What happens to my Old Age Security and CPP when my spouse passes away?

Have you thought about what happens to your OAS and CPP when your spouse passes away. Here are a few points to consider:

  1. When you are retired and should you pre-decease your spouse, your spouses Old Age Security (OAS) stops and yourCanada Pension Plan (CPP) survivor benefit will reduce.
  2. Should you personally be receiving maximum CPP, you would receive non of your spouses CPP.
  3. Should you personally be receiving say, $700.00 per monthCPP, you would be topped up to the maximum of say, $960.00 per month.
  4. A couple depending on CPP and OAS could experience a very big surprise should one pre-decease the other.

Here is anexample: If you personally werereceiving $525.00 OAS and $960.00 CPP per month, then your spouse would only receive $260.00 per month from your CPP at death. This results in a dropin household income of $1225.00 per month or $14,700.00 per year.

For more information or to receive retirement planning assistance,please contact The Retirement Planning Centre of McClary Financial Inc. on 403-452-5694 or visit the Retirement Planning section of our website.

Derek McClary CLU, CHFC, CPCA
Chartered Financial Consultant
CEO and President of McClary Financial Inc.

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