Applied for Canada Pension
09/11/09
In Canada, 60 year olds
can apply for early
pension. Because
I've earned income recently that's far below the set
limit, I qualify to receive payments in a month. I
did the math. If I received payments now instead of
waiting until I'm 65, I will receive reduced
payments, but for more years (I hope). I calculated
that if I live to be 85, I'll receive only $4,000
less in total over all 25 years, by applying now
rather than 5 years from now. So that's about $160 a
year less. But who can count on living to 85? My
friends in Canada say, "Take it now." So I did.
I applied online and yesterday I mailed the signature sheet. It's not much money, but it's a bonus that will cover a small part of my monthly living expenses. Even though I won't be able to make further contributions to the pension plan, I'm not limited by how much I earn in future. And yes, pension income is taxable in Canada.