CPP and OAS Balances

Well hello!

Since my last post, I have been doing my best to be aware of that spending urge. You know the one I mean. You see something in a shop or online, and you briefly wonder how you’ve lived without it this long, and yet your intuition is screaming at you that you’ve lived that long because you didn’t need that thing, but then you walk into the shop and buy it anyway (or hit the Buy Now button). It’s a painful process, constantly reminding yourself that you don’t need ‘that thing’, especially after a HUGE amount of years filled with wilful blindness. I can’t tell you how many times I pressed that button and figured, meh, I’ll be fine, I can always pay it down later. Never once did I consider the financial impact to letting those balances ride on my credit card and line of credit.

To that end, I have a Wealthsimple TFSA account right now. I have upped the risk level to 10 (their max) as I don’t intend to take any money out for at LEAST 5 years, most likely, closer to 10-15 years. The markets have a tendency to experience highs and lows, but basically always comes out higher than before, if you can have the patience to ride out any majorly negatively impacting events. Part of the reason I have been reminding myself to pay attention to where my money is going is because I have recently realized that I’m finding that all my spending is just adding to my ‘level of stuff’, and not my happiness. Nor is it moving me ANY closer to purchasing a house anytime soon. What I’ve been doing, is thinking about things I’d normally spend on, and then not spending it, and putting what I would have spent into my Wealthsimple account and letting their algorithm invest it aggressively on my behalf instead.

For example, today we’re going to a local flower farm to walk around amoungst the bees. They sell the fresh picked flowers, plus a number of products that they manufacture on site. I had planned to take out $20, as they only accept cash. But I realized that when I did that last year, the flowers died and just made a mess everywhere after smelling nice for all of 3 days, and I used the 2 sticks of chapstick relatively quickly, making the ‘investment’ not at all worth it. I could have invested that $20, and made at least a few dollars on it in the market over the past year. So this year, that’s what I did. Wealthsimple does charge a small percentage when you invest small amount as a processing fee, but it’s better to pay that fee for now. The reason is because I know, I KNOW if I put that money into a savings account, it’ll become money that I don’t mind spending, making it TOO easy to just take it out and treat a friend/family member to dinner. Since I started the WS account, I have been treating it as though the funds are locked up. They are not, and I can withdraw at any time. It takes around 3 business days for them to process the money, but they will put it back into your account inside of a week. But again, it’s safer for both myself and my money if I pretend that I don’t have access to it for at least 5 years, or it’ll be gone in a month.

I had a conversation last week about OAS and CPP. I didn’t know that you could just head to the Government’s Website: https://www.canada.ca/en/services/benefits/publicpensions.html to get your balances. It shows year by year, what your contributions were. My favourite part was this, in the CPP section:

  • at 60, you could receive $650  per month
  • at 65, you could receive $1,000  per month
  • at 70, you could receive $1,400  per month

The numbers are a lot more specific than that, but I’ve changed them for privacy reasons. Anyway, that’s a pretty big monthly different between 60 and 70, more than double, in fact. I will do some research as to why, but if anyone knows what the reason is for this, please let me know!

Have a lovely weekend and thanks for reading.

Published by Frugal Squirrel

I'm an early 40s Canadian who just plain doesn't want to work anymore. Join me on the ride as I learn about Canadian Finance!

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