This podcast discusses the Canada Pension Plan (CPP) and demystifies misconceptions about it. Topics include: how CPP works, who gets it, calculating benefits, concerns about running out, self-employment, having a pension, and when to start taking out CPP.
41:31
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Quick takeaways
Contributing to CPP is essential as it provides a supplementary income in retirement based on contributions made.
Delaying the start of CPP can result in higher monthly payouts, maximizing the benefits received.
Deep dives
Overview of CPP and Retirement Anxiety
The podcast episode explores the Canada Pension Plan (CPP) and addresses the anxiety many people have about retirement. It emphasizes that CPP is a secure retirement plan that provides a monthly taxable benefit to replace part of your income when you retire. The hosts aim to calm listeners' worries and highlight the importance of understanding how CPP works.
Benefits and Contributions of CPP
The podcast discusses various benefits and contributions of CPP. It explains that CPP is funded by contributions from employees, employers, and self-employed individuals. It also mentions that CPP is an investment organization that aims to grow its funds. The hosts emphasize the significance of contributing to CPP, as it provides a supplementary income in retirement, dependent on the length and amount of contributions made.
Maximizing CPP and Considerations for Self-Employed Individuals
The podcast explores strategies to maximize CPP benefits, such as working for as many years as possible and earning a higher income. It also notes that delaying the start of CPP can result in higher monthly payouts. The hosts mention that self-employed individuals have the option to contribute to CPP and highlight the potential benefits of doing so, such as accessing RSP room and diversifying retirement assets.
Dispelling Myths and Reassurances about CPP
The podcast dispels common myths surrounding CPP, such as concerns about its sustainability or its ability to provide sufficient retirement income. It highlights that CPP is recognized as a well-managed investment fund and projects its sustainability for the next 75 years. The hosts stress the importance of CPP as a retirement asset and its ability to provide guaranteed income throughout one's lifetime.
Today we're discussing the Canada Pension Plan (CPP) and demystifying some common misconceptions about the funds. So, on that note, time to enjoy another episode of Money Feels! We're your hosts, Alyssa and Bridget. Welcome to the podcast, where we talk through our money trauma and create a better understanding of building a healthy relationship with finance.
In today's episode, we discuss the following:
An overview of what CPP is and why it exists
How does it work? Who gets it?
How are benefits calculated?
Is CPP going to run out? Why is this a thing people say?
The political landscape and CPP
Is CPP worth it if you’re self-employed?
What if you have a pension?
When in retirement, should you start taking out your CPP?
Thanks for listening to today's episode! If you want to keep listening, we've now launched our Patreon! You can subscribe for bonus episodes and extra content from your hosts. Thank you for listening to today's episode! Join us next week for a new one. Until then, follow us on Instagram @mixedupmoney, @bridgiecasey and @moneyfeelspodcast, and we’ll see you next time!
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