Or... A Thousand Dollars on October 3rd! (Finally!)
Hello Fellow NSTU Members.
I'm willing to bet you were happy to receive the email today that stated we will be receiving our RetroPay along with our October 3rd pay. YAY!!
I'm sure each of us has some ideas about what to do with that money when it comes in. I'm planning to use some of it to buy myself a few things and experiences that I will really enjoy.
But I'm also thinking about how to strategically save some of it for Future Me. I'm going to shelter those savings using my Registered Accounts.
Some of my savings are going into my RRSP, specifically because I'm trying to save enough money to delay taking my CPP and OAS payments until I'm 70.
The Bridge Benefit from our Nova Scotia Teacher's Pension Plan will help me until I turn 65. After that, my pension payout will drop. I could choose to take the CPP then but, if I can save enough now, I can wait until I'm 70 and then get 42% more for the rest of my life. That is very appealing to me!
When I turn 65, I can also start claiming my OAS. If I have enough saved, I could also defer taking that until I'm 70 and get an extra 36% on that for the rest of my life too!
And maybe I won't have enough extra dough saved to defer both of these government benefits but each month I can wait will get me a tiny bit more. It seems like a worthwhile goal for me.
Especially since I learned that if I make it age 65, I have a significant chance of living past 90! That's a whole lot of extra CPP and OAS to supplement my (currently) non-indexed pension!
If you are interested in learning more about some very important concepts in financial literacy, keep following me here on my blog. I also have developed an Online Financial Education Course for Nova Scotia Teachers that outlines some key concepts about your Registered Accounts that could help you build out some elements of your Personal Financial Plan.
And, I truly believe that every little bit of financial knowledge counts. If you agree and know others who might feel the same way, please share my posts onwards.
We work really hard to do very important work. let's keep building our own wellness as we go!
Follow me at debrawilsonfinancialeducation.ca
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