Tuesday, 12 June 2018
New Changes to Canada Pension Plan (CPP)
There have been some changes to the Canada Pension Plan (CPP) recently that will affect manual osteopaths. These laws have been changed as the population in general is living longer and many opt to not stop working at the age of 65.
1) Under new rules, manual osteopaths can wait until they reach the age of 70 to receive the CPP payment that is 42% more than if they start receiving it at the age 65.
2) Under new rules manual osteopaths can choose to continue participating in the Canada Pension Plan once they start receiving a pension. Their contribution will be added to their post retirement benefits that increase their retirement income.
3) Under new rule, manual osteopaths can delay receiving the Old Age Security (OAS) pension for 5 years after the eligibility age of 65. Their payments increase by 36% if they wait until the age of 70.
4) At the age of 71 manual osteopaths have to collapse their registered retirement saving plan (RRSP). They can then cash out the whole plan (not recommended as the tax rate is high). They can put a portion to tax free savings account (TFSA). This is recommended but the contribution limit are quite low. Or they can roll over their RRSP to a registered retirement income fund (RRIF). Aside from providng an income, the RRIF can also be used to buy an annuity which is a life insurance product that pays a guaranteed income until death.
Shawn Pourgol, MBA, DC, DO, PhD
National Academy of Osteopathy (Canada)
National University of Medical Sciences (USA)
National University of Medical Sciences (Spain)
Canadian Union of Osteopathic Manual Practitioners
Osteopathy Chronic Pain Clinics of Canada