Episode 301 - Optimal Government Pension Claiming

In this episode, we delve into the best time to claim your Canada Pension Plan (CPP) benefits and welcome back Prof. Meir Statman to talk about the role of finances in well-being. Although the focus of this episode is on Canada, there will be many relevant and valuable insights for our non-Canadian listeners. In our conversation, we discuss the importance of understanding the intricacies of CPP benefits, the fundamentals, and how individuals can optimize their retirement income by making informed decisions. Explore the importance of understanding when to claim CPP benefits, how much future financial security a CPP offers, and why the CPP is one of the most valuable retirement assets for most Canadians. Gain insights into how wage growth ties into CPP benefits, the exceptions to deferring a CPP claim, and what made 2022 different regarding CPP claims. Then, we investigate the role of finances in well-being with Prof. Meir Statman through the lens of his new book, A Wealth of Well-Being. Discover why wealth advisors must evolve into well-being advisors and uncover the impact of finances on various life domains. From dating to education, we discuss the profound financial correlations shaping happiness and well-being. Join us as we uncover the nuances of CPP benefits and find out why it is better to give with a warm hand than a cold one. Tune in now!

 

Key Points From This Episode:

 

(0:03:25) Unpack the fundamentals of the Canada Pension Plan (CPP) benefits.

(0:10:04) How the timing of making a CPP claim is linked to the benefits.

(0:14:15) Ben explains the financial implications of deferring a CPP claim.

(0:21:34) Uncover common approaches to identify the best time to claim a CPP.

(0:26:06) Learn about the situations when it is best not to defer a CPP claim.

(0:31:12) Why the CPP is one of the most valuable retirement assets for most Canadians.

(0:39:11) Introduction to returning guest, Prof. Meir Statman.

(0:41:11) How well-being fits into the study of behavioural finance.

(0:45:48) Discover the role of finances in different domains of life well-being.

(0:49:38) Hear why wealth advisors need to change to being well-being advisors.

(0:53:55) Explore the relationship between finances, social status, and overall well-being.

(0:58:42) Whether too much self-control in spending can be a problem.

(1:01:42) The effect of finances on dating and marriage and how work plays into well-being.

(1:05:38) Find out how education fits into well-being and why it is a major regret for people.

(1:11:32) Gain insights into how religion and faith can enhance well-being.

(1:15:12) The after-show: ideas for the podcast, feedback, segregated funds, and more!

Links From Today’s Episode:

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://twitter.com/RationalRemind

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 

Benjamin on X — https://twitter.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

Cameron on X — https://twitter.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/
Mark McGrath on X — https://twitter.com/MarkMcGrathCFP

Prof. Meir Statman — https://www.scu.edu/business/finance/faculty/statman/

Prof. Meir Statman on Twitter — https://twitter.com/meirstatman 

Episode 258: Prof. Meir Statman — https://rationalreminder.ca/podcast/258

The Canadian Institute of Actuaries (CIA) — https://www.cia-ica.ca/

Society of Actuaries (SOA) — https://www.soa.org/

FP Canada — https://www.fpcanada.ca/

When Should You Start CPP? — https://www.youtube.com/watch?v=r9vYji99fhk

CE Drive with Jason Watt — https://cedrive.podbean.com/

Episode 137: David Blanchett: Researching Retirement — https://rationalreminder.ca/podcast/137

Episode 254: David Blanchett: Regret Optimized Portfolios and Optimal Retirement Income — https://rationalreminder.ca/podcast/254

Episode 289 - Retiring Retirement Income Myths with the Retirement Income Dream Team — https://rationalreminder.ca/podcast/289

Jason Yi on LinkedIn — https://www.linkedin.com/in/jason-yi-cpa-ca-56544446/

Episode 225: The Index Fund "Tipping Point” — https://rationalreminder.ca/podcast/225

 

Books From Today’s Episode:

 

A Wealth of Well-Being — https://www.amazon.com/Wealth-Well-Being-Holistic-Approach-Behavioral/dp/1394249675

Wealthier — https://wealthierbook.com/

The Algebra of Wealth — https://www.amazon.com/Algebra-Wealth-Formula-Financial-Security/dp/0593714024

Sleep Well, Take Risks, Squish the Peas — https://www.amazon.com/Sleep-Well-Take-Risks-Squish/dp/0757324711/

 

Papers From Today’s Episode: 

 

‘The CPP Take-Up Decision: Risks and Opportunities’ — https://www.soa.org/4a223f/globalassets/assets/files/resources/research-report/2020/2020-cpp-take-up-decision.pdf

‘Get the Most from the Canada & Quebec Pension Plans by Delaying Benefits’ — https://www.fpcanadaresearchfoundation.ca/media/5fpda5zw/cpp_qpp-reseach-paper.pdf

‘Financial Advisor Compensation Structure and Client Equity Allocations’ — https://www.tandfonline.com/doi/full/10.1080/15427560.2023.2294812