October 30 2023

Retirement Income Strategies Sooner or Later You’ll Take CPP:

Executive Summary

While the focus of retirement planning has long been on building a substantial nest egg, the transition to retirement prompts a shift towards prioritizing sustainable income. Alongside personal income sources such as RRIFs and annuities, Canadian retirees can rely on government pensions, notably the Old Age Security (OAS) and the Canada Pension Plan (CPP).


Key Points to Consider:

  1. Optimal CPP Withdrawal Age: Timing is crucial when it comes to receiving CPP payments. Delaying these payments often maximizes the lifetime benefit, though several factors, including health, taxes, and inflation, warrant careful consideration.
  2. Income Impact: The decision of when to begin CPP payments can significantly impact retirement income, potentially adding up to over $12,000 annually.
  3. Age-Based Adjustments: Claiming CPP before or after specific ages results in proportional reductions or increases in the monthly payments, with a maximum potential bonus of 42% for those who delay until age 70.
  4. Comparative Analysis: A comparative analysis reveals that while a 60-year-old retiree may initially receive less than a 65-year-old, the latter eventually gains a monthly advantage that accumulates over time.
  5. Long-Term Perspective: With the average life expectancy in mind, accessing CPP early might result in a significant lifetime income loss, particularly for individuals who live past their 83rd birthday.



Choosing the optimal CPP withdrawal strategy demands a thorough and objective examination of various options tailored to your specific circumstances. Considering the complexities involved, seeking expert guidance can ensure an informed and financially sound decision.

For more detailed information and statistical references, you can visit StatCan - Table 131-0013 and StatCan - Table 131-0040.

We hope this summary helps you make well-informed decisions for your retirement planning.


Franco Caligiuri

Last Week in the Markets: October 23rd – 27th, 2023

What happened last Week?


For the fifth time in the last six weeks, North American equity indexes lost value.  Since markets closed on September 15th, the TSX has lost more than 9% of its value after falling nearly 1,900 points, the American indexes are down 6½ to 7½ percent.  The All-Country World Index (ACWI), comprised of about 3,000 constituents from 23 developed and 24 emerging markets, has also fallen 7½ percent reflecting the global extent of the downturn for equities.  Generally, the economic situation is better than the geopolitical events over this period of time.  Nonetheless, negativity is winning against equities in the short term.


The Bank of Canada made a monetary policy announcement that kept the overnight rate unchanged at 5%, with the bank rate at 5¼% and the deposit rate at 5%.  According to the press release, “The global economy is slowing, and growth is forecast to moderate further as past increases in policy rates and the recent surge in global bond yields weigh on demand” and “Inflation has been easing in most economies, as supply bottlenecks resolve, and weaker demand relieves price pressures. However, with underlying inflation persisting, central banks continue to be vigilant.” Also, the quarterly Monetary Policy Report was also released, which included concerns of continued inflation above goal, and geopolitical risks that could drive global inflation higher with increased energy prices and further supply chain disruptions.  BoC Press Release   BoC MPR   CBC and BoC


On Friday the Bureau of Economic Analysis released the Personal Consumption and Expenditures (PCE) price index, the Federal Reserve’s primary inflation indicator.  In September, the most recent reporting period, the personal income rose 0.3%, and the PCE price index rose 0.4%.  This reporting occurred a few days ahead of the U.S. interest rate announcement scheduled for November 1st.  The PCE report will be closely monitored and may predict the Fed’s next announcement.  The consensus is that the Fed, like the Bank of Canada, will leave interest rates unchanged for now.  BEA and PCE CNBC and PCE



What’s ahead for this week and beyond?


In Canada, Gross Domestic Product for August and an employment report for October scheduled for release.


In the U.S., housing will be well represented with the Case-Shiller index, mortgage market, construction spending, and refinance indexes scheduled for release.  Government and non-farm payrolls will be released.  On Wednesday the Consumer Price Index will be released.  Also, on Wednesday, the Federal Reserve will deliver an interest rate decision.


Globally, the Eurozone will report business climate, consumer confidence, economic, industrial sentiment, and employment.  The Bank of England has an interest rate announcement planned for Thursday.  Any escalation or spread of actions in the Middle East will lead to uncertainty and volatility.

unnamed (3)