Take CPP at 60 or 65? Canada Analysis 2025

The definitive breakdown of taking CPP early vs. waiting — with break-even ages, total lifetime income, and factors that tip the decision.

The Adjustment Rules

CPP has a built-in early and late start adjustment:

• Before 65: pension reduced by 0.6% per month (7.2% per year)
• At 65: standard pension
• After 65: pension increased by 0.7% per month (8.4% per year)

Taking CPP at 60 results in a 36% reduction from the age-65 amount. Waiting until 70 results in a 42% increase.

Monthly Amounts Compared (Based on $1,364 Max at 65)

Start Age	Monthly CPP	Annual CPP
60	~$874/month	~$10,488/year
61	~$935/month	~$11,220/year
62	~$996/month	~$11,952/year
63	~$1,057/month	~$12,684/year
64	~$1,118/month	~$13,416/year
65	~$1,364/month	~$16,368/year
67	~$1,501/month	~$18,012/year
70	~$1,935/month	~$23,220/year

Break-Even Analysis: 60 vs. 65

Taking CPP at 60 gives you 5 extra years of payments (60 months), but each payment is 36% smaller. The cumulative totals converge at approximately age 74–75. If you live beyond age 74–75, you receive more total income by waiting until 65.

The average Canadian 60-year-old today can expect to live to approximately 85 (men) or 88 (women). By this measure, the majority of Canadians will come out ahead by waiting until 65 or later.

Break-Even Analysis: 65 vs. 70

Deferring from 65 to 70 means forgoing 5 years of payments ($1,364/month = $81,840). The higher monthly amount at 70 ($1,935 vs. $1,364 = $571/month more) breaks even at approximately age 82–83. Beyond that age, deferring pays more in total lifetime income.

Factors Favouring Taking CPP Early (60–63)

• Serious health problems or shorter life expectancy
• Urgent financial need; no other income sources
• Plan to invest CPP payments aggressively (though this requires consistent discipline)
• Stopping work early and having no other income bridge

Factors Favouring Waiting (65–70)

• Good health and family history of longevity
• Other income sources to bridge to 65 or 70 (RRSP, TFSA, part-time work)
• Want to maximize inflation-protected, guaranteed lifetime income
• Concerned about outliving savings
• Desire to minimize OAS clawback (more income at older age when expenses often fall)

The Tax Angle

CPP is taxable. If you take CPP early while still working, it can push you into a higher marginal tax bracket — reducing the net benefit. Waiting until you've stopped working keeps CPP income in a lower tax bracket, increasing its after-tax value.