I’m 63 years old. Like many of you, I have been asked by my LTD provider (Manlife) to apply for CPP-D, retroactive to the date I was approved for LTD. I didn’t think much of it, as I figured that I would be no worse off afterwards, since my LTD payment would just get reduced by whatever I receive in CPP-D.
In speaking with the Manulife agent though, I came to realize that CPP-D is taxable, while my LTD payments are not. Does this mean that I am actually not cashflow neutral afterall? On its own, I think the CPP-D payments are below my personal credits threshold, but I plan on drawing down on my RRSP’s over the next couple of years. Wouldn’t this put me in a position where I am receiving less proceeds than before?
Thanks in advance for your help on this.