Question
Please answer the following question clearly so I can read it, and please show the calculations. The year is 2019. Bob and Mary Smith have
Please answer the following question clearly so I can read it, and please show the calculations.
The year is 2019. Bob and Mary Smith have been married for 30 years and have resided in Canada their entire lives. Bob is a self-employed accountant who earned $150,000 in 2019. Mary is a VP at a large toy company and earned $220,000 in 2019. Bob and Mary have two children, Max and Bob Jr. Both children have finished college and are no longer dependant on Bob and Mary. Bob was born on July 19, 1963, and Mary was born on December 14, 1964.
Bob has contributed consistently to his RRSP and has a balance of $445,000 in his personal RRSP. He also has carried forward in terms of RRSP room in the amount of $23,500.
Bob has maximized his TFSA on an annual basis. He has yet to contribute to his TFSA in 2020. The balance in Bobs TFSA account is $97,500.
According to CRA Bob will receive $900 per month in CPP at age 65. At age 65 Bob will have contributed to CPP for 40 years.
Mary is a member of a DCPP. Her company matches her 3% contribution to this plan. Mary has also contributed to her RRSP annually. She presently has $375,000 in her RRSP and $260,000 in her DCPP.
Mary has $29,500 in RRSP carry forward.
Mary has maximized her TFSA annually and presently has a balance of $105,000 in her TFSA. She has yet to contribute to her TFSA in 2020.
According to CRA Mary will receive $1100 per month in CPP at age 65. At age 65 Mary will have contributed to CPP for 40 years.
Based on this information please provide answers to the following questions.
- If Bob retires at age 60 and takes his CPP at age 60 how much per month in CPP will Bob receive?
- Mary intends on working to age 67 because she loves her job. How much CPP will she receive at age 67?
- Assume Bob and Mary decide to both retire at age 65. If they assign their CPP benefits how much will each receive in CPP? How much is Marys assignable portion of her CPP?
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