CPP retirement pension: When to start your pension
Due to the coronavirus disease (COVID-19) outbreak, there are changes to this program.
The standard age to start the pension is 65. However, you can start receiving it as early as age 60 or as late as age 70.
If you start receiving your pension earlier, the monthly amount you’ll receive will be smaller. If you decide to start later, you’ll receive a larger monthly amount.
There’s no benefit to wait after age 70 to start receiving the pension. The maximum monthly amount you can receive is reached when you turn 70.
Request retroactive payments
If you apply after you turn 65, you can get retroactive payments of the CPP retirement pension for up to 11 months. The start date you choose to begin receiving your benefit will affect how much you’ll receive each month. There are no retroactive payments for a CPP retirement pension taken before age 65.
Should you wait to start collecting CPP
Your age affects your pension amount:
- If you start before age 65, payments will decrease by 0.6% each month (or by 7.2% per year), up to a maximum reduction of 36% if you start at age 60
- If you start after age 65, payments will increase by 0.7% each month (or by 8.4% per year), up to a maximum increase of 42% if you start at age 70 (or after).
Consider your personal circumstances
There are many factors you should consider when deciding when to start receiving your CPP retirement pension. These include your health, your financial situation, and your plans for retirement.
For example, if you’re healthy, expect to live a long life, or have access to other sources of income, you may choose to start receiving your CPP retirement pension later. This will result in a larger monthly pension, which could help protect you from outliving your savings.
However, if you’d prefer to work less, or you want the money now to pay off debts or to fund your retirement plans, you may choose to start receiving your pension before age 65. This will result in a smaller monthly payment which can help meet immediate needs, especially if you have little or no other income.
The Canadian Retirement Income Calculator can also help you better understand your future financial security.
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