Kevin recently turned 65 years of age. He moved to Canada 20 years earlier and has been working ever since and contributing maximum permissible amount to his CPP> During this period , he has saved $250,000 in his RRSP that are invested in a few balanced mutual funds with 7 % expected rate of return . James does not have any pension from his employer. He expects to live until age 90. Maximum CPP benefit for current year is $1,175 . His previous wife died a few years ago and he married Rose who moved to Canada about 12 years earlier from Spain.
Q1 : How much CPP benefit will James receive if he retired at 65?
Q2.Kevin is considering to continue working part-time for another 4 years and start drawing CPP after 4 years. How much CPP would James receive if he starts to draw his CPP benefits at age 69?
3) Rose has never worked in Canada and she never worked after moving here. Which of the following benefits will she receive?
4) If Kevin retired today and lived to age 90, how much will he receive from his Retirement Funds (RRSP / RRIF) annually assuming a rate of return of 7%.
5) Kevin's friend Henri is 63 and was born in Canada . Henri started working when he was 23 and has worked for 40 years . Given that the maximum CPP after working 40 years at age 65 is $1,175 , how much CPP benefits would Steve he retired at age 63?

Answer rating: 100% (QA)

Solution Q1 James Yeceive ll cpp at the age of 65 if he Yetives ie 1115 Q2 CP at age of ... View the full answer