......

@christophercharles3169 8 days ago

I decided a while back that delaying CPP and OAS until 70 was the right thing to do for my wife and I. Great video.

@Bobby123-s2o 8 days ago

How would you recommend fitting an inheritance into a plan if the date and the exact amount isn't known? In my case the money would be from the sale of an overseas property. I've chosen to not include it in my plan given the unknowns but is there an argument for using it to give me extra leeway in my current go-go years given that I can make an educated guess as to its total even if I don't know when it will arrive?

@markskowronski499 8 days ago

Question for a future episode. I have RRSP funds and contribution pension plan funds. The pension value is higher then the RRSP but invested in lets say GIC. The RRSP is invested in stock market ETF's generating a monthly cash amount. Does CRA view these funds the same way from a tax point of view? You say to melt the RRSP down first, but Im thinking to use more of the pension money in retirement first (or a greater amount then RRSP) and keep the RRSP funds in the market for continued inflation protection. Will both the RRSP and contribution pension plan funds be treated the same at age 71 and I would be required to withdraw a fixed amount from both accounts? And would the amounts be the same/similar percentage? Retiring at age 62.

@niceguy8305 2 hours ago

Rachel and Ross cpp amounts is FALSE. No way 100 a month at age 60 or 65 or 70 amounts

@Mycuriousmind2.0 5 days ago

I have a couple of questions. I see women on your team. Are any of them advisors? Also, I am switching from a CFP to maybe another brokerage and DIY my portfolio. Should I have a plan done beforehand or after I've moved?