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DEC and turning 65

RTD021

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DEC and turning 65 what happens with my pension. Has anyone that has been declared DEC and turned 65 what drawbacks did you experience. People say at 65 you get clawed back to 80% and I have seen some that report turn 75.
 

OldSolduer

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It technically is not a clawback but its legislated. and Yes I went 65 this year and it happened.
 

PPCLI Guy

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It technically is not a clawback but its legislated. and Yes I went 65 this year and it happened.
Not so much a clawback as policy that you can only have one main pension from the government...which is well advertised and should not be a surprise. What some don't know is that you can draw your CPP from 60-65, before the adjustment. So that is free money. I just started drawings, and it is all being invested. 5 years of 800 a month is...useful.
 

dapaterson

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OTOH, leaving CPP to age 70 increases the amount. If age 65 = 100%; at age 60 you lock in at 64%; at age 70 you lock in at 142% - more than double the amount your 60 year old friend took.
 

Takeniteasy

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DEC and turning 65 what happens with my pension. Has anyone that has been declared DEC and turned 65 what drawbacks did you experience. People say at 65 you get clawed back to 80% and I have seen some that report turn 75.
Here is the link to the Veterans Well-being Regulations, go to section 22 to see the list of what classifies as "B" for the A - B calculation of the IRB (DEC) sum.
Here is the link to the DEC policy, once you turn 65 the percentage for "A" turns to 70% minus the "B" to determine your monthly IRB payment.
 

PPCLI Guy

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OTOH, leaving CPP to age 70 increases the amount. If age 65 = 100%; at age 60 you lock in at 64%; at age 70 you lock in at 142% - more than double the amount your 60 year old friend took.
I will take the free money for 50K Alex. Its not like my career and lifestyle choice suggest a long life, at 45% disabled already and counting...
 

lenaitch

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I will take the free money for 50K Alex. Its not like my career and lifestyle choice suggest a long life, at 45% disabled already and counting...
Yup. Average male life expectancy is ~80 years, so reduced CPP for 20 years vs. enhanced for 10.
 

dapaterson

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Short answer is "it depends". It can derisk your retirement to draw down RRSP, and take the larger CPP with its inflation protection later. Plus, you can always change your mind about drawing late, start, and even claim a year in arrears. There are also questions about overall income and marginal tax rate when you draw. Plus mandatory minimums for RRIF withdrawals.

 

Bruce Monkhouse

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Meh.. Give me money now that I can shrink by myself in the market. All of that whiskey and 42 years of smoking tilts the balance, you know? Add in a sprinkle of 40 years in the Infantry and I think I have the right approach for my circumstances..
Or just family history,......males on both sides of my family have all passed on well below the average, taking the money while [a] I can, [b} can still do stuff to enjoy it.
 
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