Key fact: Taking CPP at 60 reduces your monthly payment by 36% compared to starting at 65. The maximum monthly CPP at age 60 in 2025 is approximately $917/month vs. $1,433 at 65.
Age 60 is the earliest you can start collecting Canada Pension Plan (CPP) retirement benefits. It's a tempting option — getting paid five years sooner sounds appealing. But the permanent reduction in your monthly payment is steep. This guide walks through when taking CPP at 60 makes sense, and when it doesn't.
How Much CPP Do You Get at 60?
Taking CPP before age 65 results in a permanent reduction of 0.6% per month (7.2% per year) for every month before your 65th birthday. At exactly age 60, that's 60 months early:
60 months × 0.6% = 36% reduction
Maximum CPP at 65 (2025): ~$1,433/month
Maximum CPP at 60 (2025): ~$917/month
Typical recipient at 60: ~$530–$650/month (based on average contribution history)
This reduction is permanent — it doesn't go away when you turn 65.
The Break-Even Age for Taking CPP at 60 vs. 65
If you take CPP at 60 instead of 65, you collect 5 more years of payments. But each payment is 36% smaller. The break-even point — where the total lifetime payments are equal — is approximately age 74.
Scenario
Total CPP by Age 75
Total CPP by Age 85
Start at 60 ($917/mo)
~$165,060
~$275,100
Start at 65 ($1,433/mo)
~$143,300
~$263,540
Start at 70 ($2,035/mo)
~$61,050
~$183,150... then surpasses both
If you live past roughly age 74, starting at 65 provides more lifetime income than starting at 60. If you live past roughly 83, deferring to 70 beats both.
Pros of Taking CPP at 60
1. You get paid now. Five extra years of payments, even at a reduced rate, adds up. If you need the income, starting early is better than not having it.
2. You can invest early payments. If you don't need the income and invest the difference, you may come out ahead depending on investment returns.
3. Health concerns justify it. If you have serious health issues or a family history of shorter life expectancy, taking CPP early locks in more total lifetime payments.
4. Reducing RRSP withdrawals. CPP income at 60 can reduce the need to draw down RRSPs early, letting them grow longer.
5. Pension income splitting. Retirement pension income (including CPP) can be split with a lower-income spouse at age 60+ to reduce household taxes.
Cons of Taking CPP at 60
1. Permanent 36% reduction. You lose $516/month compared to the maximum at 65 — for the rest of your life.
2. Inflation compounds the loss. CPP is indexed to inflation. A smaller base means smaller inflation adjustments every year, compounding the gap.
3. Lower income in your 80s. If you live a long life, taking CPP at 60 could mean significantly less income when you may need it most.
4. Tax implications. If you still have employment income, CPP at 60 stacks on top and could push you into a higher tax bracket.
5. Cannot undo the decision. Once you start CPP, you can't stop or reverse it (there's a 6-month repayment window to cancel, but only if you repay everything received).
Who Should Take CPP at 60?
Taking CPP at 60 makes the most sense if:
You have a terminal illness or serious health condition
You have strong family history of shorter lifespans
You have no other income sources and genuinely need the money now
You plan to invest every dollar and your expected investment return exceeds ~5% real
You're leaving Canada and won't be subject to high Canadian marginal tax rates
Who Should NOT Take CPP at 60?
Avoid taking CPP at 60 if:
You're still working full-time — CPP income on top of employment income creates a high tax bill
You're in good health with a family history of longevity (85+)
You have sufficient income from other sources (RRSP, TFSA, pension, part-time work)
You want to maximize your guaranteed lifetime income
Middle path: Many financial planners suggest starting CPP at 65 as the default, unless there's a specific reason to go earlier or later. It avoids the steep 36% cut and doesn't require a long deferral period.
The 1-Year Repayment Window
If you start CPP and change your mind, you have a one-time option to cancel. Within 6 months of your first payment, you can request to cancel CPP, repay all amounts received, and "reset" as if you never started. This can only be done once. If you repay and restart later, you'll receive a higher amount.
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Yes. You can receive CPP at any age while working. If you're under 65, contributions are mandatory if you work. Between 65–70, contributions are optional. Your additional contributions create a Post-Retirement Benefit (PRB) that increases your monthly amount.
Does taking CPP at 60 affect OAS?
No. OAS is separate from CPP and starts at 65 (or later if deferred). Taking CPP early has no impact on your OAS eligibility or amount.
What's the minimum CPP at age 60?
There's no set minimum. Your CPP amount depends entirely on your contribution history. Someone with minimal contributions might receive as little as $50-$100/month at 60.