Episode 301 - Optimal Government Pension Claiming

The Rational Reminder Podcast

In this episode, we delve into the best time to claim your Canada Pension Plan (CPP) benefits. Although the focus of this episode is on Canada, there will be many relevant and valuable insights for our non-Canadian listeners. In our conversation, we discuss the importance of understanding the intricacies of CPP benefits, the fundamentals, and how individuals can optimize their retirement income by making informed decisions. Explore the importance of understanding when to claim CPP benefits, how much future financial security a CPP offers, and why the CPP is one of the most valuable retirement assets for most Canadians. Gain insights into how wage growth ties into CPP benefits, the exceptions to deferring a CPP claim, and what made 2022 different regarding CPP claims. Join us as we uncover the nuances of CPP benefits!

Key Points From This Episode:

(0:03:25) Unpack the fundamentals of the Canada Pension Plan (CPP) benefits.

(0:10:04) How the timing of making a CPP claim is linked to the benefits.

(0:14:15) Ben explains the financial implications of deferring a CPP claim.

(0:21:34) Uncover common approaches to identify the best time to claim a CPP.

(0:26:06) Learn about the situations when it is best not to defer a CPP claim.

(0:31:12) Why the CPP is one of the most valuable retirement assets for most Canadians.

(0:39:11) The after-show: ideas for the podcast, feedback, segregated funds, and more!

Links From Today’s Episode:

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://twitter.com/RationalRemind

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — [e-mail] Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/

Benjamin on X — https://twitter.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

Cameron on X — https://twitter.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://twitter.com/MarkMcGrathCFP

Prof. Meir Statman — https://www.scu.edu/business/finance/faculty/statman/

Prof. Meir Statman on Twitter — https://twitter.com/meirstatman

Episode 258: Prof. Meir Statman — https://rationalreminder.ca/podcast/258

The Canadian Institute of Actuaries (CIA) — https://www.cia-ica.ca/

Society of Actuaries (SOA) — https://www.soa.org/

FP Canada — https://www.fpcanada.ca/

When Should You Start CPP? — https://www.youtube.com/watch?v=r9vYji99fhk

CE Drive with Jason Watt — https://cedrive.podbean.com/

Episode 137: David Blanchett: Researching Retirement — https://rationalreminder.ca/podcast/137

Episode 254: David Blanchett: Regret Optimized Portfolios and Optimal Retirement Income — https://rationalreminder.ca/podcast/254

Episode 289 - Retiring Retirement Income Myths with the Retirement Income Dream Team — https://rationalreminder.ca/podcast/289

Jason Yi on LinkedIn — https://www.linkedin.com/in/jason-yi-cpa-ca-56544446/

Episode 225: The Index Fund "Tipping Point” — https://rationalreminder.ca/podcast/225

Books From Today’s Episode:

Wealthier — https://wealthierbook.com/

The Algebra of Wealth — https://www.amazon.com/Algebra-Wealth-Formula-Financial-Security/dp/0593714024

Sleep Well, Take Risks, Squish the Peas — https://www.amazon.com/Sleep-Well-Take-Risks-Squish/dp/0757324711/

Papers From Today’s Episode:

‘The CPP Take-Up Decision: Risks and Opportunities’ — https://www.soa.org/4a223f/globalassets/assets/files/resources/research-report/2020/2020-cpp-take-up-decision.pdf

‘Get the Most from the Canada & Quebec Pension Plans by Delaying Benefits’ — https://www.fpcanadaresearchfoundation.ca/media/5fpda5zw/cpp_qpp-reseach-paper.pdf

‘Financial Advisor Compensation Structure and Client Equity Allocations’ — https://www.tandfonline.com/doi/full/10.1080/15427560.2023.2294812