I was talking to the ALZ director in my area and she said that our thoughtful Federal gov't is now looking to change the system here so that they can also take some of our assets to pay for the care of our spouses that are in a facility. Like they do in the states.
I plan to move somethings around to protect myself for my later years. I now had to take a leave from work because he can no longer look after himself so I am lossing years of pension contributions. I wonder if you can still contribute (CPP) when you are in this circumstance? Something to research.
Amber, This is the first I have heard of this plan by our dear Federal government, but I guess its not surprising, since a lot of the benefits we used to have available are slowly slipping away, one by one. Maybe they see the baby boomer tide coming, and are trying to plan for what that means in terms of social services. If you are not getting any employment income, then you are not contributing to the CPP. But there are provisions in the CPP program so that a person is not penalized so much because of a period of reduced income (such as when a woman is home with children). I retired early, so I took my CPP at age 60 (with all the reductions that causes) Does your LO receive CPP disability? My husband received CPP disability until he turned 65, when the regular CPP kicked in (I guess it goes to age 66 now, since full CPP doesn't kick in until then). The government website has some information, but if you are thinking about moving assets around, talk to a financial planner.
That is what I was thinking if there is something where the spouse has to leave work to care for their spouse how or if I can contribute. Haven't had a chance to research this.
I'm 55 so there is 10 years before I retire.....just got under the wire before they raise the age of retirement. Hubby is 78...been married lots of years. He is on CPP and OAS but not GIS because I made too much money but next year. Also his has a veteran pension and on their VIP program so income coming in while I'm not working is fine it's after he passes then what will I have for a pension income when I turn 65. Plus the lost contribution to my RRSP and should I even bother if the rules are changed. Money under the mattress is starting to look good.
http://www.servicecanada.gc.ca/eng/isp/cpp/cpptoc.shtml is the website - there is actually quite a bit of information on it but I don't think you can contribute if you are not receiving an earned income. But, if you haven't maxed out your RRSP's maybe you can continue to contribute to them? That's why I think you need to talk to an expert.
I retired at age 53, so all I had until last year was my RRSP's. Now at least I get some CPP, but after my hubby passes, we lose his CPP, OAS, and GIS and I will be in much the same predicament as you are. Yes, the money under the mattress plan is looking good!
CPP removes up to 15% of the years in which low or no income is on your employment record. If you worked most of your life this can mean removing up to six years of low earnings in order to get the average up. They do the math. However you can phone CPP and either get your record of employment from them or have them tell you what amount you would get.
That all depends on how many years you worked. If that's a high number you may only be marginally ahead if you try to contribute and I know of no way except self employment to continue and there you have to pay both parts ($4600).