CPP Sharing Explained: Does It Make Sense For You?

In this video I'll go through how CPP Sharing works, and if it's something that you should look into when you retire.


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[neilbertram]

The spouse with the higher pension/RRIF earnings is likely going to be collecting more CPP as well. As I understand it, you cannot pension split more than 50% (i.e. you can't pass more than half your RRIF/LIF/Pension income to your spouse), so CPP sharing will likely be of benefit, particularly if you have been married a long time.

[terryloubelle]

Thanks Adam! Was an area where I had some knowledge gaps.

[dvdvno]

We have CPP sharing. I have a pension, she does not. Helps a little after pension income splitting.

[murraytown]

I’ll share mine with me, myself and I, when I receive it!!!!

[DL-blqp]

Can you make use of both: CPP share and then CPP income split after the sharing takes effect?

[raymondharding]

Canwe use CPP sharing and also make use of income spliting? We are both over 65 and my CPP and other retireent pensions are greater thzn my wife? Thanks for this video.

[retiredguy]

Always good advice, Thank You. With CPP Income, I think I figured out that its 2% per year of knowing your spouse. Or at least I think I understand it. For example, If my wife and I have been married for 30 years when I start to take my CPP at 65 and she has already started to receive her CPP, I would be able to split 60% of my CPP between me and her. Is that how that calculation works? Another question is does that formula change with each year were together? When I am 70, the formula would be splitting 70% as we have known each other 35 years? or does it stay at 60%? It talks about knowing each other but it seems to me that is hard to prove that you were a couple other than having a marriage certificate? Is that typically the case?

[andyroberts]

what if spouse has no CPP. can it still be split??

[DoneByD]

I looked into this before and don't understand the need to do this. I have come to the conclusion it just potentially protects against the government changing the income splitting rules for retirees. Then again they could also change these CPP sharing rules at the same time and therefore you are at their mercy anyway when it comes to retirement income splitting.

I would assume CPP income sharing wouldn't be beneficial to a couple if you were both in the same marginal tax bracket either since you would be transferring the income and paying the same amount of tax from that income just in the other person's hands... For instance in BC if you were both between $55, 867 and $95, 875 2024 taxable income threshold then you would both be paying 28.2% marginal tax and it would be a wash. Only difference would be who reports the income and pays the tax. So it isn't necessarily the goal to both have the same reported income --- more so the goal would be to be as close to the max as possible, without going over, in the income tax bracket threshold for your jurisdiction. Correct?

[ybc]

it is too complicated, why not just create a line in the tax filing, where you can move any amount of CPP benefit to your spouse? no more application, approval, bureaucracy, just create a line when you report tax. problem solved.