BURLINGTON, ON, Oct. 21, 2015 /CNW/ - Canadians have long grown accustomed to starting their CPP immediately upon their departure from work. However, after 48 years of little change, new CPP rules now in full effect challenge this thinking.
These rule changes can significantly impact the amount of CPP you are entitled to. Unfortunately, very few Canadians have taken the time to understand the impact of these changes and as a result many new retirees are missing hundreds of thousands of dollars they would otherwise be entitled to.
Under the new rules, identifying your optimal CPP start date requires a complex set of calculations. This investigation needs to be done not only on the basis of what is best for each individual, but also from the perspective of how to optimize the CPP amount a couple will receive on a combined basis.
Emeritus Financial Strategies Founder, Doug Dahmer, has published results of CPP optimization studies detailing the large financial differential between best case and worst case CPP usage.
"Over hundreds of studies, we have seen that the differential between a poorly informed decision and your optimal start date decision can be enormous," says Dahmer. "Reliance upon out of date conventional wisdom can be extremely expensive, often costing the retiree hundreds of thousands of dollars."
Emeritus' CPP differential studies were conducted between September 1st and October 1st 2015, using data provided by 486 volunteer participants across Canada. The data gathered for the study included life expectancy, expected percentage of maximum available benefit and age.
For couples, the average differential between worst case and best case was over $300,000 in income payouts. For singles, the average differential was over $175,000.
Conducting a comprehensive analysis to discover the optimal start date requires consideration of over 14,641 start date combinations. The process is further complicated by how each individual's decision also impacts the amount of widow's allowance the surviving spouse is eligible to receive. To overcome this obstacle, Emeritus has created a powerful tool to do the work for you.
"We have made our online CPP Optimizer tool available to the public on a complimentary basis so Canadians can discover how much CPP money they risk inadvertently leaving on the table," adds Dahmer.
Emeritus' CPP Optimizer is part of a suite of Canada's most powerful and comprehensive proprietary retirement income planning tools.
To investigate your potential CPP benefits differential, go to cppoptimizer.com
SOURCE Emeritus Financial Strategies, Inc.
For further information: on CPP benefits, Emeritus Financial or Doug Dahmer, please go to emeritusfinancial.com or contact Lynn Goodale, 905-335-0045, [email protected]