In most cases, if your province was set in your PROFILE to Québec, the default is you will be eligible for QPP. If set to another province, the default is you will be taking CPP. However there can be exceptions to that. For example if you lived and worked in another province, but choose to retire in Québec, then you will be eligible for CPP and not for QPP. For this reason, we allow you to select the other plan by checking the box in the input form. The province in your PROFILE will still determine where provincial taxes are payable.

We have implemented the changes for QPP that were announced in the March 21 2023 Québec budget to apply from Jan 1, 2024. Although these changes will require legislative and regulatory amendments and as of this writing on April 1 2023,  we have not yet seen the details of their implementation. We'll be monitoring closely and will make changes as necessary. 

Nous avons mis en œuvre les changements pour le RRQ qui ont été annoncés dans le budget du Québec du 21 mars 2023 et qui s'appliqueront à partir du 1er janvier 2024. Bien que ces changements nécessitent des modifications législatives et réglementaires et qu'à ce jour, le 1er avril 2023, nous n'ayons pas encore vu les détails de leur mise en œuvre, nous les surveillerons de près et apporterons les changements nécessaires.

Yes, I realise it can be confusing, but all we have to indicate the name and type of the account is the header of the table and it's already a pretty long description. There's more opportunity in the detailed yearly reports to change the description of the account. Or we could add a note in the Warnings column.  I'll see what I can do to make it clearer.

The TIME MACHINE calculates the maximum withdrawal for the LIF depending on your age, province, and account balance at the end of the previous year. It won't let you withdraw any more than that, so you don't need to worry about that.  For a LIRA not yet converted, it won't let you withdraw anything unless your are 65 or over. This is to mostly to allow partial conversions to take advantage of the $2000 pension tax credit, and also because it knows that if you really need the money you would have converted the account.  It still won't let you take out more than the maximum calculated as if LIF though.

Your welcome! It's my pleasure.

Hi,

You don't need to enter the RIF or LIF, so just delete those accounts with 0 balance. The RRSP will be automatically converted to an RRIF and the LIRA to an LIF in the TIME MACHINE, at the age you set for them to be converted. They will keep any of the investments you entered. They will also keep their original name, but you should see at least the minimum withdrawals come out of the accounts in the years after conversion in the results.

Hi,

For 1) and 2).  Our GIS calculation is now entirely based on our implementation of the Old Age Security Act. The act describes how to compute the amounts for OAS, GIS , Alllowance, and Allowance for survivor, and that's how we do it.  We do need to also use the updated maximum amounts that are indexed every quarter (from https://open.canada.ca/data/en/dataset/ff1e4882-685c-4518-b741-c3cf9bb74c3e). We don't use the government pre-computed GIS tables (which apply only with full OAS pension, and we can reproduce in that case), and we don't make approximations for the clawback. I've clarified the eBook section on OAS/GIS.

With our calculations, indeed the GIS amount and the income threshold is increased for pensioners with partial OAS pensions, the retirehappy blog is entirely correct. The second blogger is also correct in their analysis of the tables, but if they want to derive the calculation, they should read the OAS Act :)

The OAS and GIS/Allowance calculations are made in each year of the TIME MACHINE so they adapt to circumstances and income levels in each year.

3) Yes we implement the QPP supplement, we refer to it as the PRB (Post-Retirement Benefit) for both QPP and CPP (although they are calculated slightly differently).

BTW If your parents are 65 or over and the TIME MACHINE calculates a GIS amount in all years, these runs will not count towards their MoneyReady App free trial.

There's a new calculator for OAS and GIS at https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security/payments.html#estimate-benefits.

It's not complete as it wimps out if you don't have a full OAS pension (less than 40 year residency in Canada), but it works well if you do.

I'm excited about it because it's the first time I see any source code (the javascript is right there in the html source of the page) for calculations available for any calculations from the Canadian government. The US social security system has provided full source code for their calculations for many years.

I'm happy to announce the MoneyReady Forum!

As a registered user of the MoneyReady App, you are automatically registered for the Forum.

Logging in to the App will also log you into the Forum so you can post there. A forum username has been created for you that is separate from the app's username. You can change it in your forum profile.

I have pre-populated the forum with loads of information:

1. The Questions/Answers (Q/A) board has been pre-populated with a curated set of questions that you have sent me. These are all attributed to the fake user "anonymous" for your privacy/security. If you recognize your words and want your forum username credited, just let me know. If a past question of yours is not there already and is still relevant, feel free to post it so others can benefit.
2. The Feature requests board replaces our Votes capability. Post a reply to any feature to vote for it.
3. The General forum is for providing useful resources, discussions, and more general questions on personal finance that you think would be useful or interesting to MoneyReady App users.
4. There's an Announcements board for all our past and future announcements. This is read-only.
5. There are 2 FAQS boards, one general (public) and a more specific one for logged-in users. These are also read-only. If you have any questions about the Announcements or the FAQs, you can post them in the Q/A.

Posting is free, however to prevent spam, all topics and posts from users without an active paid subscription to the MoneyReady App will be hidden from view until they are approved by a moderator. We aim to take less than 24 hours to approve posts. You will be notified by email once your post is approved.

Please read the Forum rules for all the details.

Looking forward to reading your posts!

Your comments and feedback are always appreciated.

I should have specified taxable income. Here’s the gory details:

1.If we have previous year’s taxable incomes for the spouses (sum of the two is not 0), we use those to determine the proportion, so that deals will all the income splitting/sharing.

2.If that doesn't work we use the current total incomes of each spouse. That’s before the CPP/taxes calculations, so no pension splitting/sharing is considered in that case.

3.If that doesn’t work we use the net worths of each spouse (previous year, sum of the two is not 0).

4.If that doesn’t work we use 50%.

This is re-calculated for every year in the TIME MACHINE.

#1 usually works although #2 is often applied in the current year if a user doesn’t bother to enter last year’s taxable incomes in the TM preflight input screens. 

#3 and #4 rarely happen.

Yes,

That’s mostly correct. Joint expenses are attributed proportionally to income so not necessarily 50%. But you got the important point that each spouse pays them from their own accounts (and joint accounts when available).

The MoneyReady App was launched in the summer of 2019. Almost 4 years later, after answering many questions, getting great feedback, and having many discussions with users by email, I decided to start this community forum in March 2023 so that everyone can benefit from these discussions.

Because nobody likes an empty forum, meet user anonymous:
This is a fake user created to populate the forum with real questions that were sent by email to the MoneyReady App. Those emails and our responses have been curated to select the most common, interesting, and still relevant today. They have been edited for clarity and to remove any identifying information for privacy and security. Typos are all mine.

If you recognise your words because you are the original writer of a topic and want proper attribution, let me know so we can fix the attribution.

Welcome to the Money Ready Forum. Looking forward to reading your posts!

Now please go read the Rules before proceeding.

A new graph for the marginal tax rate has been added to the TIME MACHINE results.

Well that should tell you there are already too many graphs :)

Hi,

For REVENUES, INCOMES, EXPENSES, and AUTOMATIC SAVINGS/WITHDRAWALS, you can now specify a currency (previously assumed to be CAD). LOANS, ACCOUNTS, and INVESTMENTS already had that feature.

A model for the USD/CAD exchange rate was added to the Market model for Monte Carlo simulations.

The first interpretation is correct. If you already have 6 runs saved, it’ll ask which of those you want to delete before allowing you to save your last run.

Interpretation 2 would be cruel!